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Best Personal Loans With No Origination Fee

As you shop for a personal loan, you’ll find that many lenders charge an origination fee, which is an upfront fee to process your loan. If you’d like to avoid the fee, you’re in luck because it’s certainly possible. There are some personal loans with no origination fees.

Best Personal Loans With No Origination Fee
Anna Baluch
Freelance Copywriter

Also known as processing fees and administrative fees, origination fees are usually between 1% and 8% of the total loan amount. Some lenders even charge up to 10%. With no origination fee loans, you don’t have to worry about this extra expense and can potentially lower your overall cost of borrowing. To make your search for a no origination fee loan a bit easier, our financial experts reviewed and ranked more than 30 online lenders.

Our Top Picks for Best Personal Loans With No Origination Fee

 sofi review
  • No origination, prepayment, or late payment fees
  • Joint applications accepted
  • Offers .25% discount for autopay
  • Borrowers up to $100,000
Min. Credit Score
Min. Credit Score 680+
Loan Amounts
Loan Amount $100K
Est. APR
Loan Repayment 84 months
lightstream._logo
  • Funding as soon as the same day
  • Allows joint applications
  • No origination fee
Min. Credit Score
Min. Credit Score Not Disclosed
Loan Amounts
Loan Amount $5K-$100K
Est. APR
Loan Repayment 24-240 months
 Marcus_logo
  • No origination fees or late fees
  • Customizable monthly payment
  • No prepayment penalties
Min. Credit Score
Min. Credit Score 660+
Loan Amounts
Loan Amount $3.5K-$40K
Est. APR
Loan Repayment Up to 72 months

How to Choose the Best Personal Loan With No Origination Fee?

Even though most lenders charge origination fees, there are quite a few that do not. When our expert team began our search for the best personal loans with no origination fees, we considered a number of factors, including:

  • Loan Features: It’s not uncommon for no origination fee lenders to fall short on loan features like loan terms, loan amounts, and loan use options. That’s why we worked hard to find those with flexible terms, large amounts, and limited restrictions on what you can do with the loan proceeds.
  • Interest rates and fees: Of course, we made sure that every lender we explored does not charge origination fees. Bonus points were given to those with competitive rates as some lenders offer higher rates to make up for their lack of origination fees.
  • Application process: We know you lead a busy life so we gave preference to lenders with quick, online applications as well as prequalification tools that allow you to check your offers without any impact on your credit.
  • Qualification requirements: Our experts found that many lenders with no origination fee personal loans had higher than average minimum credit score and income requirements.
  • Customer support: No origination fees don't mean much if a lender lags behind in the customer service department. For this reason, we explored lenders that offered multi-channel support through phone, email, online chat, and social media. 
  • Online user reviews: All lenders claim they’re the best so we made it a point to browse unbiased reviews from current and former borrowers on independent review sites like Trustpilot and Better Business Bureau (BBB).
  • Perks and Bonuses: We were particularly impressed with lenders that provide extras like credit building tools, repayment flexibility, and mobile apps.

Best Personal Loans With No Origination Fee

1. SoFi: Best for Good Credit

If you have a high credit score, you may get approved for a SoFi personal loan with a competitive interest rate. Since the lender doesn’t charge an origination fee, you can save even more money on your loan.
Pros
Large loan amounts: SoFi will lend up to $100,000, which can be a huge plus if you have a large expense to cover.
Member-only perks: Upon approval, you can enjoy an interest rate discount, career coaching, and events like happy hours and dinners with other members.
Unemployment protection: If you get laid off, you may be able to pause your payments and even get some help finding a new job.
Cons
May have to wait for funding: It can take a few days to receive your money as same-day funding is not available.
High minimum loan amount: SoFi loans start at $5,000, which can be an issue if you only have a small expense.
Must have stable employment: You must be employed or have a job offer that will allow you to become employed within 90 days.

sofi
SoFi personal loans range from $5,000 to $100,000 with repayment terms of 2 to 7 years and interest rates between 6.99% to 21.78%. You need a credit score of at least 680 and must be currently employed or have a job offer that starts within 90 days.

