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Personal Loans

Are Long-Term Personal Loans Ever a Good Idea?

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

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The importance of having a rainy day fund can’t be overstated — you’re sure to encounter a storm at some point. While our insiders suggest setting your target at a minimum of three to six months’ worth of expenses, actually doing so can be a slow climb. This is especially true if you’re splitting your efforts between paying off debt. For many, a trip to the emergency room or a stint of unemployment is enough to seriously rock the financial boat.

That’s where long-term personal loans come in. Like any type of financing, they come with both benefits and risks. But if used wisely, they could potentially rescue you from a financial nightmare.

What is a long-term loan?

Personal loans are doled out by lenders and, unlike credit cards, are not revolving lines of credit. When we say “long-term” personal loans, we’re referring to loans that stretch beyond the one-year mark. Some may last only 12 months, while others can take a decade or more to pay off.

The most important thing to remember about personal loans is that the interest rate, monthly payment and payoff timeline are all fixed, meaning there’s virtually no wiggle room when it comes to how much you have to pay every month. In other words, when you sign on, you’re committing to this bill for the long haul. This could be taken as either a pro or a con, depending on how you look at it.

On the one hand, the fixed payment keeps the finish line in sight. Credit cards, on the other hand, give you the oh-so-tempting option of just paying the minimum, which stretches out the life of the loan, resulting in you paying more in interest over the long term. On the flip side, if you stumble upon financial hard times, having the ability to make lower monthly payments can be a godsend.

That said, long-term personal loans can be used for just about anything — from consolidating debt to seeing you through a financial emergency. Since the money is typically deposited straight into your bank account, you can use it however you wish. Of course, they don’t come without some strings attached.

Let’s break down the fees and rates for personal loans

For starters, personal loans are considered unsecured debt.

“Unlike your mortgage or an auto loan where you’re leveraging an asset (your home or your car) as collateral, personal loans are attached to no such security,” Pamela Capalad, certified financial planner and founder of Brunch & Budget, tells MagnifyMoney.

“As such, lenders understandably see them as being inherently riskier,” she added.
“This is precisely why you can expect strict repayment terms and potentially higher interest rates.”

The APR may not stand alone. In some cases, you could be hit with an origination fee to the tune of 1% to 6%. Some companies will also try and sell you insurance or other expensive, unnecessary products with these loans, says Lynn Ballou, certified financial planner and CFP Board ambassador.

“And if they’ve front-loaded that loan with extra interest or charged you an origination fee, that’s actually costing you quite a bit more than if you’d just looked for a less expensive option,” she added.

In other words, borrowers beware. Before signing on the dotted line, be sure to read carefully through the terms and fees. Ballou then suggests running the numbers through an independent loan calculator to make sure it’s actually a good deal for you. After factoring in the interest rate and potentially an origination fee, would it be less expensive to go with a different financing option? (We’ll explore this shortly.) Also, is the monthly payment within your budget? These are make-or-break questions to ask yourself before pulling the trigger.

When a long-term personal loan makes sense

Now that we’ve picked apart the nitty-gritty details, let’s explore when a long-term personal loan might be a good idea. A personal loan can be a powerful consolidation tool for those struggling to eliminate high-interest debts — assuming you snag a better APR. In addition to saving money, you’ll have a clear timeline in place and the convenience having just one monthly payment.

When it’s the cheapest borrowing option

“Personal loans actually have some great interest rates, especially now since the market has gotten really competitive over the last few years,” said Capalad. “With a long-term loan, you’ll probably end up paying off your debt faster, or at least about the same time as doing some sort of debt snowball method.” The debt snowball method involves ordering debts from smallest to largest balances and tackling the smallest debts first.

As far as rates go, the better your credit score and higher your income is, the better chances you’ll secure a good rate. If you have poor credit, however, you should expect to see a higher rate. Personal loan rates can eclipse credit card rates, getting as high as 35.99%.

