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What Is Wage Garnishment? What You Need to Know

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When your unpaid debt goes into collections, you’ll likely receive calls and letters from collectors urging you to pay. If your debt remains unpaid, in some cases, creditors can pursue wage garnishment as a last-ditch attempt to recoup their losses.

Wage garnishment is a legal process that allows creditors to deduct money from a borrower’s paycheck to collect their unpaid debt. If a creditor is able to secure a garnishment of wages, the employer must withhold a portion of funds from the employee’s paycheck until the debt is repaid.

How wage garnishment works

If you don’t pay back your debts, tax bills or mandated payments such as child support, creditors and lenders will try in different ways to obtain payment from you. When more subtle debt collection efforts don’t pay off, the creditor may proceed with wage garnishment — one of the most drastic methods of debt collection.

For most types of debts, if a creditor wants to garnish your wages, they must sue you and take you to court. If they win a judgment against you, they could receive a court order that allows them to garnish your wages whether you like it or not. Some forms of federal debt, such as back taxes owed to the IRS or federal student loans, can result in wage garnishment without needing to go through that legal process. Laws vary a bit from state to state, however.

Read on for more common questions and answers about how wage garnishment works.

The Consumer Credit Protection Act limits how much money can be garnished from your paycheck, though in some cases, there are differences due to state laws. If your state’s laws require a lower garnishment amount, your employer has to use that standard rather than the federal law.

In general, for garnishments other than for child support, bankruptcy or state/federal back taxes, the weekly garnishment amount can’t exceed the lesser of:

  1. 25% of the disposable earnings; or
  2. The amount by which the disposable earnings are greater than 30 times the federal minimum wage

Federal agencies can garnish up to 15% of disposable income for defaulted debts that are owed to the U.S. government, and up to 15% of disposable income can be garnished for defaulted federal student loans. According to the Department of Labor, these limits don’t apply to debts for federal or state taxes, or for certain bankruptcy court orders.

If your wages are garnished due to court orders for child support or alimony, the limits under the CCPA are different. In these cases, up to 50% of an employee’s disposable income can be garnished if they’re supporting another spouse or child. If they aren’t, their wages can be garnished up to 60%. If payments are over 12 weeks in arrears, an additional 5% can be garnished.

In 2017, the three major credit bureaus made a move to no longer display civil judgments and tax liens in the public record section of credit reports. This means a wage garnishment judgment shouldn’t appear on your credit report and therefore won’t affect your score. If it does show up on one of your credit reports, you can file a dispute to get it removed.

Possibly; some creditors may be willing to work with you. If you’re notified you’re being taken to court for wage garnishment, call the creditor and ask if there are any alternative options, such as debt settlement or debt repayment plan.

If you think the wage garnishment is inaccurate or that you don’t owe the debt, you can object at the garnishment hearing. The judge has the option of reducing or terminating the garnishment, or they can give the creditor the ability to proceed.

Once a judgment for paycheck garnishment has been issued, your employer will be notified by the court. They are supposed to begin the process of withholding the money from your paycheck and remitting it to the creditor or government as soon as possible, so the garnishment may happen as soon as your next pay period.

When your debt is fully repaid, the wage garnishment will end. While the process varies depending on the type of garnishment, your employer will typically receive a letter from the creditor or government notifying them that the garnishment can be terminated.

When your wages are garnished, they’re taken from your disposable earnings. These earnings are what’s left after legally required deductions such as taxes, Social Security and involuntary retirement contributions. It doesn’t factor in any deductions that aren’t legally required, such as union dues.

Federal benefits are usually exempted from being garnished, according to the Consumer Financial Protection Bureau (CFPB). This includes Social Security, veteran benefits, servicemember pay, federal student loan, federal retirement or disability, and so on. However, the CFPB warns that some benefits may not be exempted if the wage garnishment is for federal student loans, federal taxes or child support.

If you’re unsure of how much you still owe or how much longer your wages will be garnished, contact your creditor directly and ask for your current balance. They can let you know how much you’ve paid so far and how much you have left to go.

