Oct 24: You need to know-10 best Personal Loans
Explore personal loans as a quick funding solution. Learn about fixed interest rates, secured vs. unsecured loans, the impact on your credit score when applying for personal loans.
What to know about personal loans
A personal loan can be an easy option for financing a purchase in a pinch. But it is also a great responsibility. Applying for a personal loan means that after approval, you agree to pay your loan and interest within the specified period.
Personal loans can be secured or unsecured. A secured loan requires you to provide collateral as collateral for approval. Unsecured loans do not require collateral but may come with slightly higher rates.
Personal loans usually have a fixed interest rate. This means that once your loan application has been approved, So your rate is closed and won’t change. These loans are different from other types of loans. Such as credit cards or lines of credit, which have variable interest rates that can fluctuate in response to market changes.
It is important to note that when you apply for a personal loan, The lender will take out your credit report. which can result in a “strict inquiry,” This can temporarily lower your credit score. However, most lenders allow you to get the price online without having to pull out your credit. To determine if you are likely to be approved if you submit a complete application.
How to choose a personal loan
If you’re considering applying for a personal loan, consider the following features to help you narrow down your options:
- Loan Amount: Each lender has its own parameters for how much loan applicants can borrow. The amount of money you have been approved for This depends on your credit profile, income, debt-to-income ratio (DTI) and more.
- Loan Term: The amount of time you need to repay the loan. This is called a period. The terms of a personal loan vary from lender to lender. But you can often find terms of five years or more. Extending the period helps to keep the monthly payment low, But this results in higher interest payments over time and can ultimately make your loan more expensive.
- The Annual Percentage Rate (APR) of a personal loan determines your total borrowing costs. The higher the APR, the more interest you’ll pay over the term of your loan.
- Loan Fee: You may be charged an initial or administrative fee for processing your loan, a prepayment fee for paying off your loan ahead of time, or a late fee for making a late payment. The fees that you may have to pay Read your bank’s credit reports to find out.
- Time to fund: Many personal loans are disbursed within a few days. While some lenders may fund your account on the same day you are approved. Before applying, confirm that your chosen lender can get you funds in a time-bound manner that meets your needs.
Alternatives to personal loans
Personal loans usually come with more favorable interest rates and terms than other financing options. Especially for those with good credit. However, other types of credit may be better depending on your credit profile and financial situation. Some of the alternatives to personal loans include::
- Credit Cards: Credit cards allow you to borrow against a line of credit and make payments as needed. According to the most recent data from the Fed, the average APR for credit cards is now just over 22%. (The average two-year personal loan rate is just 12.35%.)
- Personal line of credit: A personal line of credit works like a credit card. You can borrow against your credit limit for a fixed period of time. This is called the draw period. After this period is over, you will have to start paying the balance.
- Loan from a friend or family member: If you have a friend or family member who is willing to lend you money at no interest or at a low rate with flexible terms, This may be the most cost-effective option. Of course, it is important to set clear conditions and follow them to avoid any possible losses.
- Home equity loan: A home equity loan allows you to borrow against the equity in your home in the form of an installment loan. Home equity loans have relatively low interest rates. Although they can be more risky than personal loans. Because your home is a guarantee..
The 10 best personal loans of October 2024
Whether you want to finance a large purchase, I want to stabilize my debt. or to cover emergency expenses. Personal loans can give you the capital you need to meet your financial goals – and possibly at a competitive rate.
With so many lenders on the market, you deserve a helping hand to narrow down your options. That’s why the Fortune Recommends editorial team reviewed more than 35 lenders for personal loans. Then, we ranked each one based on interest rate, loan amount, terms, fees, time to fund your account, and customer service options to identify the 10 best.
Note: Rates, fees, and loan amounts are up to date as of Aug. 30, 2024, but are subject to change.
Read it Payday Loans: A full View of It’s features
1. LightStream
LightStream
| Loan amount | $5,000-$100,000 |
| APR | 6.99%-25.49% |
| Loan term | 24-144 months |
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LightStream is an online lender offering personal, auto, home improvement, and more loans. LightStream also offers a high-yield savings account.
LightStream’s personal loan offers a lower potential APR than many of our other picks. It also offers a wide range of loan terms up to 144 months. The best part? LightStream doesn’t charge any origination or late fees and may fund your loan as soon as the same day you’re approved.
Bonus: If you’re approved for an unsecured personal loan through a different lender, LightStream will beat their rate by 0.10%.
2. BHG Money
BHG Money
| Loan amount | $20,000–$200,000 |
| APR | 11.96%–25.31% |
| Loan term | 36–120 months |
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About
BHG Money is a brand under the Florida-based financial services company BHG Financial. BHG Money focuses on providing personal loans to professionals and businesses nationwide.
Personal loans from BHG Money offer terms similar to other lenders on our list. The main differentiator is that BHG Money offers much larger loan amounts—up to $200,000 without collateral. It also provides extended repayment terms of up to 120 months, giving you more time to repay bigger loans.
After applying, you’ll likely have a decision within 24 hours and receive your funds in as few as three business days.
3. SoFi
SoFi
| Loan amount | $5,000–$100,000 |
| APR | 8.99%–29.49% |
| Loan term | 24–84 months |
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SoFi is an online bank headquartered in San Francisco that offers checking, savings, investing products, and more.
SoFi’s personal loan took the one of the top spots on our list for having decent rates and zero late fees. Plus, borrowers can get their loan funds the same day they’re approved.
