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Pay Down My Debt, Personal Loans

Personal Loans for People with Bad Credit

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

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Can I get a personal loan with bad credit?

If you have bad credit, it can be difficult but not impossible to get a personal loan. For some, it’s a situation full of painful irony: You have bad credit because you’re in debt; refinancing or consolidating that debt would help improve your credit but you have trouble qualifying for a good loan because you have bad credit.

Fortunately, there are lenders out there who will extend financing to those with less-than-stellar credit. You may not get the lowest interest rate, but you won’t be disqualified simply because your credit score is less than stellar. Lenders will consider other information as well as your credit, such as your income level and whether or not you have a cosigner with strong credit.

One of the most versatile ways to get funding is through a personal loan. Personal loans are unsecured installment loans, which means you’ll get a lump sum upfront to pay off your debts, and you’ll be left with just one fixed loan payment that will be due over a set period of time. Because the loan is unsecured, you won’t have to put up any collateral.

How does a bad credit score affect my loan?

A bad credit score indicates to lenders that you aren’t a reliable borrower. For whatever reason, you have struggled to make on-time payments in the past, or you have taken on a large amount of debt relative to your income.

Because you look risky, they may be more reluctant to lend you money at all. When you are offered a loan, it’s likely to be for a smaller amount with higher interest rates.

Where to shop for a personal loan

When you’re shopping for a personal loan, it’s important to comparison shop. You want to be sure you are getting the best rates and terms before signing your name on the dotted line.

MagnifyMoney’s parent company, LendingTree, can potentially connect you with numerous lenders who offer personal loans to those with less-than-perfect credit. Their personal loan tool will ask you some basic questions, weeding out lenders who aren’t a good match, and saving you time and unfruitful hard inquiries on your credit report.

LendingTree
APR

5.99%
To
35.99%

Credit Req.

Minimum 500 FICO

Minimum Credit Score

Terms

24 to 60

months

Fees

Varies

LEARN MORE Secured

on LendingTree’s secure website

LendingTree is our parent company. LendingTree is unique in that they allow you to compare multiple, personal loan offers within minutes. Everything is done online and you can have your loan pre-approved without impacting your credit score. LendingTree is not a lender, but their service connects you with up to five offers from personal loan lenders.

Credit Unions and community banks

In your search for a lender, don’t overlook credit unions and community banks. Rachael Bator, CFP at Lake Street Advisors, says these institutions tend to have lower minimum credit score requirements on top of lower interest rates. And they are often willing to work with people with low credit scores.

Find a credit union in your area here. Look for a community bank here.

LendingClub

Most LendingClub borrowers have a credit score of at least 600. All loans are issued at a fixed APR between 5.99% and 35.89%. Your credit score, current debt burden and the amount you want to borrow will all affect where you fall in that range. LendingClub issues personal loans up to $40,000.

LendingClub personal loans do come with some fees:

  • Origination fees. This will be 1%-6% of the amount you’re borrowing. You will not have to pay it upfront; it will be rolled into your loan, and included in your APR.
  • Late payment fees. If your monthly payment is more than 15 days late, LendingClub may charge you a late payment fee. This fee will be the greater of $15 or 5% of the unpaid payment.
  • Check processing fees. If you choose to pay your loan via paper check, you will be charged a $7 check processing fee.

The application process happens online and will require information about your employment history and income, on top of identifying information like your address and Social Security number. If you’re not confident you’ll qualify with your credit history, you can add a co-borrower with a better history to your application to increase your odds of approval.

“If you’re considering your options and want to talk through your unique situation, don’t hesitate to reach out to us,” said Alia Dudum, spokeswoman for LendingClub.

Lending Club
APR

5.98%
To
35.89%

Credit Req.

600

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 6.00%

APPLY NOW Secured

on Lending Club’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates and approvals for people with credit scores in the mid-600s. The loan application process is online and only takes a few minutes to complete and you can check your interest rate without hurting your credit. The loan processing time can take a while and you might not get approved if you have missed payments in the past.LendingClub is not available in Iowa and West Virginia

LendingPoint

LendingPoint is on a mission to provide access to financing for those without good credit.
“Most of our competitors have started to deny anyone below a 660-680 [credit score], running up the credit rankings,” said Mark Lorimer, LendingPoint’s CMO. “We’ve started trying to provide access to more — the way down to a 590 [credit score].”

LendingPoint recently launched a program called Step Into More, which helps those with a lower credit score and other negative aspects of their credit rating get personal loans and improve their score at the same time.

The program starts with a $2,000-$3,000 loan which is to be repaid over the course of two years at 34.99% APR. If you make on-time payments for the first three months, your interest rate drops by one percentage point. If you continue making on-time payments up to the six-month mark, your interest rate will drop by yet another percentage point. At the twelve-month mark, your interest rate will go down at least two percentage points more if you have consistently made on-time payments.

You may qualify for a personal loan from LendingPoint independent of the Step Into More program — even with a credit score of 590. Your score alone isn’t enough to get you approved; your income, debt and other factors will be a part of the decision process. But Lorimer says that with a 590 credit score, most applicants could expect to be offered an interest rate of 23.99% to 34.99% APR. Loan amounts vary from $2,000-$25,000.

There is an origination fee ranging anywhere from 0%-6% depending on your state of residence. This origination fee will already be accounted for in your APR.

You can apply online and will need to provide basic identifying information such as name, address and Social Security number. You will also need to verify your bank account with the routing and account number. If you need help with the process, the company has telephone support; a live human being can help walk you through the process.

LendingPoint
APR

15.49%
To
34.99%

Credit Req.

585

Minimum Credit Score

Terms

24 to 48

months

Fees

Fee Varies

APPLY NOW Secured

on LendingPoint’s secure website

LendingPoint offers personal loans for a wide variety of reasons, including paying for home repairs, consolidating credit card debt, or to make a large purchase. Their online process can help you to quickly apply for a personal loan, get qualified, and receive funding. While their interest rates can be higher than others, they do offer fast approval and can transfer funds to your bank account in 24 hours.

SoFi

Read our full review of SoFi’s personal loans here.

SoFi doesn’t publish any specifics about its credit score requirements. It is a unique lender in that they focus more heavily on things like education, employment and income potential. Those with higher income or income potential are more likely to be approved. To this end, SoFi’s personal loans come with unemployment protection — which defers payment and helps you find a new job should you find yourself unemployed.

SoFi grants personal loans from $5,000-$100,000 with interest rates between 5.95% and 14.74% APR after a 0.25% discount for setting up autopay. They do not charge origination fees, and the terms on these loans can be anywhere between three and seven years. If you’re 15 days or more late with your payment, you may be assessed a fee 4% or $5 — whichever is less.

You can apply online. Come armed with your basic contact information, education history and employment information. You may have a hard time getting approved with a bad credit history, but SoFi does a soft pull on your credit report — which does not negatively affect your score. If you have a solid education and earn a decent income, it’s worth seeing if they will take you on.

SoFi
APR

5.95%
To
14.74%

Credit Req.

No Minimum FICO Score

Minimum Credit Score

Terms

36 to 84

months

Fees

No origination fee

APPLY NOW Secured

on SoFi’s secure website

Advertiser Disclosure

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


Fixed rates from 5.950% APR to 14.740% APR (with AutoPay). Variable rates from 5.825% APR to 14.365% APR (with AutoPay). SoFi rate ranges are current as of May 18, 2018 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 5.825% APR assumes current 1-month LIBOR rate of 1.90% plus 4.175% 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.

SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of IL is 8.99% APR, for residents of AK, OK, and WY is 9.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, KS, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, IL, OK, TX, VA, WY.

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)

Avant

Read our full review of Avant’s personal loans here.

In some cases, online lender Avant will issue personal loans to those with credit scores of 580. Their personal loans range from $2,000 to $35,000, and have terms between two and five years. Interest rates are between 9.95% and 35.99% APR.

There is an administration fee of 1.50%-4.75%. Other fees include a $25 late fee after your payment is 10+ days delinquent, and a $15 fee if your payment is returned.

You can apply online with your name, address, Social Security number and income information. If you are approved, you could have funds in your bank account the very next day.

Avant
APR

9.95%
To
35.99%

Credit Req.

Varies

Minimum Credit Score

Terms

24 to 60

months

Fees

1.50% - 4.75%

APPLY NOW Secured

on Avant’s secure website

Avant branded credit products are issued by WebBank, member FDIC.

If you want a speedy process with your personal loan, you can’t go wrong with Avant, who could get you your loan as soon as the next business day. In terms of rates, qualifications, and repayment terms, Avant keeps things the same as most other lending options, though, it is important to shop around to secure the best offer. Avant is available in all states except: Colorado, Iowa, West Virginia, and Vermont.For Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33."

Alternatives to personal loans

Bator says that while a personal loan may be a good option in certain situations, in others you may be served by a different product.

First, she says you can ask family members if they’d be willing to give you a loan. She does note that in order for this money to be considered a loan and not a potentially taxable gift, your family member will have to charge you the applicable federal rate, which is usually much lower than the interest rate you would get with a lender — especially if you have bad credit.

Another area for examination is a home equity line of credit (HELOC). Bator says because your home is put up as collateral, the interest rate on this product tends to be lower than that of a personal loan.

One source of funding she does not recommend is payday loans.

“The repayment periods are incredibly short,” said Bator. “You can expect to pay outrageous interest rates — they’re illegal in many states for good reason. It’s proven that they don’t help people get out of debt, but rather the debt snowballs into an uncontrollable situation which profits the lender — not the borrower.”

How to rebuild your credit score

Just because you have a bad credit score now doesn’t mean you will forever. There are steps you can take to rebuild it.

The two best things you can do to improve your credit score are making on-time payments and lowering your utilization rate (you can do that by paying down your balances). Your utilization rate is calculated by dividing the total amount of all your statement balances by your credit limits. If you do get a personal loan, be sure to make your payments on time every month to fulfill the first course of action. Be sure you’re paying other bills on time, too, like rent and your cellphone bill.

If you are consolidating debt with a personal loan, making on-time monthly payments may slowly help improve your credit score as you will be eliminating debt.

Other financial options

How your score is calculated: Your credit score is calculated after reviewing your credit report, which includes a record of loans and other accounts in your name and your history of payments. Think of it like your grade point average in school. It’s a score calculated on your overall credit performance over time.

The same way a failed exam would hurt your GPA, a missed credit card payment or significant negative event like a bankruptcy or foreclosure could hurt your score. Vice versa, if you failed that one exam in the early part of the year but score A’s on every other exam moving forward, that new positive information will be factored into your score as well and can boost it.

After a lender looks at your credit report, they will take the information and plug it into a scoring model. There are two main models: FICO and Vantage. Ninety percent of lenders use FICO models, so for our purposes, we’ll assume your credit score is calculated using a FICO model.

Credit scores fall into five different categories:

  • 750+ – Excellent Credit
  • 680-749 – Good Credit
  • 620- 679 – Average Credit
  • 550-619 – Sub-Prime Credit
  • Below 550 – Poor Credit

If you fall into the sub-prime or poor credit categories, you have are going to have a harder time borrowing money — especially with low interest rates.

