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Need Cash Fast? Compare Emergency Loan Options

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.

A financial emergency can strike at any time, and you may suddenly find that you need an abundance of cash — fast. Unfortunately, not everyone is able to get through these situations without borrowing money.

Tens of thousands Americans are living paycheck to paycheck. According to a recent consumer expectations survey by the New York Federal Reserve, one in three Americans say they wouldn’t be able to come up with $2,000 within a month to cover an unexpected expense.

If you don’t have an emergency fund, what do you do when you get hit by an unexpected medical bill or your car breaks down? We give you options for finding money quickly if you need it right away, and options if you can afford to wait.

When you need money in 1 or 2 days

Credit cards

If you don’t need cash, your credit card could be a way for you to handle an emergency almost instantly. As expensive as credit cards are, the APRs are generally not going to be too much higher than 30%.

“It’s not ideal,” Chris Dlugozima, a financial wellness expert at GreenPath, a nonprofit debt and consumer credit counseling service that operating in all 50 states. “But if it comes down to a credit card or a payday loan that’s charging 500% interest, it’s sort of the lesser of two evils.”

A credit card can be a quick fix for a one-off emergency. However, if you routinely fall behind on bills, you should consider turning to your credit card with caution. The double-digit interest rate will quickly increase the amount you owe if you’re not able to pay the balance off in full on time.

Credit Cards

Pros

Cons

It allows card holders to access funds quickly.

High APRs, averaged at 16%.

There may be flexibility if you struggle with credit card debt. For instance, you could try to work out a repayment plan with your credit card company.

Your debt can quickly snowball if you keep getting into credit card debt for emergencies.

APRs are lower than those of credit card cash advances.

Credit card cash advances

In a time-sensitive situation, a credit card advance allows you to borrow cash against your line of credit. You request the money at an ATM with your credit card and a cash advance PIN, in person at a bank, or with convenience checks you make out to yourself and cash.

While they are relatively easy to obtain in emergencies, cash advances typically have higher APRs than regular purchases and they carry fees (3% to 5% of the money borrowed). Unlike a regular purchase, where interest doesn’t start to hit unless you don’t pay the balance, interest starts accruing right away when you advance money.

It can be a costly way to borrow money, but if you think a cash advance is the best option for you, make sure you pay the advance off as quickly as possible.

Cash Advances

Pros

Cons

It allows card holders to access cash quickly.

Higher APRs than normal— usually up to 30%+.

There is a service fee and possibly an ATM fee.

Your cash advance credit limit may be different than your credit limit for purchases. For example, a bank may give you a total credit limit of $5,000 but limit you to using $2,500 of it for a cash advance.

Signature loans

If you have relatively good credit and a good relationship with a bank, you can try to get a signature loan or a personal loan in an emergency. Your local community bank, credit union, or a major retail bank might be willing to work with you in this situation.

A signature loan is an unsecured form of borrowing, and its interest rates range from 8% to 15%, depending on your credit and the relationship you have with the bank. It usually has shorter terms than other personal loans, ranging from just a few months to 4 to 5 years, on average.

The application and approval process can be quicker because it’s a shorter-term, less risky loan. To apply, you must submit qualifying financial documents, including proof of income and employment.

Signature Loans

Pros

Cons

The underwriting process can be quick.

APRs are higher than collateral-based loans.

They carry lower APRs than credit cards.

There’s a lack of flexibility after you take out a loan if the emergency is on-going and you need to borrow more.

You will know how much to budget for debt repayment every month.

Payday loans and auto title loans

Payday and auto title loans are high-cost loans that can be obtained easily and quickly from storefront or online lenders. Consumer and financial experts strongly recommend borrowers steer clear of such loans because they are designed to profit based on borrower’s inability to repay.

Payday loans are small-dollar personal loans that become due in a lump sum on your next payday. A typical two-week payday loan with a $15-per-$100 financing fee translates to an annual percentage rate of almost 400%. In comparison, the benchmark APR for affordable small loans is 36%. If you can’t repay on the next payday, you can roll over your debt and incur another $15 fee — that’s when a debt trap begins.

