Best Personal Loans
There are many occasions in life when a person needs to make a purchase for which they don’t have the cash on hand to pay for it… That’s when loans come in handy! But what makes a good loan? That’s what we’re here to find out…
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There are many forms of credit available, but most fall into one of two major categories. The first one is called “secured credit”, because there is some sort of collateral involved to secure the loan. Familiar examples of these include mortgages and auto loans. The other major category is called “unsecured credit, because there is no security or collateral. The most popular and well known of this kind of credit are credit cards. However, another kind of unsecured credit is known as “personal loans”.
There are several positive reasons to take a personal loan to finance a purchase versus some other form of credit:
– Unlike taking a home equity loan (which really is a form of a mortgage) or refinancing your car, a personal loan has no collateral (such as your home or car). Therefore, you aren’t putting your precious property at risk.
– If you have at least good to strong credit, the interest rate on a personal loan is usually lower than what a credit card would charge.
– A personal loan will not tie up any existing credit line you have on a credit card.
– Most of the time you will be able to finance a higher dollar amount with a personal loan compared to using a credit card.
Listed below are some of the best sources for personal loans in the United States.
Avant
This lender makes personal loans in 42 states and offers smaller loans than most of their competitors and also help people with only fair credit. Avant may approve you with a credit score as low as 580 -many other lenders require good credit scores of at least 670 to qualify. Of course, the lower your credit score, the higher will be the interest.
Loan Amounts: $2,000 to $35,000
Minimum Credit Score: 580
Interest Range: 10% – 36%
Payment Terms: 24 to 60 months
Funding: as soon as the next business day after loan approval
Discover
This lender, famous for their credit card, also offers personal loans. Discover has been rated very highly for customer service and customer satisfaction. They have an easy to use online application process and often can approve your application the same day.
Loan Amounts: $2,500 to $35,000
Minimum Credit Score: Usually 690+ , but need at least $25,000 annual income
Interest Range: 6% – 25%
Payment Terms: 36 to 84 months
Funding: as soon as the next business day after loan approval
LendingClub
LendingClub can help people with no or poor credit. They do this by allowing a co-signer on their personal loans. Most other lenders don’t allow this. However, the main borrower must be at least 18 years old and have a current bank account in their name.
Loan Amounts: $1,000 to $40,000
Minimum Credit Score: 620 (from at least a co-signer)
Interest Range: 7% – 36%
Payment Terms: 36 or 60 months
Funding: usually about three days
LightStream
This lender is a division of SunTrust Bank and offers the lowest interest rates on personal loans. LightStream also has available large loan amounts and long repayment terms.
Loan Amounts: $5,000 to $100,000
Minimum Credit Score: 680 and a clean recent payment history
Interest Range: 2.5% – 20%
Payment Terms: 24 to 144 months
Funding: can be same day as approval
Marcus by Goldman Sachs
One reason some people take a personal loan are to pay off or reduce existing debts, often known as debt consolidation. Marcus specializes in this as they will distribute your loan proceeds directly to the lenders you want to pay.
Loan Amounts: $3,500 to $40,000
Minimum Credit Score: 720 and a clean recent payment history
Interest Range: 7% – 20%
Payment Terms: 36 to 72 months
Funding: One to four business days after approval
Navy Federal Credit Union (NFCU)
This credit union offers their members very good deals on personal loans and approves borrowers on their overall financial situation and not just their credit score. Membership is open to active armed services members, military veterans, and their eligible family members.
Loan Amounts: $250 to $50,000
Minimum Credit Score: No minimum – overall financial situation is reviewed
Interest Range: 7.5% – 18%
Payment Terms: 36 to 180 months
Funding: Can be same day after approval
Rocket Loans
Rocket offers personal loans to borrowers even with fair to poor credit and with same day funding available. Also, they look at the borrower’s total financial situation and not just at their credit score.
Loan Amounts: $2,000 to $45,000
Minimum Credit Score: 580 – overall financial situation is reviewed
Interest Range: 6% – 30%
Payment Terms: 36 or 60 months
Funding: Can be same day after approval
SoFi
They don’t have any fees – SoFi doesn’t charge origination fees, prepayment penalties, or late fees.
Loan Amounts: $5,000 to $100,000
Minimum Credit Score: 660
Interest Range: 5% – 19.5%
Payment Terms: 24 to 84 months
Funding: Can be same day after approval