Capalad does offer another word of warning. If you’re using a personal loan to consolidate debt, you have to be really disciplined to put those credit cards away. When people use the loan to get their cards down to what Capalad calls “that nice $0 balance,” it can be extremely tempting to run up the balances again. That said, if you’re disciplined and committed to using a long-term personal loan to get on stronger financial footing, it can represent a great solution.

Debt consolidation aside, sometimes it simply works out better from a dollar-and-cents perspective. If you find a personal loan with no origination fee and a reasonable APR, it may very well be less expensive than getting a cash advance via a credit card, especially since many financial institutions charge a 1% to 5% cash advance fee.

“Sometimes a personal loan is actually the least expensive option available, but sometimes it’s also the only option available,” added Ballou. “Not everyone has something to collateralize, like equity in their home to unlock a home equity loan.”

When a long-term personal loan doesn’t make sense

If you’re stuck between a financial rock and a hard place, being hit with costly fees or high interest rates is certainly better than filing for bankruptcy or defaulting on your bills. The good news is that doing some light research might reveal a different option that’s a better fit than a personal loan.

Begin by asking yourself what you need this loan for. Is it to see you through a financial emergency that’s unlikely to happen again? Or is it to take a last-minute vacation? That may sound obvious, but it’s a legit question to ask because it’s all about trade-offs here.

Let’s say you take out a five-year $5,000 personal loan at 19.5% APR. If you crunch the numbers using our personal loan calculator, it translates to a $131 monthly payment — you’ll also spend an additional $2,865 on interest. Is that really worth it for a family vacation? Perhaps not.

You might, on the other hand, feel like it’s your best option if you’re swimming in credit debt with higher interest rates and need a debt consolidation loan.

The scenario plays out better if you have a fully-funded emergency savings.

“If you have a steady job and you’re at that three- to six-month level, and the trip is extremely important to you because it’s for, let’s say, your best friend’s wedding, you’re better off dipping into your emergency fund and then paying yourself back — but you have to be extremely committed to topping it back off as soon as possible,” said Capalad.

When your cash reserves are running low and a long-term personal loan isn’t your best option, it’s time to explore the financial alternatives. (We’ll dive deeper into your options below.)

Getting a long-term personal loan

Ready to move forward with a long-term personal loan? Here’s what should be on your radar:

Checking your credit score

Whenever you’re seeking new financing, your credit score is perhaps the most important factor. This number basically sums up how creditworthy you are, which is what lenders care about. The higher your score, the better interest rates and financing options you’ll get. Here’s how FICO, America’s leading credit reporting agency, breaks down this all-important three-digit number. (There are a number of ways to access your credit score for free.)

This number is actually a reflection of what’s on your credit report, which sums up your credit history. Experian, TransUnion and Equifax (the three major credit bureaus) each generate their own report, which you can pull for free once a year at AnnualCreditReport.com. Doing so is vital to maintain a healthy credit score. What’s more, finding and disputing an error on your report may give your score a significant boost.

Where to get a long-term personal loan

Applying for a long-term personal loan isn’t all that different from locking down one with a shorter term. The internet has certainly streamlined the process. LendingTree, which is MagnifyMoney’s parent company, offers a way to compare loans from top lenders like BestEgg, Avant, LendingClub and more. Here, you can plug in a few pieces of information and possibly get quotes in a matter of seconds based on your credit score. It’s a soft credit pull, which won’t hurt your credit, but just know that when you officially apply with a lender, it will count as a hard inquiry.

Just be sure to compare rates as no two lenders are the same. Let’s say, for instance, your credit score sits at 660 and you’re looking to remodel your kitchen for $20,000. Short of a hard credit pull, here are some instant quotes:

APR

6.99%
To
24.99%

Credit Req.

Not specified

Minimum Credit Score

Terms

36 to 84

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Discover is a financial services firm that offers credit cards, deposit accounts and personal loans. ... Read More

APR

5.99%
To
24.99%

Credit Req.