Of the 2,900 payday loan complaints received by the Consumer Financial Protection Bureau in 2017, 30% were about unexpected fees and 15% on their unaffordability.

A title loan is a secured loan, and you have to put up your car as a collateral to get it. Title lenders charge an average of 25% as a monthly financing fee, which adds up to an APR of at least 300%, according to the FTC. If you can’t repay the loan at all, you risk losing your car.

“You should try everything else,” said Juan Guevara, a certified financial planner based in Colorado. “And if there’s absolutely no other way to do anything, think about those shorter term loans.”

If these risky loans are your last resort to cover an emergency, be sure to pay off the debt in the shortest term possible to avoid getting caught in a debt trap or losing your car.

Payday/Title Loans

Pros

Cons

The underwriting is both weak and quick.

They are extremely expensive loans with triple-digit APRs.

Borrowers may risk getting caught in a debt trap if they can’t repay payday loans.

Borrowers may lose their cars if they can’t pay off the debt.

Alternatives

Negotiate with your creditor

When you are in a financial emergency, the first step is to try to negotiate with your creditor before borrowing money. Before a bill comes due, talk to your creditors and explain the circumstance. If you need a few more days to come up with the money, they’re way more likely to work with you then you might realize. Many utility companies and hospitals offer lower interest — even 0% — payment plans to make sure that you can pay past due balances over the course of several months.

Ask for help from friends and family

If the negotiation doesn’t work out, ask your family or friends and see if they can loan you money before turning to risky, expensive loans.

“There might not be an interest rate attached to that but you also got to be careful that you could be damaging a relationship there if you don’t end up paying [the debt] back,” Guevara said.

When you need money in 1 or 2 weeks

“Payday alternative” loans from credit unions

If you have a little bit more wiggle room, plenty of community banks and credit unions offer small-dollar loans with much lower interest rates than payday or title loans. These types of financial institutions are much better regulated than high-cost lenders.

For example, all federal credit union loans have an 18% interest cap, with one exception — Payday Alternative Loans, which have interest rates capped at 28%.

“Payday alternative” loans

Pros

Cons

They are safer loans compared to unaffordable payday lending.

They carry fairly high APRs.

The loan term is short, ranging from one to six months.

It takes a while to obtain the loan. Borrowers must be members of the federal credit union for at least one month.

The loan amount is small, typically up to $1,000.

Personal loans

Personal loans offer perhaps the greatest flexibility when an emergency strikes. You can borrow money at a fixed interest rate over a fixed amount of time, then you pay a fixed monthly payment until your loan is paid off.

The process to apply for a personal loan is similar to applying for a credit card or auto loan: The lender will run your credit and offer you a certain rate based on your creditworthiness. Besides your credit score, you’ll need to prove that you have the ability to repay your loan, usually with pay stubs or other evidence of employment.

A personal loan is a form of unsecured borrowing, which means its interest rates are generally higher than secured loans, such as a mortgage. The higher your credit score, the lower rate you may qualify for. Nationally, a personal loan with a 24-month loan term carries an average 10.31% interest rate. You can apply for a personal loan from banks and online lenders. Use our table below to compare personal loan options to find the best option!

LendingTree
APR

As low as 3.99%

Credit Req.

Minimum 500 FICO®

Minimum Credit Score

Terms

24 to 60

months

Origination Fee

Varies

SEE OFFERS Secured

on LendingTree’s secure website

LendingTree is our parent company

Advertiser Disclosure

LendingTree is our parent company. LendingTree is unique in that you may be able to compare up to five personal loan offers within minutes. Everything is done online and you may be pre-qualified by lenders without impacting your credit score. LendingTree is not a lender.


