Where Can I Get a Personal Loan? 5 Best Options To Know

If you’re looking for a personal loan, you likely have more options than you even realize. Banks, credit unions, online lenders and peer-to-peer (P2P) platforms all offer personal loans, each with their own unique pros and cons. The best place to get a personal loan depends on your credit, how much you need to borrow and how fast you need it.

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

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What Are the Best Places To Get a Personal Loan?

Here’s a quick overview of the most common options for places to get a personal loan:

Keep in mind that these are general ranges and benchmarks for each option based on current market data. Offers can also vary significantly by lender, and will be impacted by factors like your credit score, income and more.

Here’s an example:

• If you have a consistent high income, a great credit score and a straightforward application with all the required documentation. You could be approved at a competitive rate quickly.

• That same lender may take a week or more to approve someone with a more complicated application, or give someone with a lower credit score a higher annual percentage rate (APR).

If you’re running into issues getting approved, it may be worth understanding why you can’t get a loan and what lenders are looking for.

How Do Banks, Credit Unions and Online Lenders Compare?

Banks

• Best for: Borrowers with good credit and an established relationship

• Speed: Typically one to five business days for straightforward applications

• Requirements: Good credit score, steady income and sometimes an existing account

Banks are a solid starting point if you already have an account there, have good credit and want traditional personal loans.

Many of the best banks offer relationship discounts, which means you may qualify for a lower rate if you have a checking or savings account with them. That existing relationship can also speed up the approval process.

Credit Unions

• Best for: New and existing members who want low, predictable rates

• Speed: Typically one to seven days

• Requirements: Membership, good credit, proof of income

Credit unions are member-owned, which means profits go back to members in the form of lower rates and fees. The National Credit Union Administration (NCUA) actually caps interest rates at 18% APR, so no matter what you won’t be paying more than 18%.

The catch? You typically need to be a member to borrow. Some of the best credit unions are open to anyone. PenFed Credit Union, for example, allows anyone to join and offers personal loans up to $50,000 starting at 6.74% APR with autopay.

Others restrict membership based on specific eligibility criteria like location-based residency or employment with specific companies.

Online Lenders

• Best for: Borrowers who want fast funding or an easy way to compare rates

• Speed: Same day to three business days

• Requirements: Varies, with some accepting fair credit, though proof of income is typically required

Online loans are often the fastest and most flexible option. You can compare rates from multiple lenders in minutes and many offer same-day or next-day funding. They also tend to be more willing to work with borrowers with fair credit, though rates often rise as credit scores fall.

P2P Platforms

• Best for: Borrowers who prefer non-bank lenders and don’t mind a slightly longer process

• Speed: Typically three to seven days, but can be longer

• Requirements: Credit check required, though typically more open to various scores

P2P lending platforms connect borrowers directly with individual investors. Instead of borrowing from a bank, you’re borrowing from people who have funded a pool of loans. Rates can be competitive, but most platforms require a minimum credit score and many charge origination fees.

For example, Prosper offers loans with APRs ranging from 8.99% to 35.99% and origination fees of 1% to 9.99%.

Which Lender Is Best for Your Situation?

Choosing the right lender depends on your priorities, whether that’s getting the lowest rate, fast funding or more flexible approval criteria.

• Low rates: Banks or credit unions

• Fast funding: Online lenders

• Flexible approval: Online lenders or P2P platforms

Can You Get a Personal Loan Without a Bank Account?

It’s difficult but not impossible to get a personal loan without a bank account. Most lenders, including online lenders, require a bank account to disburse funds and collect payments.

That said, some lenders may provide options:

• Credit unions can be the most flexible. Some allow you to open a membership with as little as $5 and then apply for a loan from there. This is a low barrier of entry if you’re otherwise qualified.

• Online lenders typically don’t require you to have an existing account with them. However, they do need somewhere to send the funds, so a bank account in general is still typically required.

What Should You Look for in a Lender?

