4 Personal Loans To Apply To If Your Credit Score Is 740 Or Lower

Financial experts typically recommend that people begin building positive credit habits in order to work their way up to a good or excellent credit score. That’s because there are many advantages to having a credit score that sits in the “good” range (670–739). For one, a high credit score can help you get approved for financial products — like personal loans — with a lower interest rate. And keep in mind that lower interest rates allow you to save more money over the life of a loan.

Generally, the higher your credit score the lower your interest rate will be when you get approved for a personal loan. So if you’re still working your way up toward an excellent credit score but still need funding to cover large expenses like a home renovation or surprise medical bill, there are some personal loan lenders you might want to consider.

Below, Select rounded up four of the best personal loan lenders that accept applicants who have credit scores in the “good” range (no higher than 740). We looked at fees, interest rates and flexible repayment options for different credit scores. (You can read more about our methodology below.)

As you begin to search for a personal loan, it can be helpful to compare several different offers to find the best interest rate and payment terms for your needs. This comparison tool asks you 16 questions, including your annual income, date of birth and Social Security number in order for Even Financial to determine the top offers for you. The service is free, secure and does not affect your credit score.

This tool is provided and powered by Even Financial, a search and comparison engine that matches you with third-party lenders. Any information you provide is given directly to Even Financial and it may use this information in accordance with its own privacy policies and terms of service. By submitting your information, you agree to receive emails from Even. Select does not control and is not responsible for third party policies or practices, nor does Select have access to any data you provide. Select may receive an affiliate commission from partner offers in the Even Financial tool. The commission does not influence the selection in order of offers. 

Who’s this for? LightStream offers low-interest loans with flexible terms for people with good credit or higher. The lender even offers a 0.25% APY discount for using Autopay to make your monthly loan payments. If you’re applying for a personal loan with a credit score that falls in the “good” range (670-739), you stand a solid chance of getting approved for low interest rate from LightStream but, of course, the higher your credit score the lower your interest rate will be.

You can use a LightStream personal loan for just about anything except for funding higher education and small businesses; home renovations, debt consolidation, medical expenses and wedding expenses, to name a few, are all fair game.

You can generally receive your funds on the same day if you apply on a banking business day, your application is approved and you electronically sign your loan agreement and verify your direct deposit banking account information by 2:30 p.m. ET. But if you can’t make this deadline, you should be able to receive your funds the next business day.

Another pro to using this lender is that LightStream doesn’t charge any origination, administration or early payoff fees, and repayment terms range from 24 to 144 months.

Who’s this for? A Marcus by Goldman Sachs Personal Loan is a good choice if you’re looking for a personal loan to finance debt consolidation.

When you’re approved for a Marcus debt consolidation loan, you can use direct payments to send money to up to 10 creditors, which helps ensure that funds are used to directly wipe out your debt. To choose this option, you will need to provide your creditors’ account numbers and addresses, as well as the amount(s) you’d like paid. 

Once the funds are sent to your creditors, now you’ll just need to pay off the Marcus personal loan. This is why debt consolidation can be an instrumental way to feel more in control of your debt and to pay off multiple debts faster.

Additionally, there are no sign-up fees, prepayment fees or late payment fees. You can get approved for up to $40,000 and have the funds deposited into your bank account in up to four days.

Plus, when you enroll in AutoPay, you’ll receive a 0.25% reduction in the interest you’re charged. And even if you choose not to use AutoPay, Marcus still offers fixed rates for the entire life of the loan, so once your rate is locked in, you don’t have to worry about it changing at any point during the life of the loan.

The loan term ranges for the Marcus personal loan go from 36 months to 72 months. But unlike with most other lenders, when you make 12 on-time, consecutive payments on a Marcus personal loan, you’ll be able to skip one payment without being penalized with more interest. This might come in handy for someone whose financial situation might change a year into the term of loan and needs a little flexibility with their payments.

Who’s this for? SoFi allows potential borrowers to apply for as little as $5,000 and as much as $100,000, making it a very solid choice if you think you’ll need to borrow much higher amounts of money for larger expenses.

SoFi allows you to choose between variable or fixed APR, whereas most other personal loans come with a fixed interest rate. Variable rates can go up and down over the lifetime of your loan, which means you could potentially save if the APR goes down (but it’s important to remember that the APR can also go up). However, fixed rates guarantee you’ll be charged the same interest rate for the duration of the loan’s term, which makes it easier to budget for repayment. Just keep in mind that while SoFi accepts applicants with a “good” credit score, the higher your credit score the more likely you are to receive a lower interest rate.

Like many other lenders, SoFi also offers a 0.25% discount on your APR for signing up for AutoPay and doesn’t charge any late fees, origination fees, or prepayment penalties. And once you apply for and get approved for a SoFi personal loan, your funds should generally be available within a few days of signing your agreement.

Who’s this for? Discover Personal Loans offer same-day approval and can disburse your funds as early as the next business day as long as your application was submitted without any errors and the loan was funded on a weekday (otherwise, your funds will take no later than a week to be disbursed). This makes it a very appealing lender for when you really need the money in a pinch for that emergency home fix or car repair.

While there are no origination fees, Discover does charge a late fee of $39 if you fail to repay your loan on time each month. This lender also doesn’t charge a prepayment penalty for paying off your loan before the term ends. Plus, Discover Personal Loans accepts applicants with good credit.

Similar to the Marcus personal loan, If you’re getting a debt consolidation loan, Discover can pay your creditors directly. Once you’re approved for and accept your personal loan, you can link the credit card accounts so Discover will send the money directly. You just need to provide information such as account numbers, amount you’d like paid and payment address information.

To determine which personal loans are the best, Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions, that come with no origination or signup fees, fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.

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