Excellent Personal Loans in 2022
[Reviewed & Compared]
These days, there are hundreds of services online to assist those who need a loan or find it difficult to receive one via more traditional methods.
In this article, we looked into the best personal loans on the market, so you can make the right choice. You’ll find our methodology, reviews of top personal loan providers, buyer’s guide, and FAQ.
Fact-checked
Last Updated: May 23, 2022
1. 5kFunds
5KFunds requires no initial credit check, no upfront fees, and you can get your money within 24 hours after approval. 5KFunds’ system will search through hundreds of lenders to find the right one, and you can borrow as little as $1,000 or as much as $35,000. Full Review
- No upfront fees required
- Get matched with the best interest rates
- Search thousands of the best lenders for personal loans instantly
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5KFunds requires no initial credit check, no upfront fees, and you can get your money within 24 hours after approval. 5KFunds’ system will search through hundreds of lenders to find the right one, and you can borrow as little as $1,000 or as much as $35,000. Full Review
★★★★★ 5/5
★★★★★ 5/5
★★★★★ 5/5
2. LoansUnder36
Get no-obligation instant quotes for loans as low as $500, and up to $35,000, even with bad credit. LoansUnder36 requires no credit check, and in case you get approved, you can receive the money within 24 hours. Terms vary between two and 72 months. Full Review
- Free, no-obligation service
- The APR on all offers is capped at 36%
- No credit check — get a loan even with bad credit
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Get no-obligation instant quotes for loans as low as $500, and up to $35,000, even with bad credit. LoansUnder36 requires no credit check, and in case you get approved, you can receive the money within 24 hours. Terms vary between two and 72 months. Full Review
★★★★☆ 4/5
★★★★★ 5/5
★★★☆☆ 3/5
3. PersonalLoans.com
PersonalLoans.com can provide you with no-obligation, no-credit-check loans for anything you need: home repairs, debt refinancing, medical emergencies... Just enter your information and details and see exactly which providers can offer you funds and at what terms. Full Review
- Terms from 3 to 72 months
- Quick and easy exposure to multiple lenders
- Unsecured loans as low as $500 to use however you like
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PersonalLoans.com can provide you with no-obligation, no-credit-check loans for anything you need: home repairs, debt refinancing, medical emergencies... Just enter your information and details and see exactly which providers can offer you funds and at what terms. Full Review
★★★☆☆ 3/5
★★★★☆ 4/5
★★★★☆ 4/5
4. BadCreditLoans.com
No matter how bad your credit rating is, the platform will find a solution and get you $500-$10,000. These small loans are a great way to pay off your debt and rebuild or build your credit score from scratch. Repayment terms are as short as three months and up to six years long. Full Review
- Simple and quick to use
- Loans for bad credit from multiple lenders
- Get a loan no matter how bad your credit score is
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No matter how bad your credit rating is, the platform will find a solution and get you $500-$10,000. These small loans are a great way to pay off your debt and rebuild or build your credit score from scratch. Repayment terms are as short as three months and up to six years long. Full Review
★★★★☆ 4/5
★★★★★ 5/5
★★★★☆ 4/5
5. Monevo
Monevo has it all: there are no fees for using the service, loans are as high as $100,000, and APR as low as 3.49%. There's no impact on your credit score to search your rates with over 30 top lenders. Loan terms vary from 3 to 144 months. Full Review
- No fees for using the service
- Search loans up to $100k
- Personalized loan offers in 60 seconds
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Monevo has it all: there are no fees for using the service, loans are as high as $100,000, and APR as low as 3.49%. There's no impact on your credit score to search your rates with over 30 top lenders. Loan terms vary from 3 to 144 months. Full Review
★★★★★ 5/5
★★★★★ 5/5
★★★★☆ 4/5
6. Even Financial
If you want large unsecured loans, and plenty of offers in just a minute, try Even Financial’s services. A credit score of 580 is enough, and you can request up to $100,000 with no upfront fees. All the information offered is transparent and easy to understand. Full Review
- No upfront fees
- Get offers on $1k up to $100k loans
- Get offers from hundreds of providers within 1 min
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If you want large unsecured loans, and plenty of offers in just a minute, try Even Financial’s services. A credit score of 580 is enough, and you can request up to $100,000 with no upfront fees. All the information offered is transparent and easy to understand. Full Review
★★★★★ 5/5
★★★★☆ 4/5
★★★★☆ 4/5
7. LendingTree
If you want to expand your options from banks to non-banking solutions as well, go for LendingTree. It’s free to use, there are no obligations, and besides personal loans, it also provides applicants with their credit score and credit card information. Business, short-term, and college loans are also available. Full Review
