Best Personal Loans in 2026: Compare Interest Rates, Fees, and Requirements

Traditional banks can be attractive for borrowers with good or excellent credit, particularly when the borrower already has an account with the institution.

Some major banks offer competitive personal loan rates and may provide additional benefits to existing customers.

However, bank eligibility requirements can be stricter than those of some online lenders.

Credit Unions

Credit unions can be another attractive option, particularly for borrowers who qualify for membership.

Recent data cited by NerdWallet showed an average APR of 10.64% for three-year credit union personal loans based on NCUA data for the fourth quarter of 2025. Federal credit unions generally have an 18% APR ceiling for most loans, subject to applicable rules and exceptions.

Credit unions may also take a more relationship-oriented approach to lending.

Online Lenders

Online lenders have become an important part of the personal loan market.

They can offer convenient applications, quick prequalification, and relatively fast funding. Some online lenders also serve borrowers who may not qualify for traditional bank loans.

However, rates can vary considerably, so borrowers should compare several offers rather than choosing the first online lender they encounter.

Personal Loan Requirements

Personal loan requirements vary by lender, but most lenders evaluate similar categories of information.

Credit Score

Your credit score is one of the most important factors affecting your chances of approval and the interest rate you receive.

A higher score generally indicates a stronger history of managing credit and may help you qualify for better terms.

However, there is no universal minimum credit score for all personal loans. Some lenders accept borrowers with fair or even poor credit, although these borrowers may face higher APRs.

Income

Lenders want to determine whether you have sufficient income to repay the loan.

Depending on the lender, you may need to provide:

• Employment information
• Salary or income information
• Recent pay stubs
• Tax documents
• Bank statements
• Information about other sources of income

Some lenders don't publish a specific minimum income requirement.

Debt-to-Income Ratio

Your debt-to-income ratio, or DTI, compares your monthly debt obligations with your gross monthly income.