640

Minimum Credit Score

Terms

24 to 60

months

Origination Fee

up to 5.00%

SEE OFFERS Secured

on LendingTree’s secure website

Payoff is a financial services firm that offers personal loans mainly to help consolidate credit card debt.... Read More

APR

Up to 29.99%

Credit Req.

640

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

0.99% - 5.99%

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

People looking for a process that is fast and straightforward can’t go wrong when applying through Best Egg for a personal loan. ... Read More


The Annual Percentage Rate (APR) is the cost of credit as a yearly rate and ranges from 5.99%-29.99%, which may include an origination fee from 0.99% - 5.99% that is deducted from loan proceeds. Any origination fee on a loan term 4-years or longer will be at least 4.99%. The loan term and the APR offered will depend on your credit score, income, debt payment obligations, loan amount, credit usage history and other factors. Additionally, the APR offered is impacted by your loan term and may be higher than our lowest advertised rate. Requests for the highest loan amount may result in an APR higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest rate.

Best Egg loans are unsecured personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC. Equal Housing Lender. "Best Egg" is a trademark of Marlette Funding, LLC. All uses of "Best Egg" on this site mean and shall refer to "the Best Egg personal loan" and/or "Best Egg on behalf of Cross River Bank, as originator of the Best Egg personal loan," as applicable. Loan amounts generally range from $2,000-$35,000. Offers up to $50,000 may be available for qualified customers who receive offer codes in the mail. The minimum individual annual income needed to qualify for a loan of $50,000 is $130,000. Borrowers may hold no more than two open Best Egg loans at any given time. In order to be eligible for a second Best Egg loan, your existing Best Egg loan must have been open for at least four months. Total existing Best Egg loan balances must not exceed $50,000. All loans in MA must exceed $6,000; in NM, OH must exceed $5,000; in GA must exceed $3,000. Borrowers should refer to their loan agreement for specific terms and conditions. Your verifiable income must support your ability to repay your loan. Upon loan funding, the timing of available funds may vary depending upon your bank's policies.

To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you.

As you can see, there’s a pretty wide gap when it comes to interest rates. The good news is that the longer the term, the shorter the monthly payment — but you’ll ultimately pay more in interest over the long haul. For example, let’s pretend you lock down that $20,000 loan with no origination fee and an APR of 16%. Now let’s compare what happens when we tweak the repayment timeline:

Payoff Timeline

Monthly Payment

Total Interest Paid

60 months

$486

$9,182

40 months

$648

$5,935

24 months

$979

$3,502

There are a lot of moving parts here, which is why reading the fine print is vital. Before we jump into that, let’s talk about getting pre-qualified.

Getting pre-qualified for a personal loan

It’s probably a term you’ve heard before, but let’s unpack what it actually means. Pre-qualification utilizes what’s known as soft credit pulls as opposed to hard inquiries. Doing this does not impact your credit, making it much easier to shop around for the best deals. Soft inquiries essentially give lenders a little sneak peek of your credit. Once you pull the trigger on a loan, the bank will then do a deep dive by pulling your full credit report. (FYI, hard credit inquiries typically only shave a few points off your score, depending on your overall credit health, and you’ll bounce back relatively quickly if you keep up with on-time payments.)

Applying for a personal loan

Once you’re ready to formally apply for a long-term personal loan, you’ll need to gather up some documents. According to Ballou, this typically includes:

  • Photo ID
  • Proof of income and employment
  • Bank statements
  • Possibly a copy of a W-2 or tax return as proof of past income

Once the application process is in motion, the next step is approval, but Ballou says you could be denied if the lender sees you as a credit risk. Having bad credit, a short credit history, unreliable income or unsteady employment could all work against you.