How to get your credit score: Check your credit cards. Many offer customers access a free FICO score once per month. Otherwise, use a free tool, such as through Discover, which you can access even if you don’t have any accounts with the company.

How to prepare your personal loan application

Before you apply for a personal loan, make sure you take advantage of your free credit report. Check it for accuracy, and if you find any errors, take measures to fix them.

After you’ve made sure your credit report contains only accurate information, you’ll want to get your paperwork together. Many lenders will ask you to provide:

  • Your full name
  • Address
  • Social Security number
  • Residency status
  • Proof of income
  • Information regarding your debts — especially if you are consolidating

Advertiser Disclosure: The card offers that appear on this site are 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 card companies or all card offers available in the marketplace.

Brynne Conroy
Brynne Conroy |

Brynne Conroy is a writer at MagnifyMoney. You can email Brynne here

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Get A Pre-Approved Personal Loan

$

Won’t impact your credit score

Advertiser Disclosure

Personal Loans

Prosper Personal Loan Review

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Prosper
APR

5.99%
To
35.99%

Credit Req.

640

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 5.00%

APPLY NOW Secured

on Prosper’s secure website

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. The interest rate you receive is determined by their own proprietary “Prosper Rating”. You can qualify for a loan with average credit and there are no prepayment fees, but your origination fee can be expensive, depending on your Prosper Rating.Prosper is not available in Vermont, Connecticut, Iowa, North Dakota, Maine, New York and Pennsylvania.

Prosper personal loan details
 

Fees and penalties

  • Terms: Loan terms are set at 36 or 60 months.
  • APR range: Rates range from 5.99% to 35.99%.
  • Loan amounts:Prosper will loan a minimum of $2,000 and a maximum of $35,000.
  • Time to funding: On average, borrowers will see funds deposited in their bank accounts within five days. However, investors 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 1% to 5% 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: To qualify, borrowers must have a score of 640 or above.
  • Minimum credit history: Borrowers must have at least three open trades on their credit reports.
  • 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
  • Have fewer than seven inquiries on their credit reports in the previous six months
  • Report an income greater than $0
  • Have not filed for bankruptcy in the last 12 months

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

Applying for a personal loan from Prosper

To apply for a Prosper loan, 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.

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 approval@prosper.com, 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. If your loan is not funded after 14 days, your listing will be canceled and you’ll need to create a new one.

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 1-3 business days.

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 credit 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 1%-5% 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 Prosper personal loan

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 lenders who have stricter standards. However, you’re more likely to qualify for a better rate with a higher score — Prosper’s APRs go up to 35.99%, which is higher than other 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 three or five years — 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 other lenders.

Alternative personal loan options

Here are several alternatives to Prosper:

Lending Club

Lending Club
APR

5.98%
To
35.89%

Credit Req.

600

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 6.00%

APPLY NOW Secured

on Lending Club’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates and approvals for people with credit scores in the mid-600s. The loan application process is online and only takes a few minutes to complete and you can check your interest rate without hurting your credit. The loan processing time can take a while and you might not get approved if you have missed payments in the past.LendingClub is not available in Iowa and West Virginia

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, but there are no prepayment penalties. Expect to wait up to seven days to see your funds deposited.

Upgrade

Upgrade
APR

5.96%
To
35.97%

Credit Req.

620

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 6.00%

APPLY NOW Secured

on Upgrade’s secure website

Loans made through Upgrade feature APRs of 5.96%-35.97%. All loans have a 1% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay. For example, a $10,000 loan with a 36 month term and a 17.97% APR (which includes a 5% origination fee) has a required monthly payment of $343.28. Upgrade is available in all states except: Connecticut, Colorado, Iowa, Massachusetts, Vermont, West Virginia.

Upgrade is an online lender that offers similar personal loan rates and terms to both Prosper and LendingClub. You can check your rates without impacting your credit — sign up for autopay and get a better rate. Upgrade is a good alternative if you need to borrow more or less than what Prosper offers, as loans are a minimum of $1,000 and a maximum of $50,000, or if you need your money more quickly. Upgrade claims most borrowers can expect to see their funds within four business days of approval.

Marcus by Goldman Sachs®

Marcus by Goldman Sachs®
APR

6.99%
To
24.99%

Credit Req.

Varies

Minimum Credit Score

Terms

36 to 72

months

Fees

No origination fee

APPLY NOW Secured

on Marcus By Goldman Sachs®’s secure website

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information.... Read More

Consider Marcus by Goldman Sachs if you want a no-fee personal loan. This means no origination fee, no prepayment penalties, and no late fees — even if you miss a payment. Rates are slightly more favorable than those offered at Prosper and terms go up to 72 months, which gives you more flexibility to pay over time. However, you are more likely to be approved for a Marcus by Goldman Sachs loan and get the best rates with a credit score of 660 or above, so this alternative is best for those with higher credit.

Advertiser Disclosure: The card offers that appear on this site are 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 card companies or all card offers available in the marketplace.

Emily Long
Emily Long |

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

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Get A Pre-Approved Personal Loan

$

Won’t impact your credit score

Advertiser Disclosure

Personal Loans

Santander Personal Loan Review

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Santander
APR

6.99%
To
16.99%

Credit Req.

680

Minimum Credit Score

Terms

24 to 60

months

Fees

No origination fee

APPLY NOW Secured

on Santander’s secure website

Santander’s personal loan might be a great option for you if you want to work with a traditional brick-and-mortar bank. In order to get your personal loan, you actually need to sign your loan documents at a local branch. While this gives you the familiarity and security of working with a traditional bank, these loans are only available in select areas where branches are located.

Santander Personal Loan Details
 

Fees and penalties

  • Terms: Terms range from 24 months to 60 months.
  • APR Range: Loan APRs range from 6.99% to 16.99%. If you do not elect ePay, your APR will increase by 0.25%.
  • Loan amounts: You can borrow a minimum of $5,000 and a maximum of $35,000.

  • Origination fee: There is no origination fee for Santander personal loans.
  • Prepayment fee: Santander has no prepayment penalties for personal loans.
  • Other fees: There are no application or annual fees.

Eligibility requirements

Although Santander doesn’t provide explicit credit requirements to qualify for its personal loans, it does state that borrowers must meet their “highest credit standards” — however, there is no specific credit score requirement listed. At many traditional financial institutions, you need a credit score of 680 or above to be considered for a loan and a 740 or higher to get the best loan rates.

When you apply, Santander will review your score and your debt-to-income ratio, among other factors, and your APR will vary according to your credit worthiness. You do not have to have a Santander checking account to be eligible for a personal loan, but without one you won’t qualify for the APR discount.

Santander also requires that you live in one of the following states: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, and Washington, D.C.

Applying for a personal loan from Santander

You can apply for a Santander personal loan at your local Santander bank branch or online. If you choose the latter, expect the process to take 10 to 15 minutes. You’ll need the following information to complete your application:

  • Social security number
  • Employment history
  • Income information

Santander does allow co-applicants on personal loans — you’ll be asked to provide that person’s information as well.

Pros and cons of a Santander personal loan

Pros:

Cons:

  • Low rates. Santander has lower starting rates than many lenders, although those rates are reserved for borrowers with the highest credit scores.
  • Minimal fees. There are no origination, application, or annual fees for personal loans. In addition, Santander doesn’t penalize you for paying off your loan early.
  • Term options. With terms ranging from two to five years, you have the option to pay your loan off quickly or over a longer period.
  • Limited to borrowers in certain states. Santander only serves personal loan customers in states that have — or are near — brick-and-mortar branches. If you live outside of the Northeast or Mid-Atlantic, you likely won’t qualify.

Who’s the best fit for a Santander personal loan

If you are looking for a lender you can meet with face-to-face, Santander is one to consider. Thanks to the residency requirement to apply for a personal loan, you won’t be far from a bank branch if you’re actually eligible for their services.

Santander’s loan terms (24 to 60 months) give borrowers a lot of flexibility to pay off their loans quickly or reduce their monthly payments by extending the term out longer. Many personal loans have terms of 36 or 60 months, so if you’re looking to minimize the time you carry this debt, Santander might be a good option for you.

Santander has reasonable rates compared to other lenders — their highest APR is set at 16.99% with the ePay discount — though you will need a good credit history to qualify. These loans are also good for those who want to avoid fees, as Santander doesn’t charge origination, application, or annual fees or assess prepayment penalties. Assuming you make your payments on time, you are unlikely to owe anything extra.

Alternative personal loan options

Here are several alternatives to Santander personal loans:

Upgrade

Upgrade
APR

5.96%
To
35.97%

Credit Req.

620

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 6.00%

APPLY NOW Secured

on Upgrade’s secure website

Loans made through Upgrade feature APRs of 5.96%-35.97%. All loans have a 1% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay. For example, a $10,000 loan with a 36 month term and a 17.97% APR (which includes a 5% origination fee) has a required monthly payment of $343.28. Upgrade is available in all states except: Connecticut, Colorado, Iowa, Massachusetts, Vermont, West Virginia.

If you need your loan quickly, want to check rates without impacting your credit, or need to borrow less than Santander’s minimum loan amount, online lender Upgrade is a good option. Fill out an online form to apply for personal loans between $1,000 and $50,000 — you’ll receive a decision almost immediately and your money within four business days of approval. Loan APRs range from 5.96% to 35.97%, higher than many other lenders, and terms are set at 36 or 60 months. To be eligible for the best rates, you’ll need to sign up for autopay. Upgrade does charge an origination fee of 1% to 6%, and may assess other charges and fees over the life of your loan.

Marcus by Goldman Sachs®

Marcus by Goldman Sachs®
APR

6.99%
To
24.99%

Credit Req.

Varies

Minimum Credit Score

Terms

36 to 72

months

Fees

No origination fee

APPLY NOW Secured

on Marcus By Goldman Sachs®’s secure website

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information.... Read More

The Marcus by Goldman Sachs loan is a no-fee personal loan — that means all you’ll pay is your loan principal and interest, even if you pay late or miss a payment. Rates range from 6.99% to 24.99% APR and terms from 36 to 72 months, and you can borrow up to $40,000. If your credit is lower or you choose a longer term, you will generally pay a higher rate. While there is no explicit minimum credit score, you’re more likely to qualify with a score above 660. If working with a traditional bank appeals to you, this may be a good alternative to Santander. Marcus does not currently allow applicants from Maryland

SoFi

SoFi
APR

5.95%
To
14.74%

Credit Req.

No Minimum FICO Score

Minimum Credit Score

Terms

36 to 84

months

Fees

No origination fee

APPLY NOW Secured

on SoFi’s secure website

Advertiser Disclosure

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


Fixed rates from 5.950% APR to 14.740% APR (with AutoPay). Variable rates from 5.825% APR to 14.365% APR (with AutoPay). SoFi rate ranges are current as of May 18, 2018 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 5.825% APR assumes current 1-month LIBOR rate of 1.90% plus 4.175% 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.

SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of IL is 8.99% APR, for residents of AK, OK, and WY is 9.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, KS, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, IL, OK, TX, VA, WY.

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)

SoFi has lower rates, longer terms, and higher loan amounts than many other lenders, and they don’t charge any fees. APRs range from 5.95% to 14.74%, and terms are set at 3, 4, 5, 6, or 7 years for loans of $5,000 to $100,000. Like many lenders, SoFi offers the best rates to borrowers who sign up for automatic payments. SoFi will only do a soft credit pull when you check your rates with their online form, and you’ll never encounter origination fees or prepayment penalties. Another advantage to borrowing from SoFi: if you lose your job and apply for their unemployment protection program, they will suspend your payments without penalty and provide job placement assistance.

Advertiser Disclosure: The card offers that appear on this site are 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 card companies or all card offers available in the marketplace.

Emily Long
Emily Long |

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

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Personal Loans

Upstart Loan Review

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

 

Upstart
APR

8.92%
To
29.99%

Credit Req.

640

Minimum Credit Score

Terms

36 to 60

months

Fees

0.00% - 8.00%

APPLY NOW Secured

on Upstart’s secure website

Upstart’s initial focus was to help recent graduates that were struggling with debt, but they have expanded to provide options for those with strong credit profiles as well. They have a unique algorithm that takes into account things such as education, career, job history, and standardized test scores, but you will still need a minimum FICO score of 640.

Upstart personal loan details
 

Fees and penalties

  • Terms: 3- and 5-year terms
  • APR range: 8.92% and 29.99% APR
  • Loan amounts:$1,000 - $50,000
  • Time to funding: If you accept your loan before 5 p.m. EST Monday-Friday, you should receive your loan proceeds the next business day. If accepted after 5 p.m. EST Monday-Friday, you should receive your loan proceeds two business days later.
  • Hard pull/soft pull: Soft pull for your quote rate, but a hard pull once you accept your rate and proceed with the loan application
  • Origination fee: 0% to 8% of the target amount (deducted from the loan before it’s delivered)
  • Prepayment fee: None.
  • Late payment fee:The greater of 5% monthly past due amount or $15 (per occurrence)
  • Other fees:Return check and paper copy fees

Upstart offers fixed-rate loans, but the loan interest rate depends on the borrower’s education, credentials, work history and credit score. Your loan can be used for a wide variety of purposes including (but not limited to) paying off credit card debt, paying off student loan debt, medical bills, travel, starting a business or paying for college or grad school.

Borrowers can even use Upstart loan funds to attend a coding boot camp. Upstart supports funding for a few coding boot camps (see the full list here) so if the applicant is accepted, they won’t need to possess a 4-year degree or have a job offer.

If you already have an Upstart loan and you’d like to apply for an additional loan, you’ll need to meet the following qualifications:

  • Made on-time and consecutive monthly payments for the past six months
  • Have no more than one outstanding loan through Upstart at the time of application
  • Have no more than $50,000 of outstanding principal at the time the loan originates

In order to receive your loan funds, you must add and verify a personal bank account in your name. From there, you need to disburse the funds from your checking account so you can spend as needed. This may be an inconvenience for people looking to consolidate their debt by applying loan funds directly to the creditor or business owners looking to deposit the funds automatically to their business account.

For example, if you’re receiving a large lump-sum loan to cover the cost of college tuition for the semester, you have to have the discipline to make sure the payment goes directly to the school and you avoid spending part of the money on another expense.

Speaking of Upstart loans that are being used for educational purposes only, keep in mind that there is an additional three-day business period between when you accept your loan and when you will receive the funds.

For loans intended for other funding purposes, Upstart will usually grant funds by the following business day.

Eligibility requirements

  • Minimum credit score: 620 FICO or Vantage score
  • Minimum credit history: Not provided
  • Maximum debt-to-income ratio: Not provided

While Upstart’s website doesn’t get into too much detail about the debt-to-income ratio or minimum credit history requirements, we do know that the company does check how much debt you have in relation to the income you receive.

You must not have any bankruptcies or public records on your report in order to qualify for a loan. You also can’t have any accounts currently in collections or delinquent. You must have fewer than six inquiries on your credit report in the last six months not including inquiries related to student loans, vehicle loans or mortgages. You must also not be residing in West Virginia.

Other qualifications include:

  • Minimum age of 18
  • U.S. citizen or permanent resident
  • Valid email account
  • Able to verify name, date or birth, Social Security number
  • Have a full-time job, full-time job offer starting within 6 months, a steady part-time job or other source of regular income
  • Have a U.S. bank account

While Upstart’s website states clearly that you can borrow between $1,000 and $50,000, when you read the fine print, you’ll notice there are a few state-specific minimum loan amounts. The three state limitations are shown below.

  1. Georgia: $3,100 minimum
  2. Massachusetts: $7,000 minimum
  3. Ohio: $6,000 minimum

Applying for a personal loan from Upstart

Upstart’s personal loan application process is set up to be simple and quick. You’ll start by submitting a rate inquiry on Upstart’s website. Just click on the “Check Your Rate” button in the center of the page. This takes only a few minutes and you’ll answer some basic questions.

If you accept your rate, you’ll be prompted to complete an online application which includes verifying your bank account and uploading some supporting documents. Some documents may include verifying your employment and work experience or your academic credentials. Your credit information will also need to be verified during the application process.

Once your application is approved, you will be asked to review final disclosures and sign a promissory note.

From there, you can receive your loan funds the following business day if you accept your loan before 5 p.m. EST Monday – Friday. If you accept your loan after 5 p.m. EST Monday – Friday, you will receive your loan funds two business days later.

Borrowers can set up easy and automatic monthly payments, and even pay their loan off early without penalty.

Pros and cons of an Upstart personal loan

Pros:

Cons:

  • Lower fixed rates: Upstart offers loan rates as low as 8.92%, meaning borrowers who qualify for low rates could save money when consolidating credit card debt with a personal loan
  • Quick access to funds: Borrowers can receive funds in as little as one business day after loan approval
  • Unique selection process: Upstart considers applicants on a variety of factors including credit score, credit history, employment status, academic history and area of study
  • Starts with a soft credit pull: Upstart determines eligibility and offers you a loan rate with a soft credit pull.
  • Origination fee: Loan origination fees can be as high as 8% that will be deducted from the loan prior to delivery
  • Two repayment terms:While you can choose to pay off your loan early, you can only choose from a 3-year or 5-year term.

Who’s the best fit for an Upstart personal loan?

Upstart is a reasonable solution for those in their 20s or college grads who are having a difficult time obtaining a personal loan elsewhere. The process is convenient and can be solely completed online. Upstart can also be a solid option for borrowers who haven’t developed a strong credit history.

You’ll need a minimum credit score of 620 to meet the credit qualification, but you can also strengthen your application with your employment status, job history and academics. While Upstart’s interest rates are competitive with other peer-to-peer lending companies, other competitors rely heavily on credit to approve applicants while Upstart doesn’t.

Upstart would also be the best option if you’re looking for funding to attend a coding bootcamp since eligibility requirements are very lenient.

Lastly, if you meet the eligibility requirements and need a loan quickly, you can have funds in your personal account by the next day. If you need funds to help you pay off debt or finance a large purchase, and can comfortably pay back the loan within five years or less, Upstart’s personal loan is a good fit.

Alternative Personal Loan Options

Not quite sure about Upstart, or just want to check out some alternatives before making your decision? MagnifyMoney, a LendingTree company, is a great place to shop for offers from several personal loan lenders at once. Check out our guide to getting the best personal loan rates. While shopping around and comparing other loan options, be sure to consider these alternatives.

LendingClub

LendingClub is a peer-to-peer lending platform, which means borrowers receive funds from individual or institutional investors. Interest rates range from 5.98% and 35.89% APR and you can borrow up to $40,000. If you have good credit, you may be able to qualify for a lower interest rate that Upstart can’t offer. You can also check your rate without adding a hard inquiry to your credit profile so you can see what you’d qualify for.

Lending Club
APR

5.98%
To
35.89%

Credit Req.

600

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 6.00%

APPLY NOW Secured

on Lending Club’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates and approvals for people with credit scores in the mid-600s. The loan application process is online and only takes a few minutes to complete and you can check your interest rate without hurting your credit. The loan processing time can take a while and you might not get approved if you have missed payments in the past.LendingClub is not available in Iowa and West Virginia

Earnest

Earnest is a personal loan lender offering fixed-rate loans starting at 5.49% APR. With Earnest, you can borrow between $5,000 and $75,000 on a 3-, 4- or 5-year term. There are no hidden fees associated with this personal loan and it’s offered in most states except Nevada, Kentucky, Rhode Island, Delaware and Alabama. Similar to Upstart, Earnest considers your employment history, education, and salary when considering you for a loan. You will need a minimum credit score of 660 to qualify but again, a good credit score could qualify you for a lower interest rate that Upstart doesn’t offer.

Earnest
APR

5.49%
To
18.24%

Credit Req.

660

Minimum Credit Score

Terms

36 to 60

months

Fees

No origination fee

APPLY NOW Secured

on Earnest’s secure website

Instead of offering credit-based loans, Earnest has taken a very non-traditional approach and used a merit-based system. This is great for recent graduates and those that are just beginning to establish credit. In addition, they offer some of the most flexible terms among all personal loan lenders, allowing for borrowers to get a customized loan and repayment plan that fits their financial situation.

Peerform

Peerform offers personal loans to borrowers with a minimum credit score of 600. This could be a worthy alternative if you don’t think you’ll meet the credit score requirements to qualify for a loan with Upstart. Peerform’s interest rates range from 5.99% to 29.99%, and you can borrow up to $25,000. The maximum repayment terms are 3 or 5 years, and loans have a 1% to 5% origination fee.

Peerform
APR

5.99%
To
29.99%

Credit Req.

600

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 5.00%

APPLY NOW Secured

on Peerform’s secure website

Even with a credit score of 600, you still might be able to secure a loan through Peerform. This peer-to-peer lender gives you a customized grade based on your credit score, allowing for you to easily see the rate that you can obtain. While Peerform is great for those with less than stellar credit, you more than likely will be able to find better rates elsewhere.

Advertiser Disclosure: The card offers that appear on this site are 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 card companies or all card offers available in the marketplace.

Chonce Maddox
Chonce Maddox |

Chonce Maddox is a writer at MagnifyMoney. You can email Chonce at chonce@magnifymoney.com

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Personal Loans

Avant Personal Loan Review

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Avant
APR

9.95%
To
35.99%

Credit Req.

Varies

Minimum Credit Score

Terms

24 to 60

months

Fees

1.50% - 4.75%

APPLY NOW Secured

on Avant’s secure website

Avant branded credit products are issued by WebBank, member FDIC.

If you want a speedy process with your personal loan, you can’t go wrong with Avant, who could get you your loan as soon as the next business day. In terms of rates, qualifications, and repayment terms, Avant keeps things the same as most other lending options, though, it is important to shop around to secure the best offer. Avant is available in all states except: Colorado, Iowa, West Virginia, and Vermont.For Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33."