A Personal Loan can offer funds relatively quickly once you qualify you could have your funds within a few days to a week. A loan can be fixed for a term and rate or variable with fluctuating amount due and rate assessed, be sure to speak with your loan officer about the actual term and rate you may qualify for based on your credit history and ability to repay the loan. A personal loan can assist in paying off high-interest rate balances with one fixed term payment, so it is important that you try to obtain a fixed term and rate if your goal is to reduce your debt. Some lenders may require that you have an account with them already and for a prescribed period of time in order to qualify for better rates on their personal loan products. Lenders may charge an origination fee generally around 1% of the amount sought. Be sure to ask about all fees, costs and terms associated with each loan product. Loan amounts of $1,000 up to $50,000 are available through participating lenders; however, your state, credit history, credit score, personal financial situation, and lender underwriting criteria can impact the amount, fees, terms and rates offered. Ask your loan officer for details.

As of 28-Feb-2019, LendingTree Personal Loan consumers were seeing match rates as low as 3.99% (3.99% APR) on a $10,000 loan amount for a term of three (3) years. Rates and APRs were based on a self-identified credit score of 700 or higher, zero down payment, origination fees of $0 to $100 (depending on loan amount and term selected).

Compare offers and shop for a personal loan on MagnifyMoney’s personal loan online market.

Personal loans

Pros

Cons

There are a variety of loan amounts and terms to choose from.

APRs can be high if your credit is not great.

You know exactly how much you will ultimately pay in interest.

If you have a situation where you don't know exactly how much cash you're going to need, a personal loan can be limiting since you must apply for a set amount of money.

You request a certain amount of money to cover an emergency, and so there's no temptation to borrow additional funds later.

Credit cards with 0% intro APR

If your credit score is good, apply for an introductory 0% interest credit card. Balance Transfer credit cards let you wait as long as 21 months to pay off your balance without accruing interest.

A balance transfer card is a solid option for those with a tall stack of credit card debt. It allows users to move debt from a high-interest credit card to a card with a promotional 0% APR period (not through same card issuer). As a result, you could pay less in interest than you would if you kept the debt where it is. But if you can’t repay your debt before the promo period ends, the credit card company may retroactively charge you all the interest that they would’ve charged during the intro period.

Credit cards with 0% intro APR

Pros

Cons

You can borrow money for 0% interest for a period of time.

If you can’t repay your balance within the 0% interest period, you may be hit with all the interest you would have accrued during the intro period — known as deferred interest.

Some cards charge $0 intro balance transfer fees, allowing you to cut costs.

You don’t know exactly how much money you will ultimately pay in interest.

The new card may offer a sign-up bonus and/or long-term perks, although this may not be a concern when you are in an emergency.

You need a good or excellent credit score to qualify for the best offers (generally 700 and up).

If you are in an ongoing financial tragedy, a credit card gives you flexibility in terms of the amount of money you can borrow.

In most cases, you have to pay a balance transfer fee — typically 3% of your total transfer amount.

401(k) loans

A 401(k) loan allows you to borrow up to $50,000 or half of the total amount of money in your account, whichever is less. Most 401(k) plans offer such loans.

The funds are taken directly out of your 401(k) account balance and a repayment plan is created based on the amount you borrowed and the interest rate you agreed to. When you make payments, the money goes back into your 401(k) account, typically through an automatic payroll deduction. The maximum loan term is usually five years, and you’ll need to make payments at least quarterly.

If you fail to repay the loan on deadline, the money withdrawn is counted as taxable income and the IRS will charge you a 10% early withdrawal penalty if you are under age 59½.

401(k) loans

Pros

Cons

You can get money relatively quickly without any credit check because you are essentially borrowing from yourself.

If you default on the loan, the money you borrowed will be taxed and hit with a 10% penalty unless you’re already age 59½ or meet other special criteria.

You have a long time to repay the loan.

The money you borrowed is not participating in the market and you may lose out on compound interest. It affects your portfolio performance over time.

The interest you pay back to the account is money put back in your retirement fund.

Alternatives

Asking your employer for help

While it’s not common, some employers may offer paycheck advances or financial help in other ways to help you get through an emergency. For instance, some employers have an Employee Assistance Program (EAP), which are designed to help resolve problems workers encounter in their life, financial and personal alike.

