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.

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1. 5kFunds

The services 5KFunds offers aim to suit the needs of those unable to qualify for a loan from one of the traditional financial lenders. All borrowers who meet the set requirements can use the platform to connect to a credible lender who is ready to meet their needs. Although 5KFunds does not perform a credit card check and does not impose a fee on users, users should be aware that a lender may ask for one and is free to set its own APR and fees. 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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The services 5KFunds offers aim to suit the needs of those unable to qualify for a loan from one of the traditional financial lenders. All borrowers who meet the set requirements can use the platform to connect to a credible lender who is ready to meet their needs. Although 5KFunds does not perform a credit card check and does not impose a fee on users, users should be aware that a lender may ask for one and is free to set its own APR and fees. Full Review

Competitive APR

★★★★★ 5/5

Application Process

★★★★★ 5/5

Customer Support

★★★★★ 5/5

2. LoansUnder36

LoansUnder36 is an unsecured connection service which can help you find a lender within minutes. The best thing about this service is that it can be used by individuals with any type of credit rating, however, lenders do reserve the right to do a credit card check. Nonetheless, LoansUnder36 is one of the best platforms for emergencies as users can have money transferred to their account within a single day. 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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LoansUnder36 is an unsecured connection service which can help you find a lender within minutes. The best thing about this service is that it can be used by individuals with any type of credit rating, however, lenders do reserve the right to do a credit card check. Nonetheless, LoansUnder36 is one of the best platforms for emergencies as users can have money transferred to their account within a single day. Full Review

Competitive APR

★★★★☆ 4/5

Application Process

★★★★★ 5/5

Customer Support

★★★☆☆ 3/5

3. PersonalLoans.com

PersonalLoans.com is a hassle-free platform that offers borrowers a large selection of options, based on their requirements. The company prioritizes your needs and in case none of its lenders offers a suitable loan, it offers to give your contact information to other credit repair or debt-relief companies. Full Review

  • Terms from 3 to 72 months
  • Quick and easy exposure to multiple lenders
  • Unsecured loans as low as $1,000 to use however you like
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PersonalLoans.com is a hassle-free platform that offers borrowers a large selection of options, based on their requirements. The company prioritizes your needs and in case none of its lenders offers a suitable loan, it offers to give your contact information to other credit repair or debt-relief companies. Full Review

Competitive APR

★★★☆☆ 3/5

Application Process

★★★★☆ 4/5

Customer Support

★★★★☆ 4/5

4. BadCreditLoans.com

BadCreditLoans.com is a platform that can help individuals with bad credit or no credit at all secure a personal loan. Though they do not offer loans larger than $10,000, they deliver what they set out to. With no credit card check and no hidden fees, borrowers with crippling credit scores can use this platform and find a lender willing to make them an offer. 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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BadCreditLoans.com is a platform that can help individuals with bad credit or no credit at all secure a personal loan. Though they do not offer loans larger than $10,000, they deliver what they set out to. With no credit card check and no hidden fees, borrowers with crippling credit scores can use this platform and find a lender willing to make them an offer. Full Review

Competitive APR

★★★★☆ 4/5

Application Process

★★★★★ 5/5

Customer Support

★★★★☆ 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

Competitive APR

★★★★★ 5/5

Application Process

★★★★★ 5/5

Customer Support

★★★★☆ 4/5

6. Credible

With its Student Loans and Loan Refinancing options, Credible provides students with solutions to their school related financing problems. It also aggregates all the best personal loans for debt consolidation and lists its student and personal lenders on its site along with plenty of helpful loan advice. 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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With its Student Loans and Loan Refinancing options, Credible provides students with solutions to their school related financing problems. It also aggregates all the best personal loans for debt consolidation and lists its student and personal lenders on its site along with plenty of helpful loan advice. Full Review

Competitive APR

★★★★☆ 4/5

Application Process

★★★★★ 5/5

Customer Support

★★★★★ 5/5

7. Upgrade

Upgrade provides personal loans that fit the needs of borrowers with an average credit score looking to invest in home improvements or make large purchases. It also offers debt consolidation options and is a good choice for individuals looking to improve credit. One of the main requirements to secure a loan from this company is a steady cash flow. 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 provides personal loans that fit the needs of borrowers with an average credit score looking to invest in home improvements or make large purchases. It also offers debt consolidation options and is a good choice for individuals looking to improve credit. One of the main requirements to secure a loan from this company is a steady cash flow. Full Review

Competitive APR

★★★★★ 5/5

Application Process

★★★★☆ 4/5

Customer Support

★★★★☆ 4/5

8. LendingTree

LendingTree is a well-established firm which has been a mainstay on the market for more than two decades. It transparently lays out its practices, and potential borrowers can find out everything there is to know by scrolling through its blog section and looking at its designated Loan Calculator and other loan-related articles. 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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LendingTree is a well-established firm which has been a mainstay on the market for more than two decades. It transparently lays out its practices, and potential borrowers can find out everything there is to know by scrolling through its blog section and looking at its designated Loan Calculator and other loan-related articles. Full Review