Avant personal loan details
 

Fees and penalties

  • Terms: 24-60 months
  • APR Range: 9.95%-35.99%
  • Loan amounts: $2,000-$35,000
  • Time to funding: As soon as the next business day.
  • Hard pull/soft pull: A soft pull will be done initially to provide you with potential loan options. After you select your rate, a hard pull will be done on your credit as you officially apply.
  • Origination fee: Administrative fee of 1.50%-4.75%
  • Prepayment fee: None
  • Late payment fee: $25 if your payment is 10+ days late
  • Other fees: $15 fee if your payment is returned

You can qualify for an Avant personal loan if you’re self-employed. Instead of providing your W-2 paperwork as proof of income, you will have to provide two years of full tax returns so Avant can verify how much money you bring in per year.

Eligibility requirements

  • Minimum credit score: 580
  • Minimum credit history: Avant judges each application on a variety of different credit criteria, though the average borrower has a credit score between 600-700.

You must have a checking or savings account in order to qualify for a loan with Avant. This account must allow you to do automatic payments. This account must be a personal account; Avant cannot currently lend to you if you’re using a business account.

Applying for a personal loan from Avant

Definitely take advantage of Avant’s soft pull option, where you can get a sense of your loan options before you officially apply and let them perform a hard credit inquiry. When you apply for a loan with Avant, you will want to come armed with some basic information like your name, address and Social Security number. If you’re someone’s employee, you’ll want to know where your pay stubs are from the past 30 days. If you’re self-employed, expect to be asked for your tax returns from the past two years.

Regardless of if you’re a W-2 or 1099 worker, you will have to provide your bank account information, including routing number and account number. Sometimes, Avant can use this information alone to verify your income, saving you the hassle of scanning in your taxes or pay stubs. You won’t know until you apply, though.

After you apply, you’ll be offered a rate. If you accept, Avant will do a hard pull on your credit, confirming the final details. If you are approved, you could see money in your account as soon as the next day.

Pros and cons of an Avant personal loan

Pros:

Cons:

  • Competitive interest rates for lower credit scores. Among lenders that extend credit to those with lower credit scores, Avant’s interest rates are about average. Keep in mind that if your credit score is low, though, you’re more likely to fall into the higher end of the interest rate range anyway.
  • Fast access to your money. You may be able to get your loan disbursed as soon as the next day.
  • No prepayment penalty. You can pay off your Avant personal loan early — saving you interest — without incurring a fee for prepayment.
  • Better options for higher credit scores. If you do have a higher credit score, Avant’s starting rates of 9.95% pale in comparison with lenders who target borrowers with a better credit history.
  • Origination fee. While Avant’s origination fee is lower than some of their competitors, the fact that they have a fee at all is still a negative. If you have poor credit, however, it can be tricky to find a lender that doesn’t charge such a fee.
  • You have to link up your bank account. Linking your bank account is a pretty standard way to pay your bills, and most marketplace lenders will prefer you do it this way. But if you’re uncomfortable linking your checking or savings to Avant for automatic payments, this could be a negative as it is required to qualify for one of their personal loans.

Who’s the best fit for an Avant personal loan

Among lenders who issue personal loans in this credit score range, Avant’s starting interest rates are near average. If you have a lower credit score, you should make Avant one of the companies you look at first, along with credit unions that allow you to apply online.

However, if you have a good or great credit score, you’ll likely be able to get a better interest rate elsewhere. Whichever category you fall into, you should be sure to shop around before you commit.

Alternative personal loan options

Lending Club

Lending Club
APR

5.98%
To
35.89%

Credit Req.

600

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 6.00%

APPLY NOW Secured

on Lending Club’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates and approvals for people with credit scores in the mid-600s. The loan application process is online and only takes a few minutes to complete and you can check your interest rate without hurting your credit. The loan processing time can take a while and you might not get approved if you have missed payments in the past.LendingClub is not available in Iowa and West Virginia

Marcus by Goldman Sachs®

Marcus by Goldman Sachs®
APR

6.99%
To
24.99%

Credit Req.

Varies

Minimum Credit Score

Terms

36 to 72

months

Fees

No origination fee

APPLY NOW Secured

on Marcus By Goldman Sachs®’s secure website

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information.... Read More

If your budget is stretched thin, the fact that Marcus by Goldman Sachs offers a 72-month term may be exciting news for you as it generally means lower monthly payments. Just remember that when you stretch a loan out over a longer period of time, you end up paying more in interest over the life of your loan — even if you’re paying less per month.

Earnest

Earnest
APR

5.49%
To
18.24%

Credit Req.

660

Minimum Credit Score

Terms

36 to 60

months

Fees

No origination fee

APPLY NOW Secured

on Earnest’s secure website

Instead of offering credit-based loans, Earnest has taken a very non-traditional approach and used a merit-based system. This is great for recent graduates and those that are just beginning to establish credit. In addition, they offer some of the most flexible terms among all personal loan lenders, allowing for borrowers to get a customized loan and repayment plan that fits their financial situation.

Earnest is a better option if you have a higher credit score. Their interest rate range is lower, and there are no origination or administrative fees. The minimum credit score requirement of 650 is significantly higher than Avant’s minimum of 580, though.

Advertiser Disclosure: The card offers that appear on this site are 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 card companies or all card offers available in the marketplace.

Brynne Conroy
Brynne Conroy |

Brynne Conroy is a writer at MagnifyMoney. You can email Brynne here

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Featured, Personal Loans, Reviews

Marcus by Goldman Sachs Review: GS Bank Takes on Online Savings, CDs, and Personal Loans

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Marcus by Goldman Sachs
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Most Americans probably think of fancy white-collar stock traders on Wall Street when they think of Goldman Sachs, a global investment firm that’s been around since the late 19th century.

In recent years, Goldman made a major pivot, launching a new arm of the company called GS Bank, which would provide internet-only savings accounts to the masses.

They also launched Marcus by Goldman Sachs®, a line of personal loans. Eventually, they decided to rebrand their savings account business, putting it under the Marcus umbrella as well.

Today, through Marcus, you’ll find three product offerings: personal loans, savings accounts, and CDs.

In this article, we’ll take a deep dive into all three products. We’ll tell you what you need to know before opening an account, including what rates they are offering.

All rates are current as of May 15, 2018.

Marcus by Goldman Sachs savings account

A very high interest rate and no fees make this one of the best savings accounts out there.

APY

Minimum Balance Amount

1.70%

None

  • Minimum opening deposit: None. However, you’ll need to deposit at least $1.00 if you want to earn any interest.
  • Monthly account maintenance fee: None.
  • Overdraft fee: None.

This is a great account for almost anyone. However, before you click that “Learn More” button below, there are a couple of things to know.

No ATMs. First, Marcus by Goldman Sachs doesn’t offer ATM access to your savings account. You’ll either need to deposit or withdraw money by sending in a physical check, setting up direct deposits, or by moving the money to and from your other bank accounts via ACH or wire transfer.

No checking account. Second, Marcus does’t offer a corresponding checking account. That means you can only use this account as an external place to park your cash from your everyday money flow.

Keeping a separate savings account does have its benefits. For example, it’s harder to tempt yourself to withdraw the cash if you’re a chronic over-spender. But, it also means that there might be a delay of a few days if you need to transfer the money out of your Goldman Sachs online savings account and into your other checking account.

How to open a Goldman Sachs online savings account

It’s really easy to open an online savings account with Marcus by Goldman Sachs. You can do it online or over the phone as long as you’re 18 years or older, have a physical street address, and a Social Security Number or Individual Taxpayer Identification Number.

You’ll be required to sign a form which you can do online, or by mail if you’re opening the account over the phone.

LEARN MORE Secured

on Goldman Sachs Bank USA’s secure website

Member FDIC

How their online savings account compares

Marcus’ online savings account can easily be described with one word: outstanding.

You’ll get a relatively high interest rate with this account, which is among the best online savings account rates you’ll find today. In fact, these rates are currently over seven times higher than the average savings account interest rate.

Even better, this account won’t charge you any fees for the privilege of keeping your money stashed there. It’s a tall order to find another bank that offers these high interest rates with terms this good.

Marcus by Goldman Sachs CD rates

Sky-high CD rates, but watch out for early withdrawal limitations.

Term

APY

Minimum Deposit Amount

6 months

0.60%

$500

9 months

0.70%

$500

12 months

2.20%

$500

18 months

2.25%

$500

24 months

2.30%

$500

3 years

2.35%

$500

4 years

2.40%

$500

5 years

2.80%

$500

6 years

2.85%

$500

  • Minimum amount to open account: $500
  • Minimum amount to earn APY: $500
  • Early withdrawal penalty: For CDs under 12 months, 90 days’ worth of interest. For CDs of 12 months to 5 years, 270 days’ worth of interest. For CDs of 5 years or over, 365 days’ worth of interest.

Marcus’ CDs work a little differently from other CDs. Rather than having to set up and fund your account all at once, Goldman Sachs will give you 30 days to fully fund your account.

Once open, your interest will be tallied up and credited to your CD account each month. You can withdraw the interest earned at any time without paying an early withdrawal penalty, but heads up: If you withdraw the interest, your returns will be lower than the stated APY when you opened your account.

If you need to withdraw the money from your CD, you can only do so by pulling out the entire CD balance and paying the required early withdrawal penalty. There is no option for partial withdrawals of your cash.

Finally, once your CD has fully matured, you’ll have a 10-day grace period to withdraw the money, add more funds, and/or switch to a different CD term. If you don’t do anything, Marcus will automatically roll over your CD into another one of the same type, but with the current interest rate of the day.

How to open a Goldman Sachs CD

Marcus has made it super simple to open up a CD. First, you’ll need to be at least 18 years old, and have either a Social Security Number or an Individual Taxpayer Identification Number.

You can open an account easily online, or call them up by phone. You’ll need to sign an account opening form, which you can do online or via a hard-copy mailed form. Then, simply fund your CD account within 30 days, and you’re all set.

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How their CDs compare

The interest rates that Marcus offers on their CDs are top-notch. In fact, a few of their CD terms are among the current contenders for the best CD rates.

If you’re interested in pursuing a CD ladder approach, Marcus is one of our top picks because each of their CD terms offer above-average rates. This means you can rest easy that you’ll get the best rates for your CD ladder without having to complicate things by spreading out all of your CDs among a handful of different banks.

The only downside to these CDs compared with many other banks is that you can’t withdraw a portion of your cash if you need it. It’s either all-in, or all-out. However, once out, you’re still free to open a new CD with the surplus cash, as long as it’s at least the $500 minimum deposit size.

Marcus by Goldman Sachs personal loan

Personal loans offered by Marcus have low APRs, flexible terms, and no fees.

Terms

APR

Credit Required

Fees

Max Loan Amount

36-72 months

6.99%-24.99%

Varies

None

$40,000

Marcus by Goldman Sachs personal loans can be used for just about anything, from consolidating debt to financing a large home improvement project. They offer some of the best rates available, with APRs as low as 6.99%, and you’ll not only be able to choose between a range of loan terms, but you can also choose the specific day of the month when you want to make your loan payments.

