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Personal Loans

Requirements to Get Your Personal Loan Approved

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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For the right consumers, personal loans can be a quick way to get much-needed cash for anything from a home repair to a college tuition. With the right qualifications, you can be approved for a personal loan in the morning and have the cash deposited into your account in as little as one day depending on the lender.

While applying is easy, qualifying for a personal loan may be more difficult. Here’s what you need to know about personal loans and how to get approved for one.

What is a personal loan?

A personal loan allows a consumer to borrow a lump sum of money for personal use and pay it back in fixed monthly payments over a set amount of time.

One significant difference between unsecured personal loans and other types of loans is that they don’t require collateral. When you buy a car, for example, the car serves as collateral and the lender can repossess it if you fall behind on your mortgage payments. To get an unsecured personal loan, you just have to qualify.

Personal loans come in a wide range of amounts and interest rates. The terms of personal loans vary by lender and range from six months to 84 months as of Feb. 2, 2018. They can be for as little as $2,000 and as much as $100,000, although the majority of personal loans are for much less. Best Eggs’ loans average between $13,000 and $14,000, according to Bobby Ritterbeck, chief marketing officer for the company.

What are personal loans used for?

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Unlike a mortgage, which is a loan for a house, or an auto loan, which must be spent on a vehicle, personal loans can be used for almost anything.

“People use it for a ton of reasons, from home repairs to medical [expenses] to all kinds of major purchases,” Ritterbeck said. People most commonly take out personal loans, however, for debt consolidation. In this process, borrowers use a personal loan to pay off other high-interest debts, which can simplify and reduce their monthly debt payments.

Alia Dudum, millennial money expert at LendingClub, said that Lending Club encourages anyone who needs credit to think about personal loans as “a responsible way to pay for something expensive,” whether the expense is planned or unexpected.

“You can’t always control when you have a major expense, but you can make good decisions,” she said. LendingClub’s borrowers primarily use personal loans to pay off high-interest debt, unexpected expenses such as medical bills or car repairs or a planned expense such as a vacation or home remodel.

How do I qualify for a personal loan?

Most lenders will look at two factors when you apply for unsecured personal loans: your credit history and your ability to repay the loan. Borrowers don’t have to provide collateral, such as a house or car to back their loan, nor do they need a cosigner (unless a cosigner is needed to strengthen your odds of getting approved).

Instead, lenders will look at your personal credit history and other factors, such as your income.

“That makes it easier for us to provide you quicker and easier access to your loan in comparison, to say, a mortgage loan that requires an appraisal of your home,” Dudum said.

Here’s a breakdown of how lenders determine whether you qualify for a loan.

Credit score

Each lender will determine its minimum credit score for receiving a personal loan, and some are more lenient than others regarding what scores they will accept. For BestEgg, for example, the average credit score for qualified applicants is 710. Ritterbeck said that most conservative financial institutions are comfortable issuing personal loans to applicants with scores around 680 and above.

Your credit score matters because it is a reflection of your ability to repay a loan. The score is compiled from information gleaned about how you handle credit, which could include:

  • Types of credit or loans you’ve carried (revolving, like credit, or non-revolving, like a mortgage)
  • The amount of each loan or the credit limit for each credit card you own vs. how much of that balance you are using from month to month
  • Whether you paid on time
  • Collections activity, bankruptcies, foreclosures or other negative marks

There are three federal credit reporting agencies that compete to compile American consumers’ credit histories: Equifax, Experian and Transunion. While each agency collects about the same information on each consumer, their credit score calculations may differ because the agency may not have collected the exact same information or it may store or display the information differently than the other agencies.

It’s important to note that your credit score will change over time as credit reporting agencies collect more information and tweak their calculation models. That means your score could be different from one month to the next.

Get your credit report and score for free

Each of the three reporting agencies will provide one free credit report a year, which you can get by visiting AnnualCreditReport.com or calling 1-877-322-8228.

There are lots of ways to get your credit score or credit score estimate for free these days. The Discover Scorecard, for example, offers a free FICO score.
Here’s our guide on getting your free credit score >

How to improve your credit score to get better loan terms

 

First, look for errors on your credit report, where you may find information that is inaccurate or wrong. If you find errors that could have lowered your credit score, dispute the error with the appropriate credit bureau. Check all three reports.

Then, take a look at your financial situation and make some changes.

  • Lower your debt: Stop spending on credit cards and come up with a strategy for paying down your balances.
  • Pay your bills on time: As much as 35 percent of your credit score could be based on your payment history, so make sure you pay all of your bills on time. If you are forgetful, set up automatic payments or monthly reminders.
  • Don’t close your unused credit card accounts: Unless your credit cards carry expensive annual fees, there’s no real benefit to closing them even if you aren’t using them. Your credit score will take into account the average length of time you’ve been using credit, so holding an account for a long time could actually benefit your score.
  • Don’t open new credit: As you rein back your spending, avoid the temptation to apply for more credit cards. Lenders may consider you risky if you open a lot of new accounts in a short amount of time.

The length of time it takes to improve your credit score depends on why your credit score is low in the first place. In any case, the personal financial discipline you develop as you work to improve your score will leave you with better spending and saving habits.

Debt-to-income ratio (DTI)

Your DTI is the amount of monthly debt obligations you have, including credit card payments, auto loans and student loans, divided by your monthly gross income. The calculation shows lenders the percentage of your income that you use to pay off debts.

“Lenders see this as an indicator of your ability to comfortably take on and pay off more debt,” Dudum said.

Wells Fargo lists a DTI of 35 percent as “looking good” and indicating that your debt is manageable in relation to your income, and that you likely have spending money left over after you pay your bills.

If you have a DTI between 36 and 49 percent, you may want to improve your financial situation so that you are in better shape to handle extra expenses. If your DTI is in this range, lenders
may look at additional eligibility criteria, like your income or whether you have a cosigner.

Credit utilization rate: This rate is calculated by dividing how much credit you’re using (the statement balance for each of your accounts) by the amount of credit you have
access to. “If it’s higher than about 30 percent, many financial companies see this as an indicator that you might not be as responsible as you could be,” Dudum said.

