If you have good credit, you’re in a favorable position to access personal loans with low fixed interest rates and flexible features. Having a credit score of 690 and above opens up a wide range of lenders, each vying to offer you the best loan options. In this comprehensive guide, we’ll walk you through everything you need to know about personal loans for good credit in August 2023, empowering you to make informed decisions and secure the best possible financing for your needs.

Understanding Personal Loans for Good Credit

Personal loans are a popular choice for individuals looking to borrow money without providing collateral like a car or savings account. Instead, lenders evaluate applicants based on their creditworthiness, considering factors such as credit score, income, and existing debts. With good credit, you have a higher chance of qualifying for loans with lower interest rates, more favorable terms, and a wider selection of lenders to choose from.

How to Choose the Right Personal Loan

When considering personal loans for good credit, it’s essential to compare different loan offers to find the one that best suits your needs. Here are some crucial factors to keep in mind:

1. Compare Rates Across Lenders

With good credit, you’re likely to receive attractive loan offers from multiple lenders. Take advantage of this and shop around to find the best combination of low rates and fees. Most online lenders offer pre-qualification options that allow you to check rates without affecting your credit score.

2. Determine the Loan Amount You Need

Personal loan amounts can range from as low as $1,000 to as high as $50,000 or more. Carefully consider how much you need to borrow, as the amount you request may impact the lender’s decision to approve your loan.

3. Consider the Loan Purpose

Personal loans are versatile, allowing you to use the funds for various purposes. Whether you want to pay off high-interest credit cards, finance home improvements, or cover other expenses, some lenders may offer different rates based on the loan purpose.

4. Evaluate Loan Terms

Personal loans typically have terms ranging from two to seven years. A shorter loan term means paying less total interest, while a longer term results in lower monthly payments. Consider your budget and financial goals when choosing a loan term.

5. Check for Additional Benefits

Some lenders provide extra benefits to borrowers, such as free credit score monitoring, financial planning resources, career counseling, and more. Explore these additional features to enhance your borrowing experience.

Personal Loan Interest Rates for Good Credit

Your credit score significantly influences the APR (Annual Percentage Rate) you’ll receive on a personal loan. Good credit, with scores between 690 and 719, generally qualifies for more favorable rates than other credit categories. The lower the APR, the less interest you’ll pay over the life of the loan.

Here’s an overview of average rates for different credit score ranges:

• Excellent Credit (720-850): Estimated APR around 12.83%.
• Good Credit (690-719): Estimated APR around 15.56%.
• Fair Credit (630-689): Estimated APR around 18.30%.
• Bad Credit (300-629): Estimated APR around 21.38%.

Remember that the APR is not the only factor to consider. Look at the overall terms and features offered by lenders to ensure you find the best deal for your specific needs.

Where to Find Personal Loans for Good Credit

Good-credit borrowers have access to personal loans from various sources, including online lenders, credit unions, and traditional banks. Here’s a breakdown of each option:

1. Online Lenders

Online lenders offer convenience and often competitive rates. With a simple pre-qualification process, you can compare loan offers from multiple lenders without impacting your credit score. Online lenders are a popular choice for those seeking fast funding and user-friendly experiences.

2. Credit Unions

Local or national credit unions may offer lower interest rates and more flexible terms than other lenders. To borrow from a credit union, you typically need to become a member, but the benefits can be worthwhile.

3. Traditional Banks

Traditional banks often offer personal loans to existing account holders, sometimes at discounted rates. If you’re already a customer of a bank, it’s worth exploring the loan options they provide.

NerdWallet’s Top Picks for Personal Loans in August 2023

To help you find the best personal loan for your good credit, we’ve carefully researched and selected the top lenders offering competitive rates and attractive features. Our top picks include:

1. LightStream

• NerdWallet Rating: 5.0/5
• Estimated APR: 7.99% – 25.49%
• Loan Amount: $5,000 – $100,000
• Minimum Credit Score: 660

LightStream stands out as an excellent choice for borrowers with good credit. With its competitive APR range and fast funding options, LightStream offers an exceptional borrowing experience.

2. SoFi

• NerdWallet Rating: 5.0/5
• Estimated APR: 8.99% – 25.81%
• Loan Amount: $5,000 – $100,000
• Minimum Credit Score: None

SoFi is a top contender for individuals with good credit scores. With its diverse loan offerings and flexible terms, SoFi caters to a wide range of financial needs.

3. Best Egg

• NerdWallet Rating: 4.5/5
• Estimated APR: 8.99% – 35.99%
• Loan Amount: $2,000 – $50,000
• Minimum Credit Score: 600

For those seeking smaller loan amounts, Best Egg offers a solid option. Its competitive rates and user-friendly platform make it a popular choice among borrowers with good credit.

4. Happy Money

• NerdWallet Rating: 4.5/5
• Estimated APR: 11.25% – 29.99%
• Loan Amount: $5,000 – $40,000
• Minimum Credit Score: 640

Happy Money is an excellent choice for credit card consolidation and debt refinancing. With its competitive APR range, Happy Money can help you manage your credit card debt more efficiently.

5. LendingClub

• NerdWallet Rating: 4.5/5
• Estimated APR: 9.57% – 35.99%
• Loan Amount: $1,000 – $40,000
• Minimum Credit Score: 600

LendingClub offers a platform for joint loans, making it a great option for couples or co-applicants with good credit. Their APR range caters to various financial situations.

6. Achieve Personal Loans

• NerdWallet Rating: 5.0/5
• Estimated APR: 7.99% – 35.99%
• Loan Amount: $5,000 – $50,000
• Minimum Credit Score: 620

Achieve Personal Loans provides a range of rate discounts, making it an attractive choice for borrowers looking for more personalized loan terms.

7. Discover® Personal Loans

• NerdWallet Rating: 5.0/5
• Estimated APR: 7.99% – 24.99%
• Loan Amount: $2,500 – $40,000
• Minimum Credit Score: 660

Discover® Personal Loans offers competitive rates and a wide range of loan amounts, making it a solid option for borrowers with good credit seeking flexible financing.

8. First Tech Credit Union Personal Loan

• NerdWallet Rating: 5.0/5
• Estimated APR: 8.99% – 18.00%
• Loan Amount: $500 – $50,000
• Minimum Credit Score: 660

First Tech Credit Union Personal Loan is a top choice for borrowers with good credit who prefer the services of a credit union.

How to Pre-Qualify for a Personal Loan

To find the best loan offers tailored to your good credit, take advantage of NerdWallet’s pre-qualification tool. Pre-qualifying with multiple lenders allows you to compare rates without affecting your credit score. Simply enter your information, review the loan offers, and choose the option that best fits your needs.

Conclusion

Securing a personal loan with good credit can be a transformative financial move. With lower interest rates and attractive features, these loans provide an opportunity to consolidate debt, finance projects, and achieve your goals. Remember to explore multiple lenders, compare rates, and evaluate loan terms to make the most informed decision possible. At NerdWallet, we’re dedicated to providing you with expert insights and guidance to help you navigate the world of personal loans with confidence.