Personal loans are a form of credit that many prefer over high-interest credit cards due to their typically low interest rates. While there are many reasons why one would take out a personal loan, it is most commonly used to consolidate credit card debt.
Personal loan rates range from 3% to 37%, depending on the loan terms. Having a personal loan enables you to pay at a fixed monthly rate. There are, however, various prerequisites for personal loan applications depending on the company.
This list enumerates some of the best financing companies when it comes to taking out personal loans, along with their respective advantages and disadvantages.
Various companies offer personal loans to customers. As mentioned before, personal loan rates vary dramatically from 3% to 37%, depending on the company that you are interested in engaging with.
Here is a list that gives an overview of the different companies that are considered to be at the top when it comes to personal loans.
Social Finance, Inc (SoFi). is a financing company that offers personal loans to individuals with good credit ratings and established employment histories. SoFi's annual percentage rate (APR) ranges from 5.99% to 20.69% with the maximum loan amount being $100,000.
Additionally, SoFi clients can apply for "unemployment protection", where the company temporarily halts clients' payments and supports them in looking for a new source of income. On the downside, SoFi typically requires that clients have a credit score of 680 or above.
Avant is a popular choice among those with a "fair" credit rating, starting at 580 and above. As such, it is known for lenient loaning policy and affordable options.
They provide a comprehensive list of loan offers, in which clients can even borrow between $2,000 to $35,000 to be paid in 3 to 5 years, depending on the terms discussed.
The con? Avant's APR range of 9.95% to 35.99% is relatively high as compared to other financing corporations.
LightStream offers loans for just about anything, from homes to appliances, automobiles, etc. LightStream boasts of its low minimum APR of 2.49%, which was found to be the lowest of all other financing corporations on this list. On the other hand, LightStream's maximum APR is the highest offered.
A good benefit offered is that if the client is not satisfied with the company's services, they are eligible for a $100 compensation, upon completing a questionnaire. The only downside is that clients do not get to see the rates until after the entire application process.
Discover is a credit card company that provides banking and financing services to its clients. Its APR ranges from 6.99% to 24.99%, with its minimum being $2,500 and its maximum, $35,000.
Depending on the terms discussed, these loans are payable from 3 to 7 years. The downside is that personal loan clients are required to have at least $25,000 as their minimum annual income.
Upstart caters to clients with "unusual" finance backgrounds and analyzes clients' employment history and educational history to determine whether or not they are eligible for a personal loan from the corporation.
Upstart offers loans to clients with a credit score of 580 and above, with the minimum APR being 8.27% and the maximum, 35.99%. The loan amount also ranges from $1,000 to $50,000, which, depending on the terms discussed, can be payable from 3 to 5 years.
The only con is that a maximum APR of 25.99% is considered to be quite high as compared to other financing companies on this list.
Wells Fargo is one of the most well-known banks in the United States. With their APR ranging from 5.74% to 24.49%, clients are allowed to borrow a minimum of $3,000 to a maximum of $100,000.
Depending on the terms, clients are also allowed to pay their debt within 1 to 7 years. However, they will need to at least have a credit score of 670.
Best Egg is a financing company whose platform is made exclusive to online users. Clients are required to have a credit score of at least 640.
With their APR ranging from 5.99% to 29.99%, Best Egg allows its customers to request a minimum of $2000 to a maximum of $35,000, which are payable between 3 to 5 years.
The only downside is that clients will need a minimum FICO score of 700 in order to apply for the lowest APR.
Personal loans are an important aspect of financing. You may never be aware that you might one day need to apply for a personal loan yourself. It always helps to understand more about financing for your future. Personal loans are only one way you can get the financial assistance you need. For further information on loans, check out the rest of Any Credit’s articles today!