If your company doesn’t have an EAP, you can still ask if they can provide some type of loan or even give you a raise if you’ve been doing a good job, Guevara suggested. Even if they decline your request, it doesn’t hurt to ask.

Negotiate your charges

As we discussed earlier, negotiating is probably one of the best tools you have when an emergency arises. Explain your situation to your creditor and they may work out a payment plan with you or simply extend your due date, depending on the specific situation.

When you need money in 1 or 2 months

Home equity loans or HELOC

When you have time on your side, you may leverage the equity in your home to cover short-term emergency needs. You can take the time time to shop around with different lenders for a home equity loan or a home equity line of credit (HELOC). Both loans are secured by your house.

A home equity loan is a fixed-rate installment loan. The borrower gets a one-time lump sum. It’s repaid in equal monthly payments over a fixed period of time — usually in 10, 15, 20 or 30 years. It’s the second mortgage on your house.

A HELOC, on the other hand, is a revolving credit line. How much you can take out will depend on your home’s value, your remaining mortgage balance, your household income and your credit score. HELOCs typically have variable interest rates, so it’s important when you’re applying for a HELOC to understand exactly how much can the interest rate go up.

You can apply for a HELOC and leave it open, allowing you to draw funds from it as needed; it can stay open for up to 10 years. As you pay off the principal, your credit gets replenished and you can use it again. You only pay interest during this time period. After the line expires, you enter the repayment period, when you’ll repay the remaining balance as well as any interest owed, if there is any.

Some financial planners advise their clients to open HELOCs even they are not planning to use them, just in case something comes up in the future. Most lenders will let you borrow up to 85% of your home value, minus your outstanding debt.

The appraisal and underwriting process for both loans takes one to two months. Qualifications vary, but most lenders will check your credit and debt-to-income ratio. You should expect to pay closing costs and other fees upfront, which range from $500 to $2,000.

Interest rates on both loans are not that different from a regular mortgage rate, which is lower than other unsecured loans.

Home equity loans or HELOCs

Pros

Cons

Both have significantly lower APRs compared to other unsecured borrowing options, such as credit cards or personal loans.

You have to make monthly payments and you don't have a 0% interest promo period.

You have a long time to repay the loan and the monthly payments are usually quite small.

Both types of loans almost always have closing costs and other fees.

With a home equity loan, your monthly payment is predictable because your interest rate will be fixed.

If you take out a HELOC with a variable rate, your monthly payments may change.

You can withdraw funds as needed with a HELOC.

Defaulting on either loan could result in a foreclosure.

Alternatives

Sell some assets

If you have one or two months to come up with funds, you may want to see if you can generate some income by selling some of your assets, either doing a yard sale or selling your possessions on eBay.

A key takeaway

When emergencies arise and you don’t have rainy day cash, don’t panic — you should first and foremost try the cost-free ways to bridge a financial shortfall. If you can’t borrow money from friends and family or work out a payment plan with your creditor, then consider the least expensive loan that comes with the lowest level of risk after determining how much money you need and how much time you have to come up with the funds. Don’t focus just on the monthly payment, but the interest rate and the loan term as well.

After recovering from this current financial emergency, start planning for the next one. Life will inevitably throw a curveball at you again, be it unexpected job loss or an astronomical hospital bill. If you start putting money away now, you will have the money to deal with the next financial setback.

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.

Shen Lu
Shen Lu |

Shen Lu is a writer at MagnifyMoney. You can email Shen Lu at [email protected]

Get Personal Loan Offers
Up to $50,000

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Personal Loans

Prosper Personal Loan Review

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.

APR

6.95%
To
35.99%

Credit Req.

640

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

2.41% - 5.00%

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on LendingTree’s secure website

Advertiser Disclosure

Prosper is a peer-to-peer lending platform that offers a quick and convenient way to get personal loans with fixed and low interest rates. ... Read More


For example, a three-year $10,000 loan with a Prosper Rating of AA would have an interest rate of 5.31% and a 2.41% origination fee for an annual percentage rate (APR) of 6.95% APR. You would receive $9,759 and make 36 scheduled monthly payments of $301.10. A five-year $10,000 loan with a Prosper Rating of A would have an interest rate of 8.39% and a 5.00% origination fee with a 10.59% APR. You would receive $9,500 and make 60 scheduled monthly payments of $204.64. Origination fees vary between 2.41%-5%. APRs through Prosper range from 6.95% (AA) to 35.99% (HR) for first-time borrowers, with the lowest rates for the most creditworthy borrowers. Eligibility for loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All loans made by WebBank, member FDIC.

