Looking for the best personal loans for seniors? Check out offers from trusted lending companies such as SoFi and Credible Personal Loans.
Whether you're faced with an unexpected medical expense, a home renovation or the need to consolidate debt, personal loans can help you get the funds you need. Seniors face unique loan challenges. Although you can use Social Security or a pension to demonstrate income, you'll want to work with a lender that is used to help seniors access the funds they need. Read on for the best personal loans for seniors.
Quick Look: Best Personal Loans for Seniors
- Best for Borrowers with Low Credit: Universal Credit
- Best for Low Origination Fees: LendingPoint
- Best for Borrowers with Good Credit: SoFi
- Best for Larger Loans: Axos Bank
- Best for Flexible Loan Solutions: Credible Personal Loan
Best Personal Loan Options for Seniors
Here is an overview of the best loans for senior citizens options for seniors this year.
1. Best for Borrowers with Low Credit: Universal Credit
Instead of lending directly, Universal Credit lets you find online personal loans between $1,000 and $50,000 through its lending partners. Choose repayment terms 36 to 84 months, giving you the flexibility to find a term that meets your needs.
Universal Credit makes it easier for people with damaged credit to find a personal loan. However, you'll need to pay a 5.25% to 9.99% origination fee on all personal loans, plus potentially higher APRs.
Pros
- Compare many lenders' offers
- Easy to use
- Designed for borrowers with low or no credit
- Option for high loan amounts
- Possibility for loans of up to eight years
Cons
- Higher origination fees
- Possibly higher APRs
2. Best for Low Origination Fees: LendingPoint
LendingPoint is an Atlanta-based online lender that offers personal loans from $2,000 to $36,500 in 48 states and Washington, D.C. You can apply online and benefit from quick funding, often within days. Choose from repayment terms of 24 to 60 months.
LendingPoint has maximum APRs and origination fees higher than some competitors. You can secure a lower APR by maintaining a high credit score, but LendingPoint's origination fees are state-based, so you might still face a high origination fee.
Pros
- Easy to apply online and access cash within days
- Origination fees as low as 0% (but up to 7%)
- Qualify for a lower APR with good credit
- Available in 48 states plus Washington D.C.
Cons
- Low origination fees are only available in certain states
- Does not offer loans in Nevada and West Virginia
- Can only get a loan up to $3,500 in Georgia
3. Best for Good Credit: SoFi
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.
SoFi is a highly-reputed online lending platform that offers personal loans in all 50 states. Get loans between $5,000 and $100,000 with terms from two to seven years.
While the minimum credit score requirement is 650, applicants with good to excellent credit scores can (potentially) qualify for a larger loan amount. SoFi also offers good interest rates for borrowers with good to excellent credit scores.
Pros
- Receive funds within a few days of approval
- Prequalification with soft credit check
- Options for high loan amounts and lengthy terms
Cons
- Can be more difficult to qualify than other options
- Can't use a cosigner
4. Best for Larger Loans: Axos Bank
Axos Bank is an online bank with many banking products, including good personal loan choices. While it has fewer personal loan options than some competitors, it makes it easy to keep all your banking with a single bank. Loan amounts range from $5,000 to $50,000, with an annual percentage rate (APR) starting around 8%.
Pros
- Quick funding
- Available in all 50 states
- Easy to consolidate if you already have an account with Axos
Cons
- Minimum credit score requirement of 700
- Higher minimum borrowing amount than other options
5. Best for Flexible Loan Solutions: Credible Personal Loan
NMLS# DISCLOSURE
Credible Operations, Inc. NMLS# 1681276
Credible. Not available in all states. www.nmlsconsumeraccess.org.
110 Corcoran Street, 5th Floor, Suite 151 Durham, NC 27701
Credible Operations, Inc. NMLS# 1681276, “Credible.” Not available in all states.
All bonus payments are by gift card. See terms
Prequalified rates are based on the information you provide and a soft credit inquiry. Receiving prequalified rates does not guarantee that the Lender will extend you an offer of credit. You are not yet approved for a loan or a specific rate. All credit decisions, including loan approval, if any, are determined by Lenders, in their sole discretion. Rates and terms are subject to change without notice. Rates from Lenders may differ from prequalified rates due to factors which may include, but are not limited to: (i) changes in your personal credit circumstances; (ii) additional information in your hard credit pull and/or additional information you provide (or are unable to provide) to the Lender during the underwriting process; and/or (iii) changes in APRs (e.g., an increase in the rate index between the time of prequalification and the time of application or loan closing. (Or, if the loan option is a variable rate loan, then the interest rate index used to set the APR is subject to increases or decreases at any time). Lenders reserve the right to change or withdraw the prequalified rates at any time.
Won’t impact your credit score DISCLOSURE: (May be in the footer, a tooltip, or a popup the user has to click on or scroll to see)
Requesting prequalified rates on Credible is free and doesn’t affect your credit score. However, applying for or closing a loan will involve a hard credit pull that impacts your credit score and closing a loan will result in costs to you.