Read the fine print

Before making the commitment, thoroughly read through all the terms and fine print. Here are some helpful questions to ask yourself:

  • Do you really need this loan? If it’s a true financial emergency, the answer might be yes. Otherwise, think long and hard before going all in.
  • Can your budget comfortably absorb the monthly payment? Remember, personal loans are locked in; you’re on the hook for that payment every month.
  • Is there an origination fee? Run the numbers and also factor in the APR. How much will your loan actually cost you when all is said and done? Is there a cheaper alternative? (We’ll jump into this in the next section.)
  • Are you okay with the repayment timeline? Think about your long-term financial goals. If, say, you’d love to save for a down payment on a house within the next five years, will this loan impede your ability to do so?
  • Is a prepayment penalty hiding in the contract? This could make it costly to pay off your loan ahead of schedule.

Alternatives to a long-term personal loan

Depending on your situation, a personal loan may very well be your cheapest option. If not, you’re not out of luck. Here are some alternatives worth exploring:

Home equity loans & lines of credit

Home equity loans (HELs) and home equity lines of credit (HELOCs) both use your home as collateral. You’re basically borrowing against the equity you have in your home by way of a secured loan or credit line. To get the best rates, you’ll need a decent credit score (ideally 660 and up) and at least 15% equity in your home. You also don’t want your debt-to-income ratio to exceed the 43% mark. One other crucial point: if you default on your payments, the bank could seize your home, so make sure you’re really comfortable moving forward.

Cash-out mortgage refinancing

A cash-out refinance lets you borrow additional cash to use as you wish. You could also tweak the terms, like extending to a longer-term loan, to lower your monthly payment and give your budget some breathing room. This, of course, will keep your mortgage debt alive and well for a longer period of time, and there may be fees, but in the short term, it may be your least expensive option.

Balance transfer credit cards

Seeking a personal loan to consolidate debt? Utilizing balance transfer offers may be a more strategic way to go. This is when you jump on low- or no-interest promotional APR offers to pay off your existing balances. Then you knock out the new balance before that teaser introductory period ends.

“If you can aggressively pay down the debt, then you can save a lot of money, especially if you have a lot of debt,” said Capalad.

Just be sure to read the fine print. There’s usually an initial fee that could be as high as 4%. And once the promotional period ends, your APR may skyrocket. This option really only makes sense if you can eliminate the balance within that time. Also, most banks won’t let you transfer debt from one card to another within the same bank.

Traditional credit cards

Your financial emergency may cost you less if you finance it with a traditional credit card, especially if the interest rate is reasonable and you’re able to accelerate your payments. While some personal loans will hit you with a prepayment penalty, you’re more than welcome to pay more than the minimum balance on a credit card. Here’s a simple credit card debt calculator to help bring the numbers into focus.

Borrowing from family or friends

It may bruise your pride, but borrowing cash from loved ones just might save you from financial ruin. (According to LendingTree research, 94.5% of people surveyed said they wouldn’t charge interest on a loan to a family member.) If you’re face-to-face with a true emergency, tap into your personal network to see what options may be available. You can work together to determine the terms and even draw up a contract if it gives your benefactor some peace of mind.

The Pros and Cons of Long-Term Personal Loans

Let’s recap, shall we?

Pros:

  • Long-term personal loans translate to on-the-spot cash that’s typically deposited right into your bank account, which you can then use for whatever you want.
  • If you routinely make on-time payments, you’ll end up boosting your credit score in the long term.
  • Using personal loans to consolidate debt could save you big time in interest.
  • They’re good for folks who don’t have something to collateralize, like home equity or a car.

Cons:

  • The monthly payment and payoff timeline are fixed, and there’s no wiggle room. If you miss it, you’re in default, which could do a number on your credit score.
  • Depending on your credit score, you may not be eligible for a reasonable APR. This could cost you.
  • Your loan may come with a prepayment penalty.
  • Making this monthly payment over a long period of time could impact your ability to save for other financial goals.
  • Opting for a long-term loan over a short-term one means you’ll ultimately shell out more in interest payments.