While there are no specific credit requirements to get a loan through Marcus, the company does try to target those that have “prime” credit, which is usually those with a FICO score higher than 660. Even with a less than excellent credit score, you may be able to qualify for a personal loan from Marcus, though, those that have recent, negative marks on their credit report, such as missed payments, will likely be rejected.

Applicants must be over 18 (19 in Alabama and Nebraska, 21 in Mississippi and Puerto Rico) and have a valid U.S. bank account. You are also required to have a Social Security or Individual Tax I.D. Number.

No fees. Marcus charges no extra fees for their personal loans. There are no origination fees associated with getting a loan, but there are also no late fees associated with missing payments. Those missed payments simply accrue more interest and your loan will be extended.

Defer payments. Once you have made on-time payments for a full year, you will have the ability to defer a payment. This means that if an unexpected expense or lost job hurts your budget one month, you can push that payment back by a month without negatively impacting your credit report.

How to apply for a Marcus personal loan

Marcus by Goldman Sachs offers a process that is completely online, allowing you to apply, choose the loan you want, submit all of your documents, and get approved without having to leave home. Here are the steps that you will complete to get a personal loan from Marcus:

  1. Fill out the information that is required in the online application, including your basic personal and financial information, as well as how much you would like to borrow and what you will use the money for.
  2. After a soft pull on your credit, and if you qualify, you will be presented a list of different loan options that may include different rates and terms.
  3. Once you have chosen the loan you want, you will need to provide additional information to verify your identity. You may also be asked for information that can be used to verify your income and you will need to provide your bank account information so that the money can be distributed.
  4. You will receive your funds 1 – 4 business days after your loan has been approved.

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on Marcus By Goldman Sachs®’s secure website

How their personal loans compare

Marcus offers low APRs and flexible terms with their personal loans, but their main feature is that they have no fees. If you are looking for a straightforward lending experience with no hidden fees or costs, Marcus will be perfect for you since you won’t even have to worry about late fees if you happen to miss a payment.

While Marcus offers some great perks, you may be able to get a lower rate if you choose to go with another lender, such as LightStream or SoFi. Both of these lenders offer lower APR ranges and they don’t charge origination fees, though, LightStreamwill do a hard pull on your credit to preapprove you.

LendingClub and Peerform both have lower credit requirements than Marcus, but they also charge origination fees and, being P2P lending platforms, you will need to wait for your loan to be funded and you run the risk that other users might not fund your loan.

Overall review of Marcus by Goldman Sachs‘ products

Marcus has really hit it out of the park with their personal loans, online savings, and CD accounts. Each of these accounts offers some of the best features available on the market, while shrinking the fees down to a minuscule, or even nonexistent, amount. Their website is also slick and easy to use for online-savvy people.

The only thing we can find to complain about with Marcus is that they don’t offer an equally-awesome checking account to accompany their other deposit products. Indeed, it seems like Marcus has turned their former hoity-toity image around: Today, they’re a bank that we’d recommend to anyone, even blue-collar folks.

Advertiser Disclosure: The card offers that appear on this site are 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 card companies or all card offers available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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Personal Loans

LightStream Personal Loan Review

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

LightStream
APR

3.09%
To
14.24%

Credit Req.

680

Minimum Credit Score

Terms

24 to 144

months

Fees

No origination fee

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on LightStream’s secure website

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

LightStream personal loan details
 

Fees and penalties

  • Terms: LightStream loan terms range from 24 to 144 months.
  • APR Range: The APR for this loan is 3.09% to 14.24% APR. The lowest interest rates include a 0.50% rate discount for using autopay.
  • Loan amounts: You can borrow from $5,000 to $100,000.
  • Time to Funding: You can get funding the same business day you apply if you’re approved by 2:30 p.m. EST. Otherwise, you have to schedule funding of your loan within 30 days of getting an approval.
  • Hard pull/soft pull: Applying for a LightStream loan will trigger a hard inquiry. LightStream pulls your Experian and Equifax credit reports. LightStream does not offer soft pull pre-approvals.
  • Origination fee: None.
  • Prepayment fee: None.
  • Late payment fee:None.
  • Other fees: None.

LightStream has no fees across the board and offers highly competitive interest rates. These two variables add up to a very affordable loan, if you can qualify. According to LightStream, you can borrow money for “practically anything.” Here are some examples of things you can finance with a LightStream loan:

  • Adoption
  • Auto
  • Debt consolidation
  • Dental work
  • Home improvements
  • IVF/Fertility treatments
  • K-12 education
  • Medical bills
  • Recreation
    • Boats
    • RVs
    • Timeshares
  • Tiny homes
  • Weddings

The list of ways you can use a LightStream loan is exhaustive. However, there are a few instances where you can’t use a LightStream loan. You can’t use one to finance a post-secondary education or commercial vehicle. LightStream does not offer financing to businesses either. You can only apply for a loan as an individual.

‘The Rate Beat’ program

Here’s more incentive to shop around and compare rates: LightStream will beat competitor rates by 0.10% APR. You must show proof that you’ve been approved by a lender for a lower rate and meet other eligibility criteria before LightStream will beat the competitor rate.
Here are the terms and conditions for the Rate Beat program:

  • The lower interest rate you find with another lender can’t be because of an employee discount or other special that’s not available to all customers.
  • The lower rate can’t be through any rate-subsidized programs.
  • The lower rate you get from a competitor lender must be for a loan that has the same amount, loan term, and loan purpose.
  • You must show proof that another lender is willing to give you a lower rate by 2 p.m. EST on the business day before your loan is funded.

Consider shopping for other loans before seeing what LightStream has to offer you so you can take advantage of the Rate Beat program. This way you can have documentation proving you got a lower rate elsewhere ready and waiting to show LightStream.

‘Loan Experience Guarantee’

The next benefit that LightStream has is the Loan Experience Guarantee. If you’re not satisfied with the loan process, LightStream will give you $100 for completing a satisfaction survey within 30 days of receiving your loan.

Eligibility requirements

  • Minimum credit score: LightStream seeks candidates with “good credit.”
  • Minimum credit history: LightStream looks for borrowers who have several years of credit history, a mix of accounts, stable income, few (if any) delinquencies, and a proven ability to save money.
  • Maximum debt-to-income ratio: Varies

LightStream is clear about offering loans to borrowers with good credit, although a specific credit score minimum isn’t listed. What constitutes good or excellent credit is subjective. However, a credit score of 700 or above is generally considered good. A 750 or above is generally considered excellent.
Despite not offering a minimum credit score or maximum debt-to-income ratio, LightStream does outline some key characteristics of borrowers that tend to qualify for a Lightstream loan.

  • Borrowers have many years of credit history (excellent borrowers tend to have five years or more of credit history)
  • Borrowers have a credit history with many different accounts such as credit cards, installment loans, and mortgages
  • Borrowers show evidence of being able to save through liquid assets, retirement savings, etc.
  • Borrowers have few late payments (excellent borrowers tend to have credit with no deliquences at all)

Applying for a personal loan from LightStream

The LightStream application process is straightforward. You apply online which requires a hard pull. There is no pre-approval with a soft pull available. LightStream first asks for the purpose of your loan, how much you want to borrow and which loan term length you need. The next step is to tell LightStream your personal information.

You should receive a response quickly if you apply during business hours. After an approval, you can e-sign your loan documents. LightStream will request credit card information to verify your identity and then you’ll receive your funds. You can get money as soon as the same day if your application is approved and all required steps are completed before 2:30 p.m. EST on a business day.

Pros and cons of a LightStream personal loan

Pros:

Cons:

  • Low rates. LightStream has highly competitive rates to offer borrowers who qualify.
  • ‘Rate Beat’ and other guarantees. LightStream will beat other rates if you can prove that another lender will give you a more affordable loan. LightStream also takes pride in the ease of the application process. If you have complaints about it, you can reach out to LightStream and they’ll give you a $100 bonus for your trouble. Terms apply.
  • Large and small loans. You can borrow from $5,000 to $100,000.
  • Long loan terms. Loan terms are available all the way up to 144 months (12 years).
  • Credit requirements. You’re out of the running for this affordable loan if your credit isn’t at least in the high 600’s.
  • There’s a hard pull. There’s no pre-approval process to check rates with a soft pull, so you won’t be able to see if your credit is strong enough to qualify without taking the hard hit. Check out our personal loan comparison tool, which includes loans that don’t require a hard pull.

Who’s the best fit for a LightStream personal loan?

The most competitive interest rates are given to people with good credit for a reason. Lenders are willing to offer loans with the lowest interest rates to borrowers who are less likely to default on a loan.

In this case, LightStream is clear that they focus on rewarding prime borrowers with loans that have no fees and low interest rates because they’ve shown demonstrated ability to manage debt responsibly. The LightStream loan is one that you should consider putting at the top of your shopping list if you have good credit or better because of the price and perks.

Besides the cost,LightStream lets you borrow high amounts of cash for almost any reason as long as it’s not for a student loan or commercial vehicle. The benefit of a long loan term is the possibility that you can stretch out your payments. But keep in mind, the very lowest interest rates are available for unsecured loans of $10,000 to $24,999 with loan terms of 24 to 36 months. You can borrow a high amount for a longer period, but it may cost you more money.

What stands out as a potential downside of this loan is that a hard pull is necessary to check rates. However, don’t be so afraid of hard inquiries that you don’t shop around for the very best deals with this lender, or any other one, that doesn’t offer pre-approvals with a soft pull. Ultimately, consenting to a hard inquiry and temporarily losing about 5 points to check rates may be worth the savings you could gain from qualifying with a low-cost lender likeLightStream. We have discussed the impact of credit inquiries in this post — the effect on your credit may be minimal considering the potential benefit.

If you meet the conditions of what’s considered good or excellent credit, this is one of the best personal loans that you can find online. Check out other top personal loan options here to compare products. This roundup includes many loans that allow you to check rates with a soft pull.

Alternative personal loan options

Here are some loan alternatives:

SoFi

SoFi
APR

5.95%
To
14.74%

Credit Req.

No Minimum FICO Score

Minimum Credit Score

Terms

36 to 84

months

Fees

No origination fee

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on SoFi’s secure website

Advertiser Disclosure

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


Fixed rates from 5.950% APR to 14.740% APR (with AutoPay). Variable rates from 5.825% APR to 14.365% APR (with AutoPay). SoFi rate ranges are current as of May 18, 2018 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 5.825% APR assumes current 1-month LIBOR rate of 1.90% plus 4.175% 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.

SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of IL is 8.99% APR, for residents of AK, OK, and WY is 9.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, KS, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, IL, OK, TX, VA, WY.

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)

SoFi is another lender that offers no-fee personal loans with competitive interest rates that you can use for a variety of reasons. You can borrow large amounts with SoFi — $5,000 to $100,000.SoFi doesn’t have a rate match program like LightStream, but there are some other perks, like access to financial advisors and unemployment protection for borrowers.. You can check rates with a soft pull.

Marcus by Goldman Sachs®

Marcus by Goldman Sachs®
APR

6.99%
To
24.99%

Credit Req.

