Personal loans are good for consolidating debt, big purchases or certain emergency situations. The options you have can range from traditional personal loans all the way down to a cash advance.
Any time a person or institution loans you a lump sump of cash for personal use, and requires you to pay it back, that's considered a personal loan.
There's secured and unsecured personal loans. Unsecured doesn't require you to put down collateral such as your home, car, jewelry or other valuable items to receive the loan. For unsecured loans, your credit score is usually the main factor in determining eligibility.
Secure loans require the borrower to put down collateral. The best example is a car title loan. The title of your car is given to a lender until you repay you loan. So the loan is being secured by your car title (which is collateral). With secured loans, there's a higher chance of approval regardless of your credit. In some cases, depending on the lender, you may have a chance for a lower APR with a secure loan, since you're using collateral.
Some lenders and loan companies may even lend to you with bad, little or no credit and without collateral, but these type of loans have higher interest rates. Because online lending has become so popular, you have quite a few options to compare.
First let's break down how to get a personal loan. You can apply in person or online. Some lenders offer loans in person but not online and others may offer loans online but not in person. So, you're left to loan shop and compare rates from lenders either online or in person. If you're looking for a more traditional loan then it would be a good idea to apply at your local bank or credit union where you're a member or have a banking relationship with.
The online marketplace for personal loans including installment, low-rate loans, cash advance, and car title loans are geared towards convenience and quick credit decisions.
Both processes will require a credit check (except payday loans) and you're ability to prove you can repay. After qualifying for a loan, your payment is usually deducted from your checking account.
There are times your credit card will do the trick in emergency situations or will help you get by financially if you lack funds. But, in actuality, credit cards aren't meant to be used that way. They're not meant for you to roll over a balance month after month or to be used to the full credit limit because of the impact to your credit score due to something called credit utilization.
Do those two thing with a credit card, and you'll more than likely see a drop in your credit score. That's when a personal loan comes in handy. You're expected to make monthly payments vs. paying off the total balance all at once, unless the personal loan is a payday loan.
Note: It can be worth it to use a credit card for major expenses or debt consolidation when using a balance transfer card that has a 0% APR for 12 months or more. If you can pay your debt off within that time, a personal loan may not be needed.
Not all loans are packaged the same. Therefore, you can expect different loan fees, APR ranges and different maximum loan amounts, depending on the lender and the type of loan. Here's a breakdown estimate of loan fees, APR's and loan amounts from combined lenders.
Consolidate debt from a few of your credit cards or other small loans. If you have multiple high-interest-rate credit cards or loans, getting a personal loan to pay them off may be a good idea. You'll be paying old loans and credit cards with a new low-interest-rate loan. This can save you lots of money down the road, and your new payments may be lower than what they were before.
Major purchases that would otherwise be inconvenient to put on a credit card due to your debt-to-credit ratio, not having a high enough credit limit or a situation where cash is required.
Certain emergency situations that are unanticipated and require immediate cash.
Need cash flow until payday or income tax time to catch up on some bills or cover day to day expenses.
Starting a very small business. Sometimes getting a start up business loan is very difficult due to limited business history. Some lenders just don't want to take the risk to lending to a new business. If using a personal loan to fund your business, it's best to go with a low interest rate loan.
There are many types of loans. Keep in mind, with different loan types, lenders may offer a secure and unsecured loan option. The higher your credit score is, the more unsecured loan options you have, unless there's another beneficial reason to secure your loan such as getting an even lower interest rate on your loan.
Peer-to-peer loans are offered online. Borrowers are matched with lenders (investors or investment banks). The lending platform conducts the loan underwriting process-cutting most middle man fees out. This saves the borrower money by offering them lower interest rates. The interest rates are competitive among peer to peer online lenders. Good examples would be Prosper and Lending Club.
Non-Traditional Loans are online loans that you don't have to walk into a bank to get. Loan companies such as Avant, Upstart, SoFi, and LightStream are good examples. The loan process is done online. In some cases you have to speak to someone or fax in documents.
