Best Personal Loan Companies and Lenders

If you are about to borrow money, online personal loans could be a good option to go for. No wonder millions of Americans consider using it when they need cash. The best thing is that it could work for any specific purpose. Whether it’s about debt consolidation, a large purchase financing, or emergency expenses, it could be the right one for you.

A personal loan is a viable option for borrowers who need to get money as soon as possible. There are a variety of reasons why to apply for a personal loan online. The key point here is to be sure you are able to pay it back. Otherwise, you might end up in deep financial troubles. If you haven’t experienced this option yet, then it’s a great way to learn its ins and outs before you decide to apply.

Below, you’ll find out what is a personal loan, how it works, and find the best place to get a personal loan online. At the end of the day, it will help you shop for the best personal loan options and get approved.

Best Personal Loans in 2022

Upgrade
Rating:
4.5/5
Loan amount:
$1000 - $50000
Processing Time: 24 Hours
Minimum Credit Score: -
Credit check: Yes
View More Details
Pros Cons Fees

Several Repayment Terms

Secured Joints Loans

Fast Approval

Loans Only Available up to $50000

Late Fee Charge

2.9% And 8% Of Amount

CashAdvance
Rating:
4.5/5
Loan amount:
$200 - $10000
Processing Time: Within one business day
Minimum Credit Score: -
Credit check: No
View More Details
Pros Cons Fees

Online Support

Large Lender Network

Free To Use

Everything Depends From The State You Are Living

Late Payment Policy

Not stated (depends on a lender)

BadCreditLoans
Rating:
4/5
Loan amount:
$500 - $10000
Processing Time: Within one business day
Minimum Credit Score: -
Credit check: No
View More Details
Pros Cons Fees

Huge network of lenders

Free to use

You can use it to upgrade your credit score

Fast service

APRs can be high

BBB accreditation is missing

Loan amount can be very small

Not stated (depends on a lender)

LoanPioneer
Rating:
4/5
Loan amount:
$100 - $5000
Processing Time: One Hour
Minimum Credit Score: -
Credit check: Hard or Soft
View More Details
Pros Cons Fees

Offer Three Types of Loan

Fast Approval

Customer Support

Credit Check

Not a Direct Lender

Only Work With US Lenders

Not stated (depends on a lender)

PersonalLoans
Rating:
4/5
Loan amount:
$1000 - $35000
Processing Time: One Business Day
Minimum Credit Score: 600+
Credit check: Yes
View More Details
Pros Cons Fees

Free To Use

Fast Approval

Customer Support

High Credit Score Requirement

Not A Direct Loaner

High APR

Not stated (depends on a lender)

Other Personal Loan Options

OppLoans.com

Known also as Opportunity Financial, LLC, OppLoans has been in business since 2009. Thus, as many as 300,000 customers have sold their financial issues since the OppLoans’ founding. Focused on providing small personal loans for borrowers with bad credit, OppLoans has funding amounts ranging from $500 to $4,000.

Their mission is to provide customers with damaged credit access to fast personal loans in a simple, secure, and transparent way. Even though their APR rate ranges between 99-199 percent, it could be still a good option if you absolutely need cash.

OppLoans in a nutshell:

  • Best for – borrowers with damaged credit;
  • Loan amount – $500- $4,000;
  • Current APR rate – 99-199%;
  • Loan term – up to 24 months;
  • Ability to build a credit history – OppLoans reports to the three major credit bureaus;
  • No collateral needed;
  • No origination fee or prepayment penalties.

Other important things to consider:

  • OppLoans has an A+ rating with the BBB;
  • Funds are disbursed quickly – as soon as the next business day;
  • There is a 15-day grace period before being charged a late payment;
  • No credit score requirements – their average borrower has a credit score of 560;
  • No hard credit check – OppLoans will do only a soft pull and your credit, which doesn’t affect your score;
  • There is also a free education class to teach you financial literacy;
  • A variety of incentives for making on-time monthly payments;
  • Payment flexibility regarding a repayment date or refinancing a loan.