Credit history: How you’ve managed debt in the past can be a good determinant for how likely you are to pay back a personal loan. That means if you have little or no credit history, lenders may not approve your personal loan application.

“If you don’t have a track record with credit, it’s difficult for lenders to guess how you might handle paying your debts,” Dudum said.

Cosigner: If you have trouble meeting personal loan requirements, which could happen if you have a low credit score, no credit history or a bankruptcy in your past, you may need a cosigner.

Typically, cosigners are trusted friends or family members with good credit who will agree to take responsibility for the loan if you can’t make the payments. Lenders will factor in your cosigner’s credit history and credit score rather than yours when determining whether you qualify for the loan, which will up your chances of qualifying and securing a good interest rate.

Proceed with caution when considering a cosigner. If you don’t make your loan payments, you could ruin your cosigner’s credit history, stick them with the balance of the loan, and wreck your relationship with your cosigner.

How to apply for a personal loan

The application process for an unsecured personal loan is simple and fast.

“The old way is you’d walk into your local bank, wait in line to speak with a loan officer and apply that way,” Ritterbeck said. “In a lot of cases today you can still do that, but you also can go online, and in some cases call, and get a decision in a couple of minutes of what options are available to you.”

Online lending platforms will first ask you to fill out an application to check your credit rate. The personal loan industry can often show you your personal loan options without running a “hard” credit inquiry that would impact your credit score. These are typically called pre-approvals or prequalification checks but they aren’t final. When you are ready to apply for the loan, it will result in a hard credit inquiry. You may be able to get free quotes from LendingTree’s personal loan marketplace by filling out a short online form. LendingTree is the parent company of MagnifyMoney.

After you receive options for a personal loan, including the amount you qualify for and the interest rate, you can choose one to apply. “Generally speaking, the better your credit profile, the lower the rate of interest you’ll be charged in exchange for borrowing,” Dudum said. “That said, there are many other factors we take into consideration. One number couldn’t tell your whole financial story.”

Interest rates vary, but they can be as high as each state allows. OneMain, for example, can offer interest rates as high as almost 35.99% on personal loans, and Best Egg’s highest rate is 29.99%.

Once you decide which loan to apply for, you’ll need to submit proof of employment and income, such as a pay stub, said Kim Wijkstrom, chief marketing officer for OneMain Financial. Decisions on the loan can come within the hour, and the money could be deposited in your account the same day.

Lenders with alternative qualifications

Not all lenders follow the typical formula for personal loan requirements. OneMain, for example, uses credit scores as a guideline that gives a picture of a consumer’s credit history and focuses more on the applicant’s income and debt obligations, Wijkstrom said.
Here are others:

SoFi: SoFi is strict about approvals, as it prefers applicants with a good job and a history of on-time payments. It also does not allow cosigners or joint applicants. SoFi is unique in that there is No origination fee and has additional perks like loan forbearance if a borrower loses a job through no fault of his or her own. Interest will continue to accrue and is added to the loan balance, and SoFi will not report your payments to a credit bureau as being overdue.
Read our review of SoFi here.

SoFi
APR

6.20%
To
15.24%

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 6.200% APR to 15.240% APR (with AutoPay). Variable rates from 6.145% APR to 14.685% APR (with AutoPay). SoFi rate ranges are current as of May 3, 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 6.145% APR assumes current 1-month LIBOR rate of 1.97% 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. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. AutoPay is not required to obtain a loan.

SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK, OK, and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, KS, VA, 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, OK, TX, VA, WY, or for residents of IL for loans greater than $40,000.

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

Upstart: While Upstart initially focused on helping graduate students with significant debt, it now also offers loans to consumers with a strong credit history. Upstart’s formula for calculating approval is unique and considers an applicant’s career, education, job history and standardized test scores.
Read our review of Upstart here.

Upstart
APR

9.57%
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.

Earnest: Unlike most lenders, Earnest uses a merit-based system for determining who qualifies for a loan. Recent graduates and others who are starting to build credit history may qualify for these loans, which offer some of the most flexible terms along with customized loan and repayment plans.
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.

What if you are rejected for a personal loan?

You may not qualify for a personal loan the first time you apply, but it is possible to improve your financial position and successfully qualify later.

“People are of course usually very disappointed if they don’t get a loan, and the first thing to address is the emotional response,” Wijkstrom said. “Don’t be defeated when rejected.”

At OneMain, financial advisers will talk with clients about why they were not approved and what they can change. Sometimes that means fixing their credit history, such as paying bills on time for a set period. Others may find errors on their credit report that hurt their chances of qualifying for a personal loan.

You may also want to look into other options for credit, such as equity in your home that could help you get a different kind of loan, Ritterbeck said.

When used wisely, personal loans can help you get out of debt and manage large expenses. Regardless of when you need a personal loan, it’s never too early to integrate good habits into your financial life to ensure that when you do apply for a personal loan, you will qualify for the amount you need.

 

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.

Marty Minchin
Marty Minchin |

Marty Minchin is a writer at MagnifyMoney. You can email Marty here

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Won’t impact your credit score

Advertiser Disclosure

Personal Loans

OneMain Financial 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.

OneMain Financial
APR

16.05%
To
35.99%

Credit Req.

Varies

Minimum Credit Score

Terms

24 to 60

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 personal loan details
 

Fees and penalties

  • Terms: OneMain Financial offers personal loans for terms of 24 to 60 months.
  • APR Range: Loan APR ranges from 16.05% to 35.99%
  • Loan amounts: The minimum loan amount is $1,500 with a maximum amount of $30,000.
  • Time to funding: Can be same day but is usually no more than one day.
  • Hard pull/soft pull: Soft Pull when you apply but you can see if you pre-qualify, which will require a soft pull of your credit history and won’t impact your credit score.
  • Origination fee: Varies.
  • Prepayment fee: None.
  • Late payment fee: 5% of the amount in default.
  • Other fees: Lien recording fee if the loan is secured with an automobile: $55

OneMain Financial doesn’t offer much in the way of perks, but they do allow you to request changing your payment due date. They also are committed to helping customers understand finances by providing helpful resources.