Prosper personal loan details
 

Fees and penalties

  • Terms: 36 or 60 months
  • APR range: 6.95% to 35.99%
  • Loan amounts: $2,000 to $40,000
  • Time to funding: On average, borrowers can see funds deposited in their bank accounts within a week of starting the loan review process. However, investors will have up to 14 days to fund loans.
  • Hard pull/soft pull: Prosper does a Soft Pull on your credit when you check your rates.
    Origination fee: Origination fees range from 2.41% - 5.00% and will be deducted from the final loan amount.
  • Prepayment fee: Prosper has no prepayment penalties for paying your loan off early.
  • Late payment fee: You will be assessed a late fee of $15 or 5% of your unpaid monthly amount — whichever is greater — if you have not paid in full within 15 days of your due date.
  • Other fees: Prosper charges a check processing fee — the lesser of $5 or 5% of your monthly payment — as well as an insufficient funds fee of $15 for each returned or failed payment.

Eligibility requirements

  • Minimum credit score: 640
  • Minimum credit history: Borrowers must have at least three open trades on their credit reports; fewer than five credit inquiries over the last six months; and no filed bankruptcies within the last year.
  • Maximum debt-to-income ratio: A borrower’s DTI must be below 50%.

In addition, borrowers must:

  • Be 18 years of age
  • Have a bank account and a Social Security number
  • Report an income greater than $0 and debt-to-income ratio of less than 50%

Prosper is not available to borrowers in Iowa or West Virginia.

Applying for a personal loan from Prosper

To apply for a loan through Prosper, start by filling out their online form to check your rates, which will trigger a Soft Pull on your credit — this does not impact your score. You’ll have to provide some personal information, including your physical address, birthdate, email, annual income, monthly housing cost and employment status. You can also apply via phone at 877-611-8801.

Your loan offer is based on your Prosper Rating, a proprietary score assigned to you when you apply. This score indicates the level of risk you pose to lenders and is intended to create consistency in the evaluation and approval process. An AA rating indicates the lowest estimated annual loss (up to 1.99%), while an HR rating represents the highest (15% or more).

If you choose to accept the offer you receive, you can submit documents for verification via email to [email protected], or upload them within your Prosper account; the latter is recommended. Log in to check the status of your documents, application and the percentage of funding you’ve received. Once you accept an offer and request funding, Prosper will perform a hard inquiry on your credit.

Your loan will be listed for up to 14 days, during which investors commit funds, and Prosper completes the underwriting and verification process. The latter usually takes seven business days or less.

Once your loan application has been approved and your listing is funded, you can expect to see your money deposited in your bank account within 1 to 3 business days. However, if your loan is not funded after 14 days, your listing will be canceled and you’ll need to create a new one.

Pros and cons of a Prosper personal loan

Pros:

Cons:

  • Qualify with lower credit. Prosper will consider applicants with scores as low as 640, though the best rates are offered to those with excellent credit. Borrowers can receive funds in as little as one business day after loan approval.
  • Check rates with a Soft Pull. Your credit won’t be affected when you check your interest rates with Prosper.
  • No prepayment penalties. Prosper offers longer terms of three and five years, but you won’t be penalized if you are able to pay your loan down early.
  • The origination fee. Prosper charges 2.41% - 5.00% to originate your loan, so consider whether this added cost makes sense for you.
  • Potential to go unfunded. Investors have to commit to your loan within 14 days of listing. If this doesn’t happen, you will have to create a new listing, which means more time before you receive your funds.

