Best personal loans in the United States : A personal loan can be used to finance many common family expenses, including home improvement projects, wedding expenses, vacations, and in some cases, even the purchase of land. Personal loans are also popular in debt consolidation, since interest rates are typically lower than credit cards, especially for applicants with good to excellent credit.
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What is a personal loan?
An individual loan is a transaction where one party lends money to another that must be repaid within a predetermined period of time, along with interest.
These loans have the advantage of being managed very quickly, and they do not require any guarantees or additional guarantees. In this article, we’ll discuss the best personal loans in the United States which are available now.
The best personal loans in the United States
Individuals can get a personal loan or credit in the USA for a short period of time, in amounts ranging between 1,000 and 100,000 dollars, and if their credit is good, they can get their money in one or two days.
Most personal loans in the United States are unsecured, which means you do not have to put up any collateral. Additionally, interest rates and monthly payments are almost always fixed, making the calculation of your monthly budget much simpler.
Types of personal loans in the United States
In the United States, there are two types of personal loans: secured loans and unsecured loans. Choosing the right type of loan for your needs and profile is essential if you need to borrow money.
Learn the differences between these types of loans so that you can choose the right one. Let’s examine each one in detail.
Money loans or personal loans with collateral
A secured personal loan is backed by an asset that a lender can seize if you don’t pay back the money.
The guarantee will vary depending on the loan type. Although secured loans can vary, most lenders require collateral like your home, car, or savings (such as a certificate of deposit or savings account).
If you apply for a personal loan without a credit check, it is likely that you will be required to provide a guarantee.
Some secured loans are obtained after the purchase. A home equity line of credit (HELOC) can be taken out if your house is worth much more than what you owe.
Additionally, if you have equity in your car, you can apply for a car title loan or auto equity loan and use the asset as collateral. In either case, the lender would hold onto the title until the loan is repaid.
Whatever type of secured loan you choose, the lender can repossess the collateral you put up as security if you default on the loan.
In the case of a secured loan with collateral, the lender may send someone to repossess your car. In the case of a secured home loan, they can proceed against you in court and begin the foreclosure process.
Benefits of a secured personal loan
- Low interest rates (APR).
- Even if your credit check is not as good, you can qualify for these loans.
Disadvantages of secured loans
- Non-payment of the loan instalment can lead to your assets being seized.
- Until you have repaid your loan, you must relinquish ownership of your asset.
How to get a loan for personal use without a guarantee
With an unsecured loan, you can borrow money without pledging any assets as collateral.
Because unsecured loans are not secured by an asset that can be repossessed in case of default, lenders often employ other methods to protect themselves from delinquent borrowers, such as credit scores.
If you stop making payments on your unsecured loan, your lender may place negative marks on your credit report and seek assistance from a collection agency.
In the event that you continue to refuse to pay, your lender may sue you for the remaining balance plus interest and fees.
Advantages of an unsecured loan
- You do not have to post a guarantee to qualify.
- Unsecured personal loans are available through online lenders, banks, and traditional credit unions.
Disadvantages of unsecured loans
- Generally, lenders charge higher interest rates and fees to offset the risk.
- In general, you must have a fair or better credit rating to be eligible for an unsecured loan.
1. SoFi
Social Finance, Inc was founded by Stanford Business School students in 2011. The original concept was to connect recent graduates with alumni in their community through alumni-funded loans.
In 2015, the institution began offering personal loans after changing and incorporating products over the years. Its products include mortgage loans, student loans, loan refinancing, small business loans, retirement accounts, and insurance, among others.
Those with a strong credit score can enjoy great terms and rates from SoFi. You can refinance student loans or cover significant expenses with this option.
Loan amounts range between $5,000 and $100,000, with interest rates between 5.99% and 18.72%. Payment terms range from two to six years.
2. Wells Fargo
Wells Fargo is one of the largest banks in the United States. Instead of visiting one of their branches, you can access the information on their website. New customers must apply in person, but existing customers can apply online or by phone.
Wells Fargo offers competitive rates, a wide range of loans, and less strict credit requirements than other banks.
There are no origination fees, and funding is fast.
3. Universal Credit
Universal Credit is a very convenient lender for those with poor credit scores. Personal loans are offered by this financial company to people with low incomes or who have accumulated high-interest debts.
For people with a credit score from 560 points, Universal Credit offers personal loans with variable APRs between 8.93% and 35.43% and terms of 3 to 5 years for amounts between $1,000 and $50,000.
How do Universal Credit loans work?
- Compare your rate: see the offers instantly, without any commitments or credit checks.
- Choose your offer: choose the option that suits you best according to the term of the loan and the price
- You will receive the funds the following day after the company verifies the details
4. Timely
Since 2005, Oportun has been offering its services to people without a credit score or with a relatively limited credit history. The majority of their clients are low to middle income.
