Having a good credit score is like getting the golden ticket to a world of financial opportunities — it gives you access to the best personal loans for good credit and helps you negotiate better terms for most financial products. 

However, though an above-average credit score allows you to qualify for more competitive rates, never automatically assume that the first offer on the table is your best. If you’re in the market for a personal loan and want to secure the best deal possible, it’s crucial to shop around and compare what each lender offers. 

Axos

The 7.99% to 15.19% annual percentage rate (APR) is one of the most competitive interest rates on the market. However, you need a credit score of 700 or above to qualify. 

Discover

With Discover personal loans, you could borrow up to $35,000 and receive the funds in your bank account within one business day. 

LightStream

LightStream offers personal loans of up to $100,000 — great for borrowers needing a large amount of cash upfront and fast. Once approved, you can often receive the funds the next business day. 

Marcus

The Goldman Sachs brand, Marcus, offers savings accounts, CDs, and personal loans. What distinguishes Marcus from its competitors is that it charges no fees — even for late payments. 

PenFed

PenFed Credit Union offers personal loans between $600 to $50,000 to borrowers with good-to-excellent credit. 

SoFi

SoFi offers personal loans of up to 100,000 — ideal for those who need a large sum of money upfront to finance home improvement projects, debt consolidation, or large medical bills, for example.  

Methodology

Credible evaluated loan and lender data points in eight categories to identify the “best companies” for personal loans. We looked at interest rates, repayment terms, repayment options, fees, discounts, and customer service availability offered by 21 lenders. We also considered each company’s max loan amount, how long it takes to receive funds, whether the minimum credit score is available publicly, and whether consumers could request rates with a soft credit check. Credible receives compensation from its lender partners when a user of the Credible platform closes a loan with the lender.

Related: Learn more about getting a personal loan on Credible.com

A personal loan is a form of installment loan that you can use for any purpose — whether to purchase a large-ticket item or pay off high-interest debt. Plus, unlike secured loans, such as mortgages or car loans, personal loans don’t require you to provide any collateral and can be a convenient way to finance major purchases. 

Once you’re approved for a personal loan, you’ll receive a lump sum of money that you pay back with interest over a set period. But before submitting your loan application, it’s crucial to perform due diligence and compare various personal loan options. This extra, but important step, ensures you’ll get the best interest rate and terms available — which could save you thousands over the life of the loan.

Check your credit score

Your credit score is a major deciding factor that personal loan lenders use to determine whether to lend you money. Although there’s no universal minimum credit score to qualify for a personal loan, most lenders prefer to see a score of 660 or above. 

If you don’t know where you stand in terms of your credit health, head to AnnualCreditReport.com and get a free copy of your report from all three major credit bureaus — Equifax, Experian, and Transunion. With this information, you’ll have a better idea of which loans you could qualify for, saving you time and effort when comparison shopping. 

To score the best deal when shopping for personal loans, it’s important to know what interest rates are considered better than average. Generally, good-credit loans that require a minimum FICO score of 660 have an APR  between 7.00% to 16.00%. 

Axos Bank, for instance, offers a fixed APR of 7.99% to 15.19% for those with good credit. PenFed Credit Union provides a similar APR of 7.74% to 17.99% — for qualifying personal loan applicants.

Your monthly personal loan payments can vary significantly based not only on the amount borrowed and APR but also on the length of your loan term and any extra charges such as origination fees. 

Consider all these factors when comparison shopping to make an informed decision about which personal loan best fits your budget. It’s important to understand the nuances of each offer, so ask questions if anything is unclear. 

What is an average interest rate for a good-credit loan?

The interest rate for a good-credit loan is typically below the national average rate, which is currently at 10.16%, according to Experian.

If you have a good credit score (670 to 739), the interest rate on your personal loan is usually less than for those borrowers who qualify for fair-credit personal loans.

APRs for personal loans range between 10.00% and 36.00%, according to Equifax. Borrowers with good credit scores are likely to find themselves on the lower end of this spectrum, while those with fair credit may be toward the higher end. 

While the difference between these two percentages might not seem huge, if you’re looking to borrow a large sum of money, the landscape gains more color. Even the slightest reduction in percentage rate can lead to significant savings over the course of repayment.

Personal loans typically range from $500 to $100,000. If you have excellent credit and regular income, you might be able to borrow up to the maximum allowed.

Before taking the plunge and taking out the maximum loan amount allowed, consider the associated costs of personal loans, such as origination fees and application fees. Origination fees are usually 1% to 10% of the loan amount, whereas application fees can range widely depending on the lender. You may not need to pay an application fee at all, if your credit’s good-to-excellent.

If you’re on the fence about a personal loan or don’t think it makes financial sense for you, it’s worth considering other options. We list a few alternative solutions below:

Balance transfer cards typically offer a 0% introductory APR for 15 to 21 months. By taking advantage of this introductory period, you can quickly tackle your high-interest debt without worrying about additional interest charges.

With a HEL, you borrow a specific amount of money up front and then make fixed payments over time. A HELOC, on the other hand,  provides an open credit line where you draw amounts as needed and then make payments on the outstanding balance over time. 

Federal credit unions must not extend credit to borrowers exceeding 18.00% APR annually — even for those with less-than-stellar credit scores, according to the National Association of Federally-Insured Credit Unions. 

Compared to some online lenders that offer personal loans with an APR of 36.00% or higher, this much lower rate can help you save significantly on interest payments. 

All financial products come with benefits and drawbacks. Let’s weigh the benefits of a personal loan against the costs to help you decide whether it’s right for you. 

Related: Learn more about getting a personal loan on Credible.com