Loans come in several forms and sizes. Some are offered by banks and traditional financial institutions, others are offered by individuals and credit unions.
The different types of loans obtainable today are tailored towards serving particular needs and specific sections of the financial market. There’s a loan for almost every situation.
Some lenders determine the interest paid on a loan using factors such as credit rating and loan repayment period. Other lenders may consider your education and annual income.
The particular information lenders may request is not set in stone. It depends on the risk mitigation strategy and interpretation of financial norms they employ.
Overview: Best Personal Loans
Personal Loan Lenders: Detailed Insight
SoFi: Best Personal Loan For Excellent Credit
SoFi offers the best personal loans in the market. There are no origination fees, prepayment fees, or late fees. The loan terms offered by SoFi also give unemployment protection.
Before accepting your loan application, SoFi does a hard credit check. SoFi loan funding is received within a few days after the completion of the application process. Applying for a loan on SoFi is simple. You will only need to create a user name, password, and provide a few basic information to see if you prequalify for one.
SoFi personal loans are geared towards individuals with excellent credit scores. The loan terms offered by SoFi have competitive interest rates. Opting for an automatic payment option will also give you a 0.25% reduction in interest rates.
Personal loans borrowed from SoFi are payable within 2-7 years. If you encounter any problems while applying for a loan with Sofi, you can reach their active customer support at (855) 456-7634.
(Explain in the first paragraph why this is our top pick, provide a comparison. Then in the next 2-3 paragraphs explain the details about the product)
↳ Best Feature?
SoFi doesn’t charge late fees. It also does not charge an origination fee or prepayment fee. Whenever you can prove that you are unemployed, Sofi will grant you unemployment protection. Borrowers with unemployment protection can have their payments paused for up to 12 months.
Individuals who choose to work with SoFi enjoy a digital experience. The entire process takes place online. You can also make use of the SoFi app to apply for a loan and manage your payments. If you are in a situation where you are unable to apply for a loan or seek a lower interest rate, you can apply for a SoFi personal loan with a co-applicant.
↳ Who is it Best For?
SoFi loans are best for individuals with excellent credit scores. They also offer a better experience than similar institutions because they don’t have too many fees attached to regular interest payments. A SoFi loan is not a high-interest debt.
A SoFi loan is the best choice for borrowers with a FICO score of 680 or above. The terms of a SoFi loan favor individuals with a short credit history.
Click Here to Know More About SoFi Personal Loan.
LightStream: Most Affordable Lender
LightStream loans have Annual Percentage Rates that range from 2.49% to 20.49%. You can also apply for automatic payments to qualify for a 0.5% discount.
All LightStream personal loans have a payment period of at least 2-7 years. Some loans such as loans for home improvement can offer up to 12 years for the payment period. These are some of the longest payment periods among personal loan types.
To qualify for a lower interest rate on LightStream, you have to enroll into their automatic payment system. Doing so will entitle you to a o.5% discount on all monthly payments.
Applying for a loan on LightStream is easy. The entire process can be completed online. On approval, loans are disbursed directly to your account. The receipt of loan proceeds can take place within the same day you are approved.
↳ Best Feature?
If a borrower can prove that they’ve secured the same type of loan with a different personal loan company, LightStream has a competitive feature that reels you back. It will beat the rate by offering 0.1% in reduced fees. As a savvy borrower, all you need to do is to look for a personal loan provider with the lowest rates. Once you can get them to approve your loan request, LightStream will offer you the same loan with cheaper loan terms.
A personal loan received from LightStream can be used for a variety of purposes. LightStream does not have as many restrictions on the use of its loans as other personal loan companies. Its loans can be used for activities ranging from debt consolidation to payment of medical bills.
↳ Who is it Best For?
LightStream is best for individuals who intend to spread out their loan repayment over a long period. I some cases, the repayment of a LightStream loan may stretch for up to 12 years. The longer repayment periods give individuals the opportunity to alleviate the immediate financial stress caused by settling their debts.
The low minimum Annual Percentage Rate associated with LightStream makes it an affordable loan. There are also no additional fees associated with loans received from LightStream.
Click Here to Know More About LightStream Personal Loan.
Best Egg: Fastest Approval Process
Once an application for a loan is approved by Best Egg. A borrower should expect at least half of the loan funds within the same day. This is a comparatively fast loan funding process.