OneMain Financial offers easy to find educational resources in the form of blog posts, courses, video tips and financial calculators.

From explaining financial terms to providing access to a free money management course, MoneySKILL, OneMain Financial stands by their mission of offering responsible loan products.

Eligibility requirements

  • Minimum credit score: Varies.
  • Minimum credit history: Must have some credit history, though they don’t specify the length required.
  • Maximum debt-to-income ratio: OneMain Financial does not specify what debt-to-income ratio is acceptable.

Additionally, you’ll need to be a U.S. resident and at least 18 years old. Over all, OneMain Financial is looking to see that you are able to repay the loan with a stable income and are similarly stable when it comes to where you live.

Applying for a personal loan from OneMain Financial

OneMain Financial makes it easy to get started with a personal loan application. You can either apply online or at a local branch and receive an answer to your application usually within 10 minutes.

The application asks for basic personal identifying information as well as:

  • Your intended purpose for the loan
  • How long you’ve lived at your current residence
  • Your current employer
  • Your current salary
  • Types of other financial products you have, such as a checking or savings account

If you choose to apply online, you will have to go to a local branch to close on your loan. Whether you go to the local branch to start your application or close on the loan that you applied for online, you’ll need to bring the following documents for verification:

  • A copy of a valid, government-issued ID
  • Proof of residence
  • Proof of income

How long it takes to receive your funds, depends on how you would like the funds issued. You can choose to be issued a check or a prepaid debit card (up to $10,000), which can usually be issued the same day. Or you may choose to receive your funds via an ACH disbursement which can take up to two business days.

Pros and cons of a OneMain Financial personal loan

Pros:

Cons:

  • Fast loan processing. OneMain Financial’s application from start to receiving funds can take as little as one day.
  • No application fee. There is no application fee required when submitting your loan request.
  • Lots of local branches. OneMain Financial has hundreds of branches in 44 states, making it likely that you are not located far from the nearest branch.
  • Available to those with lower credit scores. OneMain issues personal loans to those with lower scores which other lenders might turn away.
  • High interest rates. OneMain Financial offers loans with APRs ranging from 16.05%-35.99%. If you have a good credit score, you can likely find lower rates elsewhere.
  • Not an entirely online process. It’s not unusual to go to a physical branch location to close a loan, but as technology advances, there are companies that offer a completely online experience. OneMain does provide remote closings in some areas without physical branches.
  • No payment deferral. One perk some lenders offer is the ability to skip or defer a payment once a year. OneMain Financial doesn’t offer such a perk.

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

While you can use OneMain Financial personal loans for a number of different reasons, they cannot be used for tuition or to start a business. However, OneMain Financial is great for anyone with a lower credit score looking to consolidate debt or cover an unexpected expense.

As OneMain Financial interest rates are similar to a credit card, their personal loans are less than ideal to cover anything other than a necessary expense.

For example, a personal loan from OneMain Financial could be great if you have credit card debt spread over several cards. A personal loan from OneMain could help to simplify your finances by consolidating — rolling everything into one monthly payment and having a fixed date to have it paid off. A personal loan could also help you to improve your financial standing as revolving credit is viewed differently from installment loans when it comes to your credit report. Though to reap the full benefits, you still need to make sure you’re making on-time payments.

Additionally, personal loans from OneMain Financial can be used to cover unexpected expenses, like medical care or a car repair bill, as these expenses can sometimes be quite large and require payment quickly. The personal loans from OneMain with their quick turnaround time and $30,000 limit could fit the bill.

However, chances are if you’re working with OneMain, you have a lower credit score and while a personal loan could also be used to purchase a car or vacation, the high APR with OneMain means you’d be better off waiting until you improve your score and shop elsewhere.

Alternative personal loan options

LendingClub

Established in 2007 as a peer-to-peer lender, Lending Club offers personal loans up to $40,000 with APRs as low as 5.98%. Because of the higher loan amount and potential for a lower APR, it’s worth seeing the rates you qualify for with LendingClub, which you can check without having a hard pull on your credit.

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.... Read More

LendingPoint

LendingPoint provides personal loans for fair credit customers. Similar to OneMain Financial, they offer a quick turnaround with the possibility of receiving funds in as little as one business day. LendingPoint’s rates and fees are again similar to those offered by OneMain, though their maximum loan amount is $25,000 with a term of 24 to 48 months. If you need money quickly, LendingPoint gives you the opportunity to check rates while allowing you to shop around for the best deal.

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.

Peerform

Peerform is another peer-to-peer lender offering personal loans of $4,000 – $25,000 with rates that are capped at 29.99%. Peerform allows you to check your rate without impacting your score. That makes it worth it to shop around and see which lender, OneMain Financial or Peerform, will offer you the best rate.

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.

Liz Stapleton
Liz Stapleton |

Liz Stapleton is a writer at MagnifyMoney. You can email Liz here

TAGS:

Get A Pre-Approved Personal Loan

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Won’t impact your credit score

Advertiser Disclosure

Personal Loans

Peerform 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.

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.

Peerform personal loan details
 

Fees and penalties

  • Terms: 36 or 60 months.
  • APR range: Loan APRs range from 5.99% to 29.99%.
  • Loan amounts: You can borrow anywhere from $4,000 to $25,000.
  • Time to funding: Up to 14 days
  • Origination fee: 1.00% - 5.00%, depending on the “grade” Peerform gives your application. The fee is subtracted from the loan total. Example: If you request a loan of $2,000 and are charged a 5% origination fee, you’ll get $1,900.
  • Prepayment fee: None
  • Late payment fee: After 15 days, you’ll be charged 5% of the monthly installment or $15, whichever is greater.
  • Other fees: If you pay by check, Peerform charges a $15 fee per payment. A returned payment also incurs a fee of up to $15, depending on state laws.

Many people like the idea of bypassing the traditional banks in favor of a P2P lender like Peerform. Borrowers use the money for things like debt consolidation, unexpected home or personal expenses or to fund small businesses. But these loans are not for everyone — and a Peerform loan can’t be used for certain items.

