When you need extra money to finance a big purchase, cover an unexpected expense, or consolidate debt, the best personal loans can be a great option. However, with so many lenders and loan options available, finding the best personal loan for your needs can be overwhelming.
In this comprehensive guide, we will explore the twelve best personal loan providers, starting with 1stPremierLending.com, our top pick.
Each company on our list provides different types of personal loans, giving you several options to get the best loan for your situation.
Best Personal Loans: Quick Overview
- 1stPremierLending.com – Best personal loans overall
- PersonalLoans.com – Best loan-matching efficiency
- MoneyMutual – Best for quick deposits
- 247CreditLoans – Best for free matching services
- SmartAdvances – Best customer support
- Brighter Loans – Best for personalized service
- Credible – Best for high loan amounts
- LendingTree – Best for interest rates
- CashUSA – Best for bad credit
- 247FastFund – Best for guaranteed approval
- Upstart Personal Loans – Best for zero credit history
- Pigeon Interpersonal Finance App – Best for interpersonal loans
1. 1stPremierLending.com – Best Personal Loans Overall
Pros
- No initial charges
- 72-month repayment period option
- Comparatively lower interest rates
- Get approval in as little as 2 minutes
- More flexible employment requirements than competition
Cons
- May have some borrowing restrictions
APR & Amount
- Minimum of $100 to $20,000
- 5.99% to 35.99%
Overview
1stPremierLending.com offers some of the best personal loans on the market because it provides competitive interest rates, flexible loan amounts, and extended repayment periods. The website has a user-friendly interface and a quick application process, making it convenient for borrowers to secure the funds they need.
Why 1stPremierLending.com Stands Out
1stPremierLending.com stands out because it gives borrowers the advantage of extended repayment periods and reduced interest rates, distinguishing them from other payday loan providers. The platform prioritizes customer satisfaction, guaranteeing that borrowers are matched with lenders who offer favorable terms and conditions.
How To Apply
To apply for a personal loan with 1stPremierLending.com, borrowers can visit their website and follow the simple application process. The website provides a clear and straightforward application form that requires basic personal and financial information.
Eligibility Criteria
- Be at least 18 years of age
- Hold a valid state identification card or driver’s license
- Be a citizen of the United States or a permanent resident
- Possess an active bank account
- Receive a consistent monthly income
- Fulfill any additional requirements specified by the lender
Summary
1stPremierLending.com offers competitive interest rates, flexible loan amounts, and a user-friendly application process, making it one of the best options for borrowers seeking personal loans.
>>Find the best personal loans for fair credit or bad credit with 1stPremierLending.com
2. PersonalLoans.com – Best Loan-Matching Efficiency
Pros
- Efficient and clear application process
- Wide network of lenders
- One application needed
- Available in all 50 states
Cons
- Potentially high APR
- Only offers smaller loans
APR & Amount:
- 5.99% to 35.99%
- $250 to $35,000
Overview
PersonalLoans.com is a platform that connects borrowers with lenders, simplifying the loan application process. By filling out a single application, borrowers can be matched with a lender that can fund their loan request.
The company offers a variety of the best personal loans for fair credit, such as bank-provided, peer-to-peer, and personal installment loans.
Why PersonalLoans.com Stands Out
PersonalLoans.com stands out for its efficient matching process, eliminating the need for borrowers to fill out multiple loan applications. The website also offers a wide network of lenders, providing borrowers with a range of options to choose from.
How To Apply
To apply for a loan through PersonalLoans.com, borrowers need to complete the online application form on the website. The form requires information about the loan amount, credit score, and personal details. Once submitted, the website will match the borrower with a lender that can potentially fund the loan.
Eligibility Criteria
PersonalLoans.com is a loan-matching service, so the eligibility may change based on the loans you’ve been matched with. However, in general, borrowers need to meet certain requirements, such as:
- Being at least 18 years old
- Steady income and valid bank account
- Valid Social Security number
- U.S. citizenship or permanent residency
Summary
PersonalLoans.com offers a convenient and time-saving solution for borrowers seeking personal loans. With its efficient matching process and a wide network of lenders, the website aims to simplify the loan application process for consumers.
