Are you interested in taking out a personal loan?
Whether you need funds to pay off high-interest credit card debt, or to get through a difficult financial season, a personal loan could be the answer you’re looking for Perhaps you’re itching to take a much-needed vacation or need help footing your child’s private school tuition bill.
Today’s lenders offer a wide range of solutions to cover practically every situation.
In recent decades, when people were in a pinch, they tended to turn to home-equity loans or creditors. Now, personal loans are taking the place of these and other lending sources.
After the housing market crash, folks grew leery of collateral-based home financing, reports CNBC. And, personal loans, averaging an APR of 11.3%, are often more reasonable than credit cards which carry an average 15.5% APR.
Check out our guide to find the best personal loan companies for you!
Your Guide to The Top 10 Best Personal Loan Companies
CNBC also finds that more and more people are turning to personal loans. In 2015, the number of clients who took out these loans rose to 13.72 million. At that time, numbers were expected to rise to 24 million Americans in the year ahead.
There are several reasons that have likely contributed to this increase in personal loans. One of the most obvious is the long list of customizable options available to all types of consumers.
The best place to get a personal loan depends on your unique circumstances, your credit history, and your financial status. What might be a perfect fit for one, may not be a wise choice for another.
Regardless of your needs, the best loan companies of 2018 can help you find a solution.
Here are the ones to check out this year.
This lender is perfect for those with higher credit scores ranging from 680 to 850.
Although LightStream has requirements that are stricter than some, their interest rates are typically among the lowest and they regularly loan out amounts of up to $100,000 dollars to their clients.
SoFi allows flexible loan terms that allow you to use your funds for a multitude of purposes, including home improvement, medical fees, and debt consolidation. They also participate in a rate and fee-matching program to give you the most beneficial overall package.
Loan seekers should be aware that the credit and income requirements tend to cater to scores of 700 or higher and clients with average annual incomes over $100,000 dollars.
Perks include customized loan amounts of $5,000 to $100,000 dollars, extended payment terms, and full transparency throughout the loan process.
UpStart typically lends anywhere from $1000 to $50,000 dollars to a variety of consumer backgrounds. They look at more than just your credit score so they can be a good pick for even those with less-than-perfect financial histories wishing to sidestep a credit check.
Although, the better your profile, the less likely you are to pay higher interest on your borrowed funds.
4. Lending Club
Lending Club provides funds of up to $40,000 dollars with payment terms allowing up to 60 months to pay back your loan. Loans include an origination fee of 1 to 6% and interest rates of 5.99% to 35.89% per loan given.
This peer-to-peer lending platform has slightly less difficult eligibility requirements than some of the available platforms. So, it may be an option for those who are unable to meet some of the requirements set forth by others.
5. Marcus by Goldman Sachs
For customers with credit scores of 640 to 850, Marcus by Goldman Sachs offers a convenient online loan option sans origination fees, and with the possibility of just a soft credit check.
Typical APR percentages range from 6.99% to 24.99%, depending on each individual’s determining factors. Loans usually start around $3500 dollars and may be made up to $30,000 dollars.
Jora provides a good alternative to sometimes-risky payday loans and works with clients who have less than desirable credit scores. Their loans are typically anywhere from $1,000 to $12,600.
One of the drawbacks of this lender is that their starting interest rates are a steep 186%, and loan origination fees can be around 5%. That said, they can be a good choice for those wishing to build back their credit rating.
7. Opp Loans
This lender is based out of Chicago, but currently offers services in 29 states.
Opp Loans caters to clients with poor credit scores of 350 and up. They have potentially low origination fees ranging from 0% to 3%, but they also tend to perform loans of $500 to $5000 dollars, which is considerably less than some of their competitors.
8. Fig Loans
Fig Loans is focused on helping individuals with poor credit scores build back their credit and typically provide small loans ranging from $300 to $500 dollars. Their repayment terms are usually a year or less. But, they do not have any origination fees associated with their services.
9. CashNet USA
CashNet USA is one of the more reputable payday lenders, with operations in 22 states. However, they still tend to have some similar qualities of some of the other typical payday lending companies, such as their exceedingly high-interest rates, which range from 89% to 449%.
Another thing for loan seekers to note is that CashNet USA usually lends to customers with credit scores of 500 and higher, which may be steeper than other payday loan options.
10. Bonsai Finance.com
Bonsai Finance is an online loan company that provides a one size fits all lending solution for customers with a variety of credit histories, incomes, and circumstances. They offer customized loans ranging from $100 to $15,000 dollars and flexible terms which vary by lender.