How much of your wages can be garnished

The amount of wages that can be garnished depends on a few factors, but most importantly, the type of debt. In general, here’s how much money can be garnished from your paycheck for each form of debt:

Type of debtHow much income can be garnished
Consumer debt, like credit cards, medical bills and personal loansThe lesser of:
  • 25% of your disposable earnings
  • Any income that exceeds 30 times the federal minimum wage

Court-ordered debt, like child support and alimonyUp to 50% if supporting another spouse or child, or up to 60% if you aren’t. Add 5% if the payments are over 12 weeks behind.
Federal student loans15%
Federal taxesVaries depending on your filing status and dependents

What to do if your creditor is pursuing garnishment

If you’re being sued by a creditor, first verify that all of the information in the lawsuit is accurate and that it isn’t a debt you’ve already repaid. If the information is correct, there are a few different ways to proceed:

Option 1: Contact your creditors to work out a payment plan

If you’ve been notified that a creditor is suing you and wants to pursue wage garnishment in court, you can try to stop the process before it starts. Call your creditors and ask if they would be willing to create a repayment plan or agree upon a settlement with you.

If you’re nervous about attempting this yourself, you could hire a nonprofit credit counselor to help advise you or help you work with your creditor. For those who can afford it, the CFPB recommends hiring a lawyer who works in consumer law or debt collection defense to help you navigate this process early on.

These proactive measures don’t always work, but they may be worth a shot to try to avoid wage garnishment. Just make sure you act quickly, since wage garnishment is difficult to undo once it’s been decided in court.

Option 2: Object to the garnishment

When you’re sued for wage garnishment, you have the right to attend the hearing and object to the process. The process varies depending on the type of debt and the state where you reside. Your garnishment papers should explain what you need to do in order to object to the decision, but if they don’t, contact the court to find out.

If the creditor is granted the court order for wage garnishment in court, you may still be able to challenge it. The documents you receive with the court order should explain how you can challenge it in court and how much time you have to do so, though you may only have a matter of days. It may be wise to employ a lawyer to help you navigate this process. If you can’t afford one, see if your area has a low-cost or free legal clinic or legal aid office.

Also, keep in mind that you will need a legitimate reason for your challenge or objection, such as that you’ve already paid the debt or you’ll experience financial hardship if it’s implemented.

Option 3: Accept the garnishment

Perhaps the lawsuit is accurate — you owe the debt, and your creditor won’t agree to a repayment plan or settlement. If you’re still able to make ends meet with the garnished wages, one option is to simply go along with the process.

It may be a hard pill to swallow, but take solace in knowing that the money coming out of your paycheck will go toward the debt you owe, and once it’s fully repaid, the garnishment will end.

Your rights in the wage garnishment process

Under the Fair Debt Collection Practices Act, a creditor can’t threaten to garnish your wages if they aren’t able to legally garnish them.

If you’re wondering how to stop wage garnishment, you may have a few options:

  • Bankruptcy: While it’s a last resort and not always advisable, filing for bankruptcy may allow you to avoid wage garnishment from consumer debts (but not court-ordered debts).
  • Claim an exemption: Some states also allow you to claim exemptions, such as a head of household exemption, if you’re the primary breadwinner for your family and can’t survive on the adjusted wages. This could either prevent the judge from granting the garnishment or reducing how much is taken from your paycheck.

Additionally, under federal law, an employer cannot fire you or take any negative actions against you if your wages are garnished for one debt. An employer also can’t refuse to hire you because of this. Be aware, however, that you are no longer protected from getting fired if your wages are garnished for a second or future debt.

As a general rule, if you’re unsure of your rights in the wage garnishment process, consider hiring an attorney, or visiting a local legal clinic or legal aid office to assist you.

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If you want to refinance or consolidate debt, make a major purchase or cover another expense, a personal loan might be one of your best options as it will come with:

  • Fixed monthly payments
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One of the best ways to get the lowest possible personal loan rates for your financial situation is to prequalify through several lenders, so you can compare offers. As long as you shop with lenders that use a soft credit pull, you can check your rate without hurting your credit score.

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Company
APR
Terms
Credit Req.
LendingTree

As low as 2.49%

24 to 60

months

Minimum 500 FICO®

SEE OFFERS Secured

on LendingTree’s secure website

LendingTree is our parent company

Disclosure

Disclaimer


As of 17-May-19, LendingTree Personal Loan consumers were seeing match rates as low as 2.49% (2.49% APR) on a $20,000 loan amount for a term of three (3) years. Rates and APRs were based on a self-identified credit score of 700 or higher, zero down payment, origination fees of $0 to $100 (depending on loan amount and term selected). Terms Apply. NMLS #1136

3.99% - 19.99%*

with AutoPay

24 to 144*

months

Not specified

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 3.99% APR with a term of 3 years would result in 36 monthly payments of $295.20.
SoFi

5.99% - 20.69%*

24 to 84

months

680

Minimum Credit Score

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

Fixed rates from 5.99% APR to 20.69% APR (with AutoPay). SoFi rate ranges are current as of January 19, 2021 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. 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.
Marcus by Goldman Sachs®

6.99% - 19.99%

36 to 72

months

Not specified

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.

