Major Purchase Loan Rates 2026
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Common uses for a personal loan
Questions about personal loans††
Here are some common questions from our members.
What is a purchase loan?
A purchase loan is a personal loan that you use to help spread out the cost of a major purchase — such as a home improvement, medical expenses or a wedding — over time. You can get a loan for a major purchase through some banks, credit unions and online lenders. These lenders typically offer fixed interest rates, which may make getting a personal loan more attractive than using a credit card with a variable rate.
With a major purchase loan, you’ll generally get a lump sum of cash deposited into your account after you’re approved. You can then use the money to make your major purchase and pay back the loan over a set time period.
How can I get a loan for a big purchase?
To get a loan for a major purchase, you’ll have to apply with a bank, credit union or online lender. Loan amounts, interest rates and loan application processes will vary by lender, so it’s a good idea to shop around to find a loan that fits your needs.
Applying for a personal loan can trigger a hard inquiry to your credit, which may negatively affect your scores temporarily. Be sure to submit your applications within a 14-day period to help minimize the impact on your credit scores. Some credit-scoring models consider multiple inquiries within a two-week time frame as just one inquiry.
You can also look for lenders that offer the ability to apply for prequalification. Prequalification usually won’t affect your credit, and you’ll be able to get a sense of the loan rate and terms you may qualify for. But keep in mind that prequalification isn’t a guarantee of loan approval, and your loan rate and terms may change once you submit a formal application. Also, if you are prequalified and decide to apply for the loan, the lender will still need to run a hard credit check to finalize your application.
What is the largest loan you can get?
Personal loan amounts vary by lender. You may be able to borrow large amounts of cash — up to $100,000 — or just a few hundred dollars. Keep in mind that even if a lender offers $100,000 loans, you may not qualify to borrow that much. The amount you’re able to borrow will depend on factors such as your credit, income, assets and how much debt you already have.
What is the cheapest way to borrow money?
Interest rates vary by lender, so it’s a good idea to shop around for the lowest rate. Your credit scores and a range of other factors can also determine the rate you’re offered, so if you have less-than-perfect credit or no credit, you may have to pay a higher interest rate on your loan. Be on the lookout for fees, such as origination fees, as these can also add to the overall cost of the loan.
If you decide that a personal loan isn’t a good fit, you might consider an alternative way to fund your purchase, such as a credit card with an introductory 0% APR offer or financing the purchase through the seller, if possible. Whichever method you choose for funding your major purchase, be sure to read the fine print so you understand the total cost of the money you’re borrowing.
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Best major purchase loans for 2026
Updated Oct 28, 2026
This date may not reflect recent changes in individual terms.
Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.
Written by: Erin Dunn, Managing Editor, Loans
Edited by: Brad Hanson, Senior Editor, Tax
These are our picks for the best major purchase loans. We’ve highlighted what we think makes them stand out — and we’ve reviewed some other options for funding your purchase.
- Best for good credit: SoFi
- Best for co-applicants: PNC
- Best for bad credit: Upstart
- Best for no fees: Discover
- Best for buy-now-pay-later: Affirm
- Best for competitive rates: LightStream
- What are major purchase loans?
- When are major purchase loans a good idea?
- FAQs about major purchase loans
Best for good credit: SoFi
Why a SoFi personal loan stands out: SoFi says its personal loans are for people with a “responsible financial history” and “strong monthly cash flow.” If you’re worried you won’t qualify on your own or are hoping for a lower interest rate, SoFi allows co-applicants (as long as they live at the same address). Adding a co-applicant with stronger credit than your own, who will share responsibility for repaying the loan, may help you save money with a lower rate.
Pros
- Competitive interest rates — may make your purchases more affordable
- Loan amounts up to $100,000
- Same-day funding possible
- Member perks like financial planning services and exclusive events
Cons
- Lower APRs may require paying an origination fee
- $5,000 minimum for loan — not great for smaller expenses
Read reviews of SoFi personal loans to learn more.
Best for co-applicants: PNC
Why a PNC personal loan stands out: PNC allows co-applicants, which may improve your chances of qualifying for a loan or help you qualify for a lower interest rate if your co-applicant has good credit. They are one of the largest banks in the U.S. and offer personal loans between $5,000 and $35,000.