- Completely free to use, no obligation
- A long-running company with proven track records
- Wide variety of loans from different financial institutions
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If you want to expand your options from banks to non-banking solutions as well, go for LendingTree. It’s free to use, there are no obligations, and besides personal loans, it also provides applicants with their credit score and credit card information. Business, short-term, and college loans are also available. Full Review
★★★★★ 5/5
★★★★☆ 4/5
★★★★☆ 4/5
8. Credible
Credible is a completely free service, ideal for students looking to refinance their private student loans at the best rates possible. It aggregates all the top personal loans for debt consolidation in one convenient place without running a hard credit check. APR can be as low as 3.99%. Full Review
- No origination fee, no prepayment penalty
- Refinance student debt from $5k upwards
- Get a list of real quotes within minutes for free
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Credible is a completely free service, ideal for students looking to refinance their private student loans at the best rates possible. It aggregates all the top personal loans for debt consolidation in one convenient place without running a hard credit check. APR can be as low as 3.99%. Full Review
★★★★☆ 4/5
★★★★★ 5/5
★★★★★ 5/5
9. Upgrade
Upgrade is the right solution for those who want to improve their credit while consolidating debt. You can also use the loan for home improvements or other large purchases. The company uses a soft pull for pre-approval and provides you with credit monitoring tools. Full Review
- Consolidate high-interest debt
- Short term loans of 36 to 60 months
- Pre-approval without a hard credit pull
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Upgrade is the right solution for those who want to improve their credit while consolidating debt. You can also use the loan for home improvements or other large purchases. The company uses a soft pull for pre-approval and provides you with credit monitoring tools. Full Review
★★★★★ 5/5
★★★★☆ 4/5
★★★★☆ 4/5
10. GuideToLenders
This free loan comparison service operates in 50 states and can get funds in your bank account within 24 hours of approval. Even those with a bad credit score can get a loan to pay off debt, deal with household expenses, repairs, medical bills, or emergencies. Full Review
- An extensive network of niche lenders
- Loans for bad credit scores as low as 300
- Best low-interest personal loans from as low as 3.49%
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This free loan comparison service operates in 50 states and can get funds in your bank account within 24 hours of approval. Even those with a bad credit score can get a loan to pay off debt, deal with household expenses, repairs, medical bills, or emergencies. Full Review
★★★★☆ 4/5
★★★★★ 5/5
★★★☆☆ 3/5
11. AmOne
AmOne is free to use and offers unsecured, secured, peer-to-peer, and short-term loans. With a credit score of 500, you can request a loan between $100 and $50,000. Fixed-rate terms are as low as 2 months, and APR is as low as 4.99%. Full Review
- Free to use
- Loans from $100 up to $50k
- Unsecured, secured loans, peer-to-peer, short-term loans
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AmOne is free to use and offers unsecured, secured, peer-to-peer, and short-term loans. With a credit score of 500, you can request a loan between $100 and $50,000. Fixed-rate terms are as low as 2 months, and APR is as low as 4.99%. Full Review
★★★☆☆ 3/5
★★★★☆ 4/5
★★★★★ 5/5
Review Methodology
In compiling our review of the leading personal loans, we examined a wide range of personal loan lenders before creating our shortlist.
First and foremost, we evaluated what services they offer such as loan amounts, APR, loan terms, and fees. Features investigated include:
✓ Credit requirements
What is the minimum credit score required? do you need to prove a steady income? do you have to provide information on your housing and employment situation?
✓ Unsecured or secured
What types of loans are offered: unsecured or secured loans, peer-to-peer or short-term loans?
✓ Types of interests
Are there any hidden fees: origination fees, late fees, comparison fee, penalties?
✓ Annual percentage rate (APR)
Fixed or variable interest rate terms?
✓ Repayment terms
What are the term lengths? How quickly can you repay your loan and how long can you extend it?
We then examined in more detail the pros and cons of each company, looking at benefits, discounts, requirements, and restrictions.
Finally, we compared all the providers and made our decisions on what we feel are the best companies for personal loans.
Detailed Reviews
- No upfront fees required
- Loans from as low as $1,000
- No initial credit check required
- Get matched perfectly with the best interest rates
- No live chat support
- 2.5% finders fee once approved
- Not a direct lender
5KFunds works like a match-maker for borrowers and lenders, providing a platform that connects customers with the most suitable loan company it can find online. This saves lots of time by instantly finding the best possible loan option for every specific borrower. Simply enter your requirements into the website and search its database of hundreds of potential lenders.