  • Extremely high interest rates;
  • OppLoans provide services in several states;
  • Loan terms may vary depending on your state;
  • To be eligible for a loan a minimum of $1,500 per month, a working bank account, and direct deposit is a must.

LightStream.com

Are you on the lookout for personal loan companies that offer competitive rates on the market? Then LightStream is perfect for that task. The coolest thing about LightStream is that it can make the loan you need much more affordable, but there is a trick.

To qualify for the best rates, you need to be at least a premier consumer. If you have a plan to pay back what you borrowed, your competitive loan package may be as high as $100,000.

Backed by SunTrust Banks, LightStream provides quick personal loans for borrowers who need large funds fast. Also, this online lender works with customers who are not members of SunTrust Bank. If you meet the requirements, simply submit all of the necessary documents and get the funds you need fast.

You can use your personal loan to fund auto purchases, home remodeling, or medical expenses. Once you get a loan, LightStream plants a tree.

LightStream in a nutshell:

  • Best for – borrowers with good to excellent credit;
  • Loan amount – $5,000–$100,000;
  • Current APR rate – 4.99%–19.99%;
  • Loan term – 2 to 7 years;
  • No loan fees, including no prepayment or overpayment penalties;
  • No collateral needed.

Other important things to consider:

  • The simple online application process;
  • There are no prepayment, origination nor late fees;
  • Quick funding – funds are available fast as soon as the same day;
  • Competitive fixed rate;
  • There is a $100 Loan Experience Guarantee;
  • Flexible fund use – auto purchase, home remodeling, debt consolidation, wedding expenses, and more;
  • Excellent credit allows you to reduce your APR;
  • Your loan plants a tree.

  • $5,000 minimum;
  • An excellent credit score (at least 720) and payment history (at least 5 years) is required;
  • You need to specify the purpose of your loan;
  • Hard inquiries;
  • There is no peer-to-peer lending;
  • No possibility to refinance student loans.

Avant.com

Avant is one of those lending companies that provide quick personal loans for borrowers with less than desirable credit scores. Since 2015, Avant has originated $4 billion in loans to over 6000,000 borrowers.

Thus, if you have trouble with your financing and need money fast, Avant could be exactly what you’re looking for. The application process is as simple and easy as that. Once you apply, Avant will pull a hard inquiry on your credit and this will affect your score.

Avant could be a good option for borrowers with damaged credit. A minimum 600-700 credit score is required to apply for a personal loan. Yet, you can also try to get the funds with at least a 580 score. You can use a personal loan from Avant to pay off your debt, fund a wedding or trip, make improvements to your home, and the like. Unsecured loans mean that you don’t need to put down collateral.

Avant in a nutshell:

  • Best for – impaired credit;
  • Loan amount – $2,000 to $35,000;
  • Loan terms – 24 to 69 months;
  • Fixed APR rate – 9.95%-30.95%;
  • There is a one-time administration fee of up to 4.75%;
  • No collateral needed.

Other important things to consider:

  • You can get approved even if you have less than perfect credit;
  • Avant allows you to save money on interest by paying off your loan early;
  • Can help build your credit by taking out a loan with a low credit limit;
  • Online mobile banking to log into your account anytime, anywhere;
  • Ongoing cash flow is enough to apply for a loan;
  • Quick funding;
  • There is no prepayment penalty;
  • Live customer service 7 days a week.

  • There is a one-time administration fee of up to 4.75%;
  • Once your loan is approved, a hard inquiry will affect your score;
  • Not available in all states;
  • There is an NSF fee for an unsuccessful transaction – $15 per transaction;
  • Apply online only.

Upstart.com

Founded in 2012, Upstart is an online lending platform that takes the lending process to new heights. Because the process is automated, getting money tends to be very easy. It provides personal loans to consumers in a bit different way.

As the company states, it has originated over $4.2billion in loans, and 60 percent of approvals are entirely automated. As such, if you want to get a personal loan in a smart way, Upstart to the rescue.

