Navigating the Loan Landscape
Loans come in handy when you need to cover a financial need. Thanks to the growing popularity of peer-to-peer lending companies, anyone can get a personal loan for various reasons within minutes.
Judging by the endless list of lenders, finding the best or rather, most appropriate, lender for your financial needs may be difficult, especially for first-timers. In this piece, we shed light on the best place to get a personal loan in 2024 and provide a step-by-step guide on how to access these offers. Take a look.
Top 6 Personal Loans in 2024
1. Upstart: Beginner-Friendly Lender
Upstart was founded in 2012 by ex-Googlers. Their personal loans range from $1,000 to $50,000 and come with repayment terms of three to five years. The annual percentage rates (APRs) for Upstart personal loans range from 7.80% to 35.99%.
As a beginner-friendly lender, Upstart has flexible eligibility requirements. Apart from being open to people without a credit score, the lender’s credit score requirement for those with a credit report is 300. Other requirements include 18 as the age limit, a verifiable email address, a valid U.S. bank account and residential address and regular or expected income.
Pros
- Considers bad credit and inexperienced borrowers.
- Funds are transferred within 24 hours.
- Low minimum loan amount.
Cons
- There is no option for joint loans or cosigners.
- High maximum APR.
- No mobile app.
2. LightStream: Affordable Option
LightStream is a subsidiary of Truist Bank. It was established in 2012 as the bank’s online consumer lending division. The lender offers low-interest fixed-rate loans for loans between $5,000 and $100,000 for 2 to 12 years. The lender runs an annual percentage rate (APR) of 7.99% to 25.49% for personal loans.
One unique feature of LightSrream is its fee-free loans. To qualify for LightStream loans, borrowers must have a rich credit history with a minimum score of 660. The lender has a maximum debt-to-income ratio of 50% and requires evidence of the borrower’s ability to service the loan.
The borrower must also be at least 18 years old, a U.S. citizen or permanent resident and have a U.S. bank account. This is the best place to get a personal loan for borrowers with good credit scores.
Pros
- Zero fees.
- Rate discounts.
- Long repayment terms.
Cons
- No pre-qualify option.
- High minimum loan amount.
3. SoFi: Best for Large Loans
Social Finance, Inc. (SoFi) was founded in 2011. The lender offers between $5,000 and $100,000 as personal loans with no collateral requirements. The interest rates for SoFi personal loans are fixed at a minimum of 8.99%, with repayment terms ranging from 2 to 7 years.
While SoFi offers unemployment protection for borrowers who lose their jobs, it still demands an origination fee of up to 7% of the loan amount. To apply for this personal loan, the borrower must be at least 18 years old, an employed or employable U.S. citizen or a resident with sufficient income.
Pros
- Joint loan option.
- Rate discounts.
- Mobile app.
- Larger loan amounts.
Cons
- There is no option to choose the initial payment date.
- High minimum loan amount.
- No physical branches.
4. Upgrade: Best for Low Credit
Upgrade is a fintech company founded in 2016. The company works with small banks and credit unions to keep rates affordable for borrowers with good credit scores of at least 690.
Upgrade offers personal loans between $1,000 and $50,000 with an APR of 8.49% to 35.99%. The repayment terms are between 3 and 7 years. The company’s fees include an origination fee, a late fee and a returned payment fee. The origination fee is between 1.85% and 9.99%, while the late fee and returned payment fee are $10 each.
To qualify for this loan, you must be a U.S. citizen or resident with an approved visa, have a U.S. bank account, have a valid email address and, of course, be of legal age as approved by the state. This is the best place to get a personal loan if you are consolidating credit cards or managing debt.
Pros
- Joint application option.
- Prequalification option.
- Multiple-rate discounts.
- Mobile app.
Cons
- Expensive fees.
- High minimum interest.
- There is no option to choose a payment date.
5. Discover: Flexible Repayment Option
The company Discover was launched in 1986; however, its personal loan subsidiary only became operational in 2012. Discover personal loans were designed as a debt consolidation operation for people with a good credit score of at least 660.
While Discover does not offer rate discounts, it provides a range of repayment terms and a free monthly credit scorecard. The lender has an APR of 7.99% to 24.99%. It also charges $39 as late fees and offers loans between $2,500 and $40,000. Its repayment terms range from 3 to 7 years. To be eligible for a Discover personal loan, borrowers must have a minimum income of $25,000, be at least 18 years old, have a valid U.S. Social Security number and have an active email address.
Pros
- Refinancing option.
- No origination fee.
- Competitive APRs.
Cons
- High late fee charges.
- No joint loans.
6. Happy Money: Low-Interest Rate Option
Happy Money was founded in 2009 to offer fixed-rate personal loans to borrowers who are looking to consolidate credit card debt. This lender is open to borrowers with a minimum credit score of 640. It has an APR of 11.72% to 17.99%.
With a loan amount of $5,000 to $40,000, Happy Money demands an origination fee that ranges from 1.5% to 5%. Its repayment terms are between 2 and 5 years.
To be eligible for a Happy Money personal loan, the borrower must be a U.S. citizen, a permanent resident or a visa holder, have a valid Social Security number, be at least 18 years old and have no records of bankruptcies filed within two years of the application.
Pros
- Direct payment to creditors.
- Instant approval.
- Payment protection insurance.
- No late payment fee.
Cons
- High origination fee.
- There are no joint loan options.
How to Get a Personal Loan
Are you thinking of getting a personal loan? Here are proven steps to getting the perfect debt consolidation loan:
- Step 1: Define your needs: Your needs will determine how much you need, the interest rate and payment plans.
- Step 2: Consider your eligibility: Lenders consider your credit score, income, debt-to-income ratio and employment history, so you must check your grades on these before seeking a loan.
- Step 3: Weigh your options: Based on your assessment of your eligibility for the loan amount, find the best place to get a personal loan.
- Step 4: Apply for the loan: Contact your preferred lender and follow the required documentation processes.
- Step 5: Review the loan agreement: Make sure you understand the terms and conditions before signing. If you need more clarity, contact the lender’s customer care representatives.
Empowering Your Finances
There’s no doubt that personal loans can be a helpful tool; however, it's important to use them responsibly. Borrowers should only apply for a loan with a lender whose terms and conditions align with their trading needs.
Learn about some gold 401(k) investment options.