5Kfunds offers the following services:
- Loans from as little as $1,000 to up to $35,000
- Loans with an annual percentage rate (APR) from 5.99% to 35.99%
- Repayment terms from a minimum of 61 days up to a maximum of 72 months
- Free-of-charge to use the search with only a 2.5% finders fee once approved.
Requirements
- A bank account
- Being a US citizen
- Over 18 years old
- Having a steady income
While a credit check or paperwork is not required during the initial search and application, individual third-party providers may request one at a later date. A fee is only charged once you are successfully matched with a provider.
Why We Picked 5KFunds
5KFunds makes the process of searching and applying for the best-rated personal loans quick and easy. The service simplifies the process of completing the loan application and promptly arranges the transfer of funds directly to your bank account. It exposes the borrower to over 100 reputable loan providers, immediately revealing the most competitive interest rates for them to choose from.
- Free, no-obligation service
- Unsecured loans from as low as $500
- No credit check — get a loan even if you have bad credit
- Guaranteed APR below 36%
- Limited online support channels
- Not available in New York, Vermont, West Virginia, and Alaska
- The APR on all offers is capped at 36%
- No direct loans or guaranteed terms
LoansUnder36 is a comparison site offering loans with under 36% interest rates. It provides customers with a list of potential offers from its network of over 100 providers. LoansUnder30 can even provide bad credit loans since it doesn’t base its options on credit ratings. That said, borrowers with higher credit scores will get better APR rates, possibly as low as 5.99%.
LoansUnder36 offers the following services:
- Short term personal loans from $500 to $35,000
- Fixed-rate terms from 2 to 72 months.
- 5.99% to 36% APR
- No minimum credit score required.
Requirements
- Borrowers must have a bank account.
- You must be at least 18 years old.
- You must be a U.S. citizen.
- All borrowers should have a stable income.
Why We Picked LoansUnder36
LoansUnder36 doesn’t require any minimum credit score and provides unsecured loans so you won’t need to put any collateral upfront. The service is completely free and doesn’t include any hidden fees or prepayment penalties. The funds are usually deposited directly into your bank account within 24 hours.
- Unsecured loans as low as $500 to use however you like
- Quick and easy exposure to multiple lenders
- Fits the best loan to your personal financial situation
- Terms from 3 to 72 months
- Lower minimum than most lenders
- Higher minimum APR than average
- Some lenders may need to do a hard pull
PersonalLoans.com is an online lending portal that provides information to customers about personal loans to fit their needs. It has relatively low starting loans ranging from $500 to $35,000 and industry-standard APRs from 5.99% to 35.99%. Repayments can be made from as little as 3 months up to 5 years.
PersonalLoans.com offers the following services:
- Personal loans from as low as $500 up to $35,000
- Repayment terms of 3 months up to 5 years
- Standard rates of 5.99% to 35.99% APR
Requirements
- Valid ID, checking account, and credit score of 580+
- Proof of stable income
- U.S citizen or permanent resident with valid social security number
Why We Picked PersonalLoans.com
PersonalLoans.com is a simple intuitive platform that offers hassle-free personal loans without any unnecessary complications. It connects customers with various different lenders, including banks and credit unions, peer-to-peer, and installment loan providers. Borrowers are free to use loans for a variety of purposes including home repairs, debt refinancing, medical emergencies, or other large purchases.
- Simple, free and easy to apply online
- Simple and quick to use
- Find amazing personal loans for bad credit from multiple lenders
- Get a loan no matter how bad your credit score is
- Limited to $10k
- Bad rating on some review sites
BadCreditLoans.com is specifically aimed at customers with bad credit who are struggling to find a lender. The platform provides a way to search through hundreds of loan providers that help people with bad credit. It only offers small loans up to $5,000 but could help those who are desperate with nowhere else to turn. APRs are from 5.99% to 35.99% and terms are 3 to 60 months.
BadCreditLoans.com offers the following services:
- APRs from 5.99% to 35.99%
- Bad credit loans up to $10,000
- Repayment terms from 3 months to 6 years
Requirements
- Personal information
- Income information
- US Bank account
- 18 years of age
Why We Picked BadCreditLoans.com
If you have a poor credit rating for whatever reason, BadCreditLoans.com might be able to help you. It specifically aims to help those stuck in the subprime credit score range or with no credit history at all. Using BadCreditLoans.com, you could slowly rebuild your credit rating by paying off multiple debts over time.