Competitive APR

★★★★★ 5/5

Application Process

★★★★☆ 4/5

Customer Support

★★★★☆ 4/5

9. 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

Competitive APR

★★★★☆ 4/5

Application Process

★★★★★ 5/5

Customer Support

★★★☆☆ 3/5

10. AmOne

AmOne is a good choice for those looking for a discovery platform that offers a personalized experience. The company connects users to loan providers based on their loan purpose and creditworthiness and also provides professional support to help them better understand the loan offers they receive. Full Review

  • Free to use
  • Loans from $1,000 up to $50,000
  • Unsecured, secured loans, peer-to-peer, short-term loans
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AmOne is a good choice for those looking for a discovery platform that offers a personalized experience. The company connects users to loan providers based on their loan purpose and creditworthiness and also provides professional support to help them better understand the loan offers they receive. Full Review

Competitive APR

★★★☆☆ 3/5

Application Process

★★★★☆ 4/5

Customer Support

★★★★★ 5/5

11. Even Financial

Even Financial collaborates with some of the top online lenders of personal loans. Users can easily access their platform and browse through the personal loan options they are eligible for. The private data you share with this company is entirely safe and secured by their 256-bit encryption technology. They only might do a soft pull on your card, meaning your credit score will be left intact. Full Review

  • No upfront fees
  • Get offers on loans up to $250,000
  • Get offers from hundreds of providers within 1 min
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Even Financial collaborates with some of the top online lenders of personal loans. Users can easily access their platform and browse through the personal loan options they are eligible for. The private data you share with this company is entirely safe and secured by their 256-bit encryption technology. They only might do a soft pull on your card, meaning your credit score will be left intact. Full Review

Competitive APR

★★★★★ 5/5

Application Process

★★★★☆ 4/5

Customer Support

★★★★☆ 4/5

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

5KFunds
5KFunds
5KFunds

Best Match-Maker for Borrowers & Lenders

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  • No upfront fees required
  • Loans from as low as $100
  • 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 $100 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
  • The search is free of charge

Requirements

  • A bank account
  • Being a US citizen
  • Over 18 years old
  • An active email address and contact number
  • 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.

Learn more in our full 5KFunds review.

LoansUnder36
LoansUnder36
LoansUnder36

Best for People With Bad Credit History

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  • 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.
  • APR below 36%
  • 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.

Read the Full LoansUnder36 Review

PersonalLoans.com
PersonalLoans.com
PersonalLoans.com

Best Easy-To-Use Personal Loan Online Application

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  • Fits the best loan to your personal financial situation
  • Provides a detailed description of how its loans work
  • Loaners may deposit money in your account within the next day
  • 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 6 years.

PersonalLoans.com offers the following services:

  • Personal loans from as low as $1,000 up to $35,000
  • Repayment terms of 3 months up to 6 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.

Read the Full PersonalLoans.com Review

BadCreditLoans.com
BadCreditLoans.com
BadCreditLoans.com

Best for Poor Credit Score

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  • 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 $10,000 but could help those who are desperate with nowhere else to turn. APRs are from 5.99% to 35.99%, and return terms are 3 to 72 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.

Read the Full BadCreditLoans.com Review

Monevo
Monevo
Monevo

Best for Higher Than Average Loan Amounts

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  • 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.

Read the Full Monevo Review

Credible
Credible
Credible

Best Provider for Students

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  • No service fee, no origination fee, no prepayment penalty
  • Get a list of real quotes within minutes for free
  • Loans from as low as $600
  • No initial credit check required
  • Refinance student debt from $5k upwards
  • A minimum credit score of 620
  • Lots of initial information required
  • Not a direct lender

Credible offers both fixed and variable rate personal loans and a range of student loans for those currently attending or planning to attend 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. Some of their lenders even allow you to 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 between two and seven years
  • Personal loans range from $600–$100,000
  • Private student loans fixed APR ranges from 3.22% to 14.75%
  • Personal loan APR rates from 5.24% 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 and those who want to secure personal loans.

Learn more in our full Credible review.

Upgrade
Upgrade
Upgrade

Best for Credit Score Improvement

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  • Improve credit without risk and access to credit repair services
  • Fixed interest rates and repayment timeline
  • Short term loans of 24 to 84 months
  • Pre-approval without a hard credit pull
  • Soft pull FICO score check
  • Consolidate high-interest debt
  • High minimum APR of 7.96%
  • An origination fee of 1.85% to 8.99%
  • 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 7.96% to 35.97% APR
  • Direct debt consolidation with payments to creditors
  • Improve your credit rating with low risk

Requirements

  • Minimum credit score of 560
  • Minimum monthly free cash flow: $800
  • Maximum debt-to-income ratio: 75%

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.

