Personal Loans

Best Personal Loans

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Life can be expensive, and sometimes those expenses catch us by surprise. But a well-chosen personal loan can provide relief and help people deal with those expenses. In general, some of the best loan terms go to those with excellent credit. But that doesn’t mean you can’t get a loan with good terms if you don’t have perfect credit. The key is finding your best personal loan for you and your unique circumstances.

Below, we’ll outline personal loans for those with excellent, good, average and bad credit.

LendingTree

LendingTree’s personal loan tool can help qualified borrowers see potential offers for amounts ranging from $1,000 to up to $50,000 from dozens of lenders. To find out your loan options, you’ll need to answer a few simple questions, like your address, desired loan amount and type of residence. LendingTree is not a lender.

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By clicking “Compare Offers”, you may or may not be matched with any lender mentioned in this article. Based on your creditworthiness, you may be matched with up to five different lenders in our partner network.

Best personal loans for excellent credit: LightStream

LightStream is an online lending division of SunTrust Bank offering personal loans to qualified borrowers. It also has a $100 satisfaction guarantee for a positive loan experience.

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By clicking “See Offers”, you may or may not be matched with any lender mentioned in this article. Based on your creditworthiness, you may be matched with up to five different lenders in our partner network.

The fine print

Loans range from $5,000 to $100,000, and those who don’t qualify for the unsecured loan may be able to get a secured loan for the purchase of a car. Borrowers who sign up for autopay get a 0.50 percentage point discount on their rate (the maximum APR is 19.99%). Loans can be deposited as soon as the same day.

According to the lender site, it usually considers applicants to have excellent credit if they have at least five years of significant credit history with a variety of accounts (like credit cards and an auto loan), a payment history that’s free of delinquencies, a proven ability to save and a stable and sufficient income and assets to repay current debt obligations as well as the loan you’ve requested.

Pros

  • Autopay discount
  • No fees or prepayment penalties
  • It will beat a qualifying rate from another lender

Cons

  • Pre-approval isn’t available
  • Loans can’t be used to pay for college expenses or refinance college loans

LightStream offers those with excellent credit access to borrower-friendly personal loans. Those who opt for auto-pay and have excellent credit can expect a good rate and zero fees.

Best personal loans for good credit: RocketLoans

RocketLoans, a subsidiary of Quicken Loans, is a Detroit-based online lender that offers qualified consumers access to personal loans and mortgages. It provides loans to people with a minimum credit score of 640.

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By clicking “See Offers”, you may or may not be matched with any lender mentioned in this article. Based on your creditworthiness, you may be matched with up to five different lenders in our partner network.

The fine print

RocketLoans borrowers can take out up to $45,000. It can take up to two business days to get the cash. (Though loans of $25,000 or less can be funded the same day.)

To qualify, you have to be at least 18 years old (19 in Nebraska and Alabama), in addition to meeting the credit score requirement. Vermont residents should be aware that RocketLoans is not authorized to lend to those individuals, and would instead refer them to third parties to complete the loan.

The lender considers things like debt-to-income ratio and credit profile. There’s a $15 late fee if you pay 10 or more days late, and a $15 returned payment fee (for both ACH and checks.)

Pros

  • Same-day funding offered
  • Prequalification is available
  • No prepayment fees

Cons

  • Origination and late fees
  • Can’t be used as a student loan

RocketLoans may approve those with credit scores as low as 36 or 60, but those with good credit (670 or higher) can expect lower rates than the lender’s rate cap. As long as you expect to be able to pay off your loan within five years, it should be a good choice for this credit group.

Best personal loans for average credit: Peerform

Founded in 2010 by Wall Street executives, Peerform is a marketplace lending platform that offers personal and consolidation loans to qualified borrowers. Approved loans are funded by a network of investors. You need a credit score of 600 or higher to get a personal loan.

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The fine print

Peerform personal loans all come with a three-year loan term and are available in most states. Borrowers can take out $4,000 to $25,000.

To qualify, applicants must have a FICO score of 600 or higher. Origination fees range from 1.00% - 5.00%, depending on the applicant’s grade. There are also unsuccessful payment, check processing and late fees (though the latter is only charged 15 days after a missed payment, in the amount of 5% of the unpaid installment or $15, whichever is greater). But there’s no prepayment penalty.

Those who are interested should also be aware that, in addition to identity and income verification, account verification (in which up to $0.99 is transferred to and from your bank account) is a part of the process.

Pros

  • Good APR for those with average credit
  • Low minimum credit requirement
  • Widely available

Cons

  • Funding can take up to 14 days
  • Origination fees
  • Funding isn’t guaranteed
  • Only one loan term available

A Peerform personal loan is a good option for those with average credit who need to borrow up to $25,000 and don’t mind a three-year term. Despite its fees, the requirements and APR for this loan are generous compared to other lenders, making it the best option for this credit category.

Best personal loans for bad credit: Marcus by Goldman Sachs®

Marcus¹ is a brand of Goldman Sachs Bank USA that offers CDs, savings accounts and personal loans to qualified borrowers.

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By clicking “See Offers”, you may or may not be matched with any lender mentioned in this article. Based on your creditworthiness, you may be matched with up to five different lenders in our partner network.

The fine print

Those who get a Marcus loan can take out a $3,500 – $40,000 personal loan without paying any fees at all. To apply, you’ll need to provide proof of income and a valid ID

Applicants must be at least 18 years old and live in the U.S., on a U.S. military base or in a U.S. territory. Once approved, you’d receive your funds within five business days. It’s worth noting, however, that the weighted average score for Marcus borrowers was over 700, while those with a score below 660 represented “low double digits,” as of September 2018, according to the latest quarterly report from Goldman Sachs Bank USA.

Pros

  • No fees
  • 12 consecutive, on-time payments earns borrowers a deferred payment

Cons

  • Doesn’t allow cosigners
  • APR for those with less desirable credit is comparable to some credit cards

Although Marcus’ credit requirements are a bit hazy, it does issue loans to those with scores below 660. That, gives those with poor credit a shot at fee-free personal loans that have rates much lower than they would likely get through a payday loan.

Methodology

Rates and fees mentioned in this piece are accurate as of the date of publishing. Lenders were selected from MagnifyMoney’s personal loans comparisons page when sorted by borrowers looking for $10,000 with excellent, good, average and bad credit who hold a college degree. (MagnifyMoney is a LendingTree company.) They were narrowed based on lowest APR. If a lender with the lowest APR was already highlighted in a previous category, we chose the lender with the next lowest APR.

*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay may be higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 3.99% APR with a term of 3 years would result in 36 monthly payments of $295.20.

¹Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.

 

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