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 take out personal loans for many reasons, including debt consolidation, home improvements, or making a large purchase. Sometimes fees associated with these loans can reduce the amount of money you receive after you're approved. Origination fees, for instance, can range from 1% to 7% of your total loan amount and are deducted from your proceeds. However, not all lenders charge origination fees.
Best Personal Loans With No Origination Fees
- LightStream Personal Loan: Best for low rates
- PenFed Credit Union Personal Loan: Best credit union
- SoFi Personal Loan: Best for high loan amount
- Discover Personal Loan: Best for money back guarantee
- USAA Personal Loan: Best for the military community
- Wells Fargo Personal Loan: Best brick-and-mortar lender
Next Step: See if you're prequalified for a loan without impacting your credit score.
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.
Compare the Best Personal Loans With No Origination Fees
Personal Loan With No Origination Fees Frequently Asked Questions
Can you get a personal loan without an origination fee?
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.
What is a normal origination fee for a personal 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.
How can I avoid origination fees?
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.
Can I negotiate a loan origination fee?
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.
Do all loans have a loan origination fee?
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 Loans with no Origination Fee Company Reviews
LightStream Personal Loans
Why LightStream stands out:
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.
LightStream Personal Loans Review
Sofi Personal Loans
Why SoFi stands out:
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.
Discover Personal Loans
Why Discover stands out:
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.
Discover Personal Loans Review
Wells Fargo Personal Loans
Why Wells Fargo stands out:
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.
Wells Fargo Personal Loans Review
PenFed Personal Loans
Why PenFed stands out: For borrowers looking to take out a small amount of money,
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.
PenFed Credit Union Personal Loans Review
USAA Personal Loans
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
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 personal loan 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
Whether you're considering applying for a $5,000 loan or a $100,000 loan, finding the right lender can help with your loan approval experience. 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:
| Lender | BBB Grade |
| LightStream Personal Loan | A+ |
| SoFi Personal Loan | A+ |
| Discover Personal Loan | A+ |
| Wells Fargo Personal Loan | F |
| PenFed Personal Loan | A+ |
| USAA Personal Loan | NR |
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 bank'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.
Why You Should Trust Us: Our Experts for this Guide
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
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:
"The impact of an origination fee on the total cost of a loan can be significant, as it adds to the overall amount of money that the borrower must repay. For example, if a borrower takes out a $10,000 loan with a 5% origination fee, they will have to repay $10,500."
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."
Brown:
"Loans with no origination fees may be a better option for borrowers looking to minimize the overall cost of borrowing. By avoiding an origination fee, borrowers can reduce the amount they need to repay and potentially save hundreds or even thousands of dollars over the life of the loan."
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."
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 »