If you plan to make a big purchase or suddenly need funds, good credit can broaden your choice of financial products, such as personal loans. With good credit – a FICO score of 670 or higher – you’re more likely to receive approval for a personal loan and qualify for the best rates and terms.

But having a lot of choices can have a downside. It doesn’t mean that all of these personal loans are good for you, and too many choices can leave you feeling overwhelmed.

Before you commit to a loan, make sure you have done some comparison shopping. Here’s a look at some of the best personal loans for good credit to help you find the lowest interest rate and attractive repayment terms.

When you shop around for the best personal loan interest rate, you can save. Compare your personal loan offers with national average trends for personal loans to know if you’ve found a good deal.

*Rate as of Jan. 1, 2021

Select your desired loan amount and loan purpose, your credit score range, and your state to see estimated annual percentage rates and loan terms.

Because you have good credit, approval isn’t your main concern when shopping for a personal loan – finding the best deal is. Factors such as annual percentage rate, loan amount and fees will help you select the right loan.

Start your comparison shopping by prequalifying with at least three lenders. Many personal loan companies will allow you to prequalify online, or check your rates, and lenders will use a soft credit inquiry to determine your creditworthiness. Unlike a hard credit inquiry when you formally apply for a loan, a soft credit check does not hurt your credit score.

When you prequalify, you will provide personal information to the lender that will let you learn how much you could borrow, your APR and your monthly payment. Before you choose a personal loan for good credit, you will want to weigh these factors.

The average APR for a personal loan is about 12%, but if you have good credit, you may receive offers that fall below this rate. Lenders may offer you a lower APR because your good credit score suggests that you’ve used credit responsibly and may have a lower risk of default than other borrowers.

The APR provides a simple way to assess the cost of a loan. It includes the interest rate and loan fees, such as origination fees, so you have an accurate idea of your total out-of-pocket costs.

Taking the lowest APR deal may save you hundreds or thousands of dollars, depending on your loan’s principal balance.

In addition to origination fees, some lenders charge late fees, application fees and prepayment penalties. Make sure that you read the terms and conditions of your loan offer, and note all fees and when they will apply.

One of the benefits of a personal loan is that you can repay it over an agreed-upon amount of time.

The timeline you’ll have to repay your loan in full varies from lender to lender. Some lenders offer a maximum loan term of three years, while others provide up to seven years to pay back your loan.

Take a look at your finances to calculate how quickly you can realistically afford to repay the personal loan. The caveat with a longer loan term is that you’ll pay more in interest over the life of the loan.

Make sure to account for interest charges to understand the cost of your loan. If you take out an $11,000 loan at 8.75% interest over two years, for instance, you will pay $1,030.51 in interest compared with $2,620.57 in interest over five years.

Loan minimums and maximums vary by lender. You will need to make sure that a lender provides loans in the amount you need.

If you want a large personal loan for $50,000, then narrow your search for lenders that offer loans of that size. But don’t expect an offer for a lender’s maximum loan amount just because you have good credit.

“This depends on the financial institution,” says Mark Victoria, head of personal lending at TD Bank. “Commonly, institutions will ask the consumer for their requested loan amount in the initial application, which is then compared against what they have the ability to pay back based on factors such as income and credit history. Some lenders allow borrowers to request a higher loan amount, but in some cases, decisions are automated based on eligibility.”

Because credit scores are critical to determining loan terms, including loan amounts, Victoria suggests confirming that your credit report is accurate before applying for a loan.

Normally you’re entitled by law to one free copy of your credit report every 12 months from each of the three national credit bureaus at AnnualCreditReport.com or 877-322-8228. But the credit bureaus are now providing consumers weekly access to their credit reports through April 2021 amid the coronavirus pandemic.

Discounts
Lenders may offer you additional discounts to earn your business. “The most common incentive is a rate discount, typically used to incentivize consumers to sign up for autopay,” Victoria says.

Loan Purpose
A personal loan application may ask how you plan to use your loan funds. A personal loan could be used toward a large purchase, such as paying for a wedding, repairing a home or car, or consolidating debt. How you plan to use the loan plays a role in your lender’s decision, but this factor may not be weighted as heavily as others.

“A borrower’s intent is included in the evaluation but is usually relatively low in importance as compared to credit history and ability to pay back the loan,” Victoria says. “However, when considering getting a loan, one should realistically consider the planned purpose of the loan, how it will help them financially and their ability to pay it back before applying.”

Traditional banks, credit unions and online lenders offer personal loans for borrowers with good credit. The best place to get your personal loan depends on the loan terms you seek.

Consumers with good credit can choose among many lenders offering personal loans. Here’s a look at how different lenders may stack up:

Good credit makes loan approval more likely but doesn’t guarantee it. Lenders always look at your ability to make payments and how consistent your income has been recently, says Sarah Pierce, head of sales for the online mortgage lender Better.com.

“To determine this, lenders typically need documentation of your income history from the last two years, verified by tax returns and pay stubs,” Pierce says. “So if your income is variable (if you’re self-employed or paid on commission), you will likely need to submit extra documentation, and be prepared for lenders to be conservative with their income calculations.”

And even if you have good credit, Victoria adds, you may be denied a personal loan if the lender can’t confirm your identity. That can happen if you enter your Social Security number incorrectly on your loan application.

Debt-to-income ratio – the amount of debt you have compared with your available credit limit – can also influence a loan approval. Generally, personal loan companies prefer a DTI of 43% or lower. That means no more than 43% of your monthly income goes toward paying your debt.

Once you’ve chosen the right personal loan, carefully complete your application and review it to avoid mistakes that could slow down a decision.