The company provides its services in 48 states with APR rates ranging from 8.27% to 35.99%. The amount you can borrow is something between $1,000 to $50,000. Your credit score is not the only criteria to determine your eligibility and APR.

Factors like the area of study, work history, and GPA are also taken into account. If you want to get instant loan funding, Upstart offers to do that within one day after approval.

Upstart in a nutshell:

  • Best for – borrowers with fair credit ( min 580 score) or short credit history;
  • Loan amount – ranges from $1,000 to $50,000;
  • Loan terms – 3 or 5 years;
  • APR rate – ranges from 8.27% to 35.99%;
  • No collateral required.

Other important things to consider:

  • Simple application process;
  • Soft credit check;
  • Quick funding – as soon as the next day;
  • Fixed rate for the entire duration of your loan term;
  • There is no prepayment penalty;
  • Live customer service 7 days a week;
  • An annual income of $12,000 is enough for quality.

  • Upstart comes with an origination fee between 0% and 8%;
  • There is also a 5% past due fee and a $15 return check free;
  • There is a debt-income ratio requirement of 45%;
  • Not available in all states.

Upgrade.com

Upgrade is a good option for borrowers who prefer to deal with direct lenders. The company provides easy personal loans with APR starting at 7.99%. To qualify for a personal
loan online, make sure your score is at least 600. Forget not also about factors like the borrower’s income, credit usage, and credit history.

The whole process is done online, so you don’t have to step foot inside a bank or office. To choose the best personal loan, simply visit Upgrade’s website and follow the steps to complete the offer. After online approval, you are able to receive the funds as soon as the next business day. For borrowers who sign up for auto-pay, Upgrade offers the lowest rates.

Upgrade in a nutshell:

  • Best for –building credit and credit card debt consolidation;
  • Loan amount – $1,000 – $35,000;
  • Loan term – 3 to 5 years;
  • APR rate – ranges from 7.99% to 35.97%;
  • Origination fees – 2.9% to 8%.

Other important things to consider:

  • Upgrade has an A rating;
  • Fast approvals;
  • There is a grace period of 15 days;
  • No prepayment penalty;
  • Multiple options;
  • A free cash flow of $1,000 and above is required;
  • The company provides a great customer support;
  • There is a free monthly credit report;
  • Type of credit check: Soft;
  • The maximum debt-to-income ratio is 60%.

  • Upstart comes with an origination fee between 0% and 8%;
  • A debt to income ratio of less than 40% is required;
  • The late fee is up to $10;
  • Not available in all states;
  • There is also a return check payment $10 fee.

LendingClub.com

Comparing options could be the best way to get a personal loan online. Not sure? Visit an online marketplace that connects you with lenders. And Lending Club could be the solution. Whether you’re looking for personal loans, small business loans, and auto refinancing, Lending Club has a lot to offer. All in all, since 2007 Lending Club has helped over 3 million customers with $50 billion in loans.

The company is a peer-to-peer platform that allows you to borrow personal loans that range from $1,000 to $40,000. For borrowers with good credit, an APR rate can be as low as 6.95%. Even if your score is not as high as needed, it’s worth your time to look in to your options with Lending Club.

One thing to consider when you apply for personal loans online is that Lending Club is best suited for borrowers who are not in a hurry to get funding. The reason for that is that it could take up to seven days to get your money.

Lending Club in a nutshell:

  • Best for – debt consolidation;
  • Loan amount – $1,000 to $40,000;
  • Loan term – 36 or 60 months;
  • APR rate – 6.95% to 35.89% (depends on your credit score);
  • One-time origination fee – 1% to 6%.

Other important things to consider:

  • A FICO score of at least 600 is required;
  • There is a 15 day grace period;
  • There is no prepayment penalty fee;
  • No credit history defined;
  • Co-signers and co-borrowers are allowed.

  • It can take up to seven days to receive your money;
  • Returned payment/NSF fee of $15;
  • A maximum debt-to-income ratio of 31% or lower.

How to Get a Personal Loan?