Pros
- Co-applicants allowed
- No origination fee, application fee or prepayment penalty
- Terms as short as 6 months available
Cons
- Not available in every state
- Loan approval can take several days
Read reviews of PNC personal loans to learn more.
Best for bad credit: Upstart
Why an Upstart personal loan stands out: Upstart considers candidates with bad credit — and caps its loan rates at 35.99%. While that’s not the lowest rate around, unfortunately personal loans for bad credit often come with a higher cost. Still, this remains a relatively low-rate personal loan option if your credit isn’t great.
Pros
- Loan amounts from $1,000 to $75,000
- Potential to receive your loan funds the day after you sign
- Prequalification available
Cons
- Available range of interest rates can get high
- Only two loan terms offered
Read reviews of Upstart personal loans to learn more.
Best for no fees: Discover
Why a Discover personal loan stands out: Fees can significantly add to the cost of a major purchase. A personal loan option with no fees, like Discover, has the potential to save you money overall. You’ll get a loan decision the same day you apply, in most cases, and you’ll receive your loan proceeds as soon as the next business day after accepting the loan terms.
Pros
- Loan amount goes up to at $40,000
- Prequalification available
- No origination fees
Cons
- No option to apply with a co-applicant
Read reviews of Discover personal loans to learn more.
Best for buy-now-pay-later: Affirm
Why Affirm stands out: Affirm is a company that allows retailers to offer installment loans before checkout. If your large purchase is available through a retailer that offers this, you may be able to use Affirm as a payment method on participating retailer’s website or app. Affirm’s pay-in-four option may be 0% APR for some retailers (though larger loans offered through Affirm may not be interest free).
Pros
- No late, service or prepayment fees
- 0% APR available with some retailers
- Multiple payment plans available (but some may include interest)
Cons
- Down payment may be required
- Interest paid on returned items is not refunded
Read reviews of Affirm to learn more.
Best for competitive rates: LightStream
Why LightStream stands out: LightStream, an online-lending arm of Truist Bank, offers personal loans with competitive interest rates. And, if you’re willing to do some extra leg work to get an offer with lower interest, you might be able to qualify for LightStream’s “rate beat” program, which shaves another 0.1 percentage point off your interest rate if you’re offered a lower interest rate by another lender and meet certain conditions.
Pros
- Personal loan amounts as high as $100,000
- Same-day loans possible
- Competitive interest rates
- Will beat any lower interest rate offered by another lender
Cons
- Good credit generally required for approval
Read reviews of LightStream’s personal loans.
What are major purchase loans?
A personal loan can help you finance a major purchase and spread out your payments over time. But before you decide if it’s a good option for you, it’s smart to shop around, compare potential loan terms and consider if the monthly payments fit in your budget.
Some lenders offer a prequalification process that lets you apply and see an estimated rate and terms without affecting your credit. Just keep in mind that you may not receive final approval — or your terms may differ if you are approved. You’ll also probably trigger a hard inquiry that may affect your credit scores.
When are major purchase loans a good idea?
Getting a loan for a major purchase could be the right decision for you if you’re looking to make a big purchase without paying cash or putting it on your credit card. If you’re approved, a loan can allow you to spread out the payments and may offer better terms than you would get from a credit card.
But one of the most important things to think about when considering a major purchase loan is whether you’ll be able to pay it off on time. If you’re not able to pay it off on time or miss payments, you may end up creating more debt and hurting your credit.
Alternatives to major purchase loans
If you’re not sure a personal loan is right for your major purchase, you can consider a few other financing alternatives.
- Credit card with an introductory offer — If you’re planning to apply for new credit, a credit card may also make sense. Some cards offer a 0% APR introductory offer for a limited period of time (usually between 12 and 21 months). If you can qualify for a zero-interest credit card and think you can pay off your purchase in full before the introductory period is over, that may be a good choice for you.
- Home equity loan — If you own a home and have equity in it — meaning its current value is more than what you owe on your mortgage — you may be able to qualify for a home equity loan. A home equity loan lets you borrow against the equity in your home — using your house as collateral — and typically has a fixed interest rate.