5.99% - 29.99%

36 or 60

months

640

Minimum Credit Score

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

The Annual Percentage Rate (APR) is the cost of credit as a yearly rate and ranges from 5.99% to 29.99%, which may include an origination fee from 0.99% - 6.99% that is deducted from loan proceeds. Any origination fee on a loan term 4-years or longer will be at least 4.99%. The loan term and the APR offered will depend on your credit score, income, debt payment obligations, loan amount, credit usage history and other factors. Additionally, the APR offered is impacted by your loan term and may be higher than our lowest advertised rate. Requests for the highest loan amount may result in an APR higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest rate.

*Trustpilot TrustScore as of June 2020. Best Egg loans are unsecured personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC. “Best Egg” is a trademark of Marlette Funding, LLC. All uses of “Best Egg” refer to “the Best Egg personal loan” and/or “Best Egg on behalf of Cross River Bank, as originator of the Best Egg personal loan,” as applicable. The term, amount and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000–$35,000. Residents of Massachusetts have a minimum loan amount of $6,500 ; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $50,000. Annual Percentage Rates (APRs) range from 5.99%–29.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%–6.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR.

To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you.

10.68% - 35.89%

36 or 60

months

Not specified

SEE OFFERS Secured

on LendingTree’s secure website

9.95% - 35.99%*

24 to 60**

months

580

Minimum Credit Score

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

*If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.

**Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33.

Based on the responses from 7,302 customers in a survey of 140,258 newly funded customers, conducted from August 1, 2018 - August 1, 2019, 95.11% of customers stated that they were either extremely satisfied or satisfied with Avant. 4/5 Customers would recommend us. Avant branded credit products are issued by WebBank, member FDIC.

18.00% - 35.99%

24 to 60

months

Not specified

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on LendingTree’s secure website

Lender Disclosure

Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $400. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes.

Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.

Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Florida: $8,000. Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. Texas: $8,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
PenFed Credit Union

6.49% - 17.99%

60

months

Not specified

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on PenFed Credit Union’s secure website

8.27% - 35.99%

36 or 60

months

600

Minimum Credit Score

SEE OFFERS Secured

on LendingTree’s secure website

Personal loans for excellent credit

LightStream

APR

3.99%
To
19.99%*

with AutoPay

Credit Req.

Not specified

Terms

24 to 144*

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

LightStream is the online lending division of SunTrust Bank.... Read More


*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 3.99% APR with a term of 3 years would result in 36 monthly payments of $295.20.

At LightStream, a fee-free online lender, the starting APR for a personal loan is 3.99%, the lowest APR among the lenders listed here. Meanwhile, the maximum APR is 19.99%, if you set up automatic payments from your checking account with autopay. That rate is similar to what other lenders on this list offer for excellent credit.

LightStream offers loans for almost any purpose, except for paying post-secondary education costs or to consolidate student debt. Amounts range from $5,000 to a high $100,000. Loan terms are extremely flexible, with terms from 24 to 144 months.

Loans are issued quickly, sometimes the day they’re approved as long as it’s a banking business day. LightStream also lets you schedule extra, principal-only payments on the same day you make regular payments to help you pay down your loan more quickly and with less interest.

Marcus by Goldman Sachs®

APR

6.99%
To
19.99%

Credit Req.

Not specified

Terms

36 to 72

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

Marcus by Goldman Sachs® offers personal loans for up to $40,000 for debt consolidation and credit consolidation. ... Read More


Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.

If you prefer working with a traditional bank, Marcus by Goldman Sachs® is an online brand that offers personal loans issued by Goldman Sachs Bank USA. Loans range from $3,500 to $40,000 and can be used for most purposes, except for paying off student loans or educational expenses. APRs start at 6.99%, which is slightly higher than LightStream’s starting APR, but the maximum is the same, 19.99%. Loan terms range from 36 to 72 months, and rates tend to be higher for longer-term loans.