Best Egg charges an origination fee between 0.99%-5.99%. If your loan term is up to 4 years, the minimum origination fee you will be charged will be 4.99%. All origination fees charged by Best Egg are upfront, they are taken from the amount you will receive when your loan request is funded.
Best Egg does not penalize borrowers for paying their loans early. It however charges a late payment and returned payment fee of up to $15. To apply for a loan from Best Egg, all you need is a few personal information, the loan amount, your gross annual income, your home type, and your credit report.
All personal loans offered by Best Egg have not secured loans. Borrowers do not need collateral for a loan with this lender. Also, the application process is straightforward and can be completed online.
↳ Best Feature?
Customers of Best Egg can apply for loans online. Best Egg is also affiliated with Cross River Bank an FDIC-insured bank based in New Jersey.
Funds requested from Best Egg are available within 24 hours of loan request approval. The approval process can also be completed within a day.
↳ Who is it Best For?
Personal loans offered by Best Egg are ideal for people who need to use their loaned funds instantly. The 24 hours funding period can be depended upon for financing the settlement of emergency bills.
This company also offers personal loans as low as $2,000. This means you do not have to borrow a large amount if your needs do not necessitate that you should.
Click Here to Know More About Best Egg Personal Loan.
Marcus by Goldman Sachs: Best On-Time Payment Reward
Markus by Goldman Sachs does not list the specific criteria for approving loan requests. The minimum personal loan amount offered by this personal loan company is $3,500. And, the maximum personal loan amount is $40,000.
Borrowers who opt for using Markus by Goldman Sachs should expect an APR between 6.99% – 19.99%. The quote for what particular interest rate you will receive depends on several factors such as credit history, the amount required, and the length of time you need to pay it back. Borrowers who make use of the automatic payment option are entitled to a discount of 0.25%.
Markus by Goldman Sachs has very little cost associated with its application process. The application and screening process is entirely virtual. Once your application is completed, it will take only three days to receive the funds.
You don’t need to have an account with Goldman Sachs to apply for a personal loan with Markus from Goldman Sachs. Furthermore, Marcus loan terms are flexible. they fall between 36 to 72 months and are long enough to reduce any stress on your budget.
↳ Best Feature?
Whenever you make up to 12 weeks of payment on time, Markus by Goldman Sachs will reward you by writing off one payment installment. This process occurs in a cycle. If after the first time, you make another 12 weeks of payments on time, you will again be rewarded with another month where you won’t have to pay.
You won’t be charged any origination fee with Markus by Goldman Sachs. Your interest in the past due amounts will continue to accumulate but you won’t be charged any late fee. There will also not be any prepayment penalties.
↳ Who is it Best For?
Personal loans from Markus by Goldman Sachs are a great choice for people who love positive reinforcements. The availability of a bonus write-off encourages prompt payment of loans and reflects positively on the borrower’s credit history.
Markus by Goldman Sachs also conducts a soft credit check for your application process a soft credit check does not have the destructive tendencies of a hard credit check. It will not affect your credit score rating. If you love to look around for the best option before committing, considering Markus by Goldman Sachs will be a good idea.
Click Here to Know More About Marcus by Goldman Sachs Personal Loan.
Payoff: Best Personal Loans for Debt Consolidation
Payoff is a specialized personal loan company. Loans received from Payoff are meant for eliminating high-interest credit card debt. The specialized nature of the loans makes them tailor-made to this specific need of the borrower.
Payoff has fewer loan underwriting costs than traditional financial institutions. The entire application process also occurs online. This enables payoff to be able to fund loans faster than is applicable in financial institutions where your physical presence is required.
Customers of Payoff get to enjoy personality, and cash flow assessments. This is a great way of helping borrowers manage their debt and other finances. During the first year of receiving your loan, you will also be checked every quarter for any questions or problems you may be having.
Payoff does not offer loans directly to borrowers. In essence, it serves as a broker that screens loan requests and links borrowers to lenders approved by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).
↳ Best Feature?
Payoff offers loans that range from $5,000 to $40,000 that are all tailored towards credit card debt consolidation. The application process for Payoff loans is not difficult. You will only be required to enter a few personal details including the monthly cost of your house if applicable.
Payoff also conducts a soft inquiry on your credit score. this inquiry does not affect the standing of your credit score. After a successful credit pull, Payoff will suggest how much you need to borrow to be capable of paying back your existing Credit Card debt. Loan offers are categorized by monthly payments or Annual Percentage Rates.