The Bottom Line

If you have good credit and don’t want to pay an origination fee, a SoFi loan is worth considering.

Try SoFi

2. LightStream: Best for Large Loan Amounts

For a large loan with no origination fee, LightStream can meet your needs. Its loans go up to $100,000 and don’t come with any origination fees, late fees, and prepayment fees.
Pros
No fees: LightStream doesn’t charge any fees, including origination fees, late fees, and prepayment fees.
Fast funding: Depending on the time you apply, you can collect your funds that same day.
Low rates: If you have good credit, you can qualify for a low rate, which can save you a lot of money on your loan.
Cons
No prequalification tool: You won’t be able to check your offers from LightStream without impacting your credit.
Good credit required: LightStream personal loans may only be an option if you have a good credit score.

lightstream
LightStream loans range from $5,000 to $100,000 with terms of 2 to 7 years and rates between 4.99% to 19.99%. The lender requires a minimum credit score of 660 and at least several years of credit with a good payment history.

The Bottom Line

If you need to pay for a large expense but don’t want a loan with an origination fee, LightStream should be on your radar.

3. Marcus: Best for Debt Consolidation

Marcus by Goldman Sachs offers debt consolidation loans with no origination fees. If you have high-interest credit card debt, a Marcus loan can save you money and streamline the payoff process.
Pros
Direct payments for debt consolidation: Marcus will send the funds to your creditors directly.
On-time payment reward: Once you make 12 or more consecutive payments on time, Marcus will allow you to defer one payment without paying any extra interest.
Flexible loan terms: Marcus offers a wide range of loan terms, ranging from three to six years.
Cons
High eligibility requirements: You may not get approved for a Marcus loan unless you have good or excellent credit.
No cosigner loans: You won’t be able to add a co-signer to increase your chances of getting approved.
Limited customer support options: While you can contact customer support via phone, there is no way to get in touch with Marcus through live chat or social media.

marcus by goldman sachs
Marcus personal loan amounts range from $3,500 to $40,000 with 3 to 6 year terms. Interest rates, which are between 6.99% to 19.99% are fairly competitive. To qualify, you’ll need a credit score of at least 660.

The Bottom Line

For a debt consolidation loan without an origination loan, a Marcus personal loan can be a strong option.

Try Marcus

4. Discover: Best for Fast Funding

Discover personal loans are free of origination fees and offer fast funding. Upon approval, Discover can deposit the money to your bank account in as little as one business day. You won’t have to wait weeks or months for your funds.
Pros
Next day funding: Depending on when you apply, you can collect the money the next business day.
Payment flexibility: You can change your payment due date to better align with your budget.
Direct payments to creditors: If you consolidate debt, Discover can send the payments to your creditors on your behalf.
Cons
No rate discount for autopay: Unlike other lenders, Discover doesn't offer a rate discount if you enroll in automatic payments.
Low maximum loan amount: Discover personal loans cap out at $35,000.
Late fees: You’ll be on the hook for a $39 late fee if you miss any payments after a three-day grace period.

discover
Discover personal loans range from $2,500 to $35,000 with terms of 3 to 7 years and interest rates between 5.99% and 24.99%.The lender requires a strong credit score of at least 720 and minimum household income of $40,000.

The Bottom Line

If you have strong credit and can’t wait long for a no origination fee loan, Discover might be a great choice.

Best Personal Loans With No Origination Fee - Feature Comparison

Company Name

Est. APR

Min. credit score

Loan Amount

Loan term

SoFi

6.99%–21.78%

680

$5,000–$100,000

2-7 years

LightSteam

4.99-19.99%

660

$5,000-$100,000

2-7 years

Marcus

6.99-19.99%

660

$3,500-$40,000

3-6 years

Discover

5.99-24.99%

720

$2,500-$35,000

3-7 years

What is a no origination fee personal loan?