Like LightStream, Marcus doesn’t charge fees for its personal loans, even for late payments. You will, however, be rewarded for on-time payments; the lender lets you skip a month if you meet your due date for 12 consecutive payments, a standout feature.

Applying for a loan online is easy at Marcus, but loan funding is slow compared with competitors here. If you’re approved, you might receive your funds within 5 days.

SoFi

APR

5.99%
To
20.69%*

Credit Req.

680

Minimum Credit Score

Terms

24 to 84

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

SoFi offers some of the best rates and terms on the market. ... Read More


Fixed rates from 5.99% APR to 20.69% APR (with AutoPay). SoFi rate ranges are current as of January 19, 2021 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. 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.

SoFi is another fee-free online lender that offers low-interest personal loans for creditworthy borrowers. APRs range from 5.99% to 20.69% when you set up automatic payments with autopay. If you have a responsible financial history and a strong monthly income, SoFi may be willing to offer you an especially competitive rate. Like LightStream, it also offers loans up to $100,000. Funds are generally available within a few days after approval.

In addition to attractive loan rates, SoFi offers a suite of financial resources to help you stay on top of your finances, like free career coaching, financial planning and estate planning. If you lose your job while paying back your loan — but stay up to date on payments — SoFi’s unemployment protection program may let you pause payments for up to 12 months while the company helps with your job search. This is a fantastic feature to help you weather an unforeseen financial emergency.

Personal loans for good credit

Best Egg

APR

5.99%
To
29.99%

Credit Req.

640

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

0.99% - 6.99%

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

People looking for a process that is fast and straightforward can’t go wrong when applying through Best Egg for a personal loan. ... Read More


The Annual Percentage Rate (APR) is the cost of credit as a yearly rate and ranges from 5.99% to 29.99%, which may include an origination fee from 0.99% - 6.99% that is deducted from loan proceeds. Any origination fee on a loan term 4-years or longer will be at least 4.99%. The loan term and the APR offered will depend on your credit score, income, debt payment obligations, loan amount, credit usage history and other factors. Additionally, the APR offered is impacted by your loan term and may be higher than our lowest advertised rate. Requests for the highest loan amount may result in an APR higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest rate.

*Trustpilot TrustScore as of June 2020. Best Egg loans are unsecured personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC. “Best Egg” is a trademark of Marlette Funding, LLC. All uses of “Best Egg” refer to “the Best Egg personal loan” and/or “Best Egg on behalf of Cross River Bank, as originator of the Best Egg personal loan,” as applicable. The term, amount and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000–$35,000. Residents of Massachusetts have a minimum loan amount of $6,500 ; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $50,000. Annual Percentage Rates (APRs) range from 5.99%–29.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%–6.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR.

To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you.

Best Egg is an online lending platform where borrowers can find loans for $2,000 to $35,000, though some borrowers may qualify for up to $50,000. APRs start as low as 5.99%, with a maximum APR of 29.99%. That number is similar to what you might find with many good credit lenders, but it’s much higher than what you might pay at PenFed, a competitor on this list.

To qualify for a personal loan at Best Egg, you’ll need a minimum credit score of 640 and a debt-to-income ratio that is less than 30% to show you can afford to take on more debt. To qualify for the lowest rates, you’ll need a credit score that’s 700 or more and a minimum annual income of $100,000.

Best Egg doesn’t have a prepayment penalty, but it does charge an origination fee for processing your loan that’s 0.99% - 6.99% of the loan amount. If your loan has a term of four years or more, expect to pay an origination fee that is at least 4.99%. Best Egg issues funds quickly to approved applicants, with some borrowers receiving funds the same day upon approval.

PenFed Credit Union

PenFed Credit Union
APR

6.49%
To
17.99%

Credit Req.

Not specified

Terms

Up to 60

months

Origination Fee

None

APPLY NOW Secured

on PenFed Credit Union’s secure website

Pentagon Federal Credit Union (PenFed) offers personal loans with terms up to five years and maximum loan amounts of $20,000.... Read More

PenFed is a credit union that offers some of the lowest personal loan rates for good credit borrowers. You don’t need to be a member to apply, but if you decide to move forward with a loan from PenFed, you’ll need to sign up. The process is easy and anyone can join.

