Here are the 4 best personal loans from big banks

Personal loans can be used for a variety of expenses, including weddings, vacations, home repairs and even as a way to cover emergency costs. There’s a lot to learn about personal loans, but one draw is that they can sometimes be a more affordable alternative to credit cards since they typically carry a lower interest rate (though, the rate you receive will depend on how healthy your credit score is). Personal loan APRs average 9.58%, according to the Fed’s most recent data. Meanwhile, the average credit card interest rate is around 16.30%.

There are a few different ways you can go about applying for a personal loan from a lender. You can go through a peer-to-peer lending site, take a look at some smaller financial institutions, or, of course, apply for a loan through a big bank.

Select evaluated personal loans offered by a variety of big banks. We looked at key factors like interest rates, fees, loan amounts and term lengths offered, plus other features including how your funds are distributed, autopay discounts, customer service and how fast you can get your funds. (Read more about our methodology below.)

When searching 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. With this comparison tool, you’ll just need to answer a handful of questions in order for Engine by MoneyLion to determine the top offers for you. The service is free, secure and does not affect your credit score.

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Who’s this for? PNC Bank offers personal loans that don’t need to be secured by collateral. There are many ways you can use this loan, however, a personal loan from this lender cannot be used to cover the cost of college or to refinance student loan debt.

The interest rate range from PNC Bank is the lowest rate on the list, though the rate and terms you receive will vary based on your location (you can enter your ZIP code on their website to get an idea of what the rates in your area are like). Also, you’ll want to make sure your credit score is in a healthy range in order to increase your chances of getting approved for the lowest possible rate.

Another benefit to applying for this loan with good credit is the potential for a longer repayment term. PNC Bank offers terms as long as 60 months. Generally, the higher your credit score, the more likely you are to have a longer repayment period. This can offer you some flexibility if you’d prefer to have smaller monthly payments (although you will pay more interest over time).

There are no origination fees or prepayment fees, however, you’ll be charged a $40 fee for any late payments.

Who’s this for? PenFed is a federal credit union that anyone can become a member of. It provides a number of personal loan options for debt consolidation, home improvement, medical expenses and auto financing, to name a few.

Most lenders have a $1,000 minimum for loans, however, you can get a $600 loan from PenFed with terms ranging from one to five years. You don’t need to be a member to apply, but you will need to sign up for a PenFed membership and keep $5 in a qualifying savings account to receive your funds.

PenFed loans can be a good option for someone who just needs to borrow smaller amounts of money. But one thing to be aware of is that you’ll only receive your funds in the form of a paper check. If you can travel to a nearby PenFed location, you can pick up your check directly from the bank. However, if you don’t live close to a branch, you’ll have to pay for expedited shipping to get your check the next day.

Interest rates can range from 4.99% to 17.99% but not all applicants will qualify for the lowest rate. And unlike most other lenders, PenFed doesn’t offer a discount for using AutoPay to make monthly payments.

Who’s this for? American Express Personal Loans can be a speedy option for those who need approval quickly (they’ll give you a decision in seconds as long as no additional information is needed). The one drawback to this, though, is that you’ll need to already be an American Express cardholder in order to apply for the loan. And while there are no origination fees or prepayment fees, you will be charged a $39 fee for late payments.

The interest rates offered are fixed and can range from 6.91% to 19.97%. Of course, the better your credit score, the more likely you’ll be to receive a lower interest rate and other more favorable loan terms.

The loan can be used for many things, including a wedding, moving costs, a home renovation, a vacation, or debt consolidation. Just be aware that you cannot use this loan to pay down debt on any American Express credit cards. You also cannot use the funds for post-secondary education expenses, real estate, business, securities, or vehicle payments (other than a down payment).

Funds are typically disbursed within three to five business days.

Who’s this for? Discover Personal Loans can be used for consolidating debt, home improvement, weddings and vacations. While there are no origination fees, Discover does charge a $39 late fee if you don’t make an on-time payment each month.

You can lock in a fixed APR at 5.99% to 24.99%, depending on your credit report. Discover doesn’t charge a prepayment penalty, which means you can make extra payments in the same month to cut down on interest charges over the life of the loan.

If you’re approved for a debt consolidation loan, Discover can pay your creditors directly. You’ll just have to link the credit card accounts — and provide the amount you’d like paid and the payment address information — so Discover can send the money directly.

You can receive your money 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, you’ll receive your funds no later than a week after approval.

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.

When narrowing down and ranking the best personal loans, we focused on the following features:

• No origination or signup fee: None of the lenders on our best-of list charge borrowers an upfront fee for processing your loan.
• Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary, making your budget easier to plan.
• Flexible minimum and maximum loan amounts/terms: Each lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
• No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
• Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process. 
• Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
• Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders (which we noted) offer the ability to pay your creditors directly.
• Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
• Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $500 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.

After reviewing the above features, we sorted our recommendations by best for overall financing needs, debt consolidation and refinancing, small loans and next-day funding.

Note that the rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.