These type of loans have become more popular in the last two years and their interest rates have become even more competitive. To get the lowest interest rate advertised on their websites, you need good credit scores and a pretty descent income. The higher your credit score and income are, the lower your interest rate may be.
Traditional bank loans. These are personal loans you get from a bank, not usually online. These can be hard to get because of the requirements and paperwork involved. There's usually no quick online process for these type of loans, but if qualified, the loan can possibly come with really competitive interest rates. A good example would be a Wells Fargo personal loan.
Credit Unions offer loans to its members with some of the lowest interest rates even compared to traditional banks. Some credit unions have made it easy to become a member by applying and opening an account of $25 and up. At that point, you may qualify for a loan with a lower interest rate than a payday loan or certain online installment loans. This process may require you visit your credit union to sign loan documents.
Payday loans are short term loans that are paid back fully on your next payday which is between 7 to 30 days. This is a cash advance. It takes about 15 minutes to complete an application and funding can be received the same or next business day. These are the easiest loans to get, requiring little to no paper work and all credit types are welcomed, especially bad or no credit.
Since the process is minimal with little to no paper work, these loans have some of the highest APR's in the loan industry. The estimated cost to borrow $100 is $17.65. When paying that back in 30 days, that's an APR of 207.81%. Borrowers in need of quick cash don't seem to mind the fees, but not borrowing responsibly can cause a cycle of debt.
It's not wise to apply for multiple payday loans at once because the fees can add up quick. If more money and time is needed than what is offered with a payday loan, consider an installment loan. If you have fair credit or a fico score of at least 640, consider a credit card.
Before ever applying for a personal loan, there's some things to consider first. Don't ignore red flags.
Make sure the lender or broker (whomever is lending money to you), is licensed to do business in your state. State regulations are in place to decrease fraud and bad practices of lending. Check your state's department of business and oversight website to verify the lender is licensed.
Up front fees just to apply
If any lender charges an up front fee just for you to apply, this should be a red flag. A lender will either approve or deny your application, there shouldn't be a fee to do such as task. If, you apply for a loan and get approved, a loan origination fee may be deducted from your original loan amount-that's normal. However, there shouldn't be a loan fee just to apply for a loan. Be cautious of any fees being asked of you up front.
APR's, Interest Rate, or loan fees aren't disclosed anywhere on the website
Some lenders are so transparent, they disclose all their loan fees on their website usually under rates and terms, FAQ's or even the bottom of their website (footer), may have an explanation of fees. If you don't see the loan fees anywhere on the lender's website, make sure to get in writing or emailed to you what your APR are total loan fee is. But more than likely, any reputable lender will disclose their fees or at least how their fees are broken down. No disclosure or explanation is confusing and may not be a good idea.
Qualifying for a personal loan depends on many factors and not just credit your score. Some lenders pay closer attention to your ability to repay (income) and your debt-to-income ratio. In most cases, collateral is not needed but some lenders may offer it at your request. The lowest APR's are reserved for low-risk borrowers (higher credit scores).
Loans by Credit:
PickALoan is an independent comparison site for loans and credit cards. We receive compensation for certain financial products. This may effect the order in which some products or placed within the pages. All loan/credit card amounts and APR's vary by state, credit and other underwriting factors. We do our best to maintain all information is accurate and up to date. However, we do not guarantee the accuracy of the information or that the loans and/or credit card information won't change, as they're constantly updated. So, check the terms, conditions, APR's and applicable descriptions of each loan/credit card product before applying. Please see Disclosures for further details.
