Smart Ways to Use Personal Loans in 2026

Top Lenders and Rates

In 2026, several lenders offer competitive rates for personal loans:

• LightStream: 6.49%
• Wells Fargo: 6.74%
• American Express: 6.99%

Note: Rates can change, so monitor them closely.

What is a Personal Loan?

A personal loan allows you to borrow money from a bank, credit union, or online lender. Repayment typically occurs over 1 to 5 years with monthly payments, covering both the principal and interest.

Key Advantages

• Unsecured: No collateral required.
• Flexible Use: Can be used for emergencies, home improvements, or debt consolidation.

Credit Score Matters

• Best Rates & Approval Odds: Aim for a 670 to 850 credit score.
• Lower Scores?
• Below 580: Considered "bad credit."
• 580 to 669: Considered "fair credit."
• Improve Your Score: Boost it to at least 670 for better approval odds.

Things to Consider Before Borrowing

• Origination Fees: Some lenders charge 1% to 10% of the loan amount.
• Shop Around: Find lenders with no origination fees.