An origination fee is a one-time expense you may have to pay when you receive a personal loan. While every lender is different, most lenders will deduct your origination fee from your loan balance. In most cases, origination fees range from 1% to 10% of the total amount. These fees are usually based on factors like your credit score, loan amount, repayment term, and whether you have a cosigner. A no origination fee personal loan is exactly what it sounds like: a loan that doesn’t include an origination fee.

The benefits of a no origination fee personal loan

If you take out a no origination fee personal loan, you won’t be responsible for an origination fee on top of interest and other fees. As long as you can land a low interest rate and favorable terms, this may save you money on the overall cost of your loan. It will also make it easier to determine your ideal borrowing amount because you won’t have to account for a fee that may be deducted from your proceeds.

How to Get a Personal Loan With No Origination Fees

Follow these steps to get a personal loan with no origination fees.

  • Check your credit: First, find out where you stand credit wise so you know what loans you may qualify for. Go to AnnualCreditReport.com to pull free copies of your reports from Equifax, Experian, and TransUnion. If you notice any errors or inaccuracies, dispute them with the appropriate bureau.
  • Decide how much to borrow: Now figure out what you’ll do with the loan proceeds and how much you can afford to repay. This information will give you an idea of the ideal loan amount to ask for.
  • Shop around: Not all personal loans with no origination fee are created equal. Do your research and compare the rates, terms, fees, and perks of all your options. Our list of loans is a great place to start.
  • Prequalify: Many lenders offer prequalification tools you can use to check your no origination fee loan offers without any impact to your credit. To prequalify, simply fill out a short online form with some basic personal information.
  • Apply: Once you decide on a personal loan with no origination fee, fill out the lender’s application online or in-person. Be prepared to submit documents like your government-issued ID, pay stubs, tax forms, and bank statements.
  • Wait for approval: Most lenders will approve you the same day you apply, within 24 hours, or within a few business days. Once approved, you’ll receive a loan agreement to review and sign.
  • Accept the agreement: If the loan agreement looks good to you and you agree to the terms and fine print, sign it to accept the offer. You can expect the lender to distribute the funds shortly after.

Other Personal Loan Fees to Consider

In addition to origination fees, you may want to be on the lookout for these other common personal loan fees.

  • Late payment fees: Lenders might charge late payment fees if you fail to make your payment on your due date.
  • Prepayment penalty fees: Prepayment penalty fees are designed to penalize you for paying off your loan early.
  • Insufficient funds fees: If there's not enough money in your bank account to cover a loan payment, you may be on the hook for a returned check fee.
  • Application fees: Application fees are usually nonrefundable and intended to cover the cost of processing loan applications.
  • Paper copy fees: If you request a physical copy of the loan agreement, you may have to pay a paper copy fee.
  • Annual fees: Sometimes, lenders tack annual fees onto loan schedules to offset the costs of maintaining your account.

Have Good Credit? Consider No Origination Fee Loans

If you have solid credit, you may want to apply for a personal loan with no origination fee. However, if your credit isn’t in the best shape or you’re unsure of whether you’ll qualify, you may want to avoid no origination fee loans as these might come with higher rates that make your loan more expensive.

In some cases, a loan with an origination fee may actually be the better choice. This is when the combined interest and origination costs are lower than the interest rate of a no origination fee loan. Do your research and calculations to find the best option for your situation.

Frequently Asked Questions(FAQ)

Do most personal loans have origination fees?

Most personal loans do come with origination fees. These fees usually range from 1% to 10% of the total loan amount. Sometimes, they’re a flat fee instead of a percentage. Factors like your credit, loan amount, repayment term, and income will help determine the origination fee you might pay.

Do all loans charge an origination fee?

While origination fees are common, not every lender charges them. If you don't have the best credit, it may be difficult to get approved for a personal loan with no origination fee. It all depends on your credit, income, and specific needs.

Is an origination fee negotiable?

Not all lenders are willing to negotiate origination fees but it doesn’t hurt to try. Once you prequalify for a loan offer, you may want to reach out to the lender to negotiate the origination fee. The worst case scenario is they say no and you move on to find a better loan offer. The best case scenario is they lower the fee and make the loan worth pursuing.

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