>>Get matched for personal loans quickly with PersonalLoans.com
3. MoneyMutual – Best for Quick Deposits
Pros
- Boasts of over 2 million satisfied customers
- Quick, 5-minute application
- Loan approval in two minutes
- Deposits within a single business day
Cons
- Not available in all States
APR & Amounts
- $200 to $5,000
- APR set by lender, usually between 6% to 36%
Overview
MoneyMutual functions as a connecting service between borrowers and lenders. Rather than being a lender itself, it serves as a platform where individuals seeking short-term loans can discover lenders who are willing to provide such loans.
The lenders associated with MoneyMutual offer a range of loan amounts and terms, primarily focusing on short-term loans that require prompt repayment. They offer payday and installment loans as well as cash advances.
Why MoneyMutual Stands Out
MoneyMutual stands out as one of the best providers of personal loans for its quick turnaround. The company boasts that you can get a cash loan within 24 hours of applying.
MoneyMutual proves to be beneficial for those facing unforeseen expenses and in need of immediate cash, as it offers a convenient avenue to find a suitable loan without the hassle of approaching multiple lenders.
How To Apply
Getting a personal loan is a simple process. MoneyMutual doesn’t require any unnecessary information and focuses only on the essential data to ensure a smooth application process. It’s always recommended to be prepared and have your identification and social security number readily available.
Eligibility Criteria
The minimum requirements for MoneyMutual are the following:
- Provide proof of consistent income
- Make at least $800 a month
- Are older than 18 years old
- Have a checking account
- Are a U.S. resident
Summary
If you’re looking for quick access to emergency cash, MoneyMutual may offer the best personal loans for fair credit or bad credit. Its quick and easy application process, almost instant offers, and fast deposit times make it a great choice.
>>Find quick personal loans from MoneyMutual
4. 247CreditLoans – Best for Free Matching Services
Pros
- Services are free of charge
- Quick three-minute application
- Part of the online Lenders Alliance
- 10 years of experience
Cons
- Very few reviews online
- Little information about rates
APR & Amounts
- Up to $353,000
- Interest rates decided by lender
Overview
With over ten years of experience, 247CreditLoans has provided quick personal loans to people in need of cash. The services are completely free, matching clients with payday loans or cash advances.
On top of this, the company is part of Online Lenders Alliance, which sets high standards for internet loan companies and keeps an eye out for bad practices.
Why 247CreditLoans Stands Out
247CreditLoans provides their customers with personal loan matching through their huge network of lenders completely free. That means no hidden or sign-up fees.
Additionally, applying for a loan through the company’s website won’t affect your credit score, so there is no negative impact on simply seeing your personal loan options.
How To Apply
Head over to 247CreditLoans’ website and complete the application, which the company claims will only take three minutes. Afterward, they’ll set you up with a number of loan choices with different APR ranges, loan repayment times, and more.
Eligibility Criteria
- Provide information for a valid savings or checking account
- Are 18 years of age or older
- Can provide proof you’re a U.S. citizen or permanent resident
- Earn a regular income of $800 per month, minimum
Summary
247CreditLoans is a great loan-matching company for anyone looking for the best personal loans for bad credit. They provide free matching services without pinging your credit report, allowing you the flexibility to see your options.
>>Find free personal loan matching services with 247CreditLoans
5. SmartAdvances – Best Customer Support
Pros
- Solid customer service
- Provides opportunities for people with poor credit
- Simple and free application
- Platform is safe and secure
Cons
- Not available everywhere
APR & Amounts
- As little as $100 up to $20,000
- 5.99% to 35.99% based on several factors
Overview
SmartAdvances.com is a personal loan matching service that prioritizes people with poor credit scores. Their cutting-edge platform seamlessly connects borrowers with lenders that best suit their needs.
Additionally, the outstanding assistance provided by the company’s dedicated customer service representatives has garnered praise from countless satisfied customers.
Why SmartAdvances.com Stands Out
At SmartAdvances.com, borrower satisfaction is given top priority. If you need help navigating the intricacies of online loans, this may be the best service for you. They offer a secure online platform with a hassle-free application process and zero prepayment fees.
The financial tools available on their platform empower borrowers to make informed decisions about their emergency funds. In addition, borrowers can receive responsive customer support from the SmartAdvances.com team, who are available through phone, email, or chat.
