Best Personal Loans With No Origination Fee in 2024

Skip origination fees with these lenders

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Written by Carol Pope | Edited by Rebecca Stropoli and Janet Schaaf | Updated November 10, 2023

No-fee personal loan lenders at a glance

Discover Personal Loans: Best no-fee loans for superior borrower experience

APR range7.99% to 24.99%
Loan terms36 to 84 months
Loan amounts$2,500 to $40,000
Minimum credit score720
ProsCons

  Multiple repayment assistance options

  Extended customer service hours

  Can pay creditors directly

  $39 late payment fee

  No joint loans

  High minimum credit score requirement

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First Technology Federal Credit Union: Best no-fee loans for fair credit

APR rangeStarting at 8.94%
Loan terms24 to 84 months
Loan amounts$500 to $50,000
Minimum credit scoreNot specified
ProsCons

  Competitive APRs

  Able to add a cosigner

  Low minimum loan amount

  Must join credit union to borrow

  Vague eligibility requirements

  Charges a late payment fee

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LightStream: Best large no-fee loans

APR range6.99% to 25.49% (with autopay)
Loan terms24 to 84 months
Loan amounts$5,000 to $100,000
Minimum credit scoreNot specified
ProsCons

  Large loans with long repayment terms

  Offers a satisfaction guarantee and rate matching

  No late payment fees

  Not available if you have bad credit

  High minimum loan amount

  Cannot prequalify for personal loan

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PenFed: Best no-fee loans for excellent credit

APR range8.99% to 17.99%
Loan terms12 to 60 months
Loan amounts$600 to $50,000
Minimum credit score760
ProsCons

  Low minimum loan amount

  Can customize your monthly payment

 Joint personal loans available

  Must join credit union

  Cannot pay creditors directly

  $29 late payment fee

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SoFi: Best no-fee loans with interest rate discounts

APR range8.99% to 29.99% (with discounts)

Pricing Disclosure

Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
Loan terms24 to 84 months
Loan amounts$5,000 to $100,000
Minimum credit score680
ProsCons

  APR discounts for autopay and direct deposit

  No late payment fees

  High minimum loan amount

  May need to pay an optional origination fee for the lowest APRs

  Must have good credit or better

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What is a loan origination fee?

A personal loan provides a lump sum of funds that you can use for almost anything. Some lenders will charge an origination fee during the process.

Generally, an origination fee is a percentage of your total loan amount. Origination fees typically range from 1% to 6%, although some can exceed 10%. If your lender charges an origination fee, it will usually be deducted from the proceeds of your loan or rolled into your loan balance.

While origination fees are referred to as “upfront fees,” you don’t typically have to pay them out of pocket before you get your loan.

How a loan origination fee works

Imagine that a lender approves you for a $50,000 personal loan that has a 5% origination fee. That means you will receive $47,500 (assuming your loan doesn’t have any other upfront fees).

To break it down, your origination fee would be $2,500 (or, 5% of $50,000). Thus, $50,000 minus your origination fee of $2,500 equals a loan disbursement of $47,500.

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Why do I have to pay an origination fee?

Lenders sometimes charge an origination fee to help cover the cost of providing a loan. For example, a lender might put your origination fee toward ordering your credit report or underwriting and funding the loan.

You might also have to pay an origination fee if you have bad credit. Lenders prefer to work with good-credit borrowers since they are less likely to default on their loan. Consequently, a lender might try to earn your business by waiving its origination fee if you have a high credit score.

Banks that offer personal loans with no origination fee

Brick-and-mortar banks commonly have stricter borrower requirements, but they also tend to offer lower interest rates and fewer fees.

If you have good to excellent credit, you might want to explore the no-fee loans offered by the banks below. However, keep in mind that many banks only do business in specific states or only lend to current customers.

PNC Bank: This bank could be a good option if you need a no-fee loan between $1,000 and $35,000. However, you’ll need to agree to a hard credit inquiry to check your eligibility. You can’t prequalify for a personal loan with PNC.

TD Bank: TD Bank offers personal loans from $2,000 to $50,000. It doesn’t disclose much information about its minimum requirements, but it has a prequalification process.

U.S. Bank: You don’t have to be a U.S. Bank customer to get a loan, but you might get better loan options if you are. For instance, current customers can borrow up to $50,000, but noncustomers are limited to $25,000.

Wells Fargo Bank: With amounts between $3,000 and $100,000, Wells Fargo may be best for large loans. But if customer service is a priority, you should know that the CFPB has charged Wells Fargo billions in fines over recent years for regulatory violations.

Other personal loan fees

Origination fees aren’t the only ones associated with personal loans. On top of your APR (which measures the total cost of your loan, including your interest rate and applicable fees), your loan may have:

Prepayment penalties

The longer your loan is active, the more you’ll pay in interest. For this reason, some lenders will charge prepayment penalties, or a fee for paying your loan off before your term ends. Prepayment penalties aren’t common on personal loans. If your loan offer has one, it may be best to move on.