↳ Who is it Best For?
Loans received from Payoff are best for individuals who need a cheap way out of their credit card debt. You can use all loan proceeds from this lender to settle your credit card debts.
All borrowers are expected to meet Payoff’s eligibility requirements. These include:
- Having a debt to income ratio of 50 percent or less.
- Possessing at least 2 open lines of credit where you’ve already made timely payments.
- Having not less than 3 years of good credit history.
- Having a minimum credit score of 600.
Click Here to Know More About Payoff Personal Loan.
Upgrade: Best Personal Loan For Borrowers With Fair Credit
Upgrade personal loans range from a minimum of $1,000 to a maximum of $50,000. Upgrade personal loans give the best value for borrowers with fair credit scores. The interest rate for loans received from Upgrade fall between 5.94% and 35.97%.
To qualify for the lowest rates, you will be required to use the available automatic payment option. Upgrade charges an origination fee between 2.9%-8% of your loan amount. You will incur a late fee of $10 if you fail to make your monthly payment within 15 days of its due date. There’s also a fee of $10 if your payment fails to go through.
applying for a loan at Upgrade will only require your filling a single-page application form. The information you will need for your application are not difficult to obtain, they may only include your name, date of birth, address, and income.
↳ Best Feature?
Upgrade is a good option for borrowers who require personal funding. Applicants can receive loan proceeds within 24 hours of their application being accepted.
Upgrade provides some of the best terms for people with fair credit scores. Loans received from Upgrade can be used to consolidate debt. You can work out better loan terms for existing credit card debts using a loan from Upgrade.
↳ Who is it Best For?
Upgrade is best for individuals who need speedy relief from a financial need. They are also a good option for people who have average or fair credit score ratings.
To apply for a loan from Upgrade, you will need to fill in a few personal information. The information required is easily accessible and includes your name, annual income, email address, and social security number.
Click Here to Know More About Upgrade Personal Loan.
Upstart: Best Pair-To-Pair Lending Platform For Borrowers With Low Credit Scores
Upstart allows you to borrow the money you can use to make expensive purchases or pay large bills. You can also use a loan you’ve received from Upstart to consolidate debt provided by other loan companies.
For a fair credit score, you will be eligible for a loan of up to about $50,000. Upstart only has a one-time origination fee which can range from 0%-8%. This origination fee is charged only once.
Borrowers on Upstart are not subjected to a prepayment penalty when they pay off their loans early. The Annual Percentage of interest these loans ranges from 4.37%-35.99%.
↳ Best Feature?
Even though Upstart does not offer a personal account discount when you enable the automatic payment option, it is still widely accessible. It is the best option on our list for any individual with a below-average credit score.
This accessibility of Upstart loans is possible because it considers other options aside from your credit score to determine whether or not to accept your loan request. These factors include your education and job description.
↳ Who is it Best For?
Upstart is best for individuals who need a quick loan but lack the required minimum credit score rating for a top-tier lender. The fees and penalties on Upstart are mild in comparison with that of other loan providers that favor individuals with low credit score ratings.
Click Here to Know More About Upstart Personal Loan.
LendingClub: Best Personal Loan Platform for Joint Applications
LendingClub is one of the few personal lending platforms that support joint loan applications. With LendingClub, you can process both personal and business loans. The amount of loan proceeds offered ranges from $1000 to $40,000.
The Annual Percentage Rates of personal loans from LendingClub is competitive. Borrowers who use the lender should expect an origination fee. Successful applicants receive loan proceeds within 3 days.
At its core, LendingClub does not directly give loans. It serves as a broker between investors and individuals in need of a personal loan. The loaned amount can be applied for uses including the settlement of credit card debt through debt consolidation.
↳ Best Feature?
Loans from LendingClub are accessible to most borrowers including those with a less than average minimum credit score. The minimum credit score accepted is 600.
As is the case in many personal loans, the best terms will likely be tendered to individuals with excellent credit scores. Thankfully, you can still enjoy these terms even if you have a poor credit score as LendingClub allows joint applications.
↳ Who is it Best For?
LendingClub is best for individuals who are looking for a personal loan with favorable terms even though they have a poor credit score. Individuals in this situation can easily use the favorable credit rating of a co-borrower to support their weaker credit score.