How To Apply
To start with SmartAdvances.com, head to the company’s website and fill out the user-friendly online application form. Provide some essential personal information, and once you’ve submitted your application, you’ll receive customized loan offers that match your requirements.
Eligibility Criteria
- Are 18 years old or older
- Are a legal citizen or resident of the U.S.
- Have a valid checking or savings account
- Can provide proof of monthly income
- Can fulfill any criteria required by specific lender
Summary
SmartAdvances.com offers a convenient solution for those seeking personal loans. Despite the potentially higher fees and interest rates, SmartAdvances.com stands out with its exceptional customer support. The platform also ensures a streamlined loan application process tailored to each borrower’s needs.
>>Find great customer service with SmartAdvances.com
6. Brighter Loans – Best for Personalized Service
Pros
- Provides a variety of loan options
- Gives personalized repayment structure and loan options
- Customer service available and friendly
- Secure website
Cons
- Clients must submit to credit checks
APR & Amounts
- Minimum $100 up to a max of $35,000
- APR specified by lenders
Overview
Brighter Loans offers an extensive loan matching service that links clients to a wide range of personal loans from a diverse network of potential lenders. The company works to meet the specific needs of their clients, offering customizable personal loans.
Why Brighter Loans Stands Out
Brighten Loans specializes in providing personalized payday loans that cater to specific needs and can be obtained quickly and efficiently. Brighten Loans offers the best personal loans for bad credit with same-day approval, whether it’s a business loan, personal loan, payday loan, or installment loan.
How To Apply
Brighter Loans’ application process is quick and easy, taking around three minutes. Visit the company’s website and upload your details into the paperwork, and get approval in minutes.
Eligibility Criteria
- Over 18 years old
- Are a permanent resident or citizen of the U.S.
- Make at least $1,000 after taxes
- Must be with current employer for 90 days
Summary
Whatever unique situation you find yourself in, Brighter Loans can help you match with the best personal loans for bad credit.
>>Find the best personal loans with Brighter Loans
7. Credible – Best for High Loan Amounts
Pros
- Provides a rate guarantee
- Wide range of small to larger loans
- Lender rates and fees accurate when given
- Offers side-by-side comparisons of loans
Cons
- Approval requirements differ based on lender
APR & Amounts
- Minimum of $600 all the way up to $200,000
- 5.20% to 35.99%
Overview
Credible provides a convenient free service that connects you with a range of lending partners, eliminating the need to undergo multiple preapprovals or individually assess each lender.
Furthermore, Credible ensures transparency by stating that it only receives payment from the lender if you choose to secure a loan through their platform. Unlike other marketplaces, Credible does not generate revenue by selling your personal information to lenders, thus sparing you from unwelcome solicitations.
Why Credible Stands Out
Credible offers loans ranging from $600 to as much as $100,000, catering to individuals seeking small loans and those in need of larger sums. The lender community associated with Credible sets different credit minimums, with some lenders even waiving the requirement for a minimum credit score, meaning everyone has an opportunity to secure a loan.
However, individuals with excellent credit scores have a higher chance of obtaining loans at incredibly low-interest rates, starting as low as 5.20%. Furthermore, the prequalification application is completely free and does not impact your credit score, providing added peace of mind.
How To Apply
Visit Credible’s official website to complete the online application and prequalify for loans. At this point, you’ll be given a list of loan offers you can browse through at no consequence, accepting the best personal loan that works for you.
Eligibility Criteria
Credible suggests filling out their online form in order to see what loans you’d qualify for, depending on your specific situation.
Summary
With larger loan amounts offered at guaranteed rates, borrowers can receive personal loans knowing exactly what they’ll pay back monthly.
>>Find a large range of loans from Credible
8. LendingTree – Best Interest Rates
Pros
- Competitive APRs
- Provides information about lenders
- Able to compare personal loan offers
- Additional resources like credit score monitoring
Cons
- Origination fees
APR & Amounts
- From $1,000 to $20,000
- 6.99% to 35.99%
Overview
LendingTree provides a comprehensive range of lender information, enabling you to make an informed decision when selecting the most suitable loan for your needs. This information encompasses crucial details such as interest rates, loan amounts, minimum credit score requirements, and the specific strengths of each lender.