Able combines peer to peer lending and traditional bank lending to get you a low-interest rate business loan. Two different types of loans are offered. The friends and family loan-mostly for start-ups, requiring backers (your friends, family and fans) to invest in your loan and they will be repaid with interest over a set period of time that you choose.More
Personal installment loans are available with OppLoans that are repaid over a 9 to 36 month period but usually repaid over a 18 month period. You start the application by checking your rate using your email address-which doesn't affect your credit score. A decision is made same and if approved, funds can be in your account as soon as the next business day. OppLoans are cheaper than payday loans, auto title loans and in some cases, overdraft bank fees.More
You can apply for a personal loan of up to $250. The application takes only a few minutes and the approval decisions are instant. You'll need to start the application with a valid email address. Depending on your state laws and LendUp requirements, you may qualify for a loan up to $1,000 that can be repaid over a one year period. Once your application is approved, you have the option to receive your funds within 15 minutes or next business day depending on you checking account and time of approval. If you qualify for an installment loan of $1,000 your APR will be less than 36% and on-time payments are reported to the major three credit bureaus which can increase your credit score.More
For homeowners: Applying for a home improvement loan with LendKey is very simple First, you start off by checking your rate. Select the option for home improvement. It takes less than two minutes to see if you qualify by completing the application. You'll be asked information about your primary residence. If you already have a contractor, you'll be asked their company name, address, etc. If you don't already have a contractor, Lendkey has a network of approved contractors you can work with.More
To apply for a loan, first complete a quick, online application. The first step of the application is to pre-qualify you. It takes only 2 minutes to see what SoFi can offer you. If pre-approved, select the loan offer that's best for you and complete the application by signing your documents electronically. The funds will then be wired to your account.More
This application process is simple and fast. First, you check your rate to see loan amount and term options. This is the pre-approval process. You'll be asked some background information such as name, address, date of birth, the highest level of education completed, and income type. Once you've complete this and click, “Agree And See Your Rate,” you will see if you're pre-approved. If approved, you can review and accept your loan. Funds should be deposited into your bank account the next day if application is approved and accepted before 5pm EST, Mon-Fri. If accepted after this time frame, you should receive the funds two business days later. Note: For loans being used for educational purposes, there's an additional three day waiting period.More
The application process is fairly simple and quick. If you've received an offer letter, you would start your application by inputting your email and your offer code. If, you haven't received an offer letter, just select “I do not have an offer code.” You will be asked for your email address and begin the pre-qualification process. This takes only a few minutes and does not affect your credit score. After completing the application, you'll select a loan that works best for you-typically, a 3 or 5 year term loan. If approved, and you accept the loan. The soft inquiry will transfer to a hard inquiry and the funds can be deposited into your bank account in as little as one day.More
Invoice factoring: The invoice factoring is for businesses who serves other businesses (B2B), or business who serve the government (B2G). Sign up for a free account with Bluevine. You can then upload your invoices to the dashboard (you may also be able to link up your Quick books account if you have one, but that's optional). You decide and select which customer invoices you want to get funded. You'll get a response within 24 hours, if approved, you can receive funding in as little as an hour.More
Complete a CAN Capital online application in minutes. You’ll get a decision if you qualify within 10 minutes, if so, you'll know how much it will cost you to take out a loan, customize your funding terms and submit documents. If approved, the funds can be receive in as little as 2 days. There are multiple loan products available. Depending on which one you choose and qualify for, you'll have the option to make fixed or flexible payments on a daily or weekly basis.More
The loans offered are, SBA 7(a) loans for commercial real estate, working capital and debt financing ranging from $30,000 to $5,000,000. Apply online using the Smartbiz automated application process. Basic information about your business is requested You'll be notified within minutes if you pre-qualify. The pre-qualification process does not impact your credit score. After the pre-qualification process, you'll provide financial information about your business and its owners. This is to see if you meet eligibility requirements.More
Apply online in less than 5 minutes using the OnDeck fast application. Your business is evaluated. The system will then determine which loan product is best suitable for your business. If approved, you'll be notified of a decision within minutes with no obligation. You can receive funds via direct deposit or wire depending on your product and location. Funding can be as fast as 1 business day. Paying the money back is simple, weekly-fixed payments are automatically deducted from your business account with a loan term anywhere from 3 to 36 months.More
