Personal loans can be expensive, but the best ones have low interest rates and few fees, making them more affordable to borrowers.
While many lenders charge origination fees, we at the MarketWatch Guides team have identified a handful that don’t require any at all. We’ve reviewed more than two dozen of the leading personal loan lenders in the U.S. to bring you this list of the best personal loans with no origination fees.
Personal loans allow you to borrow money for any purpose, from debt consolidation to home improvement projects or medical bills. But like any loan, they come at a cost. Most lenders charge origination fees of 1% to 6% of the total loan amount. On a $10,000 loan, that’s an extra $100 to $600 out of your pocket.
However, some lenders offer personal loans with no origination fees. I did the research to find the top no fee personal loans for 2023 based on low rates, flexible terms, and borrower benefits. Keep reading to see my picks and learn if a no fee loan is right for you.
What Is a No Fee Personal Loan?
A no fee personal loan has no application fee, origination fee or prepayment penalty attached. With most loans, the origination fee gets deducted from your loan balance, so you don’t receive the full amount you applied for.
For example, if you get approved for a $10,000 personal loan with a 5% origination fee, you’ll only receive $9,500 after the $500 fee comes out. But with a no fee loan, you receive the entire loan amount you borrowed.
The only cost is the interest you pay. Lenders that don’t charge fees can offer lower rates since they make their profit from the interest. Just make sure to always compare Annual Percentage Rates (APRs), not just interest rates. The APR shows the loan’s true cost.
Top 5 No Fee Personal Loans for 2023
I compared over a dozen top lenders to find the best no fee personal loans based on rates, terms, eligibility and borrower perks. Here are my top 5 picks:
1. LightStream – Best for Low Rates
- APRs from 7.49% to 25.49%
- Loan amounts from $5,000 to $100,000
- Terms from 24 to 144 months
- Minimum credit score: Good to Excellent
- Quick funding
Lightstream offers incredibly low rates starting at just 7,49% APR, Its Loan Rate Beat Program will beat a competitor’s rate by 0,10% if you qualify, There’s also a 0,5% autopay discount available, Lightstream loans are easy to apply for online with a soft credit check first
2. Laurel Road – Best for Medical Professionals
- APRs from 7.99% to 23.25%
- Loan amounts up to $80,000
- Terms from 3 to 7 years
- Minimum credit score: 680
- 0.25% autopay discount
Laurel Road has specialized loans for doctors, dentists and other medical professionals. Its Physician Loans go up to $80,000 – much higher than many competitors. Employed physicians and residents are eligible. There’s an online application and prequalification option.
3. Upgrade – Best for Fair Credit
- APRs from 8.49% to 35.99%
- Loan amounts from $1,000 to $50,000
- Minimum credit score: 620
- Terms from 24 to 84 months
- Prequalification available
Upgrade considers applicants with credit scores as low as 620. It offers competitive rates based on your creditworthiness and has an easy online application process. Upgrade provides prequalification so you can check rates without a hard inquiry on your credit.
4. LendingPoint – Most Flexible Terms
- APRs from 7.99% to 35.99%
- Loan amounts from $2,000 to $36,500
- Minimum credit score: 620
- Terms from 24 to 60 months
- Prequalification available
LendingPoint offers very flexible repayment terms between 24 and 60 months. So you can choose the term that best fits your budget. It accepts minimum credit scores of 620 and has a quick and easy online application process.
5. PenFed Credit Union – Best for Borrowers with Bad Credit
- APRs from 7.99% to 17.99%
- Loan amounts from $600 to $50,000
- Minimum credit score: 580
- Terms from 12 to 60 months
- Prequalification available
PenFed accepts credit scores as low as 580, making it a great option if your credit isn’t the best. It offers competitive rates as low as 7.99% APR. While PenFed is a credit union, anyone can become a member by opening a savings account.
Should I Get a No Fee Personal Loan?
Here are a few key benefits of no fee personal loans:
-
You get the full loan amount. With a fee-based loan, the origination fee comes directly out of your loan balance. So you have to borrow more to get the amount of cash you actually need.
-
Lower APR. No fee loans don’t have the origination fee factored into the APR. So you can actually get a lower APR than a loan with fees, even if the interest rate is the same.
-
Predictable payments. Since there are no upfront fees, you know exactly how much your monthly payments will be over the full loan term.
-
Flexible terms. Most no fee lenders offer terms from 1 to 7 years. So you can find an affordable monthly payment that works for your budget.
If you have a good credit score above 670, a no fee loan likely makes sense. You can qualify for better rates and terms. But if your credit is fair or poor, you may pay higher rates with a no fee lender. In that case, taking a loan with an origination fee but lower ongoing APR may save you money overall.
What is the Easiest No Fee Personal Loan to Get?
I recommend Lightstream or Laurel Road if your credit score is 680 or higher. Here’s why:
-
Lightstream offers incredibly low rates and a fast, easy application process. It provides prequalification too so you can check your rate without a hard credit check.
-
Laurel Road has higher loan amounts for medical professionals along with competitive rates. Its online application takes just 5 minutes.
Both lenders provide quick access to funds in as soon as 1 business day for new loans or same-day funding for existing customers.
Tips for Getting Approved for a No Fee Personal Loan
Follow these tips to boost your chances of getting approved for the best loan rates and terms:
-
Check your credit score. Make sure there are no errors dragging your score down before applying. Aim for at least a 670 FICO score.