Varies

Minimum Credit Score

Terms

36 to 72

months

Fees

No origination fee

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on Marcus By Goldman Sachs®’s secure website

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information.... Read More

Marcus by Goldman Sachs® is another personal loan that has absolutely no fees. You can borrow up to $40,000, and get approval within five minutes and funding within five days. Checking loan options doesn’t require a hard inquiry. Interest rates are typically higher for the longer term loans, and borrowers with excellent credit will get the lowest rates.

Upgrade

Upgrade
APR

5.96%
To
35.97%

Credit Req.

620

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 6.00%

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on Upgrade’s secure website

Loans made through Upgrade feature APRs of 5.96%-35.97%. All loans have a 1% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay. For example, a $10,000 loan with a 36 month term and a 17.97% APR (which includes a 5% origination fee) has a required monthly payment of $343.28. Upgrade is available in all states except: Connecticut, Colorado, Iowa, Massachusetts, Vermont, West Virginia.

Upgrade is the only lender included in this review that charges an origination fee. This lender will also likely have a lower barrier to entry, as the credit score minimum is just 620. You can borrow up to $50,000 from Upgrade. You can also check your rate without a hard inquiry. Upgrade can send money to your bank account in as fast as one day after your personal information is verified.

Advertiser Disclosure: The card offers that appear on this site are 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 card companies or all card offers available in the marketplace.

Taylor Gordon
Taylor Gordon |

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

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$

Won’t impact your credit score

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Personal Loans

Best Debt Consolidation Loans

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Best Debt Consolidation Personal Loans

Are you stuck under an overwhelming pile of consumer debt? Do you feel like it might be impossible to get out? Fortunately, there are tools that can help you get out of debt faster.

Debt consolidation loans could be a good answer. With a debt consolidation loan, you would use the loan proceeds to pay off credit card debt, medical debt or any other form of debt. You would then have a loan at a fixed interest rate and a fixed term.

Note: If you have a credit score less than 640, struggling to make monthly debt payments and would like to explore your options to reduce your debt by up to 50%, then please click our option below to customize a personal debt relief plan.

Custom Debt Relief Plan

Debt consolidation provides three benefits:

  1. Make payments simple: If you owe a lot of lenders and are having a tough time keeping track of all the payments, then consolidating will make your life easier. You’ll only owe one lender and have to keep track of one due date. There’s less of a chance of anything falling through the tracks.
  2. Lower your interest rate: This is where you have to run the numbers to see if debt consolidation makes sense for you. What’s the average interest rate you’re paying on your debt? If it’s quite high (which is likely if you have a lot of consumer debt), you may benefit from consolidating under better terms. Just remember to only use a personal loan if the interest rate is lower than the one you are already paying.
  3. Improve your credit score: If your credit cards are currently maxed out, your credit score will suffer. When you pay off your credit card debt with a personal loan, you will often receive a boost to your credit score, so long as you don’t start using your cards again. LendingClub did a study and determined that there is an average score increase of 21 points within three months for people who use loans to eliminate credit card debt.

If you think debt consolidation makes sense for your situation, we have a list of the best debt consolidation loans you can use to refinance your consumer debt. Read on for our recommendations.

Personal Loans to Consolidate Credit Card Debt

Start Shopping Here – LendingTree

At LendingTree, you can make dozens of personal loan companies compete for your business with a single online form. When you fill out the form, LendingTree will do a soft credit pull – which means your score will not be negatively impacted. Dozens of lenders will compete and you may be matched with lenders who want your business. You may be able to compare and save in just a few minutes. We recommend starting here. You can always apply directly to other lenders – but many of the lenders we recommend already participate in the LendingTree personal loan application tool. (Note: LendingTree owns MagnifyMoney)

LendingTree
APR

5.99%
To
35.99%

Credit Req.

Minimum 500 FICO

Minimum Credit Score

Terms

24 to 60

months

Fees

Varies

LEARN MORE Secured

on LendingTree’s secure website

LendingTree is our parent company. LendingTree is unique in that they allow you to compare multiple, personal loan offers within minutes. Everything is done online and you can have your loan pre-approved without impacting your credit score. LendingTree is not a lender, but their service connects you with up to five offers from personal loan lenders.

Below are some leading lenders you could also consider:

SoFi – Excellent Credit Required

You can borrow between $5,000 and $100,000, which is the most out of the personal loans recommended here. The fixed APR ranges from 5.95% – 14.74% if enrolled in autopay. You can choose a term of up to 7 years. Variable interest rates range from 5.83% – 14.37% APR. Although SoFi does not use FICO, you need to be “prime” or “super-prime” to qualify. That means you must be current on all of your obligations and must never have filed for bankruptcy. There is no origination fee or prepayment penalty associated with a personal loan from SoFi.

SoFi
APR

5.95%
To
14.74%

Credit Req.

No Minimum FICO Score

Minimum Credit Score

Terms

36 to 84

months

Fees

No origination fee

APPLY NOW Secured

on SoFi’s secure website

Advertiser Disclosure

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


Fixed rates from 5.950% APR to 14.740% APR (with AutoPay). Variable rates from 5.825% APR to 14.365% APR (with AutoPay). SoFi rate ranges are current as of May 18, 2018 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 5.825% APR assumes current 1-month LIBOR rate of 1.90% plus 4.175% 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.

SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of IL is 8.99% APR, for residents of AK, OK, and WY is 9.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, KS, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, IL, OK, TX, VA, WY.

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)

Some of the leading lenders for people with less than perfect credit include:

LendingClub – Minimum FICO of 600

This is a peer-to-peer platform, which means individual investors are contributing to your loan. You can borrow between $1,000 and $40,000 with LendingClub, and its APR ranges from 5.98% – 35.89%, depending on the type of loan grade you’re eligible for. Be aware there are origination fees (ranging from 1% – 6%) associated with this personal loan, but there are no prepayment penalties. You can borrow on terms up to 5 years. The minimum credit score needed is 600. LendingClub is not available in Iowa or West Virginia.

Lending Club
APR

5.98%
To
35.89%

Credit Req.

600

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 6.00%

APPLY NOW Secured

on Lending Club’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates and approvals for people with credit scores in the mid-600s. The loan application process is online and only takes a few minutes to complete and you can check your interest rate without hurting your credit. The loan processing time can take a while and you might not get approved if you have missed payments in the past.LendingClub is not available in Iowa and West Virginia

Prosper – Minimum FICO of 640

Prosper offers loans from $2,000 to $35,000, and APR ranges from 5.99% to 35.99%. It offers loans terms of either 36 or 60 months. Your APR is determined during the application process, and is based on a credit rating score created by Prosper. Your score is then shown with your loan listing to give potential lenders an idea of your creditworthiness. Origination fees range from 1% to 5% and are based on your Prosper score. In order to qualify, you must:

Prosper is a flexible alternative with a low-end APR that usually beats a credit card.

Prosper
APR

5.99%
To
35.99%

Credit Req.

640

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 5.00%

APPLY NOW Secured

on Prosper’s secure website

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. The interest rate you receive is determined by their own proprietary “Prosper Rating”. You can qualify for a loan with average credit and there are no prepayment fees, but your origination fee can be expensive, depending on your Prosper Rating.Prosper is not available in Vermont, Connecticut, Iowa, North Dakota, Maine, New York and Pennsylvania.

[Check out other Personal Loans on Our Comparison Table Here]

A Loan or a Credit Card to Consolidate Debt?

Personal loans can be an excellent way to consolidate your debt. Personal loans are best when you have a lot of debt or your credit score isn’t perfect. However, if you have a smaller amount of debt and a great credit score, you can get rates as low as 0% with a balance transfer. If you do have a good credit score, you should apply for a 0% interest balance transfer credit card.

Wait: I Have Student Loan Debt

If you’re thinking about refinancing or consolidating your student loans, there are a couple of things to know.

First, what’s the difference between refinancing and consolidating?

  • Private Loan Consolidation: This involves combining all your loans into one loan so you only owe one lender and have to make one simple payment.
  • Federal Loan Consolidation (Direct Consolidation Loan): Only have Federal student loans? You can combine them through a Direct Consolidation Loan with the government. According to studentaid.ed.gov, “The fixed rate is based on the weighted average of the interest rates on the loans being consolidated.” This doesn’t save you much money, but your payments will be more manageable. For a complete list of Federal loans that can be consolidated, check here.
  • Refinancing: This is when you apply to a completely new lender for new terms – you’ll have a new loan, and your new lender will pay off your old loan.

The difference isn’t all that big – when you consolidate private (or private and Federal) student loans, you’re essentially going through the refinancing process.

If you currently have Federal loans, you need to be aware refinancing or consolidating means giving up certain benefits that come with federal student loans.

That means income based repayment, deferment, forgiveness, and forbearance options disappear. A few of these benefits are forfeited even with the Direct Consolidation Loan. These benefits could get you through an otherwise rough time, so make sure refinancing makes sense beforehand.

If you do have federal student loans, and you’re thinking of refinancing or consolidating, first see if you’re eligible for deferment or forbearance. There’s no reason to go through the process of having your credit checked if you can lessen your student loan burden another way.

If you have private student loans, you can also check with your lender to see if it offers payment assistance. Many lenders are making improvements to their student loan refinance programs and including forbearance and deferment options.

Also, once you consolidate or refinance your student loans, there’s no going back. This applies to the Direct Consolidation Loan as well.

Okay, still think refinancing or consolidating is right for you? You can shop for the best lender to refinance your student loans here.

Shopping Around is a Must When Consolidating or Refinancing

The goal of refinancing or consolidating is to ultimately make your debt less of a burden on you. That means getting the best rates and terms offered. The easiest way to accomplish this is to shop around with different lenders. If you do so within a 45-day window, FICO will not punish you for shopping around. All of your student loan inquiries in the 45-day period will only count as one inquiry. Plus, there are many lenders out there who will give you rates with just a soft credit inquiry (though a hard inquiry is required to move forward with a loan). Always put yourself first, as you’re never obligated to sign for a loan you’re approved for.

promo_refi_studentloans_lg

Advertiser Disclosure: The card offers that appear on this site are 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 card companies or all card offers available in the marketplace.

Erin Millard
Erin Millard |

Erin Millard is a writer at MagnifyMoney. You can email Erin at erinm@magnifymoney.com

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Get A Pre-Approved Personal Loan

$

Won’t impact your credit score

Advertiser Disclosure

Personal Loans

Where to Get the Best Personal Loan Rates Online

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Where to Get the Best Personal Loan Rates Online

Updated May 01, 2018

If you want a personal loan to pay off credit card or other debt, the absolute fastest and most effective way to lower the interest you pay is to apply for a balance transfer, with a 0% rate. You can read our guide to balance transfers to learn about their pros and cons.

But a balance transfer isn’t for everyone, especially if your credit score isn’t perfect or if you need to borrow cash.

A personal loan with a set payoff period a few years from now is often the next best thing with these advantages:

  • One monthly payment
  • A set rate
  • You don’t need absolutely perfect credit
  • You can check your rate without touching your score

There are more attractive deals than ever thanks to some new online lenders and you can see sample rates below for excellent credit and good credit.

