Personal loans are an excellent choice when you require access to money to consolidate credit card debt or any other investments. Personal loans are typically for short periods, generally within 2 to 5 years. You can also qualify for amounts within the range of $1000 to $100,000. Most lenders will determine the amount you get on how creditworthy you are, your debt ratio, and your income.
Personal loan companies vary from online to physical lenders. Most lenders give unsecured loans meaning you do not have to worry about collateral for security. We will review some of the best personal loan companies in our article below, and what you need to know before making an application.
Best Personal Loan Companies That Offer Some of the Best Personal Loan Rates
SoFi:
SoFi is an online lender who specializes in a wide range of personal loans. You can get private student loans, student loan refinancing, home loans, among others. You get benefits such as unemployment protection, auto-pay discounts, referral bonuses, career counselling, among others.
If you sign on as a member, you will not pay any fees for financial Planning. The loan period is within the range of 2-7 years, and you can qualify for $5000 to $100,000. The loan rate interest has a 14.95% cap, while the fixed-rate ranges from 5.99% to 20.01% APR. To qualify for the loan, you need a minimum credit score of 680.
Discover:
You will get some of the best personal loans from Discover. The loan period is 3 to 7 years, and you need a credit score of 660. You can qualify for amounts ranging from $2500 to $35000. There are specific limitations on what you can use the money for.
You will be eligible if you want it for debt consolidation, unexpected expenses, home improvement or repairs, and major purchases. There is no origination fee, and you also do not have the option of a cosigner. You can check for available pre-approval rates or quotes.
LendingClub:
LendingClub will offer personal loans based on peer-to-peer borrowing and lending. It does not use traditional banking methods. You will undergo a grading system that takes into consideration your credit score and income. The grading will determine the bank loan rates you qualify for. You can have a cosigner as long as they have a credit score of over 540.
One significant advantage is that you have a three-month window within which you can stop making payments if you are experiencing any hardships. You will, however, need to continue building the payments on their interest. You also have to cater to an origination fee of 1-6%. If you want to consolidate your debt, LendingClub will transfer the loan to up to 12 creditors to help you with the payments. The APR is within the rage of 6.95% to 35.99%.
Lightstream:
The best thing about taking a personal loan from Lightstream is that you have no restrictions on what you can use the money for. Get a personal loan for home improvement, medical emergencies, and auto loans, among others. The repayment period ranges from 2 to 12 years, and you can qualify for $5,000 to $100,000.
The APR is from 5.95%. There are no penalties or origination fees. You can also get a discount on your bank loan interest rate when you sign up for the auto-pay facility. You require a minimum credit score of 660 to qualify.
Prosper:
Prosper uses the peer-to-peer lending system. You can be eligible for a personal loan if you have a debt-income ratio of 50%. You must also pass the risk rating system that looks at your credit score, income, and credit history.
You need to have a minimum credit score of 640. You can qualify for a loan within the range of $2000 to $40000 and must pay within five years. The APR ranges from 6.95% to 35.99%. There are no limitations concerning what you can use the loan for. What makes it uniquely accessible is that the credit check is soft, and you can get an instant personal loan.
Avant:
Avant is popular because it caters to those with a credit score of between 600 and 700. You get access to unsecured personal loans. Once you qualify for the loan, you can get your money within the next business day.
The APR range is within 9.95% to 35.99% depending on your credit score. You will, however, pay a 4.75% administration fee. You will also pay for returned checks and late payments. They are, however, very flexible on what you can use the money for.
Net credit:
Net credit provides some relief or anyone who has a poor credit score and still needs a personal loan. The interest rate is, however, high and ranges from 34% to 155% APR. Your credit score and annual income must be a minimum of 500 and $20000 and above, respectively.
Do note; this facility is only in 14 states, so you may not access it if it is not in your region. You will need to pay a 5% origination fee and may face penalties for late payments. You can qualify for an instant personal loan as you will get the funding within three days after approval.
UpStart:
UpStart will give you the best personal loans within the range of $1000 to $50,000. You have to make the payments within three to five years. There are certain restrictions on what you can use the money for.
You must, therefore, ensure that you keenly read the acceptable use policy statement. You may need to pay an origination fee of up to 8%, and need a minimum FICO score of 620. The APR ranges from 6.46-35.99%.
Final Thoughts
Personal loans provide a lot of conveniences, such as being able to consolidate debt or even take care of high-interest loans. It is vital that when you are looking for a personal loan, you consider the loan rates and the repayment period.
It would be best if you also had a good credit score; otherwise, you may end up paying high-interest rates. We have highlighted some of the personal loan companies you can consider. It is, however, crucial that you get the right advice and do your research before signing on the dotted line.