Top 5 Low-Interest Personal Loans of 2023
Personal loans can be a great way to access funds for major expenses or consolidate high-interest debt. With interest rates on the rise, finding affordable personal loans is more important than ever. In this article, we’ll outline the 5 best low-interest personal loans available in 2023 to help you find the right loan for your needs.
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1. LightStream – Rates as low as 5.99%
LightStream, offered by SunTrust Bank, offers some of the lowest interest rates on personal loans, with APRs starting at just 5.99% for those with good credit.
Some key features:
- Loan amounts from $5,000 to $100,000
- No fees or origination costs
- Funds available same-day upon approval
LightStream offers unsecured personal loans, meaning no collateral is required. They also have a unique “rate beat” program where they will beat a verified competitor’s rate by 0.10%.
LightStream Highlights:
- Low minimum APR of 5.99%
- No origination fees
- Ability to prequalify online with soft credit pull
LightStream makes it easy to see if you prequalify online without impacting your credit score. If approved, you could have funds deposited as soon as the same day.
2. Marcus – Rates as low as 6.99%
Marcus by Goldman Sachs, the online consumer lending arm of Goldman Sachs, offers personal loans with competitive rates starting at 6.99% APR.
Key Marcus personal loan features:
- Fixed rates from 6.99% to 19.99% APR
- No fees or prepayment penalties
- Loan terms from 3 to 6 years
- Loan amounts from $3,500 to $40,000
Marcus offers only unsecured personal loan options. While they don’t disclose their exact credit requirements, they do note good credit is required for their lowest rates.
Marcus Personal Loans Highlights:
- Low minimum APR of 6.99%
- No origination or prepayment fees
- Easy online application process
Marcus offers an easy online application process and access to customer support 7 days a week if any questions come up. Funds can be deposited as soon as the next business day upon approval.
3. Upgrade – Rates as low as 7.99%
Upgrade offers competitive personal loan rates starting at 7.99% APR with loan amounts up to $50,000.
Some top features of Upgrade personal loans:
- Fixed rates from 7.99% to 35.97% APR
- Loan terms from 2 to 7 years
- No prepayment penalties
- Soft credit pull available to check rates
Upgrade is an online lending platform providing unsecured personal loans tailored to each borrower’s unique credit profile. In addition to low rates, they also offer resources like credit monitoring and financial tools.
Why Consider Upgrade:
- Rate beat program to match competitor’s rates
- Credit Health Dashboard for monitoring your credit
- Loans amount up to $50,000
Upgrade makes it easy to shop for rates without hurting your credit. Prequalifying gives you an estimated rate with just a soft credit inquiry.
4. SoFi – Rates as low as 8.24%
SoFi offers personal loans with variable rates starting at 8.24% APR.
Here are some key details on SoFi personal loans:
- Variable rates from 8.24% to 21.28% APR
- No origination fees or prepayment penalties
- Loan terms from 2 to 7 years
- Loan amounts from $5,000 to $100,000
As an online lender, SoFi offers a straightforward loan application process that can be completed entirely online. Approved borrowers could receive funds as soon as the next business day.
SoFi Personal Loan Benefits:
- No origination fees or prepayment penalties
- Unemployment protection available
- Options to defer payments if needed
SoFi members get access to unemployment protection, career advisors, and the ability to pause payments, all helpful perks for borrowing peace of mind.
5. Payoff – Rates as low as 8.29%
Payoff, a lender focused on helping consumers consolidate and pay off debt, offers personal loans starting at 8.30% APR with loan amounts up to $45,000.
Some Payoff personal loan details:
- Fixed APRs from 8.29% to 24.49%
- Loan terms from 2 to 5 years
- Loan amounts from $5,000 to $45,000
- No application or origination fees
Payoff offers only fixed-rate loans to allow borrowers to better predict their total repayment costs. In addition to their low rates, Payoff offers complimentary access to credit monitoring and financial tools.
Why Choose Payoff?
- Rate discount for enrolling in auto-pay
- Credit monitoring to help build your credit
- Loans specifically to consolidate debt
Overall, Payoff personal loans are competitively priced and offer nice perks to help borrowers work toward financial health.
Other Low-Interest Personal Loan Options
There are several other lenders also offering affordable personal loans, including LendingClub, LendingPoint, OneMain Financial, and Avant. It’s important to compare rates and terms to find the best loan for your situation.
Key Factors When Comparing Personal Loans
When comparing low-interest personal loans, here are some key factors to consider:
| Factor | Details to Compare |
|---|---|
| APR Rates: | Fixed vs. variable rates and the range of rates based on your credit |
| Loan Amounts: | Minimum and maximum loan amounts offered |
| Loan Terms: | Fixed vs. variable rates and the range of rates based on your credit |
| Origination/Admin Fees: | Any upfront fees charged to obtain the loan |
| Prepayment Penalties: | If any early payoff fines or fees apply |
| Credit Requirements: | Minimum credit score and income requirements |
Taking the time to shop and compare rates will help ensure you get the best loan for your needs. Prequalifying with multiple lenders can allow you to check personalized rates with minimal impact on your credit score.
How to Get a Low Rate on Your Personal Loan
While loan providers have specific credit requirements, here are some tips that may help you qualify for a lower APR personal loan:
- Maintain a good credit score – Generally, a score of 690+ will get the best rates from most lenders. Pay bills on time and lower credit utilization.
- Provide collateral if possible – Options like home equity loans allow you to get a secured loan with a lower rate.
- Choose shorter terms – You’ll pay less interest overall with a 2 or 3-year loan term versus 5+ years.
- Enroll in autopay – Many lenders provide an interest rate reduction for setting up automated payments.
- Bring a cosigner – Adding a cosigner with good credit may help you qualify for better terms.
- Evaluate offers – Applying with multiple lenders makes it easier to compare offers.
Prequalifying and comparing options from multiple lenders can help you identify the most affordable financing option. With rates still near historic lows, focusing on interest rates and fees can create significant interest savings over the life of your loan.
FAQs About Low-Interest Personal Loans
The Bottom Line
Taking time to compare loan options allows you to find affordable financing to meet your needs. Whether for debt consolidation, home improvement, or another large expense, a low-interest personal loan can provide funds without creating massive interest costs.
Evaluate prequalification offers from LightStream, Marcus, Upgrade, SoFi, Payoff, and more to identify your best personal loan options. Focusing on interest rates, fees, and terms can help you keep costs low.