For example, Peerform prohibits borrowers from using personal loans to pay college tuition or other postsecondary expenses, or for “illegal activity.”

Eligibility requirements

Even though Peerform lends to borrowers with poor credit, applicants will still need to show that their debt-to-income ratio is below 40% and proof of having (or having had) at least one revolving account such as a credit card. Your credit history must not contain any current delinquencies or a recent bankruptcy, court judgments, tax liens or non-medical-based collections opened in the past 12 months.

Applicants must be at least 18 years old (19 if you’re a resident of Nebraska or Alabama), and a U.S. citizen or permanent resident. You’ll also need a Social Security number, a valid email address and a bank account.

Applying for a personal loan from Peerform

The online-only process is straightforward: Register at Peerform with your name, contact information and salary. To verify your identity, you’ll need to upload or e-mail some form of photo identification: driver’s license, passport or state or federal ID. In some cases, additional paperwork – Social Security card, utility bills, credit cards or bank statements – may be requested.

You also have to show proof of employment by uploading or e-mailing two pay stubs. Those who are self-employed will need to show a recent tax return plus two recent bank statements.

The Loan Analyzer then determines whether you’re eligible for a loan, and at which rates and terms. Once you select the best loan match, potential investors have up to 14 days to review it.

Peerform cannot guarantee that your loan will be completely funded by the end of the two-week period. If investors provide less than 60% but at least $4,000 of your requested amount within that time frame, you can decline this partially-funded loan. However, if at least $4,000 and more than 60% of your request is approved, then the loan is considered funded.

Once the request is funded and the loan completed with the lender, Cross River Bank, the money will arrive in your bank account via direct deposit.

Pros and cons of a Peerform personal loan

Pros:

Cons:

  • The 600 minimum credit score means borrowers with less-than-stellar credit may still qualify for a loan.
  • Peerform offers some flexibility regarding repayment. If cash flow is a problem, you can delay a payment for up to 14 days without paying a late fee.
  • You can opt to accept or decline a partially-funded loan.
  • There’s no prepayment penalty.
  • Those with lower Peerform Loan Analyzer scores face higher APRs up to 29.99% and origination fees up to 5%.
  • The only available term is 36 or 60.
  • No joint applications or cosigners are allowed.
  • It could take up to two weeks to find out whether you get the money, which is a problem if you need the cash right away.

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

Those with lower credit scores who have been rejected elsewhere may still qualify at Peerform. Those with good credit scores can qualify for decent interest rates, with an APR as low as 5.99%.

Borrowers who are able to pay off their loans relatively quickly should find the three-year term manageable, but the cash-strapped may prefer competitors’ longer five-year terms.

Alternative personal loan options

Peerform is just one of several peer-to-peer lenders, including those who offer loans to subprime borrowers. Here are a few alternatives to consider:

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.... Read More

Lending Club offers loans between $1,000 and $40,000 with 36 or 60 month terms. Like Peerform, it accepts applicants with credit scores as low as 600. The APR range is 5.98% to 35.89%. LendingClub is not available in West Virginia or Iowa.

OneMain Financial

OneMain Financial
APR

16.05%
To
35.99%

Credit Req.

Varies

Minimum Credit Score

Terms

24 to 60

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.

This P2P lender is unique in that it sets no minimum credit score for applicants. However, it has the highest minimum APR among the lenders mentioned here, starting at 16.05% and going up to 35.99%. You can borrow between $1,500 and $30,000 for two, three, four or five years. OneMain Financial does not operate in Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island or Vermont.

Prosper

Prosper
APR

6.95%
To
35.99%

Credit Req.

640

Minimum Credit Score

Terms

36 or 60

months

Fees

2.40% - 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 offers loans from $2,000 to $40,000 for 36 or 60 months. Its current APR ranges from 6.95% to 35.99%. Of the three alternative subprime lenders mentioned in this article, it requires the highest minimum credit score: 640. Prosper does not operate in Alabama, Arizona, Arkansas, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Montana, Nebraska, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Vermont and West Virginia.

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.

Donna Freedman
Donna Freedman |

Donna Freedman is a writer at MagnifyMoney. You can email Donna here

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Personal Loans

Payoff 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.

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.

Payoff personal loan details
 

Fees and penalties

  • Terms: 24 to 60 months
  • APR Range: 8.00%-25.00%
  • Loan amounts:$5,000-$35,000
  • Time to Funding: Most loans are funded within 2-6 business days after the verification process is completed
  • Hard pull/soft pull: Soft Pull
  • Origination fee: 2% for 24-month loan, 3% for 36-month loan, 4% for 48-month loan, 5% for 60-month loan
  • Prepayment fee: None
  • Late payment fee: None
  • Other fees: None

Payoff aims for fee transparency: The only fee associated with a Payoff loan is the origination fee.

Payoff members receive other benefits, including:

  • Free monthly FICO® score updates
  • Job loss support
  • Quarterly check-in calls from Payoff’s member experience team during your first year
  • Tools that assess your personality, stress and cash flow to help you better understand yourself and your financial habits

Eligibility requirements

  • Minimum credit score: 640
  • Minimum credit history: 3 years of good credit
  • Maximum debt-to-income ratio: 50%

Payoff requires that you have at least two open and satisfactory tradelines on your credit report (i.e. open lines of credit on which you’ve made on-time payments). Any delinquencies (past-due payments) must be resolved before applying for a Payoff loan. You must also have not opened a personal installment loan within the past 12 months.

Payoff loans are not yet available in Massachusetts, Mississippi, Nebraska, Nevada, Ohio and West Virginia. Additionally, candidates must apply as individuals — there are no joint applications for spouses.

Payoff loans are intended to help eliminate credit card debt. In some instances, Payoff can help customers consolidate prior installment loans, including student loans. Contact Payoff to discuss your personal debt situation.

Applying for a personal loan from Payoff

To begin the Payoff loan application process, you can visit the website and enter some initial personal financial information to get a feel for the types of rates you may be eligible for. You can also review the terms of different loan packages and select one that best meets your needs.

