Personal Loans (US, 2026)
$1k–$100k unsecured. Payment calculator, typical APRs, and the lenders worth checking.
Personal loan balances hit $253 billion in Q1 2026 (TransUnion), up 15% year-over-year as rising credit card APRs pushed more borrowers toward fixed-rate debt consolidation. The average 24-month personal loan APR is 12.65% (Federal Reserve G.19) — well below the 24.37% average credit card APR. For anyone carrying $5k+ of credit card debt at 20%+ APR, consolidating into a personal loan usually saves $1,000+ per year and fixes a payoff date. Below: how personal loans work, where to get the best rates, and the traps.
Personal loan payment calculator
Where to get a personal loan
| Lender | APR range | Amount | Origination fee |
|---|---|---|---|
| LightStream | 7.99%–25.49% | $5k–$100k | None |
| SoFi | 8.99%–29.99% | $5k–$100k | None (optional) |
| Discover Personal Loans | 7.99%–24.99% | $2.5k–$40k | None |
| PenFed Credit Union | 8.99%–17.99% | $600–$50k | None |
| Navy Federal (military) | 8.99%–18% | $250–$50k | None |
| Upstart | 7.8%–35.99% | $1k–$50k | 0%–12% |
| LendingClub | 8.98%–35.99% | $1k–$40k | 3%–8% |
Questions answered
An unsecured installment loan — fixed amount, fixed monthly payment, fixed interest rate, 2–7 year term. Typical use cases: debt consolidation, medical bills, home improvement, major purchases. Amounts $1,000–$100,000; APRs 6%–36%.
Best rates (6%–10%): 740+. Good rates (10%–18%): 670–739. Subprime rates (18%–36%): 580–669. Below 580: most mainstream lenders decline; specialty subprime lenders offer 30%+ APRs with high fees.
Personal loan: fixed rate, fixed payment, fixed payoff date. You get a lump sum upfront. Credit card: variable rate, revolving credit, minimum payment, no payoff date. For a one-time known expense you can pay off in 2–5 years, a personal loan usually beats a credit card balance. For ongoing spending, a credit card (with 0% intro if you can pay within the promo) is more flexible.
As of Q1 2026, the average personal loan APR for a 24-month loan is 12.65% (Federal Reserve G.19) for consumers with good credit. Credit unions average about 3 points lower than banks. Online lenders (SoFi, LightStream, Upstart, Discover) typically sit in the middle.
Some lenders charge 1%–8% origination fee deducted from the loan. SoFi, LightStream, PenFed Credit Union have no origination fees. Upstart, LendingClub, Prosper typically do. Add the fee to your effective APR when comparing.
Yes — most US personal loans have no prepayment penalty. Paying early saves interest. LightStream and SoFi explicitly advertise no prepayment penalty; read others' terms carefully.
If the personal loan APR is at least 5% lower than your average credit card APR, yes. A typical scenario: consolidate $10k of 24% credit card debt into a 3-year personal loan at 12%. You save ~$2,800 in interest and have a fixed payoff date.
Most personal loans are unsecured — no collateral. Secured personal loans (backed by savings, CDs, or a vehicle) typically offer 2–5% lower APR but risk the collateral if you default. Worth it for large loans with long terms if you have the collateral.
Short-term dip of 5–15 points from the hard inquiry and new account. Over 6–12 months, typically a net positive: adds credit-mix diversity and (if used to pay off credit cards) drops revolving utilization which is a big factor.
Compare at least 3 types of lenders: (1) online lenders (SoFi, LightStream, Discover, Upstart — fast, often competitive rates, $10k+), (2) credit unions (PenFed, Navy Federal — often cheapest, slower), (3) banks (Wells Fargo, Marcus — convenient if you bank there). Use pre-qualification to compare rates without a hard pull.