APRs range from 6.49% to 17.99%, and you can borrow up to $20,000 with a term of 60 months. Loans are free of origination fees and prepayment penalties.

At PenFed, you’ll receive your money by mail, which is an inconvenient funding option considering most other lenders will simply deposit funds in your account. For faster delivery, you can opt for expedited shipping, so your funds may arrive as soon as the next day. If you live in the area around Washington, D.C., you can also pick up a check from a PenFed branch.

Upstart

APR

8.27%
To
35.99%

Credit Req.

600

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

Up to 8.00%

SEE OFFERS Secured

on LendingTree’s secure website

Upstart is an online lender created by ex-Googlers.... Read More

Online lender Upstart offers personal loans with APRs ranging from 8.27% to 35.99%. That range is higher than for the other two good credit lenders on this list, though it offers flexible loan amounts from $1,000 to $50,000.

Despite a higher range of loan rates, Upstart may be easier to get approved for an Upstart loan. In addition to your credit score, the company also considers data like your income, savings, where you went to college and your major. Upstart cites 27% more approvals — and at lower rates — than with a traditional lending model.

Upstart works fast, too, with almost all approved loans receiving next-day funding. There’s no prepayment penalty at Upstart, but expect a late payment fee and origination fee. (Up to 8.00% of the loan amount.)

Personal loans for fair or bad credit

Avant

APR

9.95%
To
35.99%*

Credit Req.

580

Minimum Credit Score

Terms

24 to 60**

months

Origination Fee

Up to 4.75%**

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

Avant is an online lender that offers personal loans ranging from $2,000 to $35,000. ... Read More


*If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.

**Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33.

Based on the responses from 7,302 customers in a survey of 140,258 newly funded customers, conducted from August 1, 2018 - August 1, 2019, 95.11% of customers stated that they were either extremely satisfied or satisfied with Avant. 4/5 Customers would recommend us. Avant branded credit products are issued by WebBank, member FDIC.

Avant is an online lender that issues both unsecured and secured personal loans to fair credit borrowers. Most customers have credit scores between 600 and 700, and loan amounts range from $2,000 and $35,000. Personal loan APRs range from 9.95% to 35.99%, which is similar to other fair credit lenders.

Avant may charge you a loan origination fee that’s Up to 4.75% of your loan amount. The fee is deducted from loan proceeds before disbursement. Avant also charges late fees, and the amount and timing of the late fee varies by state. In general, if your payment is 10 days past due, you’ll pay $25 as a fee. There’s no prepayment penalty if you pay off your loan early.

Avant’s secured personal loan comes with a 2.5% administration fee and also a smaller maximum loan amount, $35,000. It uses your car as collateral, which means it might be easier to qualify for than Avant’s unsecured loan. However, if you default, you risk losing your vehicle. With both loan types, borrowers often receive funds the day after they’ve been approved.

LendingPoint

APR

15.49%
To
35.99%

Credit Req.

585

Minimum Credit Score

Terms

24 to 48

months

Origination Fee

0.00% - 6.00%

SEE OFFERS Secured

on LendingTree’s secure website

LendingPoint is an online lender that targets borrowers with fair credit, and allows borrowing up to $25,000.... Read More

LendingPoint is an online lender that targets fair credit borrowers with loans up to $25,000. Besides looking at your credit score, LendingPoint considers factors like your income (a minimum of $35,000 a year), job history and financial history. APRs range from 15.49% to 35.99% for loans of 24 to 48 months. LendingPoint charges an origination fee that’s between 0.00% - 6.00% of the loan amount, depending on the state where you live.

In some cases, you may be able to take on a second loan at LendingPoint even with an existing loan. LendingPoint offers same-day approvals, which means you might have your funds as early as the next business day.

OneMain Financial

APR

18.00%
To
35.99%

Credit Req.

Not specified

Terms

24 to 60

months

Origination Fee

1.00% - 10.00%

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

OneMain Financial offers quick turnaround times and you may get your money the same day... Read More


Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $400. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes.

Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.

Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Florida: $8,000. Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. Texas: $8,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

OneMain Financial has more than 1,500 branches in 44 states, and could be a good option for borrowers who’d prefer a loan experience that is, in part, conducted in-person. This lender has high APRs, from 18.00% to 35.99%, meaning it may only be a viable option for fair or poor credit borrowers. Loan terms range from 24 to 60 months and amounts are small, ranging from $1,500 to $20,000, though the range varies in some states.