When considering different lenders, keep these factors in mind:

• APR: This is your total cost of borrowing, including interest and fees. Always compare APRs across lenders and consider the rate you’re likely to qualify for, not just the advertised minimum.

• Fees: Watch for origination fees, prepayment penalties and high late payment fees. A lender with a slightly higher rate but no origination fee could end up costing less, depending on the other loan terms.

• Funding speed: If you need money quickly, prioritize lenders that offer same-day or next-day funding.

• Loan amounts and terms: Make sure the lender offers the amount you need and repayment terms that fit within your budget.

• Customer reviews: Lenders will always present themselves favorably on their own websites. Check third-party review platforms to see what real borrowers say about the experience.

How Do You Apply for a Personal Loan?

The process for getting for a personal loan is fairly straightforward. Here’s what to expect:

1. Check your credit: Pull credit reports from all three credit bureaus at AnnualCreditReport.com. This gives you an idea of your current standing, but also look for any errors that could be dragging down your score.

2. Compare lenders: Use the guidance above as a starting point, and narrow down to two or three lenders that fit your credit profile and borrowing needs.

3. Prequalify with a soft pull: Most lenders allow you to check your estimated rate without affecting your credit score. Do this with a few lenders before committing to a full application process.

4. Gather your documents: You’ll typically need a government-issued ID and proof of income through documentation like pay stubs, tax returns or bank statements. Some lenders may ask for additional documentation.

5. Submit your application: Once you choose a lender, complete the full application. The lender will run a hard inquiry at this stage, which can temporarily lower your score by several points.

6. Accept and receive funds: If you’re approved and you accept the loan terms, funds will be deposited directly into your bank account. The time frame depends on the lender.

How Do You Choose the Right Loan?

The right loan is the one you can qualify for at the lowest possible rate, with a monthly payment that fits comfortably within your budget.

Here are a few quick tips:

• If you already have a relationship with a bank or credit union, start there. You may get a better rate as an existing customer.

• If speed matters most, start your search with an online lender that advertises quick review and funding processes.

• If you only need a small amount to bridge a gap, a lending app may be the simplest solution.

Whatever you choose, make sure you understand the full cost of the loan, including any fees and your APR, before signing on the dotted line. And only borrow what you genuinely need and can comfortably afford to repay.

Key Terms

• Personal loan: An unsecured, fixed-amount loan from a bank, credit union, online lender or other source that's repaid in fixed monthly installments over a set term. Because it's unsecured, no collateral is required.

• Annual Percentage Rate (APR): The total yearly cost of borrowing, expressed as a percentage, that includes both the interest rate and any lender fees. Comparing APRs across lenders gives you a true apples-to-apples cost comparison.

• Credit union: A member-owned, nonprofit financial cooperative that returns profits to members through lower rates and fees. The NCUA caps credit union loan interest rates at 18% APR.

• Origination fee: An upfront fee charged by a lender to process and fund a loan, typically expressed as a percentage of the loan amount and deducted from or added to the total loan.

• Peer-to-peer (P2P) lending: A model in which borrowers receive funds from a pool of individual investors through an online platform rather than from a traditional bank or financial institution.

• Hard inquiry: A credit check that’s triggered when you submit a formal loan application; it allows a lender to review your full credit report and can temporarily lower your credit score by a few points.

• Debt-to-income ratio (DTI): Your total monthly debt payments divided by your gross monthly income, expressed as a percentage. Lenders use DTI to gauge your ability to manage additional monthly payments.

Sources

• Consumer Financial Protection Bureau: What is the difference between a loan's interest rate and its APR?

• Consumer Financial Protection Bureau: What is a debt-to-income ratio?

• Consumer Financial Protection Bureau: What is a prepayment penalty?

• National Credit Union Administration: NCUA Board Extends Loan Interest Rate Ceiling

Karen Doyle contributed to the reporting for this article.

Jasmin Baron, CCC™, contributed to editing this article.

Photo credit: Geber86 / Getty Images

Parts of this article were created with AI assistance. MoneyLion editors reviewed, fact-checked and edited the final version and are responsible for its accuracy.