Good credit makes borrowing easier. Great credit makes borrowing downright cheap.
Borrowers with good credit — generally considered a credit score of 690 to 720 — typically find favorable interest rates on most unsecured personal loans, which don’t require collateral and can be used to consolidate credit card debt, make home improvements or pay for a vacation.
Those with excellent credit scores, above 720, have it even better. They are likely to find offers for credit cards with 0% introductory interest rates, a better option than personal loans if the debt can be paid quickly. But they also have options from lenders that cater to them with ultra-low rates, low or no fees, and loan amounts as high as $100,000.
As someone with good credit, you should shop around at many online lenders to get the best combination of low rates, fees and payment flexibility. Most lenders will let you check the rates you could get without affecting your credit (using what’s called a soft check), so it’s worth taking the time to compare offers.
In this article
Personal loans for excellent credit
Personal loans for good credit
Personal loans for credit card consolidation
Personal loans for ‘thin’ credit files
Personal loans for excellent credit
You can usually qualify for a personal loan from a bank, credit union or online lender with excellent credit. You will typically receive a hard credit check at your bank or credit union, while online lenders often let you see the rates they’d offer you with only a soft check.
Some online lenders have better features than others. LightStream, Earnest and SoFi are geared toward those who have stellar credit, offering low fees and high loan amounts.
LightStream tailors interest rates to suit your loan purpose, and it offers low rates normally reserved for secured loans. It also doesn’t charge an origination fee. If you have several years of good credit history, spread across different types of debt, then a LightStream loan is a good choice.
Earnest charges no fees of any kind. Its borrowers typically have credit scores above 700 and a high income, and are responsible with their finances. The lender also lets you adjust due dates and loan terms whenever you like.
SoFi lends to people with good credit and high incomes. The company doesn’t charge any origination fees and it offers loans in a wide range, from $5,000 to $100,000. SoFi builds a community around its borrowers, setting up networking events and happy hours. It also pauses loan payments and provides career counseling if a borrower becomes unemployed.
• APR: Start at 2.99% (boat, RV) to 4.99% (credit card and debt consolidation), ranging up to 14.49%
• Loan amount: $5,000-$100,000
• Loan terms: 2-7 years
• Minimum credit score: 680
• Time to funding: Same day, with option of up to 30 days from approval
• Fees: None
• APR: 5.25%-12%
• Loan amount: $2,000-$50,000
• Loan terms: 1-3 years
• Minimum credit score: None
• Time to funding: 2-3 business days to 1 week
• Fees: None
• APR: 4.74%-11.59% variable, 5.95%-13.24% fixed
• Loan amount: $5,000-$100,000
• Loan terms: 3-7 years
• Minimum credit score: None
• Time to funding: A few business days
• Fees: Late fee 4% of payment or $5, whichever is lower
Personal loans for those with good credit
Prosper and Lending Club are the largest peer-to-peer lenders in the online lending space. Peer-to-peer or marketplace lenders connect borrowers with investors who fund their loans. Both lenders offer favorable interest rates for borrowers with good credit.
Lending Club’s APR starts at 5.99%, but it also has a special lower rate of 4.99% for those with excellent credit. The lender has more flexible loan terms, a slightly wider loan amount window (loans start at just $1,000) and a lower minimum credit score requirement than Prosper.
Prosper is also a solid choice for those with good credit. The lender gives borrowers access to their credit scores and a personal finance management app to keep track of their spending habits.
• APR: 5.99%-36%
• Loan amount: $2,000-$35,000
• Loan terms: 3 or 5 years
• Minimum credit score: 640
• Time to funding: 3-5 business days
• Fees: Origination fee 1% to 5% of loan; late fee 5% of payment or $15, whichever is greater
• APR: 5.99%-35.96% (4.99% with excellent credit)
• Loan amount: $1,000-$40,000
• Loan terms: 3 or 5 years
• Minimum credit score: 600
• Time to funding: Usually 7 days
• Fees: Origination fee 1.11% to 5% of loan amount; fees for late payment, unsuccessful payment and personal check use
Personal loans for credit card consolidation
All online lenders will let you borrow money to consolidate debt.
