Best Loans for Excellent Credit for April 2024

The Bottom Line

Depending on what you’re looking to borrow money for and who you prefer to work with, you’ll have plenty of loan options if you have an excellent credit score. Our top choice for lenders offering loans for excellent credit is SoFi, for its fee-free, discount-loaded loans that come with a high maximum borrowing amount. Credit unions like Patelco often have lower rates, while some online lenders like LightStream are even more competitive. For larger loans, you could also go with Wells Fargo or Truist.

Guide to Choosing the Best Loan for Excellent Credit

Should You Get a Loan for Excellent Credit?

Even people with excellent credit may face a situation where a personal loan can be helpful. For example, you may need funding to make home improvements, consolidate variable-rate credit card debt into a lower fixed-rate payment, or pay unexpected medical bills. The good news is that those with excellent credit can qualify for funding from more lenders and may receive the lowest possible interest rates on their loans. 

You’ll be able to qualify for a personal loan with many lenders if you have excellent credit, as long as you also meet their other borrowing requirements. Since you can likely qualify with most lenders, you’ll need to decide what features are most important to you when searching for a loan. For example, you may need to consider the speed of funding, the size of the loan you can get, and available repayment terms.

What Is an Excellent Credit Score?

Personal credit score ranges are typically 300 to 850. Higher credit scores indicate that you’ve effectively managed your credit and paid your loans on time, so you are considered lower risk. Excellent credit is typically a FICO credit score of 800 to 850. 

According to FICO, the average credit score in the United States in 2023 was 716, which is considered good credit. FICO score ranges are defined like this:

Understanding where you stand in terms of your credit score is important. It can mean the difference between a loan with an interest rate in the double digits (if you have a less-than-good score, under 660 or so) or one just a few percentage points above prime (if you are in the excellent-score category). Other benefits of having a higher credit score include borrowing higher loan amounts and getting longer repayment terms.

Average APR by Credit Score

Comparing Personal Loan Lenders for Excellent Credit

People with excellent credit and income sufficient to repay their debt should be able to qualify for a personal loan with most lenders. This allows borrowers to be more selective and shop around for the best rates and terms. Some of the most important factors to consider when shopping for a loan are:

• APR range and fees: You’ll usually get the best rates if you have excellent credit. One of the biggest factors to consider is the rate you can get and if you’ll be required to pay any fees. Remember that the APR includes fees, so compare APRs instead of interest rates when shopping around.
• Funding speed: Some lenders can get you approved and funded as quickly as the day you apply. Others may take a few days to get you approved and funded. Choose a lender that can get you your money as fast as you need it.
• Repayment terms: One of the ways to get the smallest possible payment (besides getting a low interest rate) is to choose a longer repayment term. However, you’ll end up paying more interest over the life of the loan than with a shorter term. You’ll need to decide if you want to pay less interest or have a smaller payment before you apply for a loan.
• Loan size: The amount of money you need to borrow is likely one of the biggest factors to consider. If you only need to borrow a few hundred dollars, make sure the lender offers small personal loans (loans of at least $2,500 are common). Also, many lenders only offer personal loans up to $50,000—options above this amount are more limited.

Shorter Repayment Terms Can Save You Money

Based on data from 18 lenders, the average personal loan interest rate is 23.88% for terms of about 48 months. However, the Fed reports that 24-month personal loans have an average rate of 12.35%.

If you can afford the higher monthly payments that come with a shorter term, it could save you a lot of money. The chart below shows the potential savings of a 24-month term as opposed to a 48-month term on a $10,000 personal loan:

APR the Biggest Worry for Borrowers

In Investopedia’s 2023 Personal Loan Borrower Survey, 78% of borrowers said APR is their chief cost concern, with 10% citing origination fees.

Where to Get a Personal Loan With Excellent Credit

If you have excellent credit, you’ll be able to find a personal loan in many places. Many borrowers tend to start with banks and credit unions, but many alternative lenders, especially online ones, offer fairly competitive rates as well. In fact, such lenders have some of the lowest rates since they’re not subject to the overhead costs that brick-and-mortar institutions have.

