Do you want to repay a credit card debt? Need extra cash for a wedding or to pay for a major purchase? Do you often google “small loans”?
If the answer is “yes”, small personal loans online are the best choice for you. If you are searching for an alternative to the traditional bank loans, try peer-to-peer (P2P) or direct lenders as well as loan-connecting services.
In this article, we will explain what these services are all about and compare the top ones.
Find the Best Personal Loans
If you are googling “personal loans with online approval”, the following 5 options are worth reviewing.
LendingClub and Prosper are P2P lenders. Upstart and OppLoans are the direct lenders, whille PersonalLoans.com and Personal Money Service are loan-connecting providers.
Frequently Asked Questions
According to SuperMoney’s study on personal loans, FinTech lenders control the largest market share.
All these small loan providers operate exclusively online. P2P lenders take loan funds from an investor. These investors can fund a loan partially or fully.
Traditional lenders are usually backed by financial institutions. By contrast, P2P lending web pages are backed by everyday investors. Loans from P2P lenders propose lower fixed APR rates if compared to other companies. Some P2P lenders charge an origination fee and a late/failed payment fee. Regulations vary from state to state. That is why you should check if the state restricts you from borrowing/investing.
Loan-connecting services use a matching mechanism that compares all the small loans online offers and chooses the most suitable one.
Consumers who are citizens or legal residents of the USA may apply for quick personal loans through PersonalLoans online service. Each borrower needs to have a valid bank account on their name in order to receive the funds.
The company does not issue fast personal loans itself and can’t make the lending decisions but it connects consumers with the best lenders online.
The APR starts at 5.99% and may reach 35.99%. The loan duration is between 90 days and 72 months.
The amount of the small personal loan depends on the credit score of the borrower as well as the credit history and income. The borrower has the right to select among several offers.
The application is quick and secure through the website. If the documents are in order the money may be transferred as soon as the next business day.
OppLoans is an online company that offers fast personal loans for bad credit for consumers who need to cover their temporary monetary disruptions.
The company offers up to $4,000. Its APRs range from 99% to 199%.
This online platform provides financial support for borrowers in 49 states. The state regulations and credit history can change the APR and the minimum loan amount.
The unsecured personal loans require no collateral and can be given even to consumers with poor credit although there is no 100% approval guarantee.
The online personal loans with bad credit can be obtained for a period of up to 36 months depending on the borrower’s needs and financial situation.
Prosper offers personal loans for fair credit with APR from 5.99% to 35.99%. Your application is evaluated by the lender and is categorized according to seven Prosper Ratings (from AA to HR).
To get approved by Prosper, your credit score should exceed 640. You should also be 18+ and be an American citizen or a permanent U.S. resident.
While Prosper doesn’t charge any prepayment fees, you are subject to an origination fee of 1-5% of the amount borrowed. If you want to repay a loan by check, you should pay a $5 processing fee. If you make repayment 15 days later, you will pay a penalty that is greater than 5% of the unpaid sum. The same fee is charged for the failed and returned repayments.
The amount you can borrow ranges from $2,000 to $35,000.
With Prosper, you can check personal loan rates in a few minutes. You should provide personal and financial information to apply. It can also require you to upload some documents. As a rule, it takes a week to get a decision on your application.
A LendingClub borrower should have a perfect credit score, be an 18+ year-old citizen of America, a permanent resident of the U.S., or have a long-term visa. You must also own a bank account on your name. Till now, it is not available for West Virginia and Iowa.
LendingClub is not a lender, who gives short term loans for bad credit. It cooperates with borrowers who have a good credit history.
The APR varies between 5.99% and 35.89%. An origination fee is included.
Here we can observe an origination fee of 1-6% as well. There are no fees for early repayment. Late fees are equal to Prosper. However, the check processing fee is $7.
LendingClub can lend you the best personal loans for fair credit from $1,000 to $40,000. The amount of other products varies.
If all the documents are uploaded correctly, and the application is approved, the money will be on your bank account in a few days.
The APR of Upstart online personal loans ranges from 8.7% to 29.99%. The starting APR is higher, but its maximum rate is 5% (that is less than its rivals perform). If you do not qualify for the lowest APR, you will not be charged over 30% in the end.
A borrower must be an American citizen over 18. Permanent U.S. residents or those with a long-term visa may also qualify. The credit score must exceed 620. You must have a stable income and a verified bank account. Currently, Upstart doesn’t lend to West Virginia.
Like Prosper and LendingClub, Upstart doesn’t charge fees for early repayment. Returned and late payment fees are the same as claimed by its competitors. Yet, the grace period for late repayments is only 10 days (LendingClub and Prosper claim 15 days). The origination fee ranges from 0% to 8%.
Upstart offers personal loans for good credit from $1,000 – $50,000.
The Upstart application process is quite fast. If your request is approved and you accept the offer, you will get the funds within 1 business day. If you borrow funds for educational purposes, processing will take three days.
This loan-connecting company claims that the APR is defined by the lender, who agrees to cooperate.
The applicant must be an adult U.S. citizen and have a verified bank account.
Personal Money Service can’t predict neither interest rates, nor origination and processing fee. All the terms are decided by the direct lender only.
The amount ranges from $1,000 to $5,000.
This provider cooperates with a wide network of lenders, thus processes requests for bad credit personal loans. In case of online approval, one can get the borrowed funds the next day.
Featured Personal Loan Providers
The Decision Is All Yours
It is up to you to decide which lender is the best one. It depends on the amount needed and other factors. Upstart has lower interest rates, but Lending Club and Personal Money Service are a better choice if you are in a hurry. If fees are the main criterion for you, Prosper can be better than the other four.
Compare the best online personal loans reviews and choose the one that fits all your needs and preferences.