The Debt to Income Ratio supported by LendingClub is 40% or lower. You must also be a citizen (permanent resident, or owner of a long-term visa) of the U.S.A, 18 years or older, and an account holder to apply.
Click Here to Know More About LendingClub Personal Loan.
TD Bank: Best Loan Application Experience
TD Bank offers a fast and reliable experience for individuals seeking a loan. The application process for TD Bank can be completed online or at any of their 15 branches nationwide.
Borrowers can receive amounts ranging from $2,000 to $50,000 within 24 hours of their application being accepted. The application process for loans on TD Bank can also be approved within one hour of completion.
There is no origination fee on TD Bank. However, there will be a fee for late payment which can be up to 5% of the payment or $10 depending on what amount is smaller. Most of the fees charged by TD Bank are low.
↳ Best Feature?
You can borrow amounts of up to $50,000 in a very short amount of time. All loans received from TD Bank are unsecured. You do not need collateral to process them.
↳ Who is it Best For?
TD Bank is best for people who want the option of choosing between processing a loan in person or online. Customers can easily walk into any of the TD Bank offices nationwide to process a loan or talk with a customer satisfaction personnel.
Click Here to Know More About TD Bank Personal Loan.
PenFed: Cheapest Fee Personal Loans
PenFed is a credit union that offers personal loans that can be used for various purposes. In comparison, PenFed offers one of the smallest loans on this list. It is a good choice for individuals who only need a very little amount to clear a financial need.
The loan amount offered by PenFed ranges from $600 to $35,000. Repayments can be made in 12-60 months. If you apply for a loan, your interest rate will fall between 5.99% to 17.99% depending on your credit score, debt load, and income.
You may be charged $29 for late payments. There are no hidden or origination fees on PenFed. Another fee of $30 may be incurred when you make a payment via check. In all, PenFed is a very cheap lender to borrow from.
↳ Best Feature?
PenFed offers a minimum loan amount of only $600. And, individuals who borrow from PenFed are not overburdened by too many changes.
PenFed has about 45 branches across the United States. You can choose to complete your loan application online or visit any of these branches.
↳ Who is it Best For?
PenFed is best for the borrower who is looking for a small amount without having to pay hefty charges. To process a loan at PenFed, all you need is a few personal information, monthly mortgage or rent payment, and annual income.
Click Here to Know More About PenFed Personal Loan.
PNC Bank: Best Personal Loan By A Traditional Bank
PNC is one of the largest banks in terms of assets. All personal loans offered by PNC are unsecured and range from $1,000 – $35,000.
Loans processed on PNC do not have an origination fee or prepayment penalty. The fees collected are kept to a minimum.
Individuals with a less than average credit score can use the support of a co-applicant. PNC operates a vibrant customer fulfillment center that is always happy to attend to your needs.
↳ Best Feature?
Borrowers who have a PNC checking account receive a discount on loan repayments when they use the automatic payment option. PNC also offers all the benefits of dealing with an established financial institution.
↳ Who is it Best For?
PNC loans are best for people who enjoy dealing with traditional banks. You may need to go to a PNC office to collect your loan proceeds. Thankfully, there are thousands of PNC branches.
Click Here to Know More About PNC Bank Personal Loan.
What is a personal loan?
A personal loan is a type of short-term loan. Consumers in need can get a personal loan from peer-to-peer lenders, credit unions, or traditional financial institutions like banks.
Once acquired, personal loans can be used for a variety of purposes. Some common uses of personal loans are consolidating debt, covering the cost of a home renovation, payment of medical bills, and financing expensive purchases.
Personal loans are unsecured loans. This means that they do not require any collateral. To be eligible for a personal loan, all you need is a reasonable credit score. The best personal loans may require that you have excellent credit scores. A minimum credit score – 660 is enough to get you qualified for the personal loans that support poor credit scores.
The application process for personal loans is relatively straightforward. In most cases, it can be completed online. Some personal loan companies are also known to credit successful applicants within a day of loan approval.
Loans collected as personal loans can be repaid in 24 – 60 months. Loan repayments are made monthly and, most personal loan companies have fixed rates on interest rates.
How does personal loan works?
Whenever you apply for a personal loan, you are requesting a specific loan type. Personal loan lenders include banks, online lenders, or credit unions. Borrowers are not in any way compelled to use them for financing a particular project as is the case with a Mortgage loan, or Auto loan.