Learn more in our full Upgrade review

Even Financial
Even Financial
Even Financial

Best for Free Comparison of Loan Types & Interest Rates

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  • No hard credit check
  • Unsecured payday loans up to $250,000
  • 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 up to $250,000
  • Fixed-rate terms from 2 to 7 years
  • APR as low as 2.49%

Requirements

  • Provide personal information
  • US citizen or permanent resident at least 21 years old
  • No minimum credit score is listed
  • 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.

Learn more in our full Even Financial review.

LendingTree
LendingTree
LendingTree

Best Variety of Personal Loans Lenders

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  • 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
  • Lenders might apply an origination fee
  • Lots of spam and no ability to unsubscribe

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 as low as 3.99%

Requirements

  • Minimum credit score of 640 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.

Read the Full LendingTree Review

GuideToLenders
GuideToLenders
GuideToLenders

Best for Borrowers With High or Low Credit Score

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  • 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 3.99%. 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 $100 to $50,000
  • Fixed-rate terms from 3.49% to 35.99% APR
  • Terms from 61 days to 180 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.

Read the Full GuideToLenders Review

AmOne
AmOne
AmOne

Best to Compare Top Lenders for Small Loans

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  • Unsecured, secured loans, peer-to-peer, short-term loans
  • Loans from $1,000
  • 1 day approval
  • No collateral required
  • 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 which is not accredited by the Better Business Bureau but enjoys an A + rating. It provides potential borrowers with a range of lenders like LoanMe, Sofi, Upgrade, and Marcus 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 $1,000 to $50,000
  • Fixed-rate terms from 12 to 84 months
  • 2.49% to 35.99% APR
  • No collateral required, 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.

Read the Full AmOne Review

Best Personal Loans – Buyer’s Guide

As we all know, making financial decisions is something you don’t want to do on a whim. Securing a loan, as we mentioned, is often inevitable and necessary for your financial health but being cautious not to bite off more than you can chew is crucial.
The lender distributors and loan lenders mentioned above may put multiple offers on your table. Choosing the one that works best for you can be challenging, especially if you are new to the field.

How to Choose a Personal Loan Lender

  1. 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.
  2. 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.
  3. Check the offered repayment terms and if they suit your needs .
  4. Check if the interest rates are fixed or variable. Variable rates can be both beneficial or detrimental, so they are riskier.
  5. 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?

  1. 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.
  2. Check your credit score. Some online comparison sites will do this for you but it’s good to know it beforehand anyway.
  3. 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.
  4. 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.
  5. You will be notified of your success or failure at which point you can accept the quote and receive your loan.
  6. 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

Personal Loan Provider Loans Annual Percentage Rate (ARP) Repayment Terms  Best For 
5kFunds From $100 to $35,000 From 5.99% to 35.99% From 61 days to 72 months Best websites to compare                personal loans.
LoansUnder36 From $500 to $35,000 Below 36% From 2 to 72 months. Borrowers with bad credit
PersonalLoans.com From $1000 to $35,000 From 5.99% to 35.99% From 3 months to 6 years  Borrowers looking for an easy-to-use platform 
BadCreditLoans.com From $500 to $10,000 From 5.99% to 35.99% From 3 months to 6 years Poor credit borrowers
Monevo From $500 to 

$100,000

From 3.49% to 35.99% From 3 months to 144 months Borrower looking for higher than the average loans
Credible  From $600 to $100,000 From 3.99% to 35.99% From 2 to 7 years  Current students and students to be
Upgrade $1000 to 

$50,000

5.94% to 35.97%  Up to 72 months Borrowers looking for personal loans and a way to build good credit
Even Financial As low as 2.49% Up to $250,000 From 2 to 7 years Personal loans interest rate comparison websites.
LendingTree As low as 3.99% From $1,000 to $50,000 Not disclosed Those looking for a greater selection of loan providers 
GuideToLenders 3.99% to 35.99%  $100 to $50,000 From 61 days to 180 months For borrowers with both high and low credit score
AmOne From 2.49% to 35.99% From $1,000 to $50,000 From 12 to 84 months  Those looking for small-loan providers 

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

What is a personal loan?

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.

How do personal loans work?

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.

Can I get a personal loan with bad credit?

Many lenders now offer loans to people with bad credit but the APR is usually very high.

How many personal loans can you have at once?

In most cases, having up to three loans at a time is possible but not recommended.

What’s the difference between a secured loan and an unsecured loan?

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.

How fast can I get a loan?

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.