The bottom line

Moving forward with a long-term personal loan really comes down to your individual situation. The big idea here is to choose the least expensive financing option.

Using credit to live beyond your means is one thing, but debt that gets you to a better place and adds value to your life is another. If a long-term personal loan can help see you through a financial emergency relatively unscathed, it might be worth taking on some new debt.

As Ballou aptly put it: “The cost may be worth what it’s giving you.”

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Marianne Hayes
Marianne Hayes |

Marianne Hayes is a writer at MagnifyMoney. You can email Marianne here

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Up to $50,000

$

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Best of, Personal Loans

Best Options for Covering the Cost of Adoption

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

adoption

You can’t put a price on the value of your child, but for couples who wish to adopt, the process can be quite costly. If you feel you are ready to start or grow your family through adoption but don’t have the funds to cover all the fees and expenses, you may want to consider an adoption loan.

What is the cost of adoption?

The cost of adoption can range enormously, based on factors such as whether you are adopting domestically or internationally, whether you are going with an agency or choosing a private adoption or whether you are adopting from foster care. The cost of going through an agency can be as much as $40,000, while an independent adoption is not that much less, at $34,000, according to AmericanAdoptions.com. An international adoption can run as high as $45,000, depending on the country from which you are adopting. The average cost of foster care adoption, however, is significantly less, at $2,744.

Whichever method you decide to choose, you may need some financial assistance. That is where an adoption loan can come in.

What is an adoption loan?

An adoption loan is essentially a personal loan you can take out to use for adoption-related costs. There are many personal loans on the market, so you shouldn’t limit your options as long as the loans you are considering are low-interest, have no or low fees and offer flexible repayment terms.

If you search online for the term “adoption loans,” you may find a few offers, but it’s best to search first for personal loans to broaden your search and help you locate the best loan option for you.

Here, to help you get started, are some of the best personal loans to use for adoption.

What to watch out for

Before you choose a loan for adoption costs, there are a few things you need to watch out for. Consider a realistic amount, for one. You may be able to cover some of the costs on your own, but some lenders who offer personal loans for adoption may encourage you to take out more than you need.

When taking out a loan, only you know how much you truly need, so it’s important to research the process thoroughly and formulate a realistic amount of expenses you can’t cover with your savings.

Another thing to watch out for is how some lenders may prey on couples’ vulnerability and eagerness to adopt. Companies who send out messages like “your child’s life is worth any cost” should be examined with caution.

When you take out a personal loan, you should always look at how affordable it will be. Is the interest rate low? Is there an origination fee, or any hidden fees? How short or long are the terms? Is there a prepayment penalty?

Ask yourself all of these questions and make sure you are positive about the answers and comfortable with them before you take out a loan. As with any loan, you’ll ideally want something low interest, with no fees and no prepayment penalties.

Be wary, too, of lenders promising affordable loans for people with bad credit, as this is almost never possible. In order to secure a low interest rate for your loan, you generally need to have good credit.

Affordable adoption loan requirements

LightStreamallows you to borrow anywhere from $5,000 to $100,000 with fixed APRs that range from 3.99% to 16.99% (with autopay). Terms range from 24 to 144 months, and the shorter your term is, the lower your rate may be. No origination fee means your loan costs will be lower. There will be a Hard Pull of your credit report upon applying.

APR

3.99%
To
16.99%

Credit Req.

Not specified

Minimum Credit Score

Terms

24 to 144

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

LightStream is the online lending division of SunTrust Bank.... Read More


*Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates without AutoPay may be higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 3.99% APR with a term of 3 years would result in 36 monthly payments of $295.20.