What’s nice about OneMain Financial is that if you don’t qualify for an unsecured loan, they may extend you a loan secured by collateral, like your car, RV or boat. OneMain Financial doesn’t charge a prepayment penalty, but you will find some other relatively high fees:

  • An origination fee, which is either a flat fee between $25 and $400, or 1.00% - 10.00% of the principal on your loan, depending on the state where you live
  • A late payment fee, which is either a flat fee between $5 and $30 or a percentage of the delinquent amount between 1.5% and 15%

OneMain Financial has a different loan application process from the other lenders found here. You’ll need to fill out a loan application online to see if you prequalify and then visit a branch to provide proof of identity and income. Once you sign your loan agreement, you can opt to take a check then, have funds deposited into a bank account connected to your debit card or opt for ACH processing, for access to your funds in likely one to two business days.

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Personal Loans

Best Egg Personal Loan Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

Reviewed By

Best Egg personal loan rates and terms
APR range5.99% - 29.99%
Loan amounts$2,000 - $35,000
Loan length36 or 60 months
Minimum credit score640
Fees
  • Origination fee: 0.99% - 6.99%
  • Late payment fee: $15
  • Prepayment penalty: None
Time to fundingCan be funded as soon as the next business day.

Who’s the best fit for a Best Egg personal loan?

Best Egg is an online lending platform that offers low-APR loans for borrowers who meet certain income and credit requirements. It may be a good option for good-credit borrowers, especially since Best Egg offers fast funding and no prepayment penalty. That means Best Egg can be a great option for those who need to access emergency funds but who plan to pay off their loan early to minimize costs.

Even if you meet Best Egg’s credit requirements, though, be sure to shop around. There are lenders in the marketplace who offer prime borrowers better rates and don’t charge origination fees like Best Egg does.

Borrowers with bad credit may not qualify for a Best Egg loan. Those who do may see rates that are higher than on your typical credit card. If you don’t meet the credit or income requirements to borrow from Best Egg, consider:

APR

5.99%
To
29.99%

Credit Req.

640

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

0.99% - 6.99%

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

People looking for a process that is fast and straightforward can’t go wrong when applying through Best Egg for a personal loan. ... Read More


The Annual Percentage Rate (APR) is the cost of credit as a yearly rate and ranges from 5.99% to 29.99%, which may include an origination fee from 0.99% - 6.99% that is deducted from loan proceeds. Any origination fee on a loan term 4-years or longer will be at least 4.99%. The loan term and the APR offered will depend on your credit score, income, debt payment obligations, loan amount, credit usage history and other factors. Additionally, the APR offered is impacted by your loan term and may be higher than our lowest advertised rate. Requests for the highest loan amount may result in an APR higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest rate.

*Trustpilot TrustScore as of June 2020. Best Egg loans are unsecured personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC. “Best Egg” is a trademark of Marlette Funding, LLC. All uses of “Best Egg” refer to “the Best Egg personal loan” and/or “Best Egg on behalf of Cross River Bank, as originator of the Best Egg personal loan,” as applicable. The term, amount and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000–$35,000. Residents of Massachusetts have a minimum loan amount of $6,500 ; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $50,000. Annual Percentage Rates (APRs) range from 5.99%–29.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%–6.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR.

To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you.

Pros and cons of a Best Egg personal loan

ProsCons
  • APR as low as 5.99%. Applicants with excellent credit may be able to secure a low rate on a personal loan.
  • Fast funding. It takes about 1-3 business days for the entire borrowing process, from application to funding.
  • Borrow twice. You may be eligible to take out a second Best Egg loan, as long as your balance doesn’t exceed $50,000 total.
  • Origination fees. Not all lenders and online lending platforms charge origination fees on personal loans, but Best Egg does, at 0.99% - 6.99%.
  • Credit requirements. Best Egg requires that borrowers have a credit score of at least 640.
  • Income requirements. The best rates available from Best Egg require an income of at least $100,000.

Best Egg consumer reviews

A good way to determine if a lender is a good fit for your needs is to look up reviews from people who have already borrowed from them. One such place to find consumer reviews is on LendingTree.

Read Best Egg reviews on LendingTree

Best Egg’s customer reviews are overwhelmingly positive, focusing on the fast funding and excellent service. Still, there are a handful of negative reviews that cited high fees and confusion surrounding loan rejection despite a good credit score.