Additionally, LendingTree offers some of the best personal loans for bad credit, as some lenders have minimum requirements as low as 585, ensuring that even those with less-than-perfect credit have the opportunity to secure a loan.
Why LendingTree Stands Out
LendingTree stands out with its exceptionally low-interest rates, reaching as low as 6.99% in certain cases, though this rate can get lower based on market interest rates. Borrowers can enjoy fair repayment terms ranging from 3 to 7 years, allowing flexibility.
Moreover, LendingTree offers the opportunity to secure substantial loan amounts, with options of up to $20k. While the minimum loan amount stands at $1k, it’s important to note that the platform charges an origination fee starting at 1%.
How To Apply
Visit LendingTree’s official website or download their mobile application and follow the sign-up prompt to get started. LendingTree conducts a complimentary soft credit check, sharing the information with their network of lenders.
Within minutes, you will receive offers from multiple lenders, allowing you to browse through the lender page and find the most suitable loan for your needs. This convenient comparison process saves you time and helps you save money by eliminating the need to submit individual loan applications.
Eligibility Criteria
Though LendingTree doesn’t specify requirements, they make the following recommendations before applying for their best personal loans for fair credit:
- Credit score of 640 or more
- A steady income
- A low debt-to-income ratio
- A strong payment history
Summary
LendingTree is one of the big names in the industry, and their educational materials, matching service, and low-interest rates make them a great option for the best personal loans for fair credit.
>>Get the best interest rates with LendingTree
9. CashUSA – Best for Bad Credit
Pros
- Only uses soft credit checks
- Has a large network of loan providers
- Specifically designed to help those with bad credit
- Simple loan terms
Cons
- May sell your contact information
APR & Amounts
- Up to $10,000
- 5.99% to 35.99%
Overview
CashUSA is a reputable online lending network that specializes in connecting borrowers with the best personal loans for bad credit. It serves as a referral service, forwarding loan requests from thousands of consumers to its partner lenders. The network offers the best personal loans for fair credit, providing borrowers with the flexibility to address various financial needs.
Why CashUSA Stands Out
CashUSA stands out among other online lending networks for several reasons. First, it boasts a vast network of lenders that specialize in working with people who have poor credit. This extensive network increases the chances of borrowers finding a suitable lender and obtaining the necessary funds.
Another notable aspect of CashUSA is its commitment to customer support. The network provides multiple channels for borrowers to reach out with questions or concerns, including an online form, email, and phone support. This dedication to customer service contributes to a positive borrowing experience.
How To Apply
The application process is straightforward and can be completed in minutes. CashUSA’s platform allows borrowers to submit their loan requests online, initiating a soft credit pull that does not impact their credit score.
Upon prequalification, borrowers can proceed with the loan application and receive funds directly deposited into their bank account within one business day.
Eligibility Criteria
- Are at least 18 years of age
- Make a minimum of $1,000 a month after taxes
- Have a valid bank account
Summary
CashUSA is a reliable online lending network that serves as a bridge between borrowers and potential lenders, offering the best personal loans for bad credit. With its extensive network and easy application process, you’ll have no problem getting the personal loan you need.
>>Find the best personal loans for bad credit with CashUSA
10. 247FastFunds – Best for Guaranteed Approval
Pros
- Directly transfers money to your account within 24 hours
- No surprise fees or APR changes
- Doesn’t conduct credit checks
- Approval process is quick and easy
Cons
- Interest rates higher than average
- Only short repayment periods
APR & Amounts
- $100 up to $5,000
- APR designated by lender
Overview
FastLoansGroup US is a reputable personal loan firm that focuses on matching borrowers with the best personal loans for bad credit. Their key strengths lie in their simplified application process, swift approval, and speedy fund transfers.
While the interest rates tied to their loans may be steep, they present a practical solution for people in urgent need of substantial cash, especially when other credit options are limited. With personal loans available from as little as $100 to as much as $50,000, they cater to a wide range of financial requirements.
Why 247FastFunds Stands Out
247FastFunds offers a simplified and secure application process, ensuring that lending partners typically respond within minutes. Once approved, you can expect the funds to be promptly deposited into your bank account within 24 to 48 hours.
The company believes in inclusivity, which is why 247FastFunds provides some of the best personal loans for bad credit. Whatever your credit history is, the company offers guaranteed approval