FinTech Breakthrough named Opportunity personal loans “the best loan product for consumers.”.
Providing services to the Latino community in the USA, this company grants loans up to $10,000.Accepts borrowers without a Social Security Number, but you must have an Individual Taxpayer Identification Number (ITIN) to apply.
5. Upgrade
In 2017, Upgrade rolled out its mobile and online banking service, eliminating transaction fees and providing access to affordable and responsible credit through cards and loans.
The company offers personal loans up to $35,000 without collateral at very reasonable rates. There are no prepayment penalties, the rates are low, and the monthly payments are affordable.
Personal loans from Upgrade can be used to refinance credit cards, consolidate debts, carry out home improvements or to make important purchases.
6. OneMain Financial
OneMain Financial is a financial institution with over 100 years of experience. The firm has offices across the country and meets with its clients in person regularly to discuss their individual cases. Their service is personalized and they strive to find a plan that meets the needs of each client.
OneMain Financial is the ideal platform for borrowers with lower credit scores than the rest. They offer loans between $1,500 and $20,000 to be repaid within 2 to 5 years at an interest rate that ranges between 18% and 35.99%.
I agree, it is a bit high, but we need to remember that these are loans for people with credit scores between 500 and 550.
Further, the company does not offer discounts on their percentages for setting up autopay, and they charge origination fees that are typically between 1% and 10% of the loan value.
Despite this, these loans have several positive characteristics worth highlighting. Among them, you can find that they will let you choose your payment date, they will finance the loan the same day or the day after approval, and they will let you pay directly to the creditor of the money.
If you do not have a sufficient credit score, you will have the option of applying for a guaranteed loan or requesting it jointly with someone else.
The requirements are quite low. People who need a credit repair can find different options from these companies. They typically serve clients who earn between $45,000 and $75,000.
7. Payoff
Payoff is a California-based financial services company. The company provides fixed-rate loans through a peer-to-peer lending platform so borrowers can pay off their credit cards.
PayOff offers loans with fixed rates of 5.99% to 24.99% APR for loan amounts ranging between $5,000 and $40,000. Payoff offers loans with fixed rates between 5.99% and 24.99% APR.
Depending on the state, there may be a minimum loan amount and interest rate. Loan amounts greater than $15,000 have a minimum interest rate of 6.99%. You can find detailed information on the website.
A check will be deposited into your account for the amount due on your credit cards. Your payment term varies between 24 and 60 months, during which you make fixed monthly payments.
They provide personal attention at their office in Tustin, CA.
8. Citizens Bank
In the United States, Citizens Financial Group, Inc. is one of the oldest and largest financial institutions. It offers a variety of personal and business banking products and services to individuals, small businesses, midsize businesses, as well as large corporations and institutions.
For those with a good credit record, Citizens Bank is a great option. To obtain money loans from this institution, you must have a credit score of at least 680.
No charges are assessed for opening or advance payments, and interest rates range from 6.79% to 20.89% per year. There are 36- and 72-month payment terms available.
This bank will offer you excellent options if you wish to consolidate your debts. Money loans between $5,000 and $50,000 are available.
9. Prosper
Prosper, founded in 2005, is the first peer-to-peer lending platform in the United States. The company has facilitated more than $12 billion in loans to more than 770,000 people since it began operating.
On behalf of borrowers and investors, Prosper handles the entire money lending process.
People with good credit can get good credit from Prosper compared to other lenders. The amount they handle normally ranges from $2,000 to $35,000, payable between 3 and 5 years at an interest rate ranging between 7.95% and 35.99%.
In addition to offering joint loans and a wide variety of amounts, they also allow you to change your payment date if necessary. Consequently, you can finance your dental treatment in a variety of ways.
It has both positive and negative aspects. First of all, there are no discounts for setting up automatic payments. In the same way, you will only have two options for paying the total amount with interest (3 years or 5 years).
Lastly, this lender charges origination fees between 2.41% and 5%, as well as 5% of the unpaid amount if you are late.
They also have certain requirements that you need to meet. A minimum of two years’ credit history is required, as well as a credit score of 640 or higher.
On average, their borrowers have a credit score of 726. Additionally, your debt-to-income ratio must not exceed 50%, you must not have filed for bankruptcy in the past year, and you must have fewer than five inquiries on your credit report over the last few years. A minimum of six months.
10. Best Egg
According to Best Company, Best Egg is the #1 personal loan provider among consumers in 2019. Getting a personal loan with Best Egg is quick, easy, and secure.
Personal loans from Best Egg are best suited for people with an annual income of $60,000 or more and a fair to excellent credit history. Generally, these loans are used to improve a home or cover personal expenses.