Unlike some lenders, Bonsai Finance follows a unique protocol in determining which loan type best fits their customers’ needs. They have several lenders that they work with to find the one that has the best possible terms for their clients.
Another advantage of their services is they can often provide services to those with questionable credit histories. However, they are also a good option for consumers with mid to high credit ratings as well and may be able to offer more agreeable terms to these clients.
How to Determine the Best Lending Company for You
With all of the lending companies that consumers can choose from, how do you know which is the best loan company for you?
Before you begin your search for the perfect loan solution to fit your needs, we have some tips that can help save you some time and trouble sifting through all of the available options.
Follow these bits of advice to determine which loan companies might be able to help you get the funds that you need when you are pressed for cash.
1. Research Potential Lenders’ Requirements
Many loan companies stick to a strict adherence to their lending policies when deciding who is approved for their services.
If a lender has a minimum credit score or income requirement that you do not meet, you are probably better off moving on to other possibilities. Knowing this information from the start can save you from participating in lengthy application processes only to be turned down due to an unacceptable credit history or income base.
2. Are Their Repayment Terms Reasonable for Your Situation?
While many lenders have flexible repayment terms, there are some that require repayment in full within a year or less from the time that the loan is processed.
If you are unable to follow the terms of service, it could reflect poorly on your credit and might incur serious consequences. It’s much better to find a lender that offers terms that you know will be feasible based on your financial and personal circumstances.
3. How Much Money Do You Need?
Another thing to consider is the amount lenders are willing to loan their customers. Loan companies offer a wide range of potential funding opportunities that may be as low as $500 dollars but can reach as high as $100,000 dollars or more.
When determining which personal loan company is best for you, make sure that the lender offers loans in amounts that fit your needs. Otherwise, you could find yourself having to take out more than one loan when you might have been able to avoid multiple debts if you had found out pertinent information prior to applying for service.
4. Does the Lender Specify How Funds May or May Not Be Used?
Once you have secured funding, you could run into an issue if there are specific guidelines attached to your loan that prohibit you from using the money to pay for certain circumstances.
Some lenders do not allow customers to use their loans to pay off debts or consolidate bills. Others may have alternate specifications that could impact your plans.
You can forgo any potential conflicts by confirming that you will be allowed to use the funds obtained in the manner that you intend prior to pursuing the application process.
5. Find the Best Possible Terms to Fit Your Needs
If you find that there is more than one lender who offers services that fit your needs, then you should dig deeper to determine which of these can arrange for the best possible loan package. Some of the factors that you might consider are the lender’s fees and interest rates attached to your flexible repayment terms, and other additional factors that may impact services.
The best loan companies tend to be highly competitive, and some may offer to match others’ rates upon request. Often, customers who have mid to high credit scores, higher-than-average annual salaries, varied forms of collateral, or other advantages, tend to have a greater chance to negotiate with lenders.
Could a Personal Loan Be the Solution for You?
Personal loans have become a popular solution for consumers because they can provide the funds that people need in all kinds of circumstances. And, they often can be customized to fit each individual’s unique needs.
The following situations are just a few of the most common reasons that people turn to lenders.
Credit Card Debt Consolidation
In 2015, CNBC reported that credit card debt among Americans was at the highest it had been since 2008, prior to the recession. Since then, many families have been searching for a solution to get out of debt, but the super-high interest rates often charged by credit card companies can make this feat neat to impossible.
A personal loan might be able to help you pay off high-interest creditors so that you can obtain financial freedom and move closer to achieving your financial goals.
In recent years, health care has become a controversial hot topic due in part due to the high costs that are associated with it. If you have accumulated debt from healthcare and medical expenses, a personal loan could offer you a solution to keep unpaid bills from damaging your credit score.
Home Renovations & Improvements
Sometimes, an unforeseen issue, such as flooding, can wreak havoc on our home and create an immediate need for a costly repair. In other cases, you might need to perform necessary renovations to accommodate an aging parent or relative unexpectedly.
No matter what your reasons for home renovations or improvements, many times a personal loan can provide you with the resources you need when you need them most.
Find Out if You Qualify for a Personal Loan Now!
If you are in need of funds, chances are the best personal loan companies have a solution that fits your needs.
Ready to find out if you might qualify for a personal loan?
Contact us today to access multiple lenders and find the best one to serve you!