Who’s the best fit for a personal loan through Prosper

If you have average credit, Prosper may be a good fit for you. With a minimum score requirement of 640, you’ll have slightly more leeway than you would with companies who have stricter standards. However, you’re more likely to qualify for a better rate with a higher score — APRs at Prosper go up to 35.99%, which is higher than with lenders with similar credit requirements.

Prosper is also a good option for those who want to reduce their monthly payments and pay down their loans over a longer period of time. Terms are set at 36 or 60 months — and if your financial situation improves and you are able to pay more quickly, there are no penalties to do so.

Checking rates at Prosper doesn’t impact your credit, so there’s no harm in gathering this information and comparing it with competitors.

Prosper consumer reviews

Prosper has an A+ rating with the Better Business Bureau. On LendingTree, our parent company, customer reviews are generally positive, with a rating of 4.65 out of 5 stars on LendingTree.

Reviewers repeatedly praise the simple and efficient process of applying for a loan with Prosper, and say the company provides excellent customer service. One reviewer summed up the sentiments of most: “The application was quick and easy and I had the cash within days,” said Mark from Slippery Rock, Pennsylvania, adding that he was “very pleased with the ease of it all.”

Of those who left less-than-positive reviews, many reports primarily complained about the company’s high interest rates and fees.

Prosper FAQ

Propser is a peer-to-peer lending marketplace, which means it matches borrowers with investors. Borrowers can apply for a fixed-rate unsecured loan. Loan terms are for 36 or 60 months. You can get a loan for between $2,000 and $40,000.

Prosper rates each applicant and assigns you a proprietary score that indicates the level of risk you may pose to investors. The score is based on information you provide, including your credit score, and determines if you’ll be approved for a loan and, if so, the terms of that loan.

Your loan funds can be used for almost any purpose, including consolidating existing debt, paying for medical expenses, buying a vehicle and financing home-improvement projects.

Once you submit your application, the loan review process may take up to 14 days, though it’s usually completed in less than 7 days. Once your loan is approved, it can take 1 to 3 days to show up in your bank account, depending on your bank.

If you don’t qualify for a loan the first time you apply, you will receive notice as to why your application was rejected. You may reapply for another loan after 120 days.

If you can’t pay your bill within 15 days of the due date, your account will be considered delinquent and a late fee will be assessed. Bills that are more than 120 days overdue will be reported as “charge-offs,” which will negatively impact your credit score and prohibit you from borrowing from Prosper in the future.

Yes, if you’re able to, you may pay off your loan early with no prepayment penalty fee. You can see your pay-off amount and make additional payments by signing into your Prosper account.

Alternative personal loan options

Lending Club

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

Like Prosper, LendingClub is a peer-to-peer lending platform funded by investors. The rates and terms are similar, and they won’t do a hard pull on your credit until after you’ve checked your rates and completed your application.

LendingClub is a good alternative if you don’t meet Prosper’s minimum credit score requirement — they will consider borrowers with scores as low as 600. You will pay an origination fee of 1.00% - 6.00% of your loan amount.

There are no prepayment penalties. Expect to wait up to seven days to see your funds deposited. Loans aren’t available to residents of Iowa, Guam and Puerto Rico.

Upgrade

Upgrade
APR

7.99%
To
35.89%

Credit Req.

620

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

1.50% - 6.00%

SEE OFFERS Secured

on LendingTree’s secure website

Upgrade is an online lender that offers fairly priced personal loans for a term of either 36 or 60 months.... Read More.

Upgrade is an online lending platform that offers similar personal loan rates, terms and fees. You can check your rates without impacting your credit — sign up for autopay and get a better rate.

Borrowers can get between $2,000 and $40,000 through Upgrade. The company claims most borrowers can expect to see their funds within four business days of approval.

Marcus by Goldman Sachs®

Marcus by Goldman Sachs®
APR

5.99%
To
28.99%

Credit Req.

Varies

Minimum Credit Score

Terms

36 to 72

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

Marcus by Goldman Sachs® offers personal loans for up to $40,000 for debt consolidation and credit consolidation. ... Read More


Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans).Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. For New York residents, rates range from 5.99% to 24.99% APR.