Apply online by completing the one page application at no cost or obligation. Along with the application, you'll need 3 months of your business bank statements and the 1st page of your last business tax return. Decisions are made within 24-48 hours, and you can receive funding in 2-5 days. Depending on your qualifications, daily weekly or monthly payments plans can be offered. Fixed and flexible repayment options are also available. Your loan term could be anywhere from 6 months to 5 years. The average SunWise business owner grows their business by 25% in just six months.More
Apply online for a credit limit up to $35,000 and Headway Capital will evaluate your application. Not-so-perfect-credit won't block your approval because Headway looks at your overall business. If approved, you then borrow from your online account line of credit. You can borrow from your line of credit as often as you like up to your credit limit and receive funds by the next business day. You choose your repayment schedule of 12, 18 or 24 months. As you repay the principal balance, that money becomes available for you to draw again.More
Any business with a business checking account and/or a PayPal account can apply for a business line of credit at Kabbage. Your business must be at least one year old. First, sign up online to start the application. Once you sign up select the services on the screen you use to run your business (business checking account, PayPal, Intuit, Stripe, etc.). The more accounts you link can possibly increase your loan amount. You will sign into the accounts you use to the link them to Kabbage. Kabbage can’t see your usernames or password that you link to them. After you’re done linking accounts, you will be asked some additional questions. Your information will be processed and Kabbage will let you know how much you qualify for in minutes.More
1800FreshStart is a car dealership/loan matching service not a lender. They send your completed application to a nearby dealership willing to work with you based on your credit. The dealership may run your credit right away to see what you qualify for while other dealers will probably contact you first for confirmation.More
Complete the online application. You'll then receive a loan decision within 30 seconds. If approved, you'll receive multiple offers with competitive rates for a car loan. There's no obligation to accept. Keep in mind, the loan offers are valid for only 30 days. Once you accept the loan, you can download the loan documents and begin car shopping. The pre-approved voucher can be used at any franchised dealership, private seller or a Roadloans approved-network dealership. The voucher can also be used to refinance your existing loan. All of the approved-network dealerships can be viewed on the Roadloans website. However, based on feedback, a few buyers have successfully used these vouchers at Carmax. Note: loans may start at $10,000 in the state of Arizona.More
Complete the online application. Then MyAutoloan.com will match with up to 4 offers from their lending network, (this can take seconds or up to 24 hours). Once you accept the loan, you can receive an online certification or check within 24 hours. Use the check to purchase the car you want at any franchised dealership, private party sale (individual seller). The check can also be used to refinance your existing loan.More
can be used for personal or business needs. Their platform allows investors to loan money to qualified borrowers which keep the interest rates competitive. Their lending process is very simple. First, you fill out the online form with some personal information including your social security number to get a custom rate (a soft credit pull is used to determine this custom rate, it won't impact your credit score). You'll receive a rate instantly. This does not guarantee you're approved just yet. To proceed, you have the option of accepting the terms and conditions. If you do, you'll select your loan amount and create a loan listing on the Prosper website.More
Lending Club's entire loan process is done online. Start by filling out the online application. If you qualify, you’ll receive multiple loan offers in minutes. Lending Club uses a credit technology to assess the possible risks of your loan and assigns the appropriate interest rates. View the loan options with no impact to your credit score. Select the loan option that is right for you, and complete the application. Once the loan application is complete and under review, instructions will be sent on how to email required documents to Lending Club.More
You start by checking if you're pre-approved by completing the first page of the online application. This won’t impact your FICO score. You'll know if you're pre-approved within minutes, if so, and you decide to press continue, the soft inquiry will then transfer to a hard inquiry. When the loan itself is approved, Avant’s secure application will allow you to e-sign your contract online. Money can then be direct deposited into your bank account as soon as the next business day. Avant considers a lot of factors to receive a loan, including income, credit, repayment history along with state loan limits. Check your rate for true eligibility.More