SoFi also considers all the “what ifs” that could happen during your repayment period. If you lose your job through no fault of your own, you may apply for unemployment protection. SoFi may modify your monthly loan payments upon approval and provide job placement assistance during your forbearance period
4. PenFed Credit Union
PenFed Credit Union
| Loan amount | $600–$50,000 |
| APR | 8.99%–17.99% |
| Loan term | Up to 60 months |
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Pentagon Federal Credit Union (PenFed) is a credit union based in Virginia that operates nationwide via its online banking products and massive ATM network.
PenFed was the only credit union that made our list. Its personal loan rates are some of the lowest on the market, and highly qualified borrowers can receive a rate as low as 7.99%.
Borrowers have up to 60 months to repay their loan and can borrow up to $50,000. PenFed does not charge any origination fees or early payoff penalties, and you can expect to receive your money one to two business days after verification.
5. Wells Fargo
Wells Fargo
| Loan amount | $3,000–$100,000 |
| APR | 7.49%–24.99% |
| Loan term | 12–84 months |
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Wells Fargo is a national bank headquartered in San Francisco that offers an array of banking products, such as checking accounts, savings accounts, certificates of deposit (CDs), and loans to individuals, small businesses, and corporations.
Wells Fargo‘s minimum APR on personal loans are competitive, and better than most other banks. Borrowers have up to 84 months to repay their loans. The company also boasts a highly rated mobile app, around 4,000 branches, and over 11,000 ATMs across the United States, which all comes in handy if you do some of your other banking needs with Wells Fargo.
6. TD Bank
TD Bank
| Loan amount | $2,000–$50,000 |
| APR | 8.99%–23.99% |
| Loan term | 36–60 months |
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TD Bank is one of the 10 largest banks in the United States and serves over 9.8 million customers. TD offers several personal, small business, and commercial banking products and investing and wealth management services.
The TD Fit loan is a good option for quick financing without any extra fees or penalties. TD Bank doesn’t charge any origination or application fees. However, late payments incur a fee of 5% of the minimum payment due, or $10, whichever is less.
Loan terms range from 36 months to 60 months, giving borrowers the flexibility to pay down their balance over time. And there’s no penalty for paying off your balance early. If approved, you’ll typically get your funds in as little as one business day.
7. American Express
American Express
| Loan amount | $3,500–$40,000 |
| APR | 5.91%–19.97% |
| Loan term | 12–60 months |
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Founded in 1850 and headquartered in New York City, American Express is one of the largest global payment companies. It offers various products, including credit cards, deposit accounts, and loans.
American Express may be known for its credit cards, but with low rates and no origination fees, American Express ranked as one of the best personal loan lenders today. You can borrow up to $40,000 and have up to 60 months to repay. Funds are usually deposited to your account within three to five days after approval.
Keep in mind that personal loans from American Express are only available to eligible cardholders. You’ll still be subject to a credit check and must submit an official application to receive a loan. Though you can generally use an American Express personal loan for debt consolidation, you can’t use the loan to pay down or consolidate balances on your AmEx cards.
8. U.S. Bank
U.S. Bank
| Loan amount | $1,000–$50,000 (up to $25,000 for non-customers) |
| APR | 8.74%–24.99% |
| Loan term | 12–84 months (maximum 60 months for non-customers) |
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About
U.S. Bank is a part of U.S. Bancorp, which is headquartered in Minneapolis and has physical branches in 26 states. The bank offers checking and savings accounts, CDs, loans, and more.
U.S. Bank’s personal loan scored a spot on our list for its relatively low APR range compared to other banks on our list and 24/7 customer support. U.S. Bank offers quick funding for loan applicants and does not charge origination or prepayment fees.
Existing bank customers need a FICO Score of at least 680 to qualify for a loan. Plus, if you have a credit score of 800 or above, you can likely qualify for an APR on the lowest end of the range.
9. Discover Bank
Discover Bank
| Loan amount | $2,500–$40,000 |
| APR | 7.99%–24.99% |
| Loan term | 36–84 months |
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About
Founded in 2000, Discover Bank is a financial services company that offers a wide range of banking products and services. It’s part of the larger Discover Financial Services, Inc., known for its Discover credit card brand.
Discover rounds out our list with flexible, low-cost personal loan options. Its starting rate of 7.99% APR is low compared to many competitors, and borrowers can choose from a wide range of borrowing amounts and payoff terms.
Discover’s loan terms are comparable to other top lenders, making it a solid choice for those looking to borrow money for a variety of reasons.
10. PNC Bank
PNC Bank
| Loan amount | $1,000–$35,000 |
| APR | 7.89%–24.74% |
| Loan term | 6–60 months |
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PNC Bank, headquartered in Pittsburgh, is the sixth-largest bank in the United States with over half a trillion in assets. It has 2,300 branches, most of them east of the Mississippi.
PNC Bank is a great option for those looking for a short term and low-amount loan. Loan terms start at just 6 months with the minimum loan amount starting at just $1,000. This can be a great option for someone who needs a quick injection of cash for a home improvement project or other emergencies.
Frequently asked questions
Can a personal loan hurt my credit score
Like any new credit application, a personal loan will have an immediate impact on your credit score. However, this effect is temporary. As long as you make your payments on time and in full, A personal loan will help improve your credit over time.
Where can you get a personal loan?
Most banks and credit unions offer personal loans. You can start by asking your primary banking institution about its product offerings. Many companies offer special rates or terms for existing customers.
What information do i need to apply for a personal loan?
To apply for a personal loan, you will need your completed loan application, proof of identity, proof of income, proof of employment, and proof of address. Your bank may have additional requirements in addition to these documents.
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