- No fees for using the service
- Larger than average loans of up to $100k
- Real-time live offers from hundreds of loan providers
- APR as low as 3.49%
- No mobile app
- You may receive unsolicited calls
- Not a direct lender
Monevo is a personal loan search engine that makes it easy to shop for loans from a wide variety of lenders. Rather than apply individually at banks or loan companies, simply enter your requirements and Monevo will match you with hundreds of potential lenders. The service makes the process of applying for a personal loan simple and painless, and removes the risk of damaging your credit score with a ‘hard pull’.
Monevo offers the following services:
- No impact on your credit score to search your rates with over 30 top lenders
- Get multiple loan offers with one application
- Loans from $1,000 to $100,000
- 3.49% to 35.99% APR
- Short term personal loans from 3 months to 144 months
- Fixed or variable rate terms.
Requirements
- Personal identification — name, date of birth, SSN, contact, education
- Housing and employment situation, income, monthly payments.
There is no fee to the borrower for using Monevo’s search engine as the company charges the loan provider you choose.
Why We Picked Monevo
Monevo reveals the details of the top 30 loan providers that suit your requirements without having to implement a ‘hard pull’ and damage your credit score. Loans can be as high as $100,000, which is higher than most other loan providers will offer.
- No hard credit check
- Unsecured payday loans up to $100,000
- Get offers from hundreds of providers within 1 min
- Not BBB accredited
- A credit score of 580
- Not a direct lender
Even Financial is a loan facilitator, helping to connect borrowers with lenders for personal loans. The Even Financial website helps to bring together a wide variety of offers from different companies so you can see which is the best option for you. Even Financial doesn’t offer its customers loans directly but helps to make the process of securing a loan simpler and more enjoyable.
Even Financial offers the following services:
- Multiple offers without damaging your credit score
- Unsecured personal loans from $1,000 to $100,000
- Fixed-rate terms from 2 to 7 years
- 4.99% to 35.99% APR
Requirements
- Provide personal information
- US citizen or permanent resident at least 21 years old
- A minimum credit score of 580
- Agree for information to be shared with third-parties.
Why We Picked Even Financial
Even Financial provides a range of excellent loan options all in one place, saving you both time and money. It gives you a better idea of the types of loans and rates available and doesn’t cost you a cent until you make your choice. It provides first-class technology to give its customers the most transparent, up-to-date information about the best personal loan rates.
- Get quotes from traditional and non-banking financial institutions
- Wide variety of loans from different financial institutions
- A long-running company with proven track records
- Established company with a good reputation
- Good personal loans to pay off credit cards
- Completely free to use, no obligation
- Approval can take longer than usual
- Lots of spam and no ability to unsubscribe
- A debt-to-income ratio below 43%
Lending Tree is one of the longest-running peer-to-peer online lending exchanges in existence, having launched in 1998. It connects borrowers with multiple lenders across the U.S. to find the best rates on business and personal loans, student loans, and refinancing. Customers can get free, no-obligation quotes and information about their credit scores, credit cards, and other financial decisions.
LendingTree offers the following services:
- Info on where to get personal loans from a variety of lenders
- Get a loan from $1,000 to $50,000
- Free service plus added information on credit scores, etc
- APR rates from 5.99% to 35.99%
Requirements
- Minimum Credit score of 720 for most lenders
- Proof of income plus pay stubs
- Bank account
Why We Picked LendingTree
LendingTree helps customers get a good idea of the types of loans available from a broad range of peer-to-peer lenders, financial institutions, banks, and credit unions. There is absolutely no cost for the service and using it won’t hurt your credit rating. LendingTree provides quotes for business and personal loans, short-term loans, college loans, and more.
- No service fee, no origination fee, no prepayment penalty
- Get a list of real quotes within minutes for free
- Loans from as low as $1,000
- No initial credit check required
- Refinance student debt from $5k upwards
- A minimum credit score of 650
- Lots of initial information required
- Not a direct lender
Credible offers both fixed and variable rate personal loans mainly for students who are currently in school or plan on going to school. The website provides a list of student loan providers that fit your criteria without needing to do a hard credit check – a great alternative to students’ credit cards. You can even invite multiple co-signers to your application to see which offers the best rate.