If you’ve decided to move forward with a Payoff loan, you will be asked to complete the online application process and upload multiple documents. The documents required will differ based on the individual. They generally include:

  • Proof of identification, such as a current driver’s license or passport
  • Proof of income, usually your two most recent pay stubs. (If you are self-employed or can’t provide pay stubs, you may be asked to provide tax documents like Form 1040, Schedule C and/or K-1.)
  • Other financial documentation, including your most recent monthly bank statement and mortgage statement

Payoff recommends assembling all of your documents in advance of your online application, because a partial submission will slow the process. Once you’ve uploaded your documents and attached them to your application online, you may log in anytime to check the status. If Payoff needs further documentation or clarification, someone from the company will contact you. Though the application process is done completely online, there is a toll-free number you can call with questions along the way.

It typically takes three to seven business days after your completed application has been received for it to be reviewed. A Member Advocate will reach out either way to let you know if your application is accepted or declined. If you are declined, you can apply elsewhere or try again after 30 days. If you are accepted, your loan will fund within two to six business days. Payoff does a hard credit check just before your loan is finalized.

Pros and cons of a Payoff personal loan

As with any financial decision, there are benefits and drawbacks to a Payoff loan.

Pros:

Cons:

  • Payoff provides customers with a variety of support services addressing not only the financial but emotional and psychological aspects of debt
  • With just an upfront origination fee and no other fees, Payoff customers don’t have to worry about penalties or unexpected charges popping up
  • Payoff’s APR is on par with competitive loan offerings — you won’t get significantly lower rates here
  • If you don’t have good credit or 3+ years of credit history, a Payoff loan is not even an option

Who’s the best fit for a Payoff personal loan

Payoff is a great option for people with a good credit history who are paying a lot of interest on credit card debt. Consolidating credit card debt with a personal loan can often result in lower overall interest payments. Payoff can also be helpful for individuals who have multiple credit card payments each month, as consolidating these debts will result in a single, easy-to-track monthly payment. Payoff’s quarterly check-in calls during the first year may be especially helpful for individuals who need help staying on track as they start paying off debt.

Alternative personal loan options

Lending Club

Lending Club is an online peer-to-peer lending marketplace for personal loans, auto refinancing, and business loans. Though Lendingclub’s offerings are generally competitive, its funding time is longer than most lenders in the space (can take a week) and its origination fee is a bit higher.

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.... Read More

Earnest

Earnest is an alternative lender that offers personal loans, student loan refinancing and home loans. The company boasts that it gives customers lower rates by using nontraditional financial data such as savings patterns, investments and career trajectory when considering applications. Earnest loans have no fees and are ideal for young professionals with a degree and steady employment who have not yet built a robust credit history.

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.

Upstart

In addition to traditional qualifiers like a FICO score, Upstart also considers your education, area of study and job history when reviewing your loan application. The company says once you are approved, your loan can be funded the next day. Upstart also claims its borrowers save 23% on refinanced credit card debt. Upstart loans are subject to a number of fees, including an origination fee, late fees and check processing fees. The lender is a good fit for young adults with a good credit score but a short credit history who want to pay off debt.

Upstart
APR

9.57%
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.

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.

Ashley Sweren
Ashley Sweren |

Ashley Sweren is a writer at MagnifyMoney. You can email Ashley 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
iStock

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 June 13, 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

2.30%

$500

18 months

2.35%

$500

24 months

2.45%

$500

3 years

2.55%

$500

4 years

2.60%

$500

5 years

2.90%

$500

6 years

3.00%

$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.

LEARN MORE Secured

on Goldman Sachs Bank USA’s secure website

Member FDIC

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 to 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 is No origination fee 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.

APPLY NOW Secured

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

Discover 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.

Discover Personal Loans
APR

6.99%
To
24.99%

Credit Req.

660

Minimum Credit Score

Terms

36 to 84

months

Fees

No origination fee

APPLY NOW Secured

on Discover Personal Loans’s secure website

Discover’s personal loan gives you all the benefits that come with a traditional lender – fixed rates, availability in all 50 states, and flexible payment options. In fact, you can get up to 84 months to repay your loan, which is one of the longest repayment terms available. Discover does have a more in-depth application process than others and you may need to speak with a loan specialist to qualify.

Discover Personal Loan Details
 

Fees and penalties

  • Terms: Discover Personal Loan terms range from 36 to 84 months.
  • APR Range: The APR ranges from 6.99% to 24.99% depending on creditworthiness.
  • Loan amounts: Loan amounts can be anywhere from $2,500 to $35,000.
  • Time to funding: You can get a loan decision as quickly as the same day of your application. Funds may be received as early as the next business day. It may take up to seven days if your application has errors, is funded on a weekend or holiday, or you request funds with some disbursement methods.
  • Hard pull/soft pull: Checking your rate will result in a Soft Pull that won’t impact your credit score.
  • Origination fee: None
  • Prepayment fee: None
  • Late payment fee: $39 if payment is not received in full by the due date.
  • Other fees: None

Discover Personal Loans have no fees as long as you make your monthly payments in full and on time. To help avoid late payments, you can set up automatic payment for free at any time. You can also set up the automatic payment to withdraw more than the monthly payment amount if you want to pay off your loan early.

The repayment terms with Discover Personal Loans are more flexible than most personal loan lenders, with 36 to 84 months to repay your loan.

A cool perk that is offered by Discover for anyone to take advantage of (you don’t even have to be a customer of Discover) is the free Credit Scorecard with your FICO® Score. This is a free way to find out your credit score without a hard pull, which means checking your score with Discover won’t lower it.

Discover Personal Loans also offers a 30-day money-back guarantee. This means you have 30 days after the date your loan is funded to return the entire amount without fees or interest and the loan will be canceled. However, this does not apply to loans where funds are disbursed directly to other creditors to consolidate existing debt.

Funds can be used for many different purposes, including vacations, financing a wedding, home improvements, moving costs, medical bills, debt consolidation and more.

Eligibility requirements

  • Minimum credit score: Discover seeks applicants with “good credit”
  • Minimum credit history: Discover seeks applicants with a “strong financial history”
  • Maximum debt-to-income ratio: Not specified

Discover Personal Loans doesn’t specify a minimum credit score, minimum credit history or maximum debt-to-income ratio required to qualify for a loan. However, their website does say their personal loans “may be an ideal solution for people with good credit and a strong financial history.” The exact definition of a good credit history is subjective.