- Home equity line of credit — A home equity line of credit is similar to a home equity loan, except that it’s a revolving credit line that often has a variable interest rate. Some plans have a fixed period called a “draw period” when you can borrow money, and then a repayment period.
Our methodology: How we pick the best personal loans
Credit Karma’s editors evaluate the best personal loans by reviewing key features of dozens of popular lenders. Those features fall into three important categories:
- Affordability: We start by checking if a lender’s rates are competitive: are they higher than average or are they lower than many competitors? From there, we analyze if fees — particularly an origination fee — may make your loan more unaffordable. Last, we’ll check if the lender offers rate discounts for items such as automatic payments that may reduce your rate.
- Customer-friendly features: Taking out a personal loan is a big financial commitment, so we prioritize lenders that make things easier for you. For instance, do they offer a wide range of loan amounts for people with different borrowing needs? Do they offer at least several loan terms to give you more flexibility with your monthly payment? And, crucially, can they fund your loan quickly? A lender will also get bonus points for offering direct payments for debt consolidation or other customer-friendly features.
- Transparency: We believe personal loan terms should be easy to find and decipher. Prequalification, which lets you check what rate you may qualify for without a hard credit inquiry, is particularly important. We also check to see if a lender has been recently penalized by regulators.
Estimate personal loan costs
To better understand the total cost of any personal loans you’re considering, use an online calculator like Credit Karma’s simple loan calculator. A loan calculator can help you estimate your monthly payment and how much you’d pay in interest versus principal over the length of the loan.
FAQs about major purchase loans
How do I apply for a personal loan?
To apply for a personal loan, start by deciding how much you want to borrow and what loan payments you can afford. Then, you can start applying for prequalification and checking your terms with different lenders. If you’re happy with your prequalification terms, you can then submit a formal application for a personal loan.
What is good APR on a personal loan?
The average interest rate on a two-year personal loan was about 11.14% in August 2025, according to the Federal Reserve’s most recent data. But people with excellent credit may be able to find rates lower than that. Some lenders that target consumers with strong credit offer interest rates that start around 8% to 11% for people with the best credit. Rates top out around 20% to 36% for borrowers whose credit isn’t quite as solid. Be wary of any lenders offering you rates higher than 36%.
How do I apply for a major loan?
To apply, you need to complete an application and provide any supporting documentation the lender requires. Lenders typically review your credit history, income, debt-to-income ratio and other factors to make a lending decision.
*Annual Percentage Rates, terms of loan and monthly payments presented are estimated based upon analysis of information you entered, your credit profile and/or available rate information from lenders. While efforts have been made to maintain accurate information, the loan information is presented without warranty and the estimated APR or other terms presented do not bind any lender. Lenders generally have a range of available APRs (for example, a lender's range might be 5% to 36%) and only borrowers with excellent credit will qualify for the lowest rate available. Your actual APR will depend upon factors evaluated at the time of application, which may include credit score, loan amount, loan term, credit usage and history. All loans are subject to credit review and approval. When evaluating offers, please review the lender's Terms and Conditions for additional details. The loan amount shown here may include possible origination fees charged by the lender. If the lender charges an origination fee, it may be deducted from your loan amount. Consider adjusting your loan amount to account for this. This estimate does not include any optional or add-on products you may be offered by the lender.,Advertiser Disclosure: Offers that appear on this site are from third party advertisers from which Credit Karma typically receives compensation. Except for mortgage loan offers, this compensation is one of several factors that may impact how and where offers appear on Credit Karma (including, for example, the order in which they appear). Other factors may include: your credit profile and what products we think you want. It is this compensation that enables Credit Karma to provide you with services like free access to your credit scores and free monitoring of your credit and financial accounts. Credit Karma strives to provide a wide array of offers for our members, but our offers do not represent all financial services, companies, or products.
††The opinions you read here come from our editorial team. Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors' opinions. Our marketing partners don’t review, approve or endorse our editorial content. It’s accurate to the best of our knowledge when it’s posted.