The Best Personal Loans With No Origination Fees of March 2023
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The Best Personal Loans With No Origination Fees of March 2023
Our experts answer readers' personal loan questions and write unbiased product reviews (here's how we assess personal loans). In some cases, we receive a commission from our partners; however, our opinions are our own.
People choose to take out personal loans for many reasons, including debt consolidation, home improvements, or making a large purchase. However, fees can add up quickly, causing your overall cost of borrowing balloon higher than you initially expected.
Origination fees are what lenders charge for the administrative expenses lending money. For personal loans, they usually range from about 1% to 7% of your total loan amount and are taken from your proceeds. However, not all lenders charge them. Here are Insider's top picks for the best personal loans with no origination fees:
Best Personal Loans With No Origination Fees of 2023
- LightStream Personal Loan: Best for low rates
- SoFi Personal Loan: Best for high loan amount
- Discover Personal Loan: Best for money back guarantee
- Wells Fargo Personal Loan: Best brick-and-mortar lender
- PenFed Credit Union Personal Loan: Best credit union
- USAA Personal Loan: Best for the military community
We've rounded up the best lenders for people in a range of financial situations, with an emphasis on finding those that offer low APRs. None of the companies we've listed charge origination fees, saving you on the overall cost of your loan.
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Our Experts for the Best Personal Loans With No Origination Fees
We consulted personal loan and financial experts to give their insights into finding the best personal loans with no origination fees.
- Markia Brown, certified financial education instructor and registered financial associate at Money Plug, LLC
- Sean August, CEO at The August Wealth Management Group
- Ryan Wangman, loans reporter at Personal Finance Insider
Methodology: How we chose the best personal loans without origination fees
We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category's weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan's terms, so they have less of an impact on the overall rating.
For the best personal loans without origination fees specifically, we looked for companies that wouldn't tack on extra penalties to your loan and increase your borrowing costs. When choosing between companies with no origination fees, we looked for lenders offering the best rates and widest range of term lengths.
See our full ratings methodology for personal loans »
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LightStream Personal Loan
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SoFi Personal Loan
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Discover Personal Loan
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Wells Fargo Personal Loan
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PenFed Credit Union Personal Loan
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USAA Personal Loan
Personal Loan With No Origination Fees Frequently Asked Questions
Yes, it is possible for you to get a personal loan without an origination fee. Make sure to read the fine print when choosing a lender to understand all the terms and conditions of your loan.
The origination fee on a personal loan can vary wildly, but generally a fee between 1% to 5% is standard, while anything in the double digits is high.
You can avoid origination fees by applying for loans from lenders that don't charge them. Other lenders that normally charge origination fees may not charge them for borrowers with great credit.
Depending on the lender, you may be able to negotiate your loan's origination fee. It may benefit you to apply for a loan from multiple companies and leverage one offer against another.
No, not all loans have an origination fee. Picking a lender without an origination fee will lower the total cost of your loan.
Best personal loan without an origination fee for low rates: LightStream Personal Loan
Why LightStream stands out: LightStream offers personal loans for things like home remodeling, medical debt, and debt consolidation. LightStream is the best option for those with excellent credit because its lowest APR is the best of every lender on our list.
Look out for: High credit score requirements. LightStream's minimum credit requirement for a personal loan is 660, so this lender might not be the best choice for all credit types.
Read Insider's full review review of LightStream Personal Loans.
Best personal loan without an origination fee for high maximum loan amount: SoFi Personal Loan
Why SoFi stands out: SoFi's personal loans have a minimum credit score requirement of 680, at the lower end of what's considered a good credit score. It also has a loan maximum of $100,000, perfect for borrowers who need a large amount of money to finance an expense.
Look out for: A relatively high minimum income for approval. According to loan comparison site Credible, less than 1% of borrowers approved for personal loans through SoFi earn less than $50,000 per year, and the majority make more than $100,000.
Read Insider's full review of SoFi Personal Loans.
Best personal loan without an origination fee for money back guarantee: Discover Personal Loan
Why Discover stands out: Discover offers a 30-day money-back guarantee. You can send back your funds by check if you decide within 30 days of receiving your loan that you no longer want it. You won't be charged any interest. No other lender offers this type of deal.
Look out for: Low maximum loan amount. You can only borrow up to $35,000 with Discover. If you need money for a bigger project, other lenders will allow you to borrow more.
Read Insider's full review of Discover personal loans.