Marcus by Goldman Sachs offers a no-fee personal loan. Rates are also slightly more favorable than those offered through Prosper. Terms are for 36 to 72 months, which gives you more flexibility to pay over time.

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.

Julie Ryan Evans
Julie Ryan Evans |

Julie Ryan Evans is a writer at MagnifyMoney. You can email Julie here

Emily Long
Emily Long |

Emily Long is a writer at MagnifyMoney. You can email Emily here

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Personal Loans

Finova Financial Personal Loan Review

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.

Finova Financial
APR

18.00%
To
204.00%

Credit Req.

Varies

Minimum Credit Score

Terms

12

months

Origination Fee

Up to $10 per $100 of the loan

SEE OFFERS Secured

on LendingTree’s secure website

Finova Financial personal loan details
 

Fees and penalties

  • Terms: 12 months
  • APR range: 18.00% to 204.00%, varies by state. It’s unclear if these rates include all finance fees.
  • Loan amounts: Varies based on state, vehicle and monthly income
  • Time to funding: As soon as the same day
  • Hard pull/soft pull: Soft Pull to check your rates and terms. Hard pull if you choose to submit a full application.
    Origination fee: Up to $10 per $100 of the loan
  • Prepayment fee: None
  • Late payment fee: Not specified
  • Other fees: $25 credit investigation fee, $75 DMV lien fee, filing fee of $0 to $75 (depending on state), document stamp tax (depending on loan amount)

Eligibility requirements

  • Minimum credit score: As long as you own your car outright and it has enough equity to fund your loan, you should be able to get approval.
  • Minimum credit history: No minimum, but borrower cannot currently be in bankruptcy.
  • Maximum debt-to-income ratio: Not specified.

To secure a personal loan with Finova Financial, one of the most important requirements that applicants will have to meet is the owning of a vehicle. This vehicle must be in the borrower’s name, have a car title that is lien-free and have comprehensive and collision insurance. Borrowers are not required to obtain Finova’s voluntary debt cancellation addendum, but should a borrower not be able to provide proof of insurance, this is mandatory.

In addition to the vehicle requirement, applicants will need to be U.S. citizens who are at least 18 years old and residents of Arizona, California, Florida, New Mexico, South Carolina or Tennessee. They cannot be active-duty service members and must have verifiable income.

Applying for a personal loan from Finova Financial

Applying for a Finova Financial personal loan is simple. The process is fairly quick, and begins with a short form on Finova’s homepage to determine if interested parties prequalify for a loan. At this stage, Finova only requests the applicant’s name, phone number, email and information about their vehicle, including the make, model and mileage.

Upon submission of this information, applicants will be informed of the probability of being approved for a loan. Once the results from the prequalification process are reviewed by the applicant, the application can be completed by logging into their account.

At this point, applicants can request a loan, which will involve their Social Security number as well as details regarding residency, vehicle and requested loan amount. After this, they will be able to schedule a time to speak with a Finova Financial representative. During this call, the representative or specialist will evaluate and review the applicant’s vehicle, monthly income and residency information.

Applicants will then need to send in various documents for verification purposes, including photos of their vehicle. There will also be two forms: one for the lien that will be placed on the title of the vehicle and a power of attorney. They will need to be signed and sent back along with the title for the vehicle. When all signed forms have been returned, borrowers will be able to receive their funds the same day via MoneyGram.

Pros and cons of a Finova Financial personal loan

Pros:

Cons:

  • Poor credit accepted: Bad credit likely won't hold you back from securing a Finova Financial loan as long as you own your vehicle and aren’t in bankruptcy.
  • Prequalification: Applicants can review rates before submitting a full loan application, which may then require a hard pull on your credit.
  • Funding time: Once approved for a loan and all documents and forms are signed and returned, borrowers may receive their funds the same day.
  • Funding and payments via MoneyGram: Loan funds are sent to customers via MoneyGram (which may be inconvenient if you prefer a checking or savings account). Monthly payments can also be made online or at one of more than 30,000 MoneyGram locations.
  • Collateral: Applicants are required to use their vehicle as collateral. The vehicle must have prepaid comprehensive and collision insurance with a deductible of $500 or less. The website doesn’t mention any deductible requirement for California borrowers.
  • Additional fees: There are multiple fees borrowers may have to pay. In addition to an origination fee, borrowers may also be charged credit investigation fees, DMV lien fees and more.
  • Availability: Only residents of Arizona, California, Florida, New Mexico, South Carolina and Tennessee can apply for a loan.