Typically, Best Egg loans are used for home improvements, major purchases, debt consolidation, and moving expenses.
11. Upstart
Upstart is a good option if you don’t have a very long credit history, since they accept people who don’t know how to get credit in the US, who don’t have a line of credit, or who do not have a FICO score.
Using unconventional factors, such as education and employment, to predict applicants’ solvency, it offers personal loans.
It is an artificial intelligence (AI) lending platform designed to reduce default risks and increase access to credit. Through this, you will be able to obtain financing from $1,000 to $50,000 with an estimated APR between 5.38% and 35.99%.
If you already have a credit history, you will need to have a minimum score of 580.
One of the other positives of this loan company is that the funds are funded within a business day and they offer direct payments to creditors. Meanwhile, borrowers can choose and change their payment date, giving them a little more freedom when it comes to managing their finances.
There are, however, some aspects that could be improved. There are only two repayment options available to borrowers (3 or 5 years) and there is no mobile app that allows them to manage the loan virtually. Alternatively, the company could charge an origination fee of up to 8%.
Another important aspect you should consider is that they will ask you for a large amount of information. You must have a gross income of more than $12,000, you must have a valid address in the USA, your bank account number, and your routing number, and you must have any of these sources of income:
- Full-time employment
- Or regular part-time employment
- Full-time job offer in less than 6 months
- Other regular income sources
12. Lending Tree
A lending marketplace that allows you to search for the best terms and rates is Lending Tree. There are car loans, small business loans, credit cards and personal loans available.
A consumer can use it to compare prices among multiple companies and professionals who will compete to offer the best deal.
With the wide variety of lenders available at Lending Tree, you are likely to find a loan that meets your needs.
13. Marcus
Marcus by Goldman Sachs was designed to help you maximize your money with over 150 years of experience.
Marcus offers unsecured personal loans ranging from $3,500 to $30,000. Our rates range between 6.99% and 23.99% per year. Term lengths range from 36 months to 72 months. Creditworthy applicants will be offered lower interest rates and longer loan terms.
This is an excellent option if you want a money loan with a fixed interest rate and no origination fee.
14. Laurel Road
Since 2013, this company has helped thousands of professionals with undergraduate and graduate degrees consolidate and refinance more than $7 billion in federal and private school loans. The company also offers personal loans and home loans.
Laurel Road became part of KeyBank, one of the largest banking services companies in the United States, in April 2019.
With Laurel Road you can request a 100% online personal loan if you’re looking for online personal loans.
Laurel Road offers low rates and flexible terms, but you can also get approved in two days or less. Thus, it is an excellent option for those seeking quick money loans.
Get a discount on your payments if you sign up for AutoPay directly through your bank.
15. Lending Club
One of the pioneering companies in the P2P lending system is Lending Club. Ideally, you should have a high credit score (over 600 on the FICO 8 scoring model) for more than 3 years.
In case your credit score isn’t very good, you can request a loan with a co-signer or request a joint loan, thus reducing the debt-income ratio to be considered to 35%. In addition, it only checks your credit if you want to prequalify and offers direct payment to your creditors.
To borrow from Lending Club, you must:
- You must be a United States citizen, permanent resident, or have a valid long-term visa to live in the United States.
- If you are under 18, you cannot live in the United States.
- You must have a verifiable bank account
The loan amounts vary between $1,000 and $40,000, and you will have between 3 and 5 years to pay it back at an interest rate between 7.04% and 35.89%.
Applicants who qualify for the lowest fees have:
- Good credit scores
- A low percentage of debt compared to income
- A long and successful history of lines of credit
Usually, it takes about a week for the money to show up in your bank account after you apply for a loan.
However, there are also some downsides to this kind of loan. For example, borrowers have two loan term options, rates are a bit high compared to the competition, and origination fees range from 1% to 6%.
16. Rocket Loans
Rocket Loans offers unsecured personal loans between $2,000 and $45,000, which simplify your finances with a single fixed monthly payment. Prepayment penalties are not charged and there are no hidden costs.
Your money will be received within 1 to 3 business days, and the payment terms range from 36 to 60 months. With Rocket Loans, you will find the loan application and approval processes to be very quick.
If you are uncertain about the steps to follow, you can ask for help from personal loan experts who will guide you through the process.
17. First Tech Credit Union
People with low to fair credit scores can access better rates and terms at First Tech Credit Union.
Membership requirements are less strict than those at other credit unions. In order to qualify, you need to join the Financial Fitness Association or the Computer History Museum and open a $5 savings account.
Beginning at 6.70%, the credit union offers one of the most competitive rates for unsecured personal loans.
There are no application fees. Payment terms range between 24 and 84 months, the interest rate is between 6.70% and 18%, and the loans are granted between $500 and $50,000.