Tip: Apply for several loans to check rates. Every lender has different approval criteria and different pricing models – and the difference in rate between lenders (even for people with excellent credit) can be significant. So long as you shop with lenders that use a soft credit pull, you can check your rate without negatively impacting your credit score.

Start Here – Multiple Lenders at Once

LendingTree

LendingTree
APR

5.99%
To
35.99%

Credit Req.

Minimum 500 FICO

Minimum Credit Score

Terms

24 to 60

months

Fees

Varies

LEARN MORE Secured

on LendingTree’s secure website

LendingTree is our parent company. LendingTree is unique in that they allow you to compare multiple, personal loan offers within minutes. Everything is done online and you can have your loan pre-approved without impacting your credit score. LendingTree is not a lender, but their service connects you with up to five offers from personal loan lenders.

Dozens of lenders participate in LendingTree‘s personal loan shopping tool – including all of the lenders listed on this page. (Full disclosure, LendingTree is our parent company.) With one online form, LendingTree will perform a soft credit pull (with no impact to your score) and match you with multiple loan offers. This is our favorite (because it is easy) way to get multiple offers from lenders in minutes. For people with excellent credit, you could get an interest rate below 6%. For people with less than perfect credit, there are many lenders participating with more liberal acceptance criteria.

Why is this a good way to save?

Banks don’t care much for personal loans because the lower rates earn them less profit than credit cards.

Fortunately, some new companies believe you should be able to get a competitive rate without dealing with credit card intro offers, even if your credit isn’t perfect.

They’re doing it by lending online only without the overhead of branches.

They pass the savings on to you through better rates, and you can check up on them below.

Personal loans for Excellent Credit

The following providers are for you if you want the absolute lowest possible rates that reward a record of no late payments and good income, even though you have some high rate debt you want to clean up.

Unless you get a rate of 5% or less, you’re probably better off with balance transfer deals, but the convenience of a fixed payment and walking away from credit cards makes personal loans appealing.

SoFi

SoFi
APR

5.95%
To
14.74%

Credit Req.

No Minimum FICO Score

Minimum Credit Score

Terms

36 to 84

months

Fees

No origination fee

APPLY NOW Secured

on SoFi’s secure website

Advertiser Disclosure

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


Fixed rates from 5.950% APR to 14.740% APR (with AutoPay). Variable rates from 5.825% APR to 14.365% APR (with AutoPay). SoFi rate ranges are current as of May 18, 2018 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 5.825% APR assumes current 1-month LIBOR rate of 1.90% plus 4.175% 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.

SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of IL is 8.99% APR, for residents of AK, OK, and WY is 9.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, KS, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, IL, OK, TX, VA, WY.

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)

Sofi’s believes if you’ve graduated college or went to grad school you’ll be a more responsible borrower, so they may be more likely to give you a better rate, even if your credit history is limited.

For example, if you have $10,000 in credit card debt, good income, and great credit, their best rate could save you as much as 0% balance transfer deals once you factor in the fees for each.

What we like best about Sofi is that they offer no origination fee and no prepayment penalty. If you think you may be able to pay off your loan earlier (or want the flexibility to do that), Sofi is the only lender we reviewed that charges no fee at all. Given their very low rates, we think anyone with good credit should start with Sofi first, and then compare their offer to the rest of the providers.

Amount: $5,000 – $100,000

Available states: Alabama, California, Delaware, Washington D.C., Idaho, Indiana, Iowa, Louisiana, Maryland, Michigan, Minnesota, Missouri, Montana, Nevada, North Dakota, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Vermont, Washington (terms and limitations apply).

Marcus by Goldman Sachs®

Marcus by Goldman Sachs®
APR

6.99%
To
24.99%

Credit Req.

Varies

Minimum Credit Score

Terms

36 to 72

months

Fees

No origination fee

APPLY NOW Secured

on Marcus By Goldman Sachs®’s secure website

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information.... Read More

If you want to work with a traditional bank, Marcus by Goldman Sachs® can be a great option. With rates as low as 6.99% APR and flexible terms ranging between 36 to 72 months, they offer a competitive personal loan option that is backed by the security and peace of mind that comes with using a bank that has been in business for 148 years.

While Marcus does not state a required minimum credit score, they do seek out people with prime credit, which usually falls above 660 or higher on the FICO scale. Those that meet the requirements will be able to borrow up to $40,000 for debt consolidation and credit consolidation loans.

BestEgg

BestEgg
APR

5.99%
To
29.99%

Credit Req.

660

Minimum Credit Score

Terms

36 or 60

months

Fees

0.99% - 5.99%

APPLY NOW Secured

on BestEgg’s secure website

People looking for a process that is fast and simple can’t go wrong when applying through Best Egg for a personal loan. The best features of Best Egg are their simple terms and competitive interest rates for those with a strong, positive credit history. While keeping things simple, they only offer payback terms of 3 or 5 years, which may not be the best fit for everyone.

BestEgg is an online personal loan company that offers low interest rates and quick funding. BestEgg is one of the fastest growing personal loan companies in the country, largely because it has been able to provide one of the best combinations of interest rate and loan amount in the market.

You can check to see your interest rate without hurting your score, and they do approve people with scores as low as the mid-600s. If you have an excellent credit score, BestEgg will be very competitive on terms.

Amount: up to $35,000

Lightstream

LightStream
APR

3.09%
To
14.24%

Credit Req.

680

Minimum Credit Score

Terms

24 to 144

months

Fees

No origination fee

APPLY NOW Secured

on LightStream’s secure website

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

Lightstream is a great choice for people with excellent credit. It is actually part of a bank you might have heard of, SunTrust Bank. They were recently set up to offer some of the best personal loan rates available, and they are delivering. The interest rate you are charged depends upon the purpose of the loan. Interest rates can be as low as 3.09% for a new car purchase (and Lightstream does not put their name on your title. They just put the cash in your bank account, and you can shop around and pay cash for the car). Home improvement loans start at 4.99% APR with AutoPay , making them cheaper and easier than a home equity loan.

They’ll also approve and deposit your money fast, often the same day, and give extra consideration if you have money in your 401K or equity in your home.

Lightstream has created an exclusive offer, just for MagnifyMoney readers. (This offer went live in January 2016). Credit card consolidation loans for MagnifyMoney readers are now as low as 5.49% fixed. The highest fixed rate is 14.69%. Just beware: LightStream does a hard credit pull.

Amount: $5,000 – $100,000

Available states: All

Personal Loans for Good Credit

These providers may be able to help you out if you’re not approved for the very best rates or a 0% balance transfer offer. Check those deals first, there’s no real harm to do that, but if they fall through, give these a try.

LendingClub*

Lending Club
APR

5.98%
To
35.89%

Credit Req.

600

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 6.00%

APPLY NOW Secured

on Lending Club’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates and approvals for people with credit scores in the mid-600s. The loan application process is online and only takes a few minutes to complete and you can check your interest rate without hurting your credit. The loan processing time can take a while and you might not get approved if you have missed payments in the past.LendingClub is not available in Iowa and West Virginia

You might not have heard of LendingClub yet, but they are a big player in online loans. And they offer a wide range of rates and terms based on your credit profile and needs. Generally you’ll need a score of about 600 or higher to get approved.

Amount: up to $40,000

Available states: All except Iowa and West Virginia

BestEgg

BestEgg
APR

5.99%
To
29.99%

Credit Req.

660

Minimum Credit Score

Terms

36 or 60

months

Fees

0.99% - 5.99%

APPLY NOW Secured

on BestEgg’s secure website

People looking for a process that is fast and simple can’t go wrong when applying through Best Egg for a personal loan. The best features of Best Egg are their simple terms and competitive interest rates for those with a strong, positive credit history. While keeping things simple, they only offer payback terms of 3 or 5 years, which may not be the best fit for everyone.

BestEgg (reviewed earlier in this post) will approve people with credit scores as low as the mid-600s. If you have good credit and are looking for a loan, you should consider BestEgg.

Upstart*

Upstart
APR

8.92%
To
29.99%

Credit Req.

640

Minimum Credit Score

Terms

36 to 60

months

Fees

0.00% - 8.00%

APPLY NOW Secured

on Upstart’s secure website

Upstart’s initial focus was to help recent graduates that were struggling with debt, but they have expanded to provide options for those with strong credit profiles as well. They have a unique algorithm that takes into account things such as education, career, job history, and standardized test scores, but you will still need a minimum FICO score of 640.

Upstart offers loans that look a lot like the ones from the bigger online lenders like LendingClub or Prosper.

They’ll let you borrow up to $50,000 for 3-5 years. But the key is they will take into account the schools you attended, your area of study, the grades you earned in school, and your work history to see if you can get a better rate.

So while the range of rates Upstart offers is similar to the bigger guys, if you did well in school, you might find the rate you actually get is lower than what the others will offer you, so it’s worth trying.

You’ll need a 640 or better FICO and your monthly payments can’t be more than 55% of your monthly income.

Amount: $1,000 – $50,000

Available states: All

PenFed

PenFed Credit Union
APR

6.49%
To
0.00%

Credit Req.

700

Minimum Credit Score

Terms

60

months

Fees

No origination fee

APPLY NOW Secured

on PenFed Credit Union’s secure website

Pentagon Federal Credit Union (PenFed) offers personal loans with terms up to 5 years and maximum loan amounts of $25,000. The loan requires no collateral and they don’t have any origination fees, application fees, or early prepayment penalties. You will need to join Pentagon Federal Credit Union before you are able to apply for a personal loan.

Previously, PenFed offers a fixed rate of 9.99% interest rate for 5 years. Veterans get extra special attention so it’s worth checking this online only offer. You have to be a member of the PenFed credit union, but that’s easy and anyone can do that online as part of the process.

Available states: All

Personal Loans for Bad or Minimal Credit

Avant*

Avant
APR

9.95%
To
35.99%

Credit Req.

Varies

Minimum Credit Score

Terms

24 to 60

months

Fees

4.75%

APPLY NOW Secured

on Avant’s secure website

Avant branded credit products are issued by WebBank, member FDIC.

If you want a speedy process with your personal loan, you can’t go wrong with Avant, who could get you your loan as soon as the next business day. In terms of rates, qualifications, and repayment terms, Avant keeps things the same as most other lending options, though, it is important to shop around to secure the best offer. Avant is available in all states except: Colorado, Iowa, West Virginia, and Vermont.For Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33."

There is no prepayment fee. Checking your Loan Options will not affect your credit score. Just one warning: if you are willing to borrow money at 35.99%, then you really need to step back and think about building a longer term financial plan. You can download our free Debt Guide, which will help you put together a plan so that you never have to pay interest rates this high again.

Avant‘s platform offers access to loans from $2,000 to $35,000, with terms from 2 to 5 years. The minimum credit score varies, but we have seen people with scores as low as 580 get approved.

The good thing about Avant is that these loans are amortizing. That means it is a real installment loan, and you will be reducing your principal balance with every payment.