-
Lower credit card balances. Keep balances below 30% of the limit on each card if possible. Pay down balances if you can.
-
Provide all requested documents. Have your W-2s, paystubs, bank statements and other paperwork ready.
-
Avoid new credit applications. Don’t open any new cards or apply for loans leading up to your application. Too many inquiries can lower your score.
-
List all income sources. Include alimony, child support, investment income or any other money you receive. The more income you can verify, the better.
-
Add a cosigner if possible. Ask a family member or friend with good credit to co-sign your loan application to boost the chances of approval and get a lower rate.
The Bottom Line
A personal loan with no origination fees can save you money on interest charges over the life of the loan. Just be sure to only borrow what you can comfortably afford to repay on time each month. Make your payments on time going forward to avoid late fees or a lowered credit score.
Weigh all your options and compare multiple lenders to find the right no fee personal loan for your needs. Prequalify where possible to check rates with no risk. With a little shopping around, you can find affordable financing and get the funds you need without draining your wallet on fees.
Compare the Best Personal Loans With No Origination Fees
- LightStream: Our Top Pick
- SoFi: Best Customer Service
- PenFed: Best for Small Loans
- Discover: Best for Low Rates
- U.S. Bank: Best for Bank Switchers
- Wells Fargo: Best for In-Person Service
LightStream is one of the most popular personal loan lenders. It offers loans for just about anything and has some of the most competitive interest rates around. With no fees and long repayment terms, it could be a strong option for those needing to borrow large sums while keeping monthly payments low.
You’ll need to have at least good or excellent credit to qualify for a LightStream loan. You shouldn’t have any current delinquencies and need to show a solid credit history of on-time payments.
Along with offering optional origination fees that allow you to create bespoke payments, SoFi is a leader in customer care. If you can’t repay your loan, SoFi offers extra benefits like unemployment protection, financial advising and more to help you get and stay on track. Borrow up to $100,000, if eligible.
You’ll need to be a U.S. citizen, permanent resident or visa holder to qualify for a SoFi personal loan. You’ll need to show you can responsibly repay your loan by providing relevant documents like pay stubs, tax returns, W2s, bank statements and more.
Aside from online lenders, you can explore credit unions like PenFed for personal loans without origination fees. You don’t need to be a member to apply for the loan (though you will to get the loan), nor do you need to be part of the military to qualify for membership. Because PenFed is a federal credit union, borrowers with poor or fair credit who get approved won’t pay more than 17.99% APR. PenFed doesn’t publicly list eligibility requirements, but if you complete a prequalification, you’ll be able to see if you’re eligible to borrow a personal loan.
While you don’t need to be a member to apply for a PenFed personal loan, you’ll need to be a member if you choose to accept your loan after you’ve been approved. PenFed doesn’t list specific eligibility requirements, but commonly requested documents include proof of adequate income, proof that you’re a U.S. citizen or permanent resident and a good credit history.
Though Discover is normally known for its credit card products, the company also offers personal loans. You can use a Discover loan for medical expenses, debt consolidation, home improvements or almost anything else you need. While Discover doesn’t charge an origination fee, you could receive a late charge if you don’t pay on time. If you run into problems, Discover has a repayment assistance program for borrowers who are experiencing hardships.
You’ll need to have a 660 minimum credit score to qualify for a personal loan with Discover. You’ll also need to earn at least $25,000 per year and provide proof of U.S. citizenship or permanent residence.
While U.S. Bank isn’t available in every state, its personal loan options might work for you based on how versatile they are. U.S. Bank offers simple loans ranging from $100 to $1,000 for current customers or personal and home improvement loans up to $50,000. However, you might face some limitations if you don’t currently use U.S. Bank. For instance, if you aren’t a customer, your limit goes down to $25,000.
Non-customers will need a 720 minimum credit score to qualify for a personal loan. You’re not only limited in how much you can borrow — up to $25,000 — but also how long your repayment terms are. Non-customers have a maximum of 60 months to repay their loans, depending on how much they borrow. Current bankers have up to 84 months.
Wells Fargo is one of the nation’s largest banks, but personal loans are only available to current Wells Fargo customers. If you’re a current customer, you might qualify for a Wells Fargo loan with a high maximum borrow amount and repayment terms longer than some other lenders we evaluated.
For current Wells Fargo customers, you’ll need to prove citizenship status, employment and income as well as proof of residence (typically through a utility bill or a similar document). If you aren’t a Wells Fargo customer, you can visit a branch near you to open an account and complete a personal loan application.
What Are Origination Fees?
Origination fees are fees lenders charge to borrowers for the application, processing and originating of your personal loan. They are typically an upfront cost that’s deducted from the total amount you want to borrow. For instance, if you have a 5% origination fee on a $10,000 loan, $500 will be deducted from the amount to be disbursed into your account.
Origination fees range anywhere from 0% to 10%. The total origination fee amount you’re charged depends on your credit score, credit history, how much you want to borrow and other qualifying factors.
The Pros and Cons of Personal Loans
FAQ
Can you get a personal loan without an origination fee?
Is it possible to get a 0% personal loan?
Do all personal loans have a fee?
Who is the easiest to get a personal loan from?
|
Title
|
APR
|
Min. credit score
|
|
BadCreditLoans.com
|
5.99% to 35.99%
|
Undisclosed
|
|
Upstart
|
5.2% to 35.99%
|
300
|
|
Avant
|
9.95% to 35.99%
|
580
|
|
LendingClub
|
8.98% to 35.99%
|
600
|