Credible offers the following services:
- Quick and easily find all the best student loan offers in one place
- Get a personal loan for credit card refinancing or other needs
- Terms range from 12 to 84 months
- Variable APR from 3.99% to 35.99%
Requirements
- At least $5,000 worth of student debt to refinance
- At least 18 years old
- A minimum credit score of 650 (average)
- A co-signer if you have no stable income
Why We Picked Credible
You get instant quotes on prequalified rates with multiple lenders all in one convenient place with Credible without damaging your credit rating. While Credible offers multiple services, it is particularly good for students wanting to refinance their student debt.
- Improve credit without risk and access to credit repair services
- Fixed interest rates and repayment timeline
- Short term loans of 36 to 60 months
- Pre-approval without a hard credit pull
- Soft pull FICO score check
- Consolidate high-interest debt
- High minimum APR of 6.99%
- An origination fee of 1.5% to 6%
- Company charges late fees
- Not available in Iowa, Vermont, and West Virginia.
Upgrade offers direct personal loans to help build credit scores or provide income relief. Customers get access to credit monitoring tools and information to improve their credit situation. Rather than provide loans based purely on income, Upgrade takes into account an applicant’s disposable cash flow. This is to ensure the borrower doesn’t get into further debt unnecessarily.
Upgrade offers the following services:
- Personal loans from $1,000 to $50,000
- Fixed-rate terms of 3 to 5 years
- Get 6.99% to 35.99% APR
- Direct debt consolidation with payments to creditors
- Improve your credit rating with low risk
Requirements
- Minimum credit score of 600
- Minimum monthly free cash flow: $800
- Maximum debt-to-income ratio: 60%
Why We Picked Upgrade
Upgrade provides personal loans directly to the public for use in improving credit, debt consolidation, home improvements, or other large purchases. Rather than simply issuing loans based on income and credit rating, Upgrade ensures that its customers have enough free cash flow to pay off the loan without defaulting.
- An extensive network of niche lenders
- Loans for bad credit scores as low as 300
- Best low-interest personal loans from as low as 3.49%
- Limited information provided regarding rates and terms
- High level of marketing calls from third-parties
GuideToLenders offers to find personal loans for credit card debt, medical emergencies, or other needs for its customers. It has some of the widest range of terms and has been operating for over 15 years. This long-standing comparison website aggregates loans from its huge network of vetted lenders, with APRs from as little as 4.99%. Borrowers from all 50 U.S. states are welcome to use the service free of charge and could receive funds from as little as 24 hours after approval.
GuideToLenders offers the following services:
- Personal loans for fast funding from $1,000 to $50,000
- Fixed-rate terms from 3.49% to 35.99% APR
- Terms from 24 to 84 months
- Free comparison service, no hidden fees
Requirements
- A US citizen
- At least 18 years old
- A verified bank account
- A steady source of income
Why We Picked GuideToLenders
GuideToLenders has one of the largest lender networks since its been running since 2005, so you get a very broad range of terms and offers. Even borrowers with a bad credit score will find lenders through GuideToLender’s expansive network. You can get personal loans to pay off debt, household expenses, repairs, medical, or emergencies.
- Free to use
- Loans from $100 up to $50k
- Unsecured, secured loans, peer-to-peer, short-term loans
- No collateral required
- Loans from as little as $100
- APR rates are generally higher than other operators
- Minimum credit score of 500
- It's not BBB accredited
AmOne is a free lender discovery service accredited by the Better Business Bureau with an A+ rating. It provides potential borrowers with a range of lenders like BlueVine, FreedomPlus, and NetCredit for the best personal loan interest rates. Simply fill in your online information and describe the type of loan you are looking for, and AmOne does the rest. No worries about damaging your credit score with multiple hard pulls as AmOne collects all the necessary info.
AmOne offers the following services:
- Wide variety of loans from $100 to $50,000
- Fixed-rate terms from 2 months
- 4.99% to 35.99% APR
- No collateral required, no fees, no obligation.
Requirements
- A credit score of at least 500
- At least 18 years old
- U.S citizen or permanent resident.
Why We Picked AmOne
Easily get personal loans for average credit score holders with a good APR to make paying off debt easier. AmOne includes offers for both unsecured or secured loans plus peer-to-peer and short-term loans from as little as $100.
How to Choose a Personal Loan Lender – The Guide
- Always read all the fine print and check for any hidden fees. Those include: application fees, administration fees, or origination fees and will be subtracted from your loan so you could end up with less money than you expect.
- Check independent third-party reviews about the loan company to ensure it’s not a scam. Sites that ask for an upfront payment, don’t have a listed address or promise ‘guaranteed preapproval’ are usually scams.
