Best personal loans for good credit in 2024

Good credit can open doors to better personal loans. According to Experian data, 21.6% of consumers have a good FICO credit score, which is between 670 and 739. Obtaining good credit takes a solid track record of making on-time payments, maintaining a good credit utilization ratio, and having a long credit history. 

As a result, you can often get lower interest rates, larger loan amounts, and longer repayment terms. But not all lenders are geared toward good-credit borrowers. To ensure you get all the perks good credit can grant you, here are the best personal loans for good-credit borrowers in 2024. 

Best personal loans for good credit

Methodology

We evaluated the best loans for good credit based on customer experience, minimum fixed rates, maximum loan amounts, funding times, loan terms, fees, discounts, loan uses, and other factors. Our team of experts gathered information from each lender's website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

Read our full lender rating methodology for more information.

How to compare personal loans 

To find the best deal on a personal loan, it’s important to shop around and collect quotes. Once you do, here are the main factors to consider:

How to get a personal loan with good credit 

• Check your credit: Before applying for a loan, check your credit reports. You can do so for free at AnnualCreditReport.com. Make sure everything is correct and report anything that isn’t. Also, see if you can raise your score with Experian Boost. 
• Shop around: Most lenders allow you to prequalify to receive an estimate of rates without hurting your credit score. You can get these estimates from multiple lenders to find the best deal for your budget. Prequalification is not an official offer of credit and rates may vary after submitting an application. 
• Compare quotes: Once you’ve gathered a handful of quotes, consider the above factors like loan amounts, APRs, fees, and service quality to determine the right fit for you.
• Apply: If you find a winner, let the lender know you’d like to move forward. From there, fill out the full application and provide the necessary documents. The lender will conduct a hard credit check, which will ding your credit score temporarily. 

If approved, the lender will send you a loan contract to sign. Once you review and sign, you should receive the funds according to the lender’s funding timeline. Personal loans generally have fast funding times and can be delivered to you as soon as the same day in some cases. 

What is a good credit score?

Lenders may refer to different credit scoring models like FICO or VantageScore when checking your credit. While the models are similar, they have small variations. A FICO score of 670 or better is above average and considered “good” by most lenders. As for VantageScore, a 661 or higher is considered “prime.” However, some lenders may look for a score above 702 — the average VantageScore as of March 2024.

Average APR on good-credit personal loans

If you have a credit score between 680 and 719, the average APR on a three-year, fixed personal loan is currently 21.69%, according to Credible data. Increase the loan term to five years and the average APR increases to 24.81%. As your credit score increases, the average APR decreases. For example, if your credit score is 780 or higher, the average APR drops to just 13.64% on the three-year loan and 17.19% on the five-year loan. 

How a personal loan impacts your credit 

A personal loan impacts your credit in a few ways. First, when you apply, lenders typically perform a hard credit check, which can cause your credit score to temporarily drop by a few points. If you get approved and accept the loan, your credit score could drop again because the new credit account will lower your average account age and increase the amount you owe. However, if you make timely payments and let the account age, the loan can eventually strengthen your credit reports and scores.

Pros and cons of personal loans with good credit

Pros

• Lower interest rates: You can qualify for competitive interest rates on the lower end of a lender’s rate range. 
• Lower fees: Avoid fees or qualify for fees on the lower end of a lender’s range. 
• More options: You’ll likely qualify with a wider range of lenders. 
• Higher loan amounts: Gain access to larger loan amounts. 
• Longer terms: Good-credit borrowers can typically get longer repayment terms. 

Cons

• Costs: While the costs will be lower, you’ll still pay interest and possibly fees for the loan. The costs also tend to be higher than those on secured personal loans. 
• Credit dip: Getting a new personal loan can cause a temporary dip in your credit score. 

Best personal loans for debt consolidation with good credit 

Alternatives to personal loans 

Credit cards

Credit cards are revolving credit accounts you can use, pay off, and use again. The average APR tends to be slightly higher than with personal loans, sitting at 21.59% (versus 12.49% for a two-year personal loan), according to the Federal Reserve.

However, you may be able to get a 0% APR introductory promotion with the right card. For example, the Citi Custom Cash Card has a 0% APR for up to 15 months. Beware that when the promotion ends, your balance will be subject to the regular purchase APR and it may be retroactive. 

BNPL loans

"Buy now, pay later" (BNPL) loans from companies like Klarna, Afterpay, and Affirm have been gaining popularity. These allow you to split up purchases into four equal payments (usually every two weeks) or across a set term (often six or 12 months) — sometimes interest-free. To apply, you can download a BNPL company’s app. You may also see BNPL as a payment option when checking out with online retailers.

Home equity loans 

A home equity loan allows you to tap your home equity to borrow a lump sum of cash, and repay it over a period of up to 30 years. Generally speaking, lenders allow you to borrow up to 80% of your home's market value, minus the amount that you owe on your mortgage. 

Home equity loans often have lower interest rates than personal loans because they are backed by a valuable piece of collateral. However, closing costs on a home equity loan are typically 2% to 5% of the loan amount, and if you fail to repay your loan, the lender can seize your home.

FAQ

Can a personal loan help build your credit?

A personal loan can help you build credit as long as your lender reports it to at least one of the major consumer credit bureaus (Experian, TransUnion, or Equifax). However, for it to have a positive effect, you’ll need to make all of your payments on time. 

How much can I borrow with a good-credit personal loan?

Personal loan amounts generally range from $500 up to $50,000 or more. The amount you can borrow, however, will depend on a lender’s loan limits and the amount they’ll lend you based on your credit and other factors. You can typically get an estimate by prequalifying online. 

What can I use a personal loan for?

Personal loans can be used for a variety of personal expenses, such as home improvements, a wedding, funeral costs, a vacation, moving, or consolidating debt. However, it’s always a good idea to read a lender’s fine print so you know what’s allowed. Common restrictions include gambling, illegal activities, college tuition, business expenses, and real estate down payments.

How many personal loans can I have?

There’s no limit on the number of personal loans you can have overall, but some lenders limit how many of their loans you can have at one time. For example, SoFi allows you to get a second loan if you’ve made three consecutive payments on the first one. However, Michigan residents can only have one SoFi personal loan at a time.