America’s Christian Credit Union specializes in adoption loans and lends up to $50,000, which should be more than enough to cover adoption expenses. Annual percentage rates start at 5.99% but can range from 8.90% to 10.90% for most borrowers. Borrowers have up to 84 months to pay back their loan, and the loan is good for domestic and international adoptions. This lender also offers home equity loans, with no closing costs or annual fees, to use for adoption costs. This includes a quarterly adjustable HELOC with a current starting APR of 3.5% and an annual adjustable HELOC with a current starting APR of 4%.

America’s Christian Credit Union
APR

8.90%
To
10.90%

Credit Req.

0

Minimum Credit Score

Terms

84

months

Origination Fee

0.00% - 0.00%

APPLY NOW Secured

on America’s Christian Credit Union’s secure website

SoFi is a popular lender offering a variety of personal loans at competitive rate and terms. Borrowers can receive anywhere from $5,000 to $100,000 with fixed APRs ranging from 5.99% to 17.67% and variable APRs ranging from 6.40% to 12.70% as long as borrowers sign up with autopay. Terms are 24 to 84 months, and there is no origination fee required.

SoFi
APR

5.99%
To
17.67%

Credit Req.

680

Minimum Credit Score

Terms

24 to 84

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

SoFi offers some of the best rates and terms on the market. ... Read More


Fixed rates from 5.990% APR to 17.67% APR (with AutoPay). Variable rates from 5.60% APR to 14.700% APR (with AutoPay). SoFi rate ranges are current as of August 7, 2019 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.60% APR assumes current 1-month LIBOR rate of 2.27% plus 3.08% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

All rates, terms, and figures are subject to change by the lender without notice. For the most up-to-date information, visit the lender's website directly. To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.

See Consumer Licenses.

SoFi Personal Loans are not available to residents of MS. Minimum loan requirements might be higher than $5,000 in specific states due to legal requirements. Fixed and variable-rate caps may be lower in some states due to legal requirements and may impact your eligibility to qualify for a SoFi loan.

If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

Upstart offers quick and easy approvals for loans up to $50,000 with APRs ranging from 4.73% to 35.99%. Borrowers need at least a minimum credit score of 620 to qualify. Loan terms are 36 or 60 months, and there is no early repayment fee. There is, however, an origination fee of 0.00% - 8.00% to keep in mind.

APR

4.73%
To
35.99%

Credit Req.

620

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

0.00% - 8.00%

SEE OFFERS Secured

on LendingTree’s secure website

Upstart is an online lender created by ex-Googlers.... Read More

Adoption grants

Before you look into loan options, you should see if you qualify for any grants to help fund the costs of adoption. An adoption grant can help provide you with partial funding throughout the adoption process to ease the financial burden.

There are quite a few adoption grants available, but most have specific criteria. For example, in order to qualify for a grant, you may need to adopt through a licensed agency, or adopt within the country.

National Adoption Foundation. This organization has very few strict requirements, and considers single adults who wish to adopt. The program has no exclusions based on race, ethnicity, gender, age, sexual orientation or income, and awards grants ranging from $500 to $2,000 depending on the needs of the family and the circumstances surrounding the adoption.

HelpUsAdopt.org. This organization awards grants to couples, singles and LGBT applicants who are U.S. citizens and wish to adopt. Recipients can use the funds for private, agency or domestic adoption, and award amounts range from $500 to $15,000. The organization awards grants in February, May, August and September.

A Child Waits Foundation. If you are adopting internationally and your annual household income does not exceed $130,000, you may qualify for an adoption grant from this agency, as long as you are a U.S. or Canadian citizen. Applicants can apply for a grant no sooner than three to four months prior to when their family makes their final adoption trip. There is a $20 application fee and grant amounts typically do not exceed $7,000.