Amount: up to $35,000

Available states: All except: Colorado, Iowa, West Virginia, and Vermont.

For Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33.

Avant branded credit products are issued by WebBank, member FDIC.

OneMain Financial

OneMain Financial
APR

16.05%
To
35.99%

Credit Req.

Varies

Minimum Credit Score

Terms

Varies

months

Fees

Varies

APPLY NOW Secured

on OneMain Financial’s secure website

OneMain Financial offers quick turnaround times and you can get your money the same day if you apply before noon. Interest rates are higher than other online lenders, especially for those with excellent credit, and you will need to visit a branch to get your loan.

OneMain Financial offers personal loans through its branch network to people with less than perfect credit. You can start your application online. If you qualify, you will have to visit a branch to complete the application. Once in the branch, if you have all of the required documents, you can receive you loan proceeds immediately via check.

You can borrow from $1,500 to $30,000. The interest rates are not low, and can go up to 35.99%. They will also charge an up-front origination fee that is not refundable. You should definitely shop around at other lenders first, given the high cost of the loan and the need to visit a branch.

Amount: Up to $30,000

promo-personalloan-wide

* We’ll receive a referral fee if you click on offers with this symbol. This does not impact our rankings or recommendations You can learn more about how our site is financed here.

Got questions? Get in touch via Twitter, Facebook or email (info@magnifymoney.com)

Advertiser Disclosure: The card offers that appear on this site are 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 card companies or all card offers available in the marketplace.

Brian Karimzad
Brian Karimzad |

Brian Karimzad is a writer at MagnifyMoney. You can email Brian at brian@magnifymoney.com

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Get A Pre-Approved Personal Loan

$

Won’t impact your credit score

Advertiser Disclosure

Personal Loans

LendingClub Personal Loan Review

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Lending Club
APR

5.98%
To
35.89%

Credit Req.

600

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 6.00%

APPLY NOW Secured

on Lending Club’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates and approvals for people with credit scores in the mid-600s. The loan application process is online and only takes a few minutes to complete and you can check your interest rate without hurting your credit. The loan processing time can take a while and you might not get approved if you have missed payments in the past.LendingClub is not available in Iowa and West Virginia

LendingClub personal loan details
 

Fees and penalties

  • Terms: LendingClub offers personal loans for terms of 36 or 60 months.
  • APR Range: Loan APR ranges from 5.98% to 35.89%.
  • Minimum credit score: 600
  • Loan amounts: You can borrow up to $40,000.
  • Time to Funding: It usually takes about seven days to have your loan funded.
  • Hard pull/soft pull: Checking rates to see how much a LendingClub loan will cost you only requires a soft pull. The soft pull will not impact your credit history. However, a hard pull is required to complete the full application. The hard inquiry may appear on your credit report and can impact your credit score.
  • Origination fee: LendingClub has an origination fee of 1% to 6%. This fee is deducted from the total amount of your loan. For example, let's say LendingClub charges you a 5% origination fee on a loan of $1,000. You may apply for a loan of $1,000 but receive only $950 after that fee is subtracted.

  • Prepayment fee: LendingClub has no prepayment penalty fee.
  • Late payment fee: The LendingClub late fee is 5% of your unpaid payment or $15, whichever one is greater.

LendingClub personal loans can be used for many purposes such consolidating debt, making home improvements, or covering other major expenses.

Debt consolidation is one area specifically where borrowers using a LendingClub loan can save big. A 2017 survey of borrowers who used a LendingClub loan to consolidate debt said that the interest rate on the LendingClub loan was 24% lower on average than the interest rate on their outstanding debt or credit cards. Besides lowering your interest rate, consolidating debt with a personal loan can turn many credit card payments due on random dates into one convenient fixed payment with a set pay off date. That being said, LendingClub is just one of many lenders that allow debt consolidation, so you should definitely shop around to be sure you’re getting the best rate available to you.

However, LendingClub may not be the best option for people looking for funds in a hurry. The company says it will take about seven days to fund your loan, but this estimate depends on how long it takes you to turn in requested documentation during the application like proof of income. The faster you get in all of the information, the faster you can get access to your cash.

Eligibility requirements

  • Minimum credit score: You need at least a 600 credit score to qualify for LendingClub.
  • Minimum credit history: LendingClub doesn’t share what specific aspects of your credit history will make you eligible or ineligible for a loan. Exceeding the 600 minimum credit score is important to qualify. However, the very lowest interest rates advertised will go to borrowers with a high credit score, low debt-to-income ratio, and a long history of managing credit lines successfully.
  • Maximum debt-to-income ratio: LendingClub looks for a maximum debt-to-income ratio of 40%. This means your total monthly debt obligations are no more than 40% of your monthly gross income.

Besides credit requirements, LendingClub has some other basic requirements to note before applying. To qualify, you must:

  • Be at least 18 years old
  • Be a U.S. citizen, permanent resident, or long-term visa holder
  • Have a bank account

LendingClub is not currently accepting applications from Iowa, Guam, or Puerto Rico.

Applying for a personal loan from LendingClub

The application and funding process for a LendingClub loan is different from a typical loan because of the peer-to-peer lending element. You aren’t getting funding in the traditional way from a financial institution. Instead, your loan is getting funded in portions by many different investors.

Before you apply for a LendingClub loan we encourage you to check their rates and compare them to other lenders. You can do this by heading to the LendingClub website and filling out a short online form. Checking rates will not impact your credit score because it’s a soft pull.

You’ll get several offers to choose from after doing the initial pre-application. The offers will include the loan amount, loan term, monthly payment and APR. You’ll need to complete a full application after choosing an offer. Part of the full application is providing your social security number, your income, and details about your employment. This is where the hard credit inquiry comes into play.
Here’s an excerpt from the credit authorization document:

Checking your rate and reviewing loan offers on the LendingClub website will not affect your credit; it will result in a soft credit inquiry which is only visible to you. If you receive a loan through LendingClub, then a hard inquiry that may affect your credit score will appear on your credit report after you receive that loan. Additional reporting will be made to credit reporting agencies during the application precess to confirm you continue to meet credit criteria and to prevent potential fraudulent activities.

LendingClub reviews the information you provide to determine your credit risk. If approved, your loan will be deposited into your bank account. You can expect to receive funding within a week or more depending on how long it takes to verify your financial information.

Pros and cons of a LendingClub personal loan

Let’s review the pros and cons of borrowing with LendingClub:

Pros:

Cons:

  • Long loan term options. If you need to stretch out loan payments, LendingClub may be right up your alley because there are lengthy three- and five-year loan terms available.
  • Only a soft pull is required to check rates. There’s no hard inquiry needed to check rates which is ideal when you’re comparing various loan products. This allows you to shop around to secure a loan with the best possible interest rate you can get.
  • You can qualify with a credit score of 600. Credit is just one of several factors that LendingClub reviews to approve your application. You won’t get the very best interest rates available with a low credit score. However, this loan could be a good opportunity for borrowers with fair credit who are used to getting subprime offers.
  • Slightly longer funding times than other products. Innovation in the online lending space has made getting access to money in as little as one day at some lenders. That’s not the case, unfortunately, with LendingClub — because it could take up to seven days to get your funds through LendingClub, it may not be the right product for you if you need money very quickly for an emergency.
  • The origination fee. LendingClub gives you an origination fee and interest rate after determining your credit risk. You should think about the potential cost of an origination fee when you decide how much money to borrow. The origination fee is going to take a chunk of money out of your loan. You can compare origination fees of other personal loans here.

Who’s the best fit for a LendingClub personal loan

LendingClub loans can be a good fit for a wide range of borrowers because the minimum credit score is 600. There are also highly competitive interest rates available for borrowers with stellar credit.
The funding timeline is probably the biggest thing to consider with a LendingClub loan. It may take a week or even more for you to get your money. This won’t be much of an issue for borrowers who aren’t in too much of a rush to get cash. If you’re borrowing money to consolidate debt, pay off credit cards, or fund an event like a wedding that’s a year away, the time it takes to get funding may not be such a problem.

The loan terms available at LendingClub (36 or 60 months) give borrowers a decent amount of time to pay off the debt. A LendingClub loan may be the right product for you if you want to draw out your loan payments.

The customer feedback on LendingClub is pretty positive. Customers report that LendingClub offers transparency throughout the loan process. You can check out customer reviews in detail at LendingTree, a loan comparison site which owns MagnifyMoney.

We rank LendingClub as one of the top places to obtain a personal loan, but that doesn’t mean you shouldn’t compare options before choosing to borrow. Shop around for loans using our roundup of other top online personal loans.

Alternative personal loan options

Here are some alternatives to the LendingClub loan:

Marcus by Goldman Sachs®

Marcus by Goldman Sachs®
APR

6.99%
To
24.99%

Credit Req.

Varies

Minimum Credit Score

Terms

36 to 72

months

Fees

No origination fee

APPLY NOW Secured

on Marcus By Goldman Sachs®’s secure website

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information.... Read More

The Marcus by Goldman Sachs® loan is a no-fee personal loan. Interest charges are the only costs you’ll have to worry about with this product. The interest rates here are comparable to what LendingClub has to offer, plus you can get funding within five days. You can check rates online with only a soft pull that won’t affect your credit score. Ultimately, the lack of origination fee is what gives the Marcus by Goldman Sachs® an edge over LendingClub.

Prosper

Prosper
APR

5.99%
To
35.99%

Credit Req.

640

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 5.00%

APPLY NOW Secured

on Prosper’s secure website

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. The interest rate you receive is determined by their own proprietary “Prosper Rating”. You can qualify for a loan with average credit and there are no prepayment fees, but your origination fee can be expensive, depending on your Prosper Rating.Prosper is not available in Vermont, Connecticut, Iowa, North Dakota, Maine, New York and Pennsylvania.

Prosper is another peer-to-peer lender with interest rates and origination fees that are close to what LendingClub offers. Prosper also lets you check rates with just a soft inquiry so you can shop with both peer-to-peer lenders to see which one will give you the best deal. According to Prosper, borrowers on average get their money five days after accepting a loan offer.

Payoff®

Payoff
APR

8.00%
To
25.00%

Credit Req.

640

Minimum Credit Score

Terms

24 to 60

months

Fees

2.00% - 5.00%

APPLY NOW Secured

on Payoff’s secure website

The entire goal of Payoff is to help you pay down your debt and they typically don’t like being described as a loan company. They offer a quick, easy, and digital process for getting a personal loan and consolidating your credit card debt. If you have poor credit, little credit, or are continuing to take on more debt every month, you will find it difficult to get approved.

The Payoff® loan is a product that helps you consolidate existing credit card debt with a low, fixed interest rate loan. Payoff® isn’t an actual financial institution; instead, it works with lenders to originate loans. This loan product has an origination fee but no other fees (late fees, returned check fees, or repayment fees). You may be able to get funding within two to five business days so this is an example of an option that may provide faster funding. Payoff® has a slightly higher minimum credit score than LendingClub.

Advertiser Disclosure: The card offers that appear on this site are 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 card companies or all card offers available in the marketplace.

Taylor Gordon
Taylor Gordon |

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

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