Discover does specify that in order to be eligible for a personal loan, you must:

  • be a U.S. citizen or permanent resident
  • be at least 18 years old
  • have a minimum household income of $25,000

Applying for a personal loan from Discover

You can apply for a personal loan from Discover on their website, or you can call 1-866-248-1255 and apply over the phone. If you received an invitation in the mail to apply, you can also fill out and mail the application.

On their website, you do have the option to view your interest rate and monthly payment without a hard pull on your credit. You have to fill out your requested loan amount, state the funds will be used for, the length of term you’d like, as well as your personal information like your address, etc.

After reviewing this information, you can then decide to finish your application or not.

Make sure you have the following information handy to complete your application:

  • An invitation number if you received an invitation by mail or email to apply
  • Income information
  • Employment history
  • Bank account number and routing number for depositing funds via direct deposit
  • Creditor information (balances and account numbers) if funds will be sent directly to creditors to consolidate debt

According to their website, after your loan application is received, a loan specialist may call to confirm and verify your information.

If your information is all correct and free of errors, you can receive a decision the same business day. Funds may be disbursed as quickly as the next business day depending on the disbursement method you’ve chosen.

Pros and cons of a Discover personal loan

Pros:

Cons:

  • Flexible terms. A repayment term of 36 to 84 months is among the longest for most personal loan lenders.
  • Few fees. No origination fee and no prepayment fees. Fees only apply if payments are late or not paid in full.
  • Check your rate with a soft pull before applying. This means shopping around to see your rate won’t impact your credit score.
  • Interest rates higher than some lenders. It may be a good idea to shop around for a better rate. Definitely take advantage of their pre-qualification form so you can compare your rate with other offers.
  • Application process may be more stringent than other lenders. You may receive a phone call after applying to review and verify your information. This seems more stringent than some other lenders.

Who’s the best fit for a Discover Personal Loan?

If you have high-interest debt to consolidate, a personal loan from Discover may help you get a lower interest rate with a flat monthly payment, which also makes budgeting easier than with fluctuating monthly payments. The longer terms offered by Discover may also result in lower monthly payments than shorter-term personal loan options with other lenders.

Alternative personal loan options

Here are some loan alternatives:

Upgrade

Upgrade
APR

5.96%
To
35.97%

Credit Req.

620

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 6.00%

LEARN MORE Secured

on LendingTree’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.

While Upgrade charges an origination fee and offers few options for loan terms, you may be able to get a slightly lower APR than with Discover. You may also be able to get a loan more easily with Upgrade since the credit score requirement is low.

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

Marcus by Goldman Sachs® offers slightly higher amounts for borrowers. With Discover, you can borrow up to $35,000, while you can borrow up to $40,000with Marcus. However, the shorter repayment terms means that you monthly payments will likely be higher with Marcus.

LightStream

LightStream
APR

3.09%
To
14.24%

Credit Req.

680

Minimum Credit Score

Terms

24 to 144

months

Fees

No origination fee

LEARN MORE Secured

on LendingTree’s secure website

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

*Rates with .50% autopay discount.

With low APRs available for qualified borrowers and longer terms on personal loans, LightStream is a highly competitive lender. However, there’s no preapproval process to check rates with a soft pull like there is with Discover, so you have to apply and take a hit on your credit report if you want to see your rate. Plus, in order to get the best rates, you have to sign up for autopay to receive an interest rate discount.

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.

Kayla Sloan
Kayla Sloan |

Kayla Sloan is a writer at MagnifyMoney. You can email Kayla here

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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

Updated June 01, 2018

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 6.20% to 15.24% if enrolled in autopay. You can choose a term of 36 to 84 months. 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

6.20%
To
15.24%

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 6.200% APR to 15.240% APR (with AutoPay). Variable rates from 6.145% APR to 14.685% APR (with AutoPay). SoFi rate ranges are current as of May 3, 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 6.145% APR assumes current 1-month LIBOR rate of 1.97% 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. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. AutoPay is not required to obtain a loan.

SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK, OK, and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, KS, VA, 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, OK, TX, VA, WY, or for residents of IL for loans greater than $40,000.

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 to $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 1.00% - 6.00%) associated with this personal loan, but there are no prepayment penalties. You can borrow on terms 36 or 60 months. 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.... Read More

Prosper – Minimum FICO of 640

Prosper offers loans from $2,000 to $40,000, and APR ranges from 6.95% 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 2.40% - 5.00% 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

6.95%
To
35.99%

Credit Req.

640

Minimum Credit Score

Terms

36 or 60

months

Fees

2.40% - 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

TAGS: , ,

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 June 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

6.20%
To
15.24%

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 6.200% APR to 15.240% APR (with AutoPay). Variable rates from 6.145% APR to 14.685% APR (with AutoPay). SoFi rate ranges are current as of May 3, 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 6.145% APR assumes current 1-month LIBOR rate of 1.97% 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. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. AutoPay is not required to obtain a loan.

SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK, OK, and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, KS, VA, 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, OK, TX, VA, WY, or for residents of IL for loans greater than $40,000.

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 660. 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

LEARN MORE Secured

on LendingTree’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.... Read More

You might not have heard of Lending Club 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 660. If you have good credit and are looking for a loan, you should consider BestEgg.

Upstart*

Upstart
APR

9.57%
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 36 to 60 months. 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%

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 6.49% interest rate for 60 months. 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%

LEARN MORE Secured

on LendingTree’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 24 to 60 months. 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

24 to 60

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

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

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Personal Loans

Stilt 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.

If you are a foreign national living in the United States, you probably experienced the extra hoops that you have to jump through to borrow money from a traditional lender.

Few U.S. financial institutions lend money to expats who have an insufficient credit history, and if they do, foreign citizens often have to make a bigger down payment than U.S. citizens. With first-hand experiences of difficulties of borrowing money in the U.S., Rohit Mittal and Priyank Singh, two Columbia University graduates from India, founded Stilt in 2015, hoping to end the borrowing hassle for fellow expats.