Bottom line

If you need funding to help you adopt a child, it’s best to consider all your options and try to obtain a grant along with a low-interest loan to help cover the rest of your financial needs. You can take a look at more personal loan options for adoption all in one chart with our comparison tool.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Chonce Maddox
Chonce Maddox |

Chonce Maddox is a writer at MagnifyMoney. You can email Chonce at [email protected]

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Personal Loans

5 Personal Loans for Fertility Treatments

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The excitement of starting a family can turn into despair if you face difficulty getting pregnant. Thankfully, treatments including medications and surgery can make parenthood a possibility for couples having trouble conceiving on their own. However, these treatments may not always be covered by medical insurance; whether all or part of an infertility procedure is covered will depend on your insurance plan and where you live (some states have laws mandating coverage).

In vitro fertilization, or IVF, is one procedure in particular that insurance may not cover. A cycle of IVF can cost $12,400 on average, according to the American Society for Reproductive Medicine. Because success with IVF may require more than one cycle, the entire process can get quite expensive.

Instead of paying for fertility treatments out of pocket, a low-interest personal loan may be a solution. Here are just some of the many available personal loans to consider.

SoFi – Fixed rates starting at 5.99% APR

SoFi offers personal loans from $5,000 to $100,000 to cover medical costs. Terms are 24 to 84 months. Both fixed- and variable-interest loans are available. A variable-interest loan means your interest will fluctuate based on an index. SoFi does have a variable interest cap for personal loans. Generally, you should stick with a fixed-interest personal loan because your rate will stay the same throughout the entire term.

A variable-interest loan is only worth considering if you can pay it off quickly. In this scenario, you take advantage of very low interest for a short time and then pay off the loan before the interest changes. SoFi has no prepayment penalty, so you can do this without incurring a fee.

SoFi doesn’t charge for origination either. If you lose your job, SoFi has a unique borrower benefit as well. You may be able to pause payments until you find another position.

SoFi
APR

5.99%
To
17.67%

Credit Req.

680

Minimum Credit Score

Terms

24 to 84

months

Origination Fee

No origination fee

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on LendingTree’s secure website

Advertiser Disclosure

SoFi offers some of the best rates and terms on the market. ... Read More


Fixed rates from 5.990% APR to 17.67% APR (with AutoPay). Variable rates from 5.60% APR to 14.700% APR (with AutoPay). SoFi rate ranges are current as of August 7, 2019 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.60% APR assumes current 1-month LIBOR rate of 2.27% plus 3.08% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

All rates, terms, and figures are subject to change by the lender without notice. For the most up-to-date information, visit the lender's website directly. To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.

See Consumer Licenses.

SoFi Personal Loans are not available to residents of MS. Minimum loan requirements might be higher than $5,000 in specific states due to legal requirements. Fixed and variable-rate caps may be lower in some states due to legal requirements and may impact your eligibility to qualify for a SoFi loan.

If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

Earnest – Fixed rates starting at 5.99% APR

Earnest offers personal loans from $5,000 to $75,000. Loans have competitive interest and a streamlined online application process. Terms are 36 to 60 months. There are no application or origination fees. If you pay off the loan early, there are no prepayment penalties either.

Earnest takes a look at your entire financial profile, including your savings habits and earning potential, to qualify you for a loan. Most approved Earnest applicants are employed or have an offer letter, have at least a month’s worth of expenses in savings and enough monthly income to support their regular expenses and loan payments. Earnest will do a Hard Pull of your credit report when you apply.

Earnest
APR

5.99%
To
17.24%

Credit Req.

680

Minimum Credit Score

Terms

36 to 60

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Instead of offering credit-based loans, Earnest has taken a very nontraditional approach using a merit-based system.... Read More

Lending Club – Fixed rates starting at 6.95% APR

Lending Club is a peer-to-peer lender that offers fixed-rate loans, and also promotes fertility loan options. You can borrow $1,000 to $40,000. Loan terms are 36 or 60 months. Once approved for a Lending Club loan, you get a credit rating and loan options from which to choose. After accepting your loan terms, the loan appears in the marketplace where investors select loans to invest in.

Lending Club does charge an origination fee of 1.00% - 6.00%. How much you’ll pay for origination depends on the credit rating Lending Club assigns you. That credit rating is determined using factors including your credit history and credit score. Lending Club has no prepayment penalties.