Best personal loan without an origination fee for brick-and-mortar lenders: Wells Fargo Personal Loan
Why Wells Fargo stands out: Wells Fargo's personal loans offer low interest rates, smaller minimum borrowing amounts, and shorter terms than others. Borrowers who want to get their debt under control quickly might find that Wells Fargo's personal loans are flexible enough to tackle debt consolidation.
Look out for: It's worth noting Wells Fargo's history with data security and compliance. The bank has faced several federal penalties for improper customer referrals to lending and insurance products, and security issues associated with creating fake accounts several years ago.
Read Insider's full review of Wells Fargo personal loans.
Best personal loan without an origination fee for a credit union: PenFed Credit Union Personal Loan
Why PenFed stands out: For borrowers looking to take out a small amount of money, PenFed offers loans as small as $600. This could make the credit union an attractive alternative to a payday loan.
Look out for: Membership requirements. You don't need to be a member of the credit union to apply for a personal loan, but you'll have to be a member to get one. If you've served in the military or work at qualifying associations or organizations, you'll qualify.
However, you have a pretty easy workaround if that doesn't apply. You can join by opening a savings account with a $5 minimum deposit.
Read Insider's full review of PenFed Credit Union personal loans.
Best personal loan without an origination fee for the military community: USAA Personal Loan
Why USAA stands out: The lender has fast funding — if you need your money fast, you can get it as soon as the next day depending on when your loan is approved.
Look out for: Membership requirements. You're only able to become a member of USAA is if you're a part of the military community or a family member of that group, so these personal loans might not be accessible for all borrowers.
Read Insider's full review of USAA personal loans.
How to Choose the Best Personal Loan With No Origination Fees
To select the best personal loan for you, look at the factors that are most important to you. Many borrowers look for the lowest interest rate, but also examine any fees, the minimum credit score needed, and the accessibility of the lender's customer service.
This may sound overly straightforward, but confirm the lender you want to borrow from doesn't charge origination fees.
Also look at the different types of lenders you may borrow with. Some people may feel comfortable with an online lender, while others may prefer a credit union or bank. You'll also want to make sure you're able to select a term length that works for you and that your loan's purpose is allowed by the lender you choose.
Guides like this one will help you compare multiple lenders in the same place to weigh their pros and cons. Keep in mind that you should also read individual reviews of any lenders you're considering.
Personal Loan Lenders With No Origination Fees Trustworthiness
The Better Business Bureau, a non-profit organization focused on consumer protection and trust, evaluates businesses using factors like their responsiveness to consumer complaints, honesty in advertising, and clarity about business practices. Here is each lender's score:
All of our top picks, except Wells Fargo and USAA, are rated A+ by the BBB. Keep in mind that a high BBB score does not ensure a positive relationship with a lender. You should also do a lot of research on your own, and talk with others who have used the company to get the most comprehensive information possible.
The BBB gives Wells Fargo an F rating because of the banks's failure to respond to 25 complaints and government actions against it. Most recently, the Consumer Financial Protection Bureau in December 2022 ordered Wells Fargo to return $2 billion to customers and pay a $1.7 billion penalty for legal violations involving auto loans, mortgages, and deposit accounts. The bank illegally charged fees and interest penalties on auto and mortgage loans. Additionally, it misapplied payments to those loans for many customers.
USAA is currently not rated by the BBB as it is in the process of responding to previously closed complaints.
If this history makes you uncomfortable, you may consider using one of the other personal loan lenders on our list.
Our Experts' Advice for Choosing the Best Personal Loan With No Origination Fee
How does an origination fee impact the total cost of a loan?
Sean August:
"An origination fee is a charge that a lender may apply to a loan to cover the costs of processing and approving the loan application. This fee is typically a percentage of the loan amount, and it can vary depending on the lender and the type of loan."
Markia Brown:
"Fees are any additional charges that can be added on top of your loan's interest rate. They vary by lender and type of loan, so shopping around before you settle on a lender may be in your best interest."
Ryan Wangman:
"Think of it like a tax on the total amount you borrow — if you want to take out $3,500, but the lender charges an origination fee of 10%, you'd have to borrow $3,850 just to get the amount you initially requested."
Why does it matter if my loan has an origination fee?
August:
"It matters if your loan has an origination fee because it can significantly impact the total cost of your loan. If you are not aware of the origination fee and how it will affect your loan payments, you may end up paying more than you anticipated."
Wangman:
"An origination fee will increase the overall cost of your borrowing. Depending on the origination fee you're charged, you could end up paying hundreds or thousands of dollars more than if you borrow from a lender without an origination fee. Many lenders, like the ones in this guide, don't charge origination fees."
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