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We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: Klaus Vedfelt/Getty Images July 08, 2022 Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our loans reporters and editors focus on the points consumers care about most — the different types of lending options, the best rates, the best lenders, how to pay off debt and more — so you can feel confident when investing your money. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. When life happens, taking out a personal loan may be necessary to stay afloat financially. If your credit score is in good shape and you earn enough income to afford the loan payments, you could get back on track sooner than later. But if money’s tight, managing a personal loan can be challenging and have severe consequences for your finances. Still, it’s possible to get a good deal on a personal loan by exploring your options. The payments may still stretch your budget thin, but the borrowing costs could be more affordable if you secure a personal loan with competitive terms. Low-interest personal loans
These lenders feature personal loans with low interest rates to make taking out a personal loan more affordable: Lender APR range Loan amounts Loan amounts Minimum credit score 5.60% – 35.99% $1,000 – $50,000 3 to 5 years Not specified As low as 7.74% Up to $50,000 Up to 5 years Not specified 6.99% – 21.49% (with autopay) $5,000 – $100,000 2 to 7 years No minimum credit score 5.99 – 24.99% $5,000 – $40,000 2 to 5 years 600 5.99 – 28.74% (with autopay) $1,000 – $35,000 Up to 60 months (in select states) Not specified Upstart
Upstart offers rapid approvals and funding in as little as one business day. What makes the lender even more attractive to prospective borrowers is that there’s no minimum credit score requirement. Instead, Upstart looks beyond your credit score by evaluating your employment and education history to gauge if you’re a good fit for a loan. PenFed
You must join PenFed Credit Union to apply for a personal loan. However, it could be a worthwhile move since there are no origination fees, and you can apply with a joint applicant. Plus, the starting interest rate is among the lowest in the industry if you have a strong credit score. LightStream
LightStream is another exceptional online lender with competitive interest rates on personal loan products. The amounts are some of the most generous you’ll find, and depending on when you apply, you could get approved and receive funding the same day. There’s also an option to select a later funding date that coincides with when you’ll need the loan. Payoff
On the Payoff site, you’ll find a plethora of money management tools and financial education resources to help you take better control of your finances. You can check your rate in minutes and customize a loan product that works for your financial situation if there’s a match. A member of the Payoff team will reach out to you quarterly to check in and answer any questions you may have. PNC Bank
PNC Bank is a brick-and-mortar financial institution that also offers unsecured personal loans with minimal fees and competitive rates. Co-borrowers are also allowed if you want to strengthen your approval odds. If you already have an account with PNC, you may qualify for a discounted interest rate. Plus, there are over 2,600 branches nationwide if you’d like to receive in-person support. Income requirements for personal loans
Lenders want reassurance that you earn enough income to make timely loan payments. So, they’ll likely have a . Most also request proof of steady and verifiable income, such as a recent pay stub, W-2 or tax return, along with your employer’s contact information. Consider using a personal loan calculator to view your potential monthly payment and determine how big of a loan you should request. Other general eligibility criteria for personal loans are as follows: An active bank account that’s in your name to send the loan process An acceptable credit score and debt-to-income ratio Proof of residence, like a mortgage statement, lease agreement, or utility bill that includes your name and physical address listed on the loan application Remember that each lender sets its own rules, so borrower requirements vary. How to get a personal loan with low income
You may have to do some legwork to get a personal loan with a lower income, but it’s possible. In fact, you could have better luck with an online lender that has flexible eligibility criteria. To strengthen your approval odds, apply for a lower loan amount or ask a friend or relative to cosign for you. If you don’t need the funds immediately, consider paying down your debt, getting a better-paying job or negotiating a raise to lower your debt-to-income ratio. Also, work towards improving your credit score to possibly unlock more significant loan amounts. Alternatives to a personal loan when you have low income
Whether you’re unable to qualify for a personal loan or would prefer to explore other funding sources, these options could be viable: Credit cards: If you have good or excellent credit, consider a credit card with an introductory interest-free period. Paying off the entire balance before the promotional period ends means you won’t pay any interest on charges you incur. Otherwise, this form of financing could be costly, mainly if you spend more than you can afford to pay back before the offer expires, interest starts to accrue and you end up only making the minimum monthly payment for some time. Payday loans: These loans should only be used as a last resort for a few reasons, although they’re easy to access if you have a low income than perfect credit. For starters, the interest rates are often well into three-digits, some as high as 650 percent. And as the name suggests, the balance is generally payable on your next payday. Secured loans: You’ll have to put up collateral to get a secured loan. However, they’re attractive to many borrowers because you can get approved with a lower credit score and minimal income. The downside is you could lose your asset if you default on the loan payments. Also, consider contacting your local credit union to inquire about personal loan options. They often extend smaller loans and may agree to lend you more if you’re already a member and have established a positive relationship with the branch. Talk about alternatives and whether they are better or worse in general. Include payday loans, secured loans, credit cards and local credit unions Bottom line
Taking out a personal loan is sometimes necessary, but having a lower income can make it challenging to manage. The upside is some lenders offer flexible, affordable loan products with competitive rates. Before you apply, explore other funding options as they may work better for your budget. SHARE: Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information. Related Articles