There are different ways through which you can apply for a personal loan. The particular method you will use depends on your lender of choice. Some lenders are online lenders. If you choose an online lender, you are most likely to go through the entire application process online.
Banks and other traditional financial institutions may also offer personal loan services. In this case, you may be required to be physically present for any loan application procedure.
Your Credit Score Matters
It is very important to take note of your credit score while applying for a personal loan. Generally, the ease at which you borrow money and the interest rate you pay depends on your credit score rating. People with a poor credit score receive harsher terms than those with excellent credit.
Whenever you ask a lender for any type of credit, you’ll have to go through an application process. As discussed above, it is important to review your credit report before commencing an application process.
Before your request is accepted, your credit score is checked to ascertain the level of risk the lender has to undertake. Some lenders use a soft credit check also known as a soft inquiry to ascertain your credit score.
Some Personal Loan Products Have Charges Other Than Interest Rates
When your application is accepted, you may be charged a series of different fees. The particular fees you will be charged depend on the policies of your lender.
Most lenders will charge an origination fee, personal loan interest, and annual percentage rate. The borrower must properly research the best personal loan company with the best loan terms that best suit their situation.
Hard Inquiries Can Have a Negative Effect On Your Credit History
While shopping for which personal loan company best suits your needs, minimize the impact of hard inquiries. They are caused when your loan provider cannot do a soft inquiry.
A credit union is an example of a loan provider that does not provide soft inquiries. A disadvantage of hard inquiry is that it is noted on your credit report. Its effect reduces over time but will remain for 2 years.
To reduce the effect of a hard inquiry, you can ask if a lender can prescreen or preapprove you for a loan offer. The preapproval process often uses a soft inquiry which doesn’t affect credit scores.
Most personal loan funds are released between a day to 3 days after processing.
Credit Score to Personal Loan Interest Rate
Your credit history will determine the type of personal loan you can apply for. Bad credit may only be accepted for loans with higher interest rates. If you are looking for exceptional loan terms, you have to apply with excellent credit.
Who is personal loan best for?
Personal loans are designed to alleviate the immediate financial pressure caused by having to finance a large payment. Individuals who need to pay a medical bill or make an expensive purchase are more likely to benefit from a personal loan.
Some personal loans can also serve as a better means of repaying existing credit card debts through debt consolidation. Personal loans are not secured loans. They are generally accessible and easy to maintain.
Loan Categories base on Credit Rating
Excellent Credit Loan
Credit scores that qualify for this type of loan are typically between 720 and 850. The APR for excellent credit loans can go as low as 10.3%. Some lenders may also not require that you pay an origination fee.
Good-Credit Loan
Good credit loans are a good fit for credit scores between 690 and 719. The majority of the APR for these loans average at about 13.5%.
Fair-credit loans
It’s not easy to find reasonable loans and fees for credit scores between 630 and 689. While a fair credit score is not optimum, you may still be eligible for a personal loan with an average APR as low as 17.8%. If you have a fair or average credit score, it can be hard to find a personal loan with reasonable rates and fees.
Bad-credit loans
Personal loan companies can approve your loan request even when you are carrying bad credit. Borrowers with scores that fall between 300 and 629 may expect to have interest rates around 28.5%.
Final Verdict
The best personal loan product is SoFi. It has no fees and gives its customers a complete digital experience. The application process on SoFi is fast and convenient. You can also always track your payments and other loan details using the SoFi mobile app.
There are many personal loan products to choose from. There are loans for borrowers who have a high credit score and there are those for individuals with credit scores that are less than average.
Before applying for a personal loan, carefully assess your financial needs and credit score. It is also important that you take the time to read through the terms and offers of the various loan providers available to you. If you encounter any problem while filling in your application or in paying back your loans, do not hesitate to contact the customer support of your loan provider.
FAQs
Which bank personal loan is cheapest?
If you have an excellent credit score, you will find LightStream to have the most generous loan repayment terms. Borrowers at LightStream do not get to pay any extra fees aside from their loan interest, which is also low.
PNC personal loan is the cheapest and most accessible. The loans received from PNC are not laden with many fees. Borrowers can easily apply for an unsecured loan without having to pay origination fees. PNC offers loans as low as $60.
What is the easiest loan to get approved for?
SoFi offers the easiest loan approvals for individuals with excellent credit scores. If however, your credit score is less than ideal, TD Bank is the next loan provider to look out for.