Payoff has made credit card consolidations its bread and butter, so if that’s your need, the lender should be high on your list of options. It should be noted, however, that a good credit score may qualify you for 0% balance transfer offers, which can be a less expensive way to pay down debt if you can do so in the time allotted.
Borrowing to consolidate any kind of debt should only be done as part of a bigger plan to get out of debt. There’s little point in taking out a personal loan to pay off credit cards unless you stop using the cards.
If your credit score is affected by high utilization of your revolving credit limit, a credit card consolidation loan may help your credit score by moving debt into the installment category, which is considered separately.
• APR: 8%-22%
• Loan amount: $5,000-$25,000
• Loan terms: 2-5 years
• Minimum credit score: 660
• Time to funding: 2-5 business days
• Fees: Origination fee 2% to 5% of loan; $15 unsuccessful payment fee
Personal loans for borrowers with ‘thin’ credit
A lot of factors go into determining your credit score, and one of them is the length of your credit history. It’s entirely possible to have a good credit score but a short history (also known as a “thin” file), particularly for millennial borrowers who haven’t yet established themselves financially.
Many new online lenders target borrowers who are new to credit or have unestablished credit. These lenders often consider nontraditional factors such as your college major, profession and school in addition to your credit score.
Earnest, Upstart and Pave cater to college-educated borrowers.
Earnest says it has no minimum years of credit history requirement, but borrowers typically have high incomes and are responsible with their finances.
Upstart has no minimum credit history requirement and it also lends to those who don’t have enough of a credit history to generate a FICO score, provided their educational and financial histories are strong. Upstart is a tech-focused company, so it offers some perks to those who borrow money to learn code.
Pave rewards ambitious borrowers — giving lower interest rates to those who want to enroll in educational courses or take steps to improve their careers.
• APR: 5.25%-12%
• Loan amount: $2,000-$50,000
• Loan terms: 1-3 years
• Minimum credit score: None
• Time to funding: 2-3 business days to 1 week
• Fees: None
• APR: 4.66%-29.99%
• Loan amount: $1,000-$50,000
• Loan terms: 3 or 5 years
• Minimum credit score: 640
• Time to funding: Next business day
• Fees: Origination fee 1% to 6% of loan amount; late fee 5% of payment or $15, whichever is greater
• APR: 6%-26.26%
• Loan amount: $3,000-$25,000
• Loan terms: 2-3 years
• Minimum credit score: 660
• Time to funding: A few business days
• Fees: Origination fee 1% to 6% of loan amount; late fee 5% of payment due or $15, whichever is greater; $2 personal check fee
If you have a family member or friend with good credit willing to co-sign a loan for you, also consider Vouch or Backed.
Vouch lets borrowers add one or more co-signers to the loan and reduces interest rate and fees according to the number and quality of co-signers. Backed allows one co-signer, and tries to reduce the risks of backing a loan, giving co-signers an early warning about missed loan payments and a grace period to pay the obligation.
• APR: 10.68%-29.99%
• Loan amount: $2,000-$15,000
• Loan terms: 1-3 years
• Minimum credit score: 600 for borrower, 580 for sponsor
• Time to funding: Next day
• Fees: Origination fee 2% of loan; late fee 5% of payment or $15, whichever is greater
• APR: 2.9%-16%
• Loan amount: $3,000-$25,000
• Loan terms: 1-3 years
• Minimum credit score: 660 without co-signer; none with co-signer, but co-signer needs 720
• Time to funding: 2-4 business days
• Fees: Origination fee 0.8% to 2% of loan; late fee $20 after 15-day grace period; personal check fee $10
More from NerdWallet
Compare personal loans rates and terms
Personal loans for debt consolidation
Bank, credit union or online lender? Where to find a personal loan
Amrita Jayakumar is a staff writer at NerdWallet, a personal finance website. Email: ajayakumar@nerdwallet.com. Twitter: @ajbombay
This post was updated. It was originally published Oct. 15, 2015.
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