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When you need a personal loan, look for low monthly payments that fit your budget and affordable interest rates. Also, choose a lender that reports repayment to credit bureaus, which can help you build your credit over time.
LightStream, for example, offers a personal loan with no origination or late fees and lets you add a co-borrower to boost your eligibility.
1. OneMain Financial
OneMain cash mart Financial offers personal loans for people with credit issues and has almost 2,000 branch offices across the country. While this lender has a good reputation for helping borrowers with bad credit, its loan amounts tend to be smaller than those offered by other lenders and its interest rates are typically higher. The company also charges an origination fee, which can range from $25 to $500 or up to 10% of the loan amount, depending on the state in which you live.
One of the biggest benefits of a loan from OneMain is that you can choose your payment date and change it twice during repayment, which can be helpful if your income or expenses change. Another perk is that this lender offers both secured and unsecured personal loans. This means you can provide collateral, such as your car or a home equity line of credit, to boost your chance of approval and lower your rate.
OneMain also allows you to add a co-applicant to help you qualify for the loan and improve your chances of getting approved, as well as refinance your current loan with them, which can be helpful if you have high interest rates on other debt. However, it’s important to consider the impact on your credit score and the potential cost of refinancing before making this decision.
2. LendingTree Spring
LendingTree is a financial marketplace that lets consumers find the right loan options for their needs. It also offers free credit scores and insights that empower borrowers to make smarter decisions. While it’s possible to qualify for loans with credit scores as low as 580, borrowers with higher scores tend to receive more competitive rates and terms.
LendingTree uses a variety of lenders to display the best loan options. Users can browse a wide range of personal loans, home equity loans and lines of credit (HELOCs), student loans and mortgages, and can choose the loan that fits their borrowing goals.
The marketplace provides a simple, fast and transparent process, and it does not perform a hard credit inquiry on your credit report when you use the service to compare offers. However, when you apply for a loan or HELOC on your own through one of its partner lenders, it will do a hard inquiry and may affect your credit score by a few points.
The company’s focus on cultivating smart money habits and empowering individuals to navigate their finances and credit health with confidence makes it an excellent choice for borrowers who are looking for an online loan. However, if you prefer consistency and personalized support throughout the process, New American Funding might be a better option. It has a loan officer who guides borrowers through the application and offers transparent terms.
3. Rocket Loans
For those looking to simplify their finances with a single, fixed monthly payment, Rocket Loans offers a competitive minimum APR and same-day funding. The lender also doesn’t charge prepayment penalties. It’s important to note, however, that Rocket Loans only offers two repayment terms – 36 months and 60 months. Other lenders offer longer terms.
Applicants can pre-qualify for loans with a soft credit pull, which won’t impact their scores, before committing to an application. Once approved, the lender takes a more in-depth look at financial information like income and bank accounts to determine eligibility. Depending on the depth of the review, Rocket may need to run a hard pull, which can temporarily knock your score a few points.
Once approved, borrowers can receive their funds in as few as three business days (depending on the amount and whether they can upload all required documentation online). Rocket Loans doesn’t offer a mobile app for managing personal loans, but customer support is available from Monday to Saturday.
Borrowers can use their funds for a variety of purposes, including home improvement projects, debt consolidation and medical expenses. However, the company doesn’t accept applications from residents of Iowa, Nevada and West Virginia. It’s also worth mentioning that Rocket Loans charges up to 9% of the total loan amount in origination fees, which are deducted from your balance before funds are disbursed.
4. Discover
Many Discover personal loan reviews claim the lender has great terms, low rates and no fees. The lender takes a holistic approach to reviewing applicants, including their credit score and credit history, income, debt-to-income ratio and employment status. They have a fairly simple online application process that makes it easy to prequalify and preview loan offers. They also offer a flexible repayment term of up to seven years and no prepayment penalties, which can save borrowers money.
Discover is one of the few lenders to offer a free, personalized FICO credit score that provides detailed insights into the key factors that affect your credit health. In addition, the lender has a number of repayment assistance programs that can help borrowers who are having trouble making payments, such as payment deferral or forbearance.
Borrowers can choose from a range of personal loan amounts and terms, with a maximum limit of $40,000. Choosing a longer repayment term can result in smaller monthly payments but will cost more in interest over the life of the loan. Alternatively, choosing a shorter term can require larger monthly payments but will lower the overall cost of the loan.
Discover has a straightforward online application process that is easy to navigate and can be completed in less than five minutes. They provide same-day decisions and can fund the loan to your account as soon as the next business day. Borrowers can repay the loan automatically or manually by phone, mail, online bank account, mobile app or wire transfer.