If you have stellar credit, it’s in your best interest to shop around and let the lenders compete for your business. Start by taking advantage of lenders that offer pre-qualification so you can see rate offers without a hard credit check.

Keep an Eye on the Fed's Target Federal Funds Rate

The Fed held rates steady at its most recent meeting March 19-20—the fifth consecutive meeting at which it has done so. From March 2022 through July 2023, the Fed increased its target rate range 11 times, from near zero to 5.25–5.50%. Before that rate-hiking campaign, the average APR for a 24-month personal loan from commercial banks was 9.38%. That number has risen along with the Fed's rate hikes to 12.35%.

Fed members indicated that they expect to cut rates later this year, but until that happens, lending rates are unlikely to get any lower. Because personal loans typically are fixed-rate products, the rate you get when you take out your loan is the rate you'll have for the duration of that loan. Lending rates typically will rise or fall along with what the Fed does, so if you expect to have a longer repayment term, it might be a good idea to wait until later this year or next year to get a personal loan. The Fed is scheduled to meet again April 30–May 1.

How to Qualify For and Apply For a Personal Loan With Excellent Credit

Applying for a personal loan if you have excellent credit is basically the same process as it is for anyone else. The main difference is you might not need to provide the lender with as much documentation as a borrower with a lower credit score does. For example, some lenders might not require that you provide information like tax returns or pay stubs since your excellent credit score shows you have a history of repaying your loans on schedule. 

Regardless of your credit score, here’s what the personal loan application process looks like:

1. Pre-qualify if the option is available. If the lender offers a pre-qualification option, you can review the loan offers without any impact to your credit score.
2. Start the application online (or by phone or in person). Once you have an offer you wish to accept, you’ll need to provide the lender with details about your income, your Social Security or tax identification number, why you need the loan, and how much you need to borrow. 
3. Submit documentation. Lenders will typically want to see proof of income and/or employment, so be prepared to submit either pay stubs, bank statements, or tax returns. 
4. Wait for approval and receive your funds. If approved, look over the loan details and sign the agreement if you're satisfied with it. From there, you’ll receive your funding and can set up an online account to manage your loan.

Pros & Cons of a Personal Loan for Excellent Credit

Benefits of Excellent Credit for Personal Loans

It seems straightforward that if you have excellent credit, you'll get better loan opportunities. Not only are you more likely to be approved, you're likely to get better financial and non-financial terms. Individuals with the best credit scores may get a range of exclusive benefits only offered to those with excellent credit:

• Low-Interest Rates: As expected, borrowers with the best credit scores generally qualify for the lowest interest rates.
• Flexible Repayment Terms: Individuals with excellent credit often have the flexibility to choose from a variety of repayment terms. They can opt for shorter terms with higher monthly payments or longer terms with lower monthly payments. On the flip side, borrowers with poor credit may be forced into specific terms while being required to set up auto-payments.
• Higher Loan Limits: Borrowers with the best credit may qualify for higher loan amounts. Lenders are more confident in extending larger sums to individuals with excellent credit, who are perceived as reliable and financially stable.
• Quicker Approval and Funding: The approval process for individuals with the best credit can sometimes be expedited. Lenders may push through the underwriting process for those deemed the lowest risk.
• No or Low Origination Fees: Many lenders offer personal loans without origination fees for borrowers with excellent credit. These fees are sometimes used as a risk mitigation tactic to collect money upfront from those with higher risk.
• Pre-Approval Offers: Borrowers with excellent credit may receive pre-approval offers from lenders. These offers indicate that the lender has reviewed the borrower's credit profile and is willing to extend a loan with specific terms with a minimal or no application required.
• Rewards and Incentives: Some lenders offer additional perks, rewards, or incentives to borrowers with the best credit. This could include cashback bonuses or interest rate discounts for autopay.
• Access to Exclusive Lenders: Borrowers with the best credit may have access to exclusive lenders. These lenders may assign dedicated loan officers or customer service representatives to assist with inquiries, providing a higher level of service.

