What Is A Personal Loan?
A personal loan is a type of loan that has two different characteristics – one, it does not require collateral (unlike car loan; backed by car or a mortgage; backed by your home’s worth); and two, it is an amortizing loan which means that the balance goes down each time you make a payment until you pay off the loan finally.
A personal loan is usually the best way to pay off medical bills, refinance high-interest credit card debt, or to breakdown large expense into smaller monthly payments that will not affect your budget. Finding a low-interest rate and choosing a reputable lender are the two main factors you need to consider when looking for a personal loan. Below are the best personal loan lender companies in 2019:
- SoFi – Offers Low APR with high income for borrowers
- Barclays – It has good to excellent credit scores and offers low APR for borrowers
- Freedom Plus – Offers good to excellent credit scores to Borrowers
- Payoff – Reducing high-interest credit card debt
- Upstart – Little to no credit history
- Marcus – Low overall fees
- Avant – Borrowers with poor credit scores
- Lending Point – Offers borrowers with poor credit scores
Sofi With A Minimum Credit Score Of 660
This is one of the best lenders, and it is available for those with high income and good credit scores. It is the best because it has the highest potential loan amount and the lowest APR ceiling. This is because they approve based on a credit score of over 700 and an income of $100k and above. In addition to their low APR rates, it has no origination fees, and its online registration process is very fast. This is the best lender for those who are approved.
Barclays With A Minimum Credit Score Of 700
Barclays is a better option for people with good to excellent credit because they offer low APRs and no fees. Although it does not have an explicit minimum credit score to be approved, you will probably need up to 700 credit score to get a loan funded. It does not charge late fees and origination fees, but the interest racks up for late payments. If you are financing a large purchase or consolidating debt, Barclays is a good option for you.
Freedom Plus With A Minimum Credit Score Of 640
With their fast application process, their confirmation is very fast, and you will know whether you are approved or not very fast. It does not only look at your credit score; it also looks at other factors with an average credit score of up to 720. They offer no hidden fees with quick funding times when you are finally approved.
The Payoff With A Minimum Credit Score Of 640
This is a peer-to-peer lender who gives out loans to people who will like to get out of credit card debt. They have a personalized recommendation service which will boost your journey out of debt. They stand for flexible payment during accidental events like a job loss. This is a good option if you have finished your credit card transfer options and you have a high-interest credit card debt.
Lending Point With A Minimum Credit Score Of 600
This is a good option for people with poor credit scores. It has a minimum credit score of 600 or less. Although Lending Point accepts lower credit scores, it does not use only that to approve borrowers; there are many factors it takes into consideration when judging applicants. They also have flexibility in their lending process and its application process.
Upstart With A Minimum Credit Score Of 620
In 2012, Upstart was created by former Google employees and its operation depends on the credit score. The Upstart’s innovative approach can help people with low credit score but with strong future earning potential.
Avant With A Minimum Credit Score Of 580
This features the lowest minimum credit score, and it is the option for those who find it hard to be approved by other lenders. This lender has a fast approval process, and it approves borrowers within 15 minutes of the successful submission of their application. They have a late fee forgiveness policy whereby they will give you your $25 late fee back if you miss one payment but meet up with the next three.
Marcus With A Minimum Credit Score Of 660 (FICO)
Marcus, which is a division of Goldman Sachs, targets borrowers with those that have credit histories and with good credit scores even though it has a minimum score of 660 (FICO). It offers a great best-in-class fee structure with no origination, prepayment, or late fees. With their flexible loan terms, Marcus is a great option for borrowers.
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