You can now fill out a quick online form (My ScoreSaver), and instantly see what you may qualify for without affecting your credit score. Checking to see what you qualify for will only leave a soft inquiry on your credit report. Just apply online with NetCredit’s easy, secure application. After you submit the application, you will receive an instant decision, the decision comes after step 2 of the application. If pre-approved, you move on to step 3 and select the loan amount that’s right for you. Then you accept your loan agreement . Once the application is approved the money will be deposited into your bank account by the next business day.More
Quick explanation of application process: Complete the 3-step, online, secure application and get an instant response if you're pre-approved or denied from OneMain Financial. After you complete the online application, it will be sent to a branch near you. If approved, a qualified loan specialist will contact you to discuss your options as well as verify identity, income, etc.More
Complete a simple online application. Upload your most current LES (Leave and Earnings Statement). When applying by business hours, you’ll receive a same day approval. An email will be sent out for the completion of a simple loan contract explaining the loan details and directions for the next steps. Once your application has been completely verified, the funds will be deposited into the personal account you provided.More
The LightStream application process is supposed to be so easy and simple that they guarantee it, or you’ll receive $100 (after receiving your loan). Just apply online. You will then receive an email within minutes during their normal business hours regarding your loan application. If approved, go online and electronically sign your loan agreement. Provide your information and choose your monthly payment dates. You can get funded as early as today.More
Apply online, it only takes a few minutes. If approved, you can choose your own terms since rise has flexible payment scheduling options. Funds can show up in your account as soon as the next business day.More
Apply online by completing the CashNetUSA online application. You’ll receive an instant decision. If approved, you’ll sign your loan agreement online. After that, you may receive funds the next business day-excluding bank holidays. Loan amounts are usually due within 7-31 days although, some states may allow a loan extension.More
Complete Cash Central 3-step, online application. Find out instantly if you’re approved. If approved by 5pm, you can receive your funds by the next business day, deposited into your bank account. if you have an eligible Green dot prepaid card, you can receive your funds in minutes, including weekends. Loan amounts are usually due within 7-30 days or your next payday-which should fall within the 7-30 days.More
Complete the five-minute online application for Check into Cash. A representative will call you on the phone number you provided on your application as part of the underwriting process to verify some information and complete the loan request. If you're approved, you'll e-sign your application to confirm your funds. You funds are then deposited into your bank account by the next business day (if further verification isn't needed). Loan amounts are usually due within 7-31 days.More
Fill out the online application, you don’t have to fax anything. Get fast, online instant decision. Once approved your funds are deposited into your bank account. Another option is picking up your funds at the nearest Ace Cash Express location. Loan amounts are usually due within 7-31 days.More
Apply online by completing the pre-qualification application for Lending Club business. After completing the application, you can receive a quote in minutes. This doesn't impact your credit score. If you pre-qualify, you’ll instantly be presented with multiple loan offers. Select the offer that fits your needs and complete the application. Lending Club's underwriting team will review your completed application. Additional documents may be requested such as tax returns, bank statements, etc.More
We welcome and appreciate the comments from the community. Please keep the comments clean, civil, appropriate and spam-free. See our posting guidelines for further review. Please don't share any personal information such as bank info, address, credit card numbers, social security numbers, etc, for you own protection. Keep in mind anything you published may be published or re-used. The comments listed below are not provided, reviewed or approved by loan issuers, card issues or advertisers. All loan, credit card issuers and advertisers do not assume responsibility in getting any of the below questions answered. Additionally, any comments posted under PickALoan are not reviewed, endorsed or represented by any financial institution affiliated or not affiliated with this site.
* Banks, issuers, finance companies and credit card companies mentioned/displayed on PickALoan do not endorse, guarantee or is responsible for any content or articles on this website*
Disclaimer: PickALoan is an independent comparison website for loans and credit cards. We strive to provide the most accurate information as possible but we dot guarantee the accuracy of all information. Please read and check the terms, conditions and rates of all and any financial products you apply for from this website from the original issuer.
Ad Disclosure: We receive compensation for certain financial products (excluding government-based products). This compensation may affect the placement of certain products on this website. For example, this may impact the order of where the products appear. See Disclosures for further details.