Payment processing fees

If you don’t want to sign up for autopay, you might want to double-check your lender’s fee schedule. Although it is uncommon, it is possible that lenders could tack on fees to manually made payments.

Late payment fees

A missed payment can drop your credit score by as much as 180 points, and your lender might charge a fee, too. Ask your lender about its late payment procedure, and whether it offers a grace period before a fee applies.

How to avoid personal loan origination fees

Some lenders charge an origination fee no matter the applicant. Others may reserve their origination fees for only certain borrowers.

The simplest way to avoid personal loan origination fees is to stick with no-fee lenders. Still, there are some actions you can take to help you avoid origination fees, even when the lender you’re targeting sometimes charges them.

Improve your credit score

Improving your credit score isn’t an overnight fix, but the effort is worth it. Having a good credit score can help you qualify for lower APRs, and lenders might forgo their origination fee to entice you to sign on.

Apply with banks and credit unions

Banks and credit unions usually offer no-fee loans with lower APRs to those who qualify. Funding timelines of banks tend to run slower than those of online loan lenders, though, which could make banks and credit unions less than ideal for emergency loans.

Get a joint loan

Taking out a joint loan with a creditworthy family member or friend could help you qualify for a no-fee loan. Do know that joint loans come with added risk. Both you and your co-borrower have equal responsibility (and access to the loan). If one of you makes a late payment, both of your credit scores will be affected.

How to apply for a no-fee personal loan

Applying for a no-fee loan follows the same general process as other types of personal loans.

Consider your budget

Before you apply for a personal loan, ask yourself two questions: Do I need to borrow this money, and will I be able to pay back what I owe?

Instead of taking out a loan, perhaps you can earn extra cash by taking on overtime hours or starting a side hustle. Loans can be a lifesaver, but they cost money, thanks to interest and fees.

If a loan is your best option, you should make sure you can fit repayment into your budget. Use our personal loan calculator to get an idea of how much your loan will cost per month. Also, be sure not to overborrow so you can avoid driving yourself into more debt than necessary.

Check your credit score

Forgoing an origination fee might not be a realistic goal if you don’t have good credit. In fact, it can be hard to meet personal loan requirements at all if your score is low enough. As a general rule, you might be required to have a credit score of at least 640 to qualify for affordable loan terms.

Before you apply for a loan, use LendingTree Spring to check your credit score for free. We’ll also alert you if we detect any changes in your credit report.

Check lenders’ required fees and prequalify

If you have a strong credit profile, you may want to seek out lenders that advertise no-fee loans. That way, you know there’s no chance of an origination fee.

Once you have a pool of potential lenders, it’s time to prequalify. Prequalification doesn’t guarantee you’ll be approved, but it will help you see what loan terms you could qualify for. Here, the lender will ask for some basic information such as your name, job status and annual income. It will also probably conduct a soft credit pull.

Compare offers

Because every lender has its own way of determining creditworthiness, APRs can vary widely from company to company. Comparing multiple offers can help ensure that the loan you accept is competitive.

Pay special attention to APRs — the lower the percentage, the less expensive your loan. You may also want to read customer reviews, look over the lender’s funding timeline and make sure the lender offers a loan size that meets your needs.

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Formally apply

When you’ve picked out the best loan for your needs, you can formally apply.

The application process varies by lender, but it’s not too different from prequalification. You will, however, need to provide more detailed information about yourself and your finances. The lender may also ask you to send proof of income, such as pay stubs, bank statements or W-2s.

Receive your loan and enter repayment

Some lenders can send you your loan the same day you apply. With others, you may need to wait a few days or even a week.

When you accept your loan, the lender will ask you how you’d like to receive your funds. Direct deposit is a popular choice. If you’re consolidating debt, some lenders make it easy by sending funds directly to your creditors.

Your first loan payment is usually due 30 to 45 days after your loan is disbursed, but check your repayment schedule for specifics.

How we chose the best personal loans with no origination fee

We reviewed more than 29 lenders to determine the overall best personal loans with no origination fee. To make our list, lenders must offer personal loans with no origination fee that also carry competitive annual percentage rates (APRs). From there, we prioritize lenders based on the following factors:

  • Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, such as free wealth coaching.

Frequently asked questions

The best origination fee for a personal loan is none at all. If you must pay an origination fee, then you will want to aim for one that’s between 1% and 5%. Whether this is possible, however, depends on your credit profile.

No. Even if you have bad or fair credit, you should avoid upfront (or, in this context, out-of-pocket) fees when taking out a personal loan. Personal loans that charge out-of-pocket fees could be a sign of predatory lending.

Maybe. Some lenders — SoFi, for instance — may allow you to opt in for an origination fee in exchange for a lower APR. Also, if you have excellent credit, your lender might remove its origination fee if you ask.