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A personal loan might be a good option if you are in a financial bind and don’t want to rely on credit cards because of the high-interest rates. You can take out a personal loan just for any reason available. The most popular reasons include debt consolidation, financing a bigger purchase, or just having extra cash on hand.
Compared to other lending solutions, personal loans are unsecured, which means that it is not tied to any security or collateral. Since it is unsecured, the rates will be higher compared to a secured loan.
What are the Top 10 best personal loans?
In looking for the best personal loans, it is important to have a complete understanding of the terms and fees that come with them to make a sound decision as to what financial company you will go with. It is not just a matter of who has the lowest interest rate on personal loans; your consideration should also include ease of access and fees.
Here are the top 10 best personal loans:
Pros: SoFi is a Fintech company that offers personal loans with limits up to $100,000. The application process is done mainly online, and some borrowers can get same-day funding, which is a testament to the seamless process. The minimum credit score for borrowers is 650. They also don’t charge any application fees or late fees
Cons: While SoFi personal loans are a top choice for consumers, some applicants have complained about the tougher underwriting standards that they have, especially if you are self-employed. They also do not allow co-applicants with personal loans.
Rates: The rates range from 6.99% to 22.23%, and you can choose from repayment periods from 2 to 7 years.
Pros: If you are using a Discover personal loan as a debt consolidation loan, you will be thrilled to find out that they can pay your creditors directly, which is super convenient. They have competitive rates and flexible payment terms, which can work with any borrower. Discover’s process is also seamless, with the majority of applications receiving same-day decisions. The company itself has an award-winning customer service quality which means that you will have a great experience throughout the whole process.
Cons: While Discover offers competitive terms and rates, they do not offer automatic payment discounts and do not allow joint applications on their personal loan products.
Rates: The rates for a Discover personal loan varies from 5.99% to 24.99%.
Pros: While most companies offer higher personal loan limits, Upgrade can do loans for as little as $1,000. They also have a lower credit score minimum for borrowers, and customers who have a credit score of 550 or above can get approval for their application. They also offer next-day funding for their personal loans, which is convenient if you need access to cash right away.
With Upgrade, you can get a personal loan, and they also offer credit-building tools for people who are challenged in this area. Applications for personal loans can be sole applications or joint applications.
Cons: When obtaining a personal line of credit from Upgrade, they charge an application fee as well as a late fee when you are late on your payment.
Rates: Rates can vary from 6.55% to 35.47%. They also offer interest rate discounts for customers who set up automatic payments and for customers who have checking accounts with them.
Pros: An arm of Rocket Mortgage, Rocket Loans also offers low-interest personal loans. They can do same-day funding for approved customers and can approve applications even if they don’t have a perfect credit rating.
Cons: With Rocket Loans persona loans, you can only choose from two repayment terms which can be limited. They also do not offer direct payments to creditors, so you have to do the payoffs yourself.
Rates: Rates can vary from 5.97% to 29.69%.
Pros: FreedomPlus is a great option for debt consolidation loans because of their lower interest rates, and they also give the option to pay your creditors directly, making it a seamless process to pay off your debt. You can choose your repayment period from 2 to 5 years.
Cons: With FreedomPlus, they offer a higher minimum loan amount and charge an origination fee.
Rates: Rates vary from 7.99% to 29.99%.
Pros: Another easy personal loan for debt consolidation is through LightStream personal loans. With absolutely no fees, they already have a great competitive advantage against other companies. They also offer an automatic payment discount which makes their interest rates competitive. They also have a rate beat program that you can take advantage of.
Cons: LightStream does not offer pre-qualification options on their website and does not pay creditors directly.
Rates: Rates vary from 4.99% to 19.99%
Pros: Happy Money is geared toward fair and good credit-rated borrowers. They have no prepayment or late fees, and they offer competitive rates to consolidate your debt. When you get a personal loan from Happy Money, you can also opt for them to pay your creditors directly so that you can make sure that your debt is paid off, which makes it hassle-free.
Cons: Happy Money does not offer rate discounts for automatic payments and has no option to add a co-signer.
Rates: Rates vary from 5.49% to 24.99%
Pros: When looking for a quick turnaround from application to booking, Best Egg is one of the fastest companies to get you funding. They offer a wide variety of terms and loan amounts that can best suit your needs.
Cons: Best Egg charges an origination fee and does not offer rate discounts for automatic payments.
Rates: Rates vary from 5.99% to 35.99%