Stilt Personal Loan
APR

7.99%
To
29.99%

Credit Req.

No credit score required

Minimum Credit Score

Terms

6 to 24

months

Fees

Varies

APPLY NOW Secured

on Stilt Personal Loan’s secure website

Stilt loans are originated by Stilt Inc., NMLS#1641523 (NMLS Consumer Access). Terms and conditions apply. To qualify for a Stilt loan you must reside in an eligible state and meet Stilt's underwriting requirements. Not all borrowers receive the lowest rate. Rates and terms are subject to change at anytime without notice and are subject to state restrictions. Stilt APR's range from 7.99% to 15.99%. For example you could receive a $10,000 loan with a term of 18 months with an APR of 13.00%, the monthly payment will be $614.48. No down payment is required.

 

Stilt personal loan details
 

Fees and penalties

  • Terms: 6 to 24 months
  • APR Range: 7.99% - 29.99%
  • Loan amounts:$1,000 - $25,000
  • Time to Funding: It takes up to 3 business days for you to receive the funds.
  • Hard pull/soft pull: Soft Pull. It will only do a hard pull if you decide to take the loan and sign the loan documents.
  • Origination fee: It varies by state. In Pennsylvania, for instance, the max is $150, or 5% of the loan amount. The exact fee amount will be mentioned in the loan offer and will only be charged if you choose to take the loan
  • Prepayment penalty: None.
  • Late payment fee:$0 to $25, or 5% of the monthly loan payment, whichever is higher. The exact fee depends on respective state licenses, and is disclosed in the promissory note.
  • Other fees:Fees will be charged if there are insufficient funds in your linked bank account, and range from $10 - $35, depending on respective state licenses, and are disclosed in the promissory note.

When making lending decisions, Stilt takes a holistic view of the borrower’s life. Its data models analyze the borrower’s merit by examining nontraditional factors, such as his/her employment potential and financial behavior based on the information provided.

Ultimately, what Stilt looks for in an applicant is the potential for responsible financial behavior. Expats who have high GPAs, high employment potential, solid work experience and show patterns of responsible financial activities may have a greater likelihood to get loan approval and secure a low interest rate — even if they are new to the country and have zero credit.

Borrowing Stilt funds while in college

If you are an international student, you are not eligible for federal student loans in the U.S. But at Stilt, you can apply for a new student loan of up to $5,000. Granted, $5,000 may not cover your full tuition or living expenses while you are in school, but it may help borrowers cover some of the usual start-up costs, such as room and board and food expenses.

College students can borrow as much as $25,000 if they can show proof of an accepted full-time job offer, and they plan to graduate within six months.

Apart from the loan application process, Stilt’s website offers a wealth of advice on issues near and dear to international students and foreign workers, ranging from basic personal finance to the ins and outs on visa requirements. For many newcomers, Silt’s blog and community board could be your one-stop shop to learn to navigate life in the U.S.

Eligibility requirements

  • Minimum credit score: No requirement
  • Minimum credit history: No requirement
  • Maximum debt-to-income ratio: No requirement

Currently, only applicants who physically live in the 12 states where Stilt is licensed to operate are eligible to apply for a loan. You also need a valid U.S. bank account and a phone number.

Your U.S. visa — F-1, OPT, H-1B, L-1, O-1, TN or DACA —must be valid for at least six months. A visitor’s visa will not work.

Stilt also considers those in temporary situations where the expat is waiting for OPT, STEM extension, are on Cap-Gap, or are under H-1B renewals.

Applying for a personal loan from Stilt

The application process is all online. To apply, you will need to enter your requested loan type and amount, the purpose of the loan and your preferred repayment plans.

You can choose a purpose from the 11 options listed in the application, ranging from paying a security deposit on an apartment and living expenses to covering tuition fees and insurance.

While you don’t need a Social Security Number to apply for a Silt loan, you will be asked to fill in the information on the application page. Enter 111-11-1111 if you don’t have one. For those who do have a credit history, their SSN will be included to the file, which may help the borrower get a lower interest rate.

In your profile page, you will be asked to upload your immigration paperwork, financial information and additional documents that could support your case as a trustworthy borrower. If applicable, the things you need to keep handy when you apply for a loan are your: Passport profile page, visa page, U.S. bank account information, I-20, transcripts, resume, job offer letter, four U.S. references and your permanent address in your home country.

Stilt promises to send you a decision in less than one business day.

You will have 6 to 24 months to pay back your loan, but you can also choose to borrow money for a shorter term — 12 months or 18 months.
Pros and cons of an Stilt personal loan

Pros:

Cons:

  • Serves noncitizens. It’s one of the few lenders focused on working with the immigrant community. There are a few personal loans out there that expats without a permanent residency are eligible for, but Stilt is one of the few that doesn’t require a credit history or cosigner.
  • Student-friendly. . Many foreign workers came to the U.S. as international students, but rarely you see a lender lending money to students and allowing them to use the funds to pay tuition. Earnest is another company that offers personal loans to foreign workers in the U.S., but they can’t pay their college tuition with the money.
  • Soft pull. When you apply for a loan, Stilt will do a soft pull if you have a credit history, which won’t impact your credit score. However, when you decide to take the loan and sign the loan documents, Stilt will do a hard pull, which could impact your credit score.
  • Only available in 12 states: If you don’t live in a state where Stilt operates, you need to shop around for a lender that is willing to loan money to non-U.S. citizens.
  • Loan terms are short:You have to repay your debt in two years. This is much shorter than the common term of up to five years that other lenders offer.
  • Origination fee.Compared with some loans that don’t charge origination fees, you may have to spend extra money on origination fees with Stilt loans, depending on your state. Stilt’s origination fee starts at 0% and the max depends on state usury limits.

Who’s the best fit for an Stilt personal loan

The ideal borrowers are foreign nationals who need some financial help to settle down in the U.S. Borrowers don’t need a credit history, a Social Security number, proof of employment or a state ID to be eligible to apply for a loan from Stilt. If they get a loan, it will help them establish credit in their host country. U.S. citizens who have a thin credit file may also consider applying for a Stilt loan if they don’t meet other lenders’ strict underwriting standards.