Nearly a quater of Americans have personal loan. That is why there are many different personal loan lenders that provide financial solutions for borrowers. Important thing is that there is no best lender in the field. That’s why comparing options is always smart. Thus, you will not only pick the lender you want to deal with but also the solution that will work best for you.

When you need a loan, the first thing to do is to check your credit. When you know where you’re standing, it’s easier to understand how much you can get. Even bad credit is not a big problem if you have a plan in place on how to pay it back. Now, shop around to find the best personal loan lenders possible.

When you opt for an online personal loan, you save the day. Thus, you are able to check multiple lenders and compare your options. Also, take the time to look for hidden fees if you don’t want to put your financial future in harm’s way. Finally, online lenders sometimes offer more convenience. This is especially true when it comes to getting funds. In some cases, a lender promises to give you the money you need the same day.

What Is the Benefit of Obtaining a Personal Loan?

Even though personal loans won’t work for everyone, there are smart ways to use them. For instance, credit card refinancing is one of the reasons for getting a personal loan. Just because a credit card has a higher interest rate, a personal loan can help you pay off your debt faster.

Paying off other high-interest debts like payday loans. Say, you have an old personal loan with a higher interest rate than you would qualify today. Also, the best online personal loans can provide you with the funds you need to repair or remodel your home. To add, if you run into emergency expenses, personal emergency loans can help you over it.

When it comes to long term personal loans, the advantage of using them is obvious. They have a tenure of three years or more and can help build your credit score. Want to fund your child’s overseas education, wedding, or medical expenses? Find an option that enables you to meet your financial commitments fast. Need money in a hurry? Then opt for an instant loan to get the funds you need the same day.

Before you apply, take time to consider the pros and cons of personal loans. Oftentimes you can find much lower interest rates, but a poor credit score could be a reason for denial. Also, the possibility to get quick funding with no collateral required may end up with a higher APR rate.

When it comes to downsides, origination, late, or prepayment fees are some of those. You should necessarily pay attention to it before you sign up for the application. Otherwise, it might break your budget. So, if you are able to pay off your loan at any time without paying a penalty, go for it.

Which Describes the Difference Between a Personal Loan and a Credit Card?

Even though credit cards are one of the most common types of credit used, personal loans are not at the tail end. Think of personal loans as  installment loans that you can use for a myriad of purposes. Thus, you receive a lump sum of money to cover the void in your budget.

So, a credit card has a certain limit on the amount of money you can spend at a time span. And here is the difference – an interest rate. Once you pay the balance on the credit card in full, there is no interest.

Personal Loan

Credit Card

  • One lump sum of money;
  • Unsecured;
  • Set the end date to pay off the debt.

  • Revolving credit;
  • Secured/unsecured;
  • Offer rewards;
  • 0% introductory offer possible;
  • No interest if paid off on time.

According to statistics, the share of personal loans is almost 1,5 times larger than the credit card share. But Americans use credit cards more often. It means, people use credit limits for little sums, but when they need more money, they turn to personal loans.

personal loans

Which Best Describes a Way People Can Use Personal Loans?

Thing is, you can get personal loans and use them for various purposes including home renovation, wedding, travel purposes, or debt pay off. To add, there is no strict limit for the amount borrowed.

If paid on time, a personal loan can help build your credit faster than other forms of credit. Sometimes a personal loan can be a good option to help you afford the education you need to get a better job or qualify for that promotion.

No matter your purpose in getting a personal loan, make sure you’ve done your research. Things like interest rates, the size of your loan, the loan’s term, and of course fees can make a big impact on your decision.

Types of Personal Loans

Just because personal loans are the fastest-growing type of consumer debt, they can be used depending on your particular situation. When your score is suffering and you’re in a tough spot, guaranteed personal loans may sound like a lifesaver. Yet, the truth is that being able to qualify for a guaranteed loan is no easy feat.

Typically used by borrowers with poor credit, guaranteed loans are backed up by a third party that takes responsibility for a loan if a borrower defaults. Guaranteed by a government agency, these loans enable risky candidates to qualify for a loan.