APR

6.95%
To
35.89%

Credit Req.

600

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

1.00% - 6.00%

SEE OFFERS Secured

on LendingTree’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates and approvals for people with credit scores as low as 600.... Read More

LightStream – Fixed rates starting at 3.99% APR (with auto pay)

You can borrow $5,000 to $100,000 from LightStream for family planning, including fertility treatments and adoption. Loan terms are 24 to 144 months. To qualify for the lowest rates with LightStream, you need to have at least five or more years of positive credit history, no delinquencies, a stable income and money in savings.

The LightStream loan is transparent with fees. There are no fees for origination or early payment of the loan. LightStream also has a “rate beat” program. If you get approved for a personal loan by another lender with a lower interest rate, LightStream will try to beat that rate. The competitor loan must meet certain requirements to qualify for the program. LightStream doesn’t offer preapprovals at this time and will do a Hard Pull on your credit history at application.

APR

3.99%
To
16.99%

Credit Req.

Not specified

Minimum Credit Score

Terms

24 to 144

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

LightStream is the online lending division of SunTrust Bank.... Read More


*Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates without AutoPay may be higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 3.99% APR with a term of 3 years would result in 36 monthly payments of $295.20.

Upstart – Starting at 4.73% APR

Upstart has personal loans from $1,000 to $50,000 that can cover various life expenses including medical bills. Loans are available at 36 or 60 month terms. Upstart takes into account more than your credit history to decide whether you qualify. Your education and job history will also be considered.

At a minimum, you need a 620 credit score to qualify for this loan. You must also have no more than six inquiries on your report over the past six months. Like Lending Club, Upstart charges an origination fee. You’ll have to pay 0.00% - 8.00% for loan processing. Depending upon your risk profile, interest rates can be as high as 35.99% APR.

APR

4.73%
To
35.99%

Credit Req.

620

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

0.00% - 8.00%

SEE OFFERS Secured

on LendingTree’s secure website

Upstart is an online lender created by ex-Googlers.... Read More

Other options to pay for IVF

There are options besides personal loans to help you pay for IVF if you can’t afford to pay out of pocket. Here are a few.

  1. Health savings account (HSA). An HSA is a tax-advantaged savings vehicle that allows you to contribute pre-tax dollars to a fund you can tap for out-of-pocket medical expenses. If you have a high-deductible health insurance plan, you should have access to an HSA. If you’ve saved up a good amount in your HSA, these funds can be used to help pay for your IVF treatments. There are limits to how much you can contribute each year; in 2019, the limits are $3,500 for an individual and $7,000 for a family.
  2. Home equity loan. If you own your home and have a decent amount of equity, you might consider taking out a home equity loan, or applying for a home equity line of credit, to pay for your IVF treatments. Keep in mind the risks involved, however. If you cannot repay your home equity loan, you are putting your homeownership in danger. Only consider taking out such a loan if you know you can repay it with no problem.
  3. Credit card. Paying for your IVF treatment with a credit card may not be the best option, as the interest rates can be very high. However, if you are able to obtain a 0% interest card and pay all or most of the charges off before the promotional period ends and your rate rises, using your credit card may be the right choice.

Bottom line

While the loans noted here have competitive interest rates, it’s best to first consider those without an origination fee. Remember, you need to have an excellent credit score and a positive credit history to qualify for the very lowest interest rates with any of these companies.

Upstart and Lending Club could be good fallback options if you have trouble getting approved elsewhere. Both may qualify you with a credit score below 650.

You can also turn to RESOLVE, the national infertility association, for an extensive current list of infertility financing programs. These include CapexMD, EggFund and Prosper Healthcare Lending.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Taylor Gordon
Taylor Gordon |

Taylor Gordon is a writer at MagnifyMoney. You can email Taylor here

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