Expats who’ve lived in the U.S. for a longer time, though, may have obtained a SSN and built some credit. Those borrowers may be able to choose a personal loan from a wider pool of lenders offering lower interest rates, bigger loan amounts or better terms.

Alternative personal loan options

There are not a whole lot of other online personal loan lenders to choose from for noncitizens. We found a few for you to consider.

Earnest

Earnest is another online lender that loan money for nonresidents on work visas, but you will have to have a credit score of at least 660 and proof of a consistent income stream. On the plus side, you’ll avoid origination fees with 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.

Lending Club

Lending Club is a peer-to-peer lending platform, which means the funds you receive come from individual or institutional investors who fund the loans for borrowers. LendingClub lends money to non-U.S. citizens with valid, long-term visas.

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.... Read More

Upgrade

You may also be eligible for a personal loan with Upgrade, an online lender, if you are an expat with a valid visa in the U.S.

Upgrade
APR

5.96%
To
35.97%

Credit Req.

620

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 6.00%

LEARN MORE Secured

on LendingTree’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.

TD Bank

TD Bank is a traditional bank that may consider borrowers who are not U.S. citizens but have full-time jobs and SSNs. TD Bank’s TD Express Loan personal loans from $2,000 to $15,000, and the APR ranges from 8.99% to 15.99%.

TD Express Loan
APR

8.99%
To
15.99%

Credit Req.

680

Minimum Credit Score

Terms

12 to 60

months

Fees

No origination fee

APPLY NOW Secured

on TD Express Loan’s secure website

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.

Shen Lu
Shen Lu |

Shen Lu is a writer at MagnifyMoney. You can email Shen Lu at shenlu@magnifymoney.com

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Personal Loans

Personal Loans in Las Vegas, NV

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.

Lender

APR Range

Minimum Credit Requirement

Terms

Fees

One Nevada Credit Union

4.00 - 9.75%

No minimum credit requirements

Up to 60 months

No fees

Bank of Nevada

Contact Lender

Contact Lender

Contact Lender

No fees

CCCU

10.00-21.00%

No minimum credit requirements

24 to 48 months

No fees

Nevada State Bank

8.49-16.49%

670

Up to 36 months

$50-$150 documentation fee

8.50%-18.00%

640-750

24 to 60 months

Varies

One Nevada Credit Union

One Nevada Credit Union has a wide range of personal loan offerings; this includes advance pay, credit builder loans, lines of credit, saving secured loans, signature loans, and calculators. Their offerings cover up to $25,000 for borrowers, and their online application system has been simplified to three steps to help ensure a quick application evaluation.

Additionally, One Nevada Credit Union has several notable member benefits. Their Financial Fitness Program partners with BALANCE to offer members free access to financial education resources such as counseling, budget management, and advice on how to handle your debt.

Bank of Nevada

Bank of Nevada offers business checking and saving, business loans and credit, personal banking and loans, treasury management, and more. Bank of Nevada has offices in Las Vegas, Henderson, North Las Vegas, and Mesquite. Loans can be secured through assets owned by customers or as an unsecured personal loan.

As a local subsidiary of Western Alliance Bank, Bank of Nevada incredibly involved in various Las Vegas, Nev. initiatives. It supports education through the (BE) Engaged summit, which encourages the business community to bolster improvements to the public education system.

Clark County Credit Union

To become a member of Clark County Credit Union, you must maintain minimum account balances at all times. Online banking and bill-pay is free, but Clark County Credit Union does require balance inquiry fees, coin processing, close account early, dormant account, IRA annual fee, incorrect address, and more.

However, there are no notable fees attached to personal loans; the interest paid by borrowers are the only expenses that CCCU members experience with their loan. Clark County Credit Union offers a fixed-rate signature loan with flexible rates, dependant on a customer’s credit history.

Like One Nevada Credit Union, Clark County Credit Union has partnered with BALANCE to offer free financial counseling services to members. They also offer membership feedback options and member discounts at the mobile network Sprint to people living in the Las Vegas area.

Nevada State Bank

Nevada State Bank offers savings and CD secured loans, unsecured loans, and prime credit lines to borrowers. They also have an easy-to-follow guide on all consumer loan rates that are based on your FICO score. Although they have locations near Las Vegas, Nev., they also have an online personal loan application. Nevada State Bank also offers an online loan comparison tool that allows you to compare rates and loan options without needing to go to a branch and speak with a representative.

Additionally, Nevada State Bank offers a grant application process to support organizations local to Las Vegas, Nev. They also involve themselves in the Las Vegas community through donation and volunteerism.

How to compare personal loans online

Many people visit banks and credit unions in-person to gather information about personal loan availability and to submit applications. While this can be useful to get a feel for your lender, or ask questions face to face, it can also be time consuming. When you shop online for personal loans, you can compare multiple loans at once. On MagnifyMoney, we have an online marketplace where you compare options from many lenders at once.

When you shop for personal loans online, you want to make sure you’re getting the amount you need while balancing that with ideal interest rates and repayment terms. The kind of interest rates and repayment terms you qualify for will often depend largely on your credit score. Each lender you look at will likely have a different set of requirements.Although many online loans have different requirements for borrowers to apply, the same general process is followed.

Submit Your Information
The first thing you’ll do is submit your personal and financial information. This can include proof of employment, bank statements, and a report of your existing lines of credit so they can determine your debt-to-income ratio. This information is used by a lender to determine whether you qualify for a loan through them and your potential repayment terms.

Choosing an Offer
Once you submit your information, a lender processes your application, and you’ll receive an offer. When you compare offers, look at APR, loan fees, loan length and minimum monthly payment. This will help you to determine whether the loans you’ve been approved for fit into your short-term budget and long-term financial plans.

Receiving Money
Once you accept a loan offer, the money is disbursed to you. The length of time you’ll have to wait to receive your money largely depends on the individual lender.

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.

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.

Dave Grant
Dave Grant |

Dave Grant is a writer at MagnifyMoney. You can email Dave at dave@magnifymoney.com

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