On the other hand, it assured that the lender will get money back. In turn, it benefits the lender at the expense of a borrower. Guaranteed mortgages, federal student loans, and payday loans are a few options available for borrowers strapped financially.

Thus, when shopping for a fast personal loan, watch out for the following red flags.

  • Interest rates – depending on the type of personal loans, high interest rates (sometimes up to 400%) can send you into a state of panic. So, before you sign up, calculate whether you can pay your loan back.
  • Scam lenders – be aware of lenders that promise you instant approval loans, no income verification loans, or no doc personal loans. Legit lenders never promise guaranteed approval loans but a guarantee that you can apply for one.
  • High or hidden fees – oftentimes, personal loans from private individuals come with hidden fees that are hard to spot. Rejected by a traditional bank applicant is more likely to go to a private lender for a personal loan to get the funds he needs. So, before your application is approved, read the fine print to learn how much a loan will cost you at the end of the day.
  • No credit check – your ability to repay is one of the key factors lenders take into account when approving applications. As a rule, a soft or hard pull on your credit history is the first thing a lender will do to verify your income.

Taking out a personal loan could be a real challenge if you don’t compare your personal loan options. If you are in a situation when you need money fast, a short term personal loan could be perfect for that task. Expected to be repaid within a year, short term loans can help save you money and stress down the line.

When looking for the best private lenders for a personal loan, consider the pros and cons to make the right decision. Private personal loans are typically hard money personal loans that can work for borrowers with poor credit.

You can get an instant approval for hardship personal loans today and get the funds you need the same day you apply. When you utilize this option, you need to be aware that you are going to pay a much higher rate of interest.

Also, keep in mind that you can’t have bad credit, bankruptcy, or poor credit history if you want to apply for large personal loans. To find a perfect private lender for personal loans of up to $100,000, make sure you do your homework.

Research the types of competitive rates currently available and do the math whether you could repay it.

How Long Does It Take to Get a Personal Loan

Interested in applying for a personal online loan? Then you definitely need to check the best personal financing loans available out there. If not, the time is now. After weighing all pros and cons, take the time to read personal loan reviews. You know that you are going through hard times in the future, so it’s in your own interest to learn personal loan comparisons.

The coolest thing about personal loan service is that you can get the funds you need in one day. Even better, to close the best deal possible, keep your credit score favorable. At the end of the day, you’ll be able to earn maximum personal loan benefits and save yourself from any trouble.

personal loans survey

Comparison of the APR Ranges

When looking for the best personal loan companies and lenders, comparing apr rates and fees is important. You should also take into account your credit score since this will affect the interest rate you’re offered. It’s also a good idea to read personal loan reviews before making a decision.

As we mentioned earlier, apr rates can be quite high when it comes to personal loans – sometimes as high as 400%. So, before you sign up for a loan, make sure you calculate whether or not you’ll be able to pay it back. Legitimate lenders will never promise guaranteed approval, but they may offer a guarantee that you can apply for a loan.

When you’re looking for the best private lender for a personal loan, make sure to consider the pros and cons of each option. Private personal loans are typically hard money loans that can work for borrowers with poor credit. However, they usually come with high-interest rates and hidden fees. So make sure you do your research before signing up for a loan.

  • OppLoans has an apr of 36%-199%. For a $1000 loan over a term of 12 months, you would end up paying-35.99%. OppLoans has an apr of 36%-199%. For a $1000 loan over a term of 12 months, you would end up paying back $1153.68 with OppLoans.
  • LendingClub offers loans with APRs from 14.95%-35.89%. The credited in the 14.95%-35.89%. The credit score requirement is a bit higher, at least 660. You would end up paying back $1257.60 with LendingClub.
  • Upgrade offers personal loans with APRs ranging from seven percent to 35%. They require a fee of three to six percent.
  • Upstart offers personal loans with APRs ranging from eight percent to 35%. They require a minimum credit score of 620 and have an origination fee of one to eight percent.
  • Avant offers personal loans with APRs ranging from nine percent to 36%. They require a minimum credit score of fee of four to five percent.
  • LightStream offers personal loans with APRs ranging from two percent to 14%. They require a minimum credit score of 660 and have no origination fees.