- Check the offered repayment terms and if they suit your needs .
- Check if the interest rates are fixed or variable. Variable rates can be both beneficial or detrimental, so they are riskier.
- Make sure you fit the requirements and the lender doesn’t have any restrictions that stop you from using their services.
When Should I Get a Personal Loan?
Depending on your financial situation, getting a loan could be a very good or very bad idea. Most importantly, you should have a stable income and, if possible, some kind of collateral like a house or car. There are also companies that offer personal loans for graduate students with decent job prospects after leaving university.
Top-rated personal loans offer several advantages over conventional lending options, including versatility, low APR and interest rates, and high approval rates.
Good reasons:
One of the best reasons to get a loan is debt consolidation or refinancing, as this can help you to save money in the long run. It is also a good way to improve your credit rating in the event you may want to get a mortgage later in life. Personal loans are a great option if you need a loan for home improvement and repairs. Taking out a loan for medical emergency expenses is another good reason if no other option is available.
The most common reasons people apply for personal loans include:
- Consolidate debt
- Finance home repairs
- Unplanned medical emergencies
- Large purchase
- Starting a business
Bad reasons:
Taking out a loan for unnecessary, non-emergency purchases like a fancy new car is a bad idea as it could land you in serious debt and damage your credit rating. Personal loans should be reserved for emergencies or for improving credit and consolidating debt. But if you want that car badly then an auto financing loan may be a better option as it is specifically designed for the purpose.
Often you are better off getting a loan specific to your needs. Many companies offer mortgage loans, short-term, revolving, or installments business loans. There are also several co-signed loans like a student loan. These specified loans are less flexible but may give you better terms. Comparison sites will help you find the best personal loan for using a cosigner.
What Are the Average Personal Loan Interest Rates by Credit Score?
- Above 720: 10.3% – 12.5%
- From 680 – 719: 13.5% – 15.5%
- From 640 – 679: 17.8% – 19.9%
- Below 639: 28.5% – 32.0%
Tips on How to Get a Personal Loan?
- Decide exactly how much you need, how much you can afford to pay off, and for how long. Don’t be unrealistic or you could end up defaulting on your payments.
- Check your credit score. Some online comparison sites will do this for you but it’s good to know it beforehand anyway.
- Check offers from multiple lenders before making your choice. If you need a loan quickly, they can find you the best personal loan for fast funding.
- Once you’ve found a suitable lender, fill in the application, and send the necessary documentation. This usually includes proof of residence, employment, and credit history.
- You will be notified of your success or failure at which point you can accept the quote and receive your loan.
- Make sure to never miss a payment or you could get a penalty and damage your credit score.
Best Personal Loans Providers at a Glance
- 5kfunds – Best match-maker for borrowers and lenders
- LoansUnder36 – Best for people with bad credit history
- PersonalLoans.com – Best easy-to-use personal loan online application
- BadCreditLoans.com – Best for poor credit score
- Monevo – Best for higher than average loan amounts
- Even Financial – Best for free comparison of personal loan types and interest rates
- LendingTree – Best variety of personal loan lenders
- Credible – Best provider for students
- Upgrade – Best for credit score improvement
- GuideToLenders – Best personal loan for high or low credit scores
- AmOne – Best website to compare top lenders for small loans
Key Takeouts
These days, it’s quick and easy to find a personal loan to suit your needs, even if you have a low income or bad credit score. If you have lots of credit card debt or need to improve your credit rating, taking out a personal loan can be beneficial in the long-term. That said, personal loans should not be taken out for trivial purchases. Defaulting on your monthly payments can damage your credit rating which is very difficult to fix and can have serious consequences on your future life.
FAQ
A personal loan is an amount of money borrowed from a third-party provider under contract to repay it with interest over a certain period. Personal loans are usually unsecured and don’t require collateral but have high-interest rates that can cost a lot over time.
Anyone with a fixed address and steady income can get a personal loan from multiple providers. The loan officer simply confirms your details, offers a quote based on your financial situation, and then deposits the money directly to your bank account.
Many lenders now offer loans to people with bad credit but the APR is usually very high.
In most cases, having up to three loans at a time is possible but not recommended.
Secured loans are protected by collateral like a house or car, which the lender can repossess if you don’t repay the loan. Unsecured loans don’t require any collateral but as a result, have higher interest rates and less favorable terms.
The best personal loans have a 24 hour turnaround time after approval but some can take up to 7 days and involve several personal loan stages of approval.