Best Egg personal loan requirements

To qualify for a personal loan from Best Egg, you must:

  • Meet the minimum credit requirement with a credit score of 640 or higher.
  • Verify your income and identity with proper documentation.
  • Evaluate your debt-to-income ratio.

Best Egg reserves its lowest interest rates for borrowers with a credit score of 640 or higher and an income of $100,000 or more.

Applying for a personal loan from Best Egg

  1. Fill out Best Egg’s online application for preapproval, providing information on your housing, income and employment. This application takes only a few minutes and lets you check potential interest rates without affecting your credit score.
  2. If you’re happy with the offered rate and terms, you can submit a formal loan application. During the formal application process, Best Egg may conduct a hard credit check, which will affect your credit score.
  3. Depending on your bank, your funds will be available in about one to three business days.

Best Egg FAQ

You can apply and get your personal loan funds on the same business day, but the process can take up to three business days.

Yes, Best Egg does not charge a prepayment penalty for paying off your loan early.

Yes, Best Egg is an online lending platform that offers competitive APRs as low as 5.99% for borrowers who meet their strict income and credit score requirements.

However you see fit. Best Egg loans can be taken out for everything from credit card consolidation to loans for home improvement and major purchases (like weddings).

For most consumers, the maximum loan amount is $35,000. Some customers, however, will be able to qualify for a maximum loan amount of $50,000. The minimum loan amount is $2,000.

Yes. To qualify with Best Egg, you’ll need a minimum credit score of 640. For the lowest possible APR, you’ll need a credit score of at least 640 and income of at least $100,000.

APRs for Best Egg loans range from 5.99% – 29.99%, and loans come with an origination fee between 0.99% - 6.99%. Four-year loans will have an origination fee of at least 4.99%.

Yes. Best Egg allows customers to have two loans at one time so long as the total between the two loans doesn’t exceed $50,000.

Best Egg loans are unsecured personal loans, which means nothing is put up as collateral.

Best Egg doesn’t specify income requirements to qualify for a loan. However, Best Egg reserves the lowest possible APRs for borrowers with an annual income of $100,000 or higher.

Yes, as there are different loan requirements for a few states. In Massachusetts, the minimum loan amount is $6,500; in New Mexico and Ohio, the minimum loan amount is $5,000; and in Georgia, the minimum loan amount is $3,000.

Alternative personal loan options

Upgrade vs. Best Egg

APR

6.94%
To
35.97%

Credit Req.

620

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

2.90% - 8.00%

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

Upgrade is an online lender that offers fairly priced personal loans for a term of either 36 or 60 months.... Read More


Personal loans made through Upgrade feature APRs of 6.94%-35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds should be available within four (4) business days. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor. Personal loans issued by Upgrade's lending partners. Information on Upgrade's lending partners can be found at https://www.upgrade.com/lending-partners/.

Upgrade offers a similar product to Best Egg, except their maximum APR is much higher and their minimum credit score requirements much lower. This means that you’re likely to have an easier time getting approved for a loan from Upgrade, but that your APR is likely to be higher if you have a lower credit score.

LendingClub vs. Best Egg

APR

10.68%
To
35.89%

Credit Req.

Not specified

Terms

36 or 60

months

Origination Fee

2.00% - 6.00%

SEE OFFERS Secured

on LendingTree’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates.... Read More

LendingClub is a peer-to-peer lending marketplace. Similar to Upgrade, LendingClub allows borrowers with lower credit scores to access personal loans more easily than Best Egg. If your credit score is less than 620, LendingClub is preferable to Upgrade, though the maximum interest rates are close. However, LendingClub has a lower maximum origination fee than both Upgrade and Best Egg, meaning it could be a more affordable option.

Marcus by Goldman Sachs® vs. Best Egg

APR

6.99%
To
19.99%

Credit Req.

Not specified

Terms

36 to 72

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

Marcus by Goldman Sachs® offers personal loans for up to $40,000 for debt consolidation and credit consolidation. ... Read More


Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.

Marcus by Goldman Sachs® — unlike Best Egg — charges no origination fee. Their maximum term length also allows you to stretch out your loan, potentially lowering your monthly payments. Remember, however, that when you stretch out your loan, you usually end up paying more in interest overall even if your monthly payment is lower.

Get Personal Loan Offers
Up to $50,000

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