“We accept advertising compensation from companies that appear on this site, which impacts the location and order in which brands (and/or their products) are presented, and also impacts the score that is assigned to it. Company lists on this page DO NOT imply endorsement. We do not feature all providers on the market.
We receive compensation from the companies below if you click on a link or purchase a product. Amount of compensation may impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Prequalified rates are based on the information you provide and a soft credit inquiry. Receiving prequalified rates does not guarantee that the Lender will extend you an offer of credit. You are not yet approved for a loan or a specific rate. All credit decisions, including loan approval, if any, are determined by Lenders, in their sole discretion. Rates and terms are subject to change without notice. Rates from Lenders may differ from prequalified rates due to factors which may include, but are not limited to: (i) changes in your personal credit circumstances; (ii) additional information in your hard credit pull and/or additional information you provide (or are unable to provide) to the Lender during the underwriting process; and/or (iii) changes in APRs (e.g., an increase in the rate index between the time of prequalification and the time of application or loan closing. (Or, if the loan option is a variable rate loan, then the interest rate index used to set the APR is subject to increases or decreases at any time). Lenders reserve the right to change or withdraw the prequalified rates at any time.
Credible is a personal loan marketplace where you can simultaneously see rates from multiple lenders. You can see rates without a hard credit check or having to pay any fees. Loan amounts are flexible, offering personal loans from $600 to $100,000. APRs vary widely, from 4.60% to 35.99% so you'll want to carefully check rates before choosing a loan.
Pros
- Wide range of options
- Get a loan from $600 to $100,000
- With a good to excellent credit score, you could get some of the lowest APR available on personal loans.
Cons
- Check loan terms before accepting because APRs can be high
- Third-party lender
Why Do Seniors Need Personal Loans?
Seniors need personal loans for many of the same reasons as people of any age: life can throw unexpected expenses your way. For seniors with a fixed income or limited budget, that can include a medical emergency not covered by insurance, car repairs or home renovations. YOu might need a personal loan to get you through a few months or maybe you plan to consolidate debt.
Since personal loans can be used for nearly anything, they can be useful for covering big expenses or spreading them out over time. You can choose short-term loans or 12-month loans or spread the expense over several years.
What to Look for When Choosing the Best Personal Loan for Seniors
When selecting a personal loan, it's important to carefully compare annual percentage rate (APR), origination fees and early repayment fees. Here is what to consider when you choose the best personal loans:
- How much money do you need?
- What is the APR? Are there lenders with a lower APR?
- How much is the origination fee?
- Are there early repayment fees?
- Are there any other fees you'll be required to pay?
- How fast can you get the funds?
Alternatives to Personal Loans
You can choose alternatives to personal loans for seniors. Here are a few options to consider:
- Credit cards: If you only need extra cash for a few weeks, putting the purchase on a credit card and paying it off before it's due is a simple solution.
- Peer-to-peer (P2P) loan: Many peer-to-peer lenders are available online, and they can offer smaller, short-term loans. Some offer bigger loan options but may come with higher interest rates.
- Borrowing from friends: You can ask family or friends for a loan. Be sure to formalize loan terms and stick to them to avoid straining the relationship.
- Early wage access: If you need extra funds before your next Social Security check comes in, you may qualify for an EWA program.
- Tap into savings: As a retiree, you can tap into your retirement savings, although that comes with risks if you need to do it regularly. Find more to build retirement savings, how to plan for retirement or the best investments for retirees.
- Get a side hustle: If you want to earn extra cash, find the best side hustles for seniors.
You can also consider personal loans for specific purposes, like the best personal loans for debt consolidation or same-day loans online.
Should You Take Out a Personal Loan?
Taking out a personal loan can be a smart way to spread out a big expense or make ends meet when you have a large unexpected expense. Compare rates and terms to choose a lender that meets your needs and can help you save more on interest. Need more ideas to plan for retirement? Find a retirement income calculator, discern the difference between SSI and SSD, or compare Social Security vs. retirement benefits or get the best bad credit loans.
Frequently Asked Questions
Can you get a personal loan on Social Security?
Yes, Social Security benefits can be one source of income that can help you qualify for a personal loan.
Can a 75-year-old get a personal loan?
Yes, you can get a personal loan as a 75-year-old. Factors like your credit score, proof of income or savings and the amount of money you need affect loan approval.
Do banks give loans to senior citizens?
Yes, banks will give loans to senior citizens as long as they meet lending requirements. However, some banks have a maximum age limit.
About Alison Plaut
Alison Plaut is a personal finance writer with a sustainable MBA, passionate about helping people learn more about financial basics for wealth building and financial freedom. She has more than 17 years of writing experience, focused on real estate and mortgage, business, personal finance, and investing. Her work has been published in The Motley Fool, MoneyLion, and she is a regular contributor for Benzinga.