Top 12 Personal Loans for Excellent Credit (2024)

A personal loan can be used for many things in life, from home improvements to debt consolidation.

When you have good credit, doors open even more widely compared to those with bad credit. For example, you’ll have access to unsecured loans, meaning you don’t have to put up collateral to qualify for a loan.

You’ll also get offered the best interest rates so you’ll have a lower monthly payment. Another bonus? You could qualify for the highest loan amounts. After all, just because a lender offers a particular loan maximum doesn’t mean every borrower gets that deal. Finding the best loan terms is easier than ever, with many online lenders competing for your business.

Selecting an online lender is convenient, too. Most lenders provide a funding decision the same day you apply, and your money could be available in your bank account in as little as one or two business days.

So, what is the definition of good credit? You’ll need to have a credit score between 690 and 720. Anything above 720 is considered excellent credit.

Top 12 Personal Loans for Good Credit

We’ve pulled together the best personal loans, along with how the loan process typically works from start to finish to help get you started.

Each one has a slightly different approach to lending, so you’ll see a bit of each company’s personality along with their loan rates and borrower requirements. There’s a little something for everyone, so don’t forget to compare offers to see which one fits you best.

The Different Types of Online Personal Loans

When looking for the best personal loan online, you need to know that there are a few different types of lenders out there. Understanding which type you’re working with helps clarify much of the process, from how your personal loan is funded to how you’ll repay it.

Traditional Lenders

Many traditional financial institutions are making their way into the online loan market as well.

You might be familiar with some of the names. However, many banks with brick-and-mortar locations can’t offer interest rates as competitive as strictly online lenders because they have much higher expenses to cover. Some banks are better at this than others, so always be sure to shop around.

Alternative Lenders

Another burgeoning type of lender is the alternative lender. Many of these companies are startups seeking to fill a gap in the need for different loan requirements than traditional banks offer.

Several of the top personal loan lenders have created algorithms to analyze financial and other types of data to determine what kind of loan terms borrowers qualify for. They typically don’t have branch locations so they can keep their overhead costs low and focus on passing savings to borrowers in the form of low interest rates.

P2P Lenders

Finally, one of the oldest types of lenders is the peer-to-peer or P2P lender. Originating in England and working its way to the U.S. in the early 2000s, P2P lending allows individual investors to fund personal loans and collect the interest as their return.

While there is still a formal application process to go through, these lenders have opened the doors to greater access to credit for those with lower credit scores. And if you have good credit, you get to take advantage of low interest rates and flexible repayment terms.

Applying for Personal Loans Online

Lenders who operate online make it easy for borrowers to get offers within minutes of entering a few pieces of basic information. There are typically two types of online applications: the pre-approval process and the formal application.

Pre-Approval

Many lenders allow you to check your personal loan offer through the pre-approval process without performing a hard inquiry. This lets you find out what kind of interest rates and monthly payments you can expect so you can compare offers without getting a hard credit inquiry on your credit report.

Application Process

Once you find loan terms you approve of, it’s time to fill out the loan application form. During this time, you’ll enter your personal and financial information to verify your ability to repay, and they’ll usually perform a hard pull at this point.

You’ll probably also have to upload copies of some important documents that help to verify your identity and financial information, such as your driver’s license and pay stubs. The exact requirements vary depending on each lender.

What Lenders Look For

Traditionally, lenders place the greatest importance on two factors: your credit history and your current financial ability to repay the loan.

They’ll look at your credit score to determine how well you’ve paid your current and past obligations. But if you have good credit, you most likely won’t have any issues.

Debt-to-Income Ratio

Lenders also review your current outstanding debt payment obligations, as well as your income. They compare the two using a formula called the debt-to-income ratio, or DTI. If you carry too much debt for the amount of money you earn each month, then they might not view you as very creditworthy. Even if you have excellent credit history, it’s worth taking a look to see how your DTI stacks up.

While those are historically the most important criteria for traditional lenders, remember that many online lenders began explicitly to replace the old underwriting standards.

Many place greater importance on other factors besides your credit score and debt, like your education, earning potential, and the types of debt you owe. Depending on your situation, you might be better suited with a lender that takes the bigger picture into account.

Do personal loans affect your credit score?

You want to make sure you keep your good credit score intact. So, what changes can you expect after taking out a personal loan?

You may see a slight dip after submitting your application, but this typically only amounts to 5 to 10 points. The good news is that credit scoring models typically group similar loan inquiries together as long as you complete them within a few weeks of each other. This allows you to price shop without worrying about a big drop in your credit scores.

Once a personal loan is funded, you may see another dip in your credit score because you’ll have a higher debt balance. The exception to this is if you’re consolidating credit card debt into a debt consolidation loan. Generally speaking, installment loans are viewed more favorably than revolving credit, so you might actually see an increase in this situation.

Why Take Out a Personal Loan

Once you find the right lender, getting a personal loan can help you in many ways.

Debt consolidation loans are a very popular option these days because personal loan rates are so much lower than credit card interest rates, especially if you have good credit history. Other people use personal loans for home improvement, major life events like weddings and vacations.

Before Applying

Before you apply for any loan, make sure the lender offers personal loans for your intended use. Most want to know exactly what you will use the loan proceeds for before making the loan. And because that information is in your legal loan agreement, you’ll want to stick to your word.

No loan decision should ever be made lightly, so make sure you do your research before reaching a conclusion.

Repayment Terms

You’ll want to know that you can make your monthly payments even if something major comes up, like a job loss or medical emergency. So keep that good credit intact by keeping a padded monthly budget and a healthy rainy day fund.

Once you’re confident that you’ve found the right personal loan, you’ll enjoy an ever-strengthening credit history by maintaining steady, on-time payments every month. And that, along with funding a significant purchase or life event, can feel like a great accomplishment.