Personal loans are generally called unsecured, which means you are getting a quick loan with no collateral and often even with bad credit. It is a high-risk loan for the company so interest rates are usually high. These loans are usually for unexpected expenses, or for living expenses. Sometimes younger people have never had credit and may have a hard time getting credit. These loans help in that situation as well, as paying off one of these loans helps your credit rating. The interest rates are high, but they vary depending on your credit rating. Three that we like are Lending Tree, SoFi, and the Lending Club. Read on to learn more about these personal loan providers.
Top 3 Personal Loan Providers:
- Lending Tree
- SoFi
- The Lending Club
Lending Tree
Lending Tree is one of the most well known such businesses and they generally have a good reputation. Their slogan is “when banks compete, you win.” They get banks to compete for your business and act as a broker between them and the customer. When you apply, you will receive offers from up to five banks or lenders willing to lend you the money. You may also apply online and they have a very simple application process. Loans range from $1,000 to $35,000, and you may borrow the money for three to 180 months. Interest rates range from 5.9 to 35.9 percent. The loans can be deposited directly to your bank account. While they do offer unsecured loans, you do have to prove you have a means to repay the money. The Lending Tree matches you with lenders, so you will need to negotiate terms with those lenders.
Highlights:
- Easy application process
- Company with a strong reputation
- Loans from $1,000 to $35,000
Lending Club
Lending Club is a different kind of loan company that is gaining popularity. It is not tied to a financial institution, so the rules are a little different. The application process is the same and is fairly straightforward and easy. Once you are qualified, the lender gives you a few options for a loan, and you choose the one you like best. From there, investors may look over the details and decide to fund your loan. These loans are not fast because the financiers of the loan have to look over the details, and you may not get funded for the entire amount you want. The positive side is, if you run into trouble you can negotiate a new plan for repayment.
Highlights:
- Flexible loan options
- Interest rates from 6 to 36 percent
- Loans of up to $40,000
SoFi
SoFi is primarily in the student loan refinance business, but it also offers personal loans ranging from $5,000 to $100,000. You may choose from fixed rate and variable rate loans. There are no origination fees or any other hidden fees. Interest rates are also very good, ranging from 5 to 15 percent. This company also offers a program that allows you to suspend payments for a time if you become unemployed. There are three, five, and seven-year options available for repayment. Your interest rate depends on dependable employment and your credit score. This is also a good option for debt consolidation or for paying off high-interest credit cards.
Highlights:
- Interest rates as low as 5.1 percent
- Unemployment protection program
- Loans up to $100,000
Conclusion
These personal loans can be helpful, but there are hazards to look out for. These loans should not be used for non-essential purchases, as the interest rates are generally high. However, repaying personal loans can improve your credit score as you repay the loan. Personal loans can be beneficial, and they’re highly accessible even for people who do not have good credit. Check out these top-three providers if this is something you’re considering.