Personal loans in the USA
The following table summarizes the conditions of the best personal loans in the United States. It is important to keep in mind that the above information may change at any time. To find out the exact rates, rates, and loan terms, contact the institutions or lenders.
| LENDER | AMOUNTS | INTERESTS | LOAN TERM |
|---|---|---|---|
| SoFi | $3.000 – $100.000 | 5,74% – 24,49% | 12 – 84 months |
| Wells Fargo | $3.000 – $100.000 | 5,74% – 24,49% | 12 – 84 months |
| Universal Credit | $1,000 – $50.000 | Max. 35,43% | 36 – 60 months |
| Timely | Max. $10.000 | 20% – 67% | 6 – 46 months |
| Upgrade | Max $35.000 | 7,99% – 35,89% | 36 – 60 months |
| OneMain Financial | $1.500 – $20.000 | 18% – 35,99% | 24 – 60 months |
| Payoff | $5.000 – $40.000 | 5,99% – 24,99% | 24 – 60 months |
| Citizens Bank | $5.000 y $50.000 | 6,79% – 20,89% | 36 – 72 months |
| Prosper | $2.000 – $40.000 | 1% – 5% of the total loan amount | 35 years |
| Best Egg | Max $35.000 | 5,99% – 29,99% | 36 – 60 months |
| Lending Tree | $50.000 | max. 35,99% | 2 – 180 months |
| Marcus | $3.500 – $30.000 | 6,99% y 23,99% | 36 – 72 months |
| Laurel Road | Max. $45.000 | 8% | 36 – 60 months |
| Lending Club | Max $40.000 | 6,95% – 35,89% | Minimum 36 months |
| Rocket Loans | $2.000 – $45.000 | 7,161% – 29,99% | 36 – 60 months |
| First Tech Credit Union | $500 – $50.000 | 6,70% – 18% | 24 – 84 |
Personal loans in the U.S.: Tips for choosing the most suitable
Compare multiple offers
Don’t sign with the first lender you come across. When considering your application, each lender will follow a slightly different formula, meaning that the interest rate and the conditions will differ from one lender to another.
Be careful about fees.
Make sure you understand all the fees associated with your personal loan, aside from the interest you have to pay. It is common for origination costs to range from 1% to 8% of the total loan amount.
Choose the right loan term
Analyse the flexibility of the lender with regard to loan terms. You can choose between terms of three and five years for some online personal loans. Remember that the term is important since it affects the amount you ultimately pay over the course of the loan.
Choosing a longer term can allow your monthly payments to be lower and more manageable, but it also means you’ll pay more in the end. If you choose a shorter term, you will pay higher payments, but you will generally pay less in interest.
Be cautious of personal loan scams.
Due to the popularity of personal loans in the United States, there are a number of lenders on the market. Before formalizing a request, you must carefully analyse the institution because there are unscrupulous people who take advantage of people’s needs to defraud them.
Make sure that you check out the lenders that offer you a ” personalized ” personal loan, since they are the ones that care about your financial situation and know that you can repay it.
Hopefully, this information about the best personal loans in the United States was useful to you.
When are personal loans useful in the U.S.?
You should understand how any personal loan can benefit or harm you before you apply for one in the United States.
If you are in any of the following situations, you may want to take out some personal credit in the USA:
1. You need to borrow money with a fixed interest rate and monthly payment
Personal loans offer a fixed payment schedule and a fixed interest rate, which is one of their biggest benefits. In this case, a personal loan is a great option if you want to borrow money without any surprises.
2. You need money for a specific purpose and you want enough time to repay it
Although you can use the funds of a personal loan to cover almost any expense you wish, these loans are ideal when you want to make a large expense and you want plenty of time to pay them back.
You may have to pay for medical bills, a new engine for your car, or a roof you didn’t anticipate needing to replace.
3. You have good credit, so you can qualify for a loan at a reasonable interest rate and with convenient terms
Even if you have poor credit or a thin credit profile, it is possible for you to qualify for a personal loan in the United States, but your interest rate will be much higher. Approximately how many? The annual percentage rate (APR) for some personal loans for people with bad credit can exceed 35%.
If you have bad credit, you may want to postpone your personal loan until you have improved your credit score. Getting rid of credit card debt and balances will have a positive impact on your credit, since 30% of your FICO score is determined by their utilization.
4. A new loan at a lower rate is what you need to consolidate high-interest debt
To consolidate debts is one of the best reasons to take out a personal loan in the United States. Obviously, this is true if you qualify for a personal loan with a low APR with good credit.
You will start saving money as soon as you consolidate high-interest debt into a new personal loan with a lower fixed interest rate. By reducing your monthly payments to one, you can also simplify your finances and make paying down debt easier.