Who’s the best fit for a Finova Financial personal loan?

For those with poor credit but who own their car outright, a Finova Financial CLOC may be a good fit, especially if you need cash right away. Finova may be able to provide funding the same day as your approval. But there are other lenders who offer loans for those with bad credit that don’t require a car title as collateral.

Finova Financial consumer reviews

When it comes to online reputation, Finova Financial has a lot of ground to make up. The four-year-old lender has received 17 consumer complaints in the last three years. It currently has an F rating with the Better Business Bureau and is not accredited with the organization.

Finova Financial earned 3.7 out of 5 stars from customers who reviewed its services on LendingTree (Disclaimer: LendingTree is the parent company of MagnifyMoney).

Finova Financial FAQ

You have to own the vehicle and have a lien-free title to be eligible for a loan from Finova Financial.

You need to be a minimum of 18 years old and have a valid driver’s license.

Currently loans are only available to residents of six states — Arizona, California, Florida, New Mexico, South Carolina, and Tennessee.

Yes, you may be charged an origination fee, a credit investigation fee, a documentary excise tax, or a filing fee.

No. There are no prepayment penalties or fees.

You only have to purchase this addendum to receive a loan if you do not provide adequate proof of required insurance.

Alternative personal loan options

LendingClub

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

A loan through peer-to-peer lender LendingClub may be a good alternative to consider. Unlike a Finova Financial personal loan, collateral is not required, and loan amounts range from $1,000 to $40,000.

What stands out about LendingClub is that after checking their rates, applicants may receive more than one loan offer, leaving them to choose the one they believe is the best fit for them. Funding can take up to seven days and there is an origination fee that potential borrowers will want to consider before applying for a loan.

OneMain Financial

APR

16.05%
To
35.99%

Credit Req.

Varies

Minimum Credit Score

Terms

24 to 60

months

Origination Fee

Varies

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

If you have a credit score below 600, OneMain Financial is one of the few lenders that you can use to get a personal loan.... Read More


Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. The lowest APR shown represents the 10% of loans with the most favorable APR. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.

Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Florida: $8,000. Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. Texas: $8,000. West Virginia: $7,500. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

OneMain Financial offers loans from $1,500 to $30,000. Applicants can check rates prior to completing an application and if everything looks good, they can also apply for a loan online within minutes.

Applicants will have to speak to a specialist in order to secure a loan. They will have to visit a local OneMain Financial branch to have their identity, employment and income verified, as well as their collateral, if it is required for the loan. Having to visit a branch can be a drawback, but an added bonus for borrowers who select this lender is the OneMain Financial mobile app that makes payments fast and convenient.

LendingPoint

APR

15.49%
To
35.99%

Credit Req.

585

Minimum Credit Score

Terms

24 to 48

months

Origination Fee

0.00% - 6.00%

SEE OFFERS Secured

on LendingTree’s secure website

LendingPoint is an online lender that targets borrowers with fair credit, and allows borrowing up to $25,000.... Read More

A LendingPoint personal loan may be good for borrowers who have fair credit and need between $2,000 and $25,000. Potential borrowers can check rates prior to filling out an application, and if they are approved for a loan, funds are made available to borrowers by the next business day. An origination fee may be applied, but the process of securing a loan with LendingPoint is quick and simple, which can prove to be helpful when borrowers need funds sooner rather than later.

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.

Michelle Black
Michelle Black |

Michelle Black is a writer at MagnifyMoney. You can email Michelle here

Kristina Byas
Kristina Byas |

Kristina Byas is a writer at MagnifyMoney. You can email Kristina here

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