How To Improve Your Credit Score

Want to be able to get approved for personal loans suited for those with excellent credit but don't quite have the credit score? There are many ways to slowly improve your credit score over time; the following have been directly recommended by Experian.

Build Your Credit File

Open new accounts reported to major credit bureaus, laying the foundation for a positive credit history. Consider credit-builder loans or secured cards for a low score, or opt for a rewards credit card with no annual fee to enhance an established good score. Becoming an authorized user on someone else's card can also be beneficial.

Don't Miss Payments

Maintain a long history of on-time payments to bolster your credit scores. Set up automatic payments to avoid missing due dates and, if facing financial challenges, promptly communicate with creditors to explore hardship options. Consistency in on-time payments is vital for credit health.

Catch Up On Past-Due Accounts

Bring overdue bills current to improve your credit standing. While a late payment can linger on your report for up to seven years, having all accounts up-to-date is favorable. Seek credit counseling or a debt management plan for credit card debt, negotiating lower payments and interest rates.

Pay Down Revolving Balances

Manage revolving credit accounts, such as credit cards, wisely by maintaining low balances relative to credit limits. A low credit utilization ratio contributes positively to credit scores. Aim to keep balances in the low single digits to enhance your credit standing.

Limit New Credit Lines

While opening accounts is necessary, be cautious about frequent credit applications. Each application triggers a hard inquiry, which may slightly impact scores. Inquiries can compound, affecting your credit health. Minimize the impact by limiting applications and understanding exceptions, such as rate shopping for specific loans within a short timeframe.

Personal Loan Options For Those Without Excellent Credit

If you just can't seem to get your credit score up, don't fret - there are plenty of personal loan options still available to you. Some better options for those who may not have excellent credit include:

• Secured Personal Loans: Secured personal loans require collateral. Lenders may require collateral so if you were to default on your loan, they have claim to an asset you own that they can sell to recover (at least some of) their loss.
• Co-Signed Loans: Co-signed loans involve having a creditworthy individual guarantee the loan. This person is responsible for repaying the loan if you default. Co-signed loans may offer better terms and a higher likelihood of approval, as the lender considers the co-signer's creditworthiness.
• Short-Term/Payday Loans: Payday loans are short-term, high-interest loans typically based on your income and ability to repay by your next payday. While they offer quick access to funds, payday loans come with exorbitant interest rates. Be mindful that there are other forms of short-term loans, though those also may equally high APR.
• Peer-to-Peer Lending: There's plenty of options for you through traditional lending channels. However, there are also other alternative loan options such as peer-to-peer lending platforms that may evaluate your application differently than a traditional bank.

Why You Should Trust Us

Investopedia collected and analyzed hundreds of key data points from over 70 companies across three months to identify the most important factors for readers with excellent credit. We used this data to review each company for fees, repayment terms, income requirements, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999, and has been helping readers find the best loans for those with excellent credit since 2020.

How We Pick the Best Loans for Excellent Credit

To evaluate and rank personal loan providers we collected hundreds of data points across 70 lenders, including traditional banks, credit unions, fintechs, and special interest finance companies. We researched and evaluated APRs, loan amounts and terms, fees, customer experience, and much more. To rank the lenders in our database and to generate star ratings, we weighted the data we collected, based in part on what consumers told us were the most important features of a personal loan and lender in a survey we conducted. We grouped those factors into four broad areas:

• Loan costs (advertised APR, fees, and six other factors): 29.25%
• Loan terms (loan amount, repayment term, and three other factors): 22.25%
• Borrowing requirements (credit score, membership requirement, and six other factors): 28.5%
• Additional features (online application, pre-qualification, and eight other factors): 20%

Learn more about how we evaluated personal loans in our complete methodology.

Guide to Excellent Credit Personal Loans

Learn more about personal loans:

• What Is a Personal Loan?
• How Do Personal Loans Work?
• When Are Personal Loans a Good Idea?
• How to Get a Personal Loan
• How to Apply for a Personal Loan
• How to Use a Personal Loan
• Where to Get a Personal Loan
• Personal Loans Vs. Credit Cards
• Alternatives to Personal Loans
• Personal Loan Calculator
• Personal Loans Methodology