When you are looking for the best personal loan companies and lenders, it is important to compare the apr range, credit score, and other factors. 

If you’re in a situation where you need money fast, a short-term personal loan could be perfect for that task. Expected to be repaid within a year, short-term loans can help save you money and stress down the line. However, keep in mind that you’ll likely have to pay a higher interest rate for a short-term loan.

No matter what type of loan you’re looking for, make sure to do your research and compare your options before signing up for a loan. By taking the time to do this, you’ll be sure to find the best loan for your needs.

FAQ

How do personal loans work?

Personal online loans are issued as a lump sum which is deposited into your bank account. A borrower is required to pay it back over a certain period of time at a fixed interest rate. A lender will check your credit score to offer you the top personal loans possible. If approved, you could get the funds you need as soon as the next business day.

How to apply for a personal loan?

To be able to apply for a loan, make sure you know your credit score. Not yet? The time is now. Check it for errors and fix them. Determine how much funds you need to borrow and whether you can afford to pay it off. Find the best companies for personal loans and compare their offers. Pick the right one for you and submit the application.

Where to get a personal loan?

To save time, visit a company’s website and check whether you qualify for a personal loan. Fill in the online application and wait for fast approval. Prefer to step your foot into brick-and-mortar banks and credit unions? No problem. Check what personal service they offer, if a location is nearby.

Is a personal loan installment or revolving?

Think of a personal loan as an installment loan. In other words, you pay your short-term loan over time in regular installments. So, you know how much your monthly payment is and how long you will make payments. Instead, a revolving loan is a credit line that you can access and pay back as needed. When it comes to interest rates, they are based on the amount you use.

What is the difference between APR and interest rate on a personal loan?

The difference is obvious. The APR is the total yearly cost of the amount you borrowed. It could also include other fees charged for the lending process. While an interest rate is a percentage of the loan, you are borrowing. It can be either fixed or variable.

How does a personal loan affect credit score?

Your credit score helps provide to a lender your creditworthiness. In other words, how likely you are to repay your debt. When you apply for a personal loan, most lenders will do a hard inquiry on your credit report. As a result, you will get a 5-10 point temporary (no more than a year or so) decrease in your credit score. If you opt for a lender who will only make a soft inquiry and soft checks, you prevent your credit score from getting dinged.

Is it worth it to get a personal loan to pay off debt?

If you need a personal loan to pay off debt, check out whether you are eligible for a debt consolidation debt. If you can get it at a lower interest rate than your current debt carries, then it could help you make loan payments on time and save money.

How hard is it to get a personal loan?

In general, getting a personal loan is not as difficult as you might think. If you meet all the lender’s requirements, the process of approval could be fast. To find the best online personal loan lenders, read personal loans reviews. Take the time to understand what you need to apply for personal loans online and you will increase your chances of getting approved.

What credit score is needed for a personal loan?

The minimum credit score for a personal loan varies. It depends on a personal loan company and the personal financing loan offers it provides. A good rule of thumb is to have a 680 score to be eligible for a personal loan. If your score is between 550 and 580, you are able to qualify for a personal loan, too. But you’re likely to pay a higher interest rate and get a lower loan amount.

How much of a personal loan can I get?

It all depends on how much you need. Every lender offers minimum and maximum personal loan limits. If you are looking for a personal loan of less than $2,000, then you should find the top rated personal loans lenders offering that amount. Want to borrow up to $50,000, then you’d better search for the top personal loan companies that offer that amount or more. Private lenders for personal loans could also be a solution in particular situations.

How long does it take to get approved for a personal loan?

When you take out a personal loan, there are a few things to look out for to speed up the process. And knowing your credit score is one of those. To get the funds as fast as possible, prioritize your needs. Online personal loan lenders might be a good choice since approval time can be fast. Make sure you’ve done a personal loan comparison and know what you are applying for.