Best Personal Loans for Good Credit of July 2026
Good credit makes loan approval more likely but doesn’t guarantee it. You should have no problem meeting the minimum credit score requirement, but you’ll still need to satisfy other criteria, including annual income and debt-to-income ratio.
Your debt-to-income, or DTI, ratio is a percentage that tells lenders how much you spend on debt each month compared with how much you earn. A low DTI ratio can help you qualify for a loan at a better interest rate than a high DTI ratio, which could signal to lenders that you’re taking on too much debt. Generally, personal loan companies prefer a DTI lower than 36%, which means that monthly debt obligations as a percentage of your income should not exceed that amount.
Lenders also look for consistent payment history and income, says Sarah Pierce, formerly of mortgage lender Better.com.
“To determine this, lenders typically need documentation of your income history from the last two years, verified by tax returns and pay stubs,” Pierce says.
In addition to income and DTI, loan purpose could play a role in approval, but this factor may receive less weight than others. A personal loan application might ask how you plan to use your loan funds, such as paying for a wedding, repairing a home or car, or consolidating credit card debt.
Whatever you choose, your credit score is critical to determining loan terms, including loan amount, says Mark Victoria, an executive at TD Bank. Make sure your credit report is accurate before applying for a loan, he says.
Evaluating factors such as APR, loan amount and fees will help you select the right loan. You can start your comparison shopping by prequalifying with at least three personal loan lenders.
Many personal loan companies offer online prequalification, which uses a soft inquiry that won’t hurt your credit score to determine your eligibility. When you prequalify, you will provide personal information to a lender that will let you learn estimates of an APR and other important loan details:
- APR. The APR, which includes interest charges and fees, provides a simple way to assess the total yearly cost of a loan. Taking the lowest APR deal may save you hundreds or even thousands of dollars, depending on your loan’s principal balance. The average APR for a two-year personal loan is 11.86%, according to the Federal Reserve’s May 2026 data, but a good credit score can result in more competitive rates.
- Fees. Make sure you read the terms and conditions of your loan offer, and note all fees and when they will apply. In addition to origination fees, some lenders charge late fees, application fees and prepayment penalties.
- Loan terms. The term range you’ll have to repay your loan in full varies by lender. Some lenders offer a maximum loan term of three years, and others provide up to seven years to pay back loans. You might even get flexible repayment terms, allowing you to tailor your payoff plan to attain a monthly payment that works best for your budget.
- Loan amounts. Good credit doesn’t mean that an offer for a lender’s maximum loan amount is certain. You can request a loan amount in your application, and the lender will evaluate whether that figure is reasonable based on factors such as your income and credit history, Victoria says: “Some lenders allow borrowers to request a higher loan amount, but in some cases, decisions are automated based on eligibility.”
- Discounts. Lenders may offer you discounts to earn your business. “The most common incentive is a rate discount, typically used to incentivize consumers to sign up for auto pay,” Victoria says.
- Customer service. Check reviews to understand a lender’s overall customer satisfaction. The Consumer Financial Protection Bureau’s Consumer Complaint Database and the Better Business Bureau can reveal common problems.
The best place to get a personal loan with good credit depends on the loan terms you seek. Traditional banks, credit unions and online lenders offer personal loans for good-credit borrowers.
You can choose from among many lenders offering personal loans if you have good credit. Here’s a look at how different types of lenders may stack up:
- Your financial institution. If you have good credit and a relationship with a bank or credit union, see what loan offers it has for you. It already has your identifying information and some of your financial details and could provide a fast decision on your loan application.
- A traditional bank. Conventional banks, as for-profit financial institutions, could charge higher APRs and fees on personal loans than other lenders. But if you prefer banking at convenient brick-and-mortar branches, this option might be for you.
- Credit unions. These member-owned financial institutions return profits to members in the form of low fees and competitive personal loan rates. If you meet a credit union’s eligibility requirements, then you can join and apply for a loan.
- Online lenders. These lenders often have lower overhead costs because they lack physical branches to maintain and can offer no fees and better rates than their brick-and-mortar peers.
Pros
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Flexibility: A personal loan can be used to pay for almost anything, such as home renovations, car repairs or medical bills. Ask about restrictions, which can include college costs, down payments and investments.
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Competitive rates: The APR for personal loans can range from about 7% to 36%. If you have a great credit score, a strong credit history and a stable income, you could qualify for lower rates than alternatives, such as credit cards.
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Higher borrowing limits than other credit products: Personal loans generally offer borrowing limits that start at $1,000 and go up to $100,000, depending on your qualifications.
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Credit building: If you make the monthly payments on time, your credit score may increase, as payment history accounts for 35% of your FICO score.
Cons
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Multiple fees: Some lenders charge application, origination, late payment and prepayment fees. The origination fee could be a flat rate or a percentage of your loan amount, which can be between 1% and 6%.
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Higher interest rates than alternatives: You could end up paying more than on credit cards or secured loans, depending on your credit score.
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Higher monthly payments than minimum credit card payments. That’s because a personal loan has a fixed repayment term of generally one to five years.
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Risk of more debt. A personal loan can pay off your credit cards, leaving them open for more spending and creating more debt.
- Home equity loan. If you’re making major home repairs, a home equity loan or a home equity line of credit could offer a lower interest rate. However, this loan is secured by your home, meaning you risk foreclosure if you can’t pay it back.
- Balance transfer credit card. If you can qualify for one, a credit card with an introductory 0% interest period may be best if you want to pay off credit card debt without being charged interest. Just be sure that you can pay off the balance before the promotional rate expires, usually from 12 to 21 months.
- Personal line of credit. With a line of credit, you use funds when you need them, as with a credit card. Interest rates sometimes are lower than credit cards, but personal lines of credit generally come with a repayment term. Some may have variable rates.
- Borrowing from family members or friends. If you go this route, keep in mind how it could affect your relationship, especially if you have a problem paying back the loan.
Good credit makes loan approval more likely but doesn’t guarantee it. You should have no problem meeting the minimum credit score requirement, but you’ll still need to satisfy other criteria, including annual income and debt-to-income ratio.
You may be able to get a personal loan with a lower credit score, but a score in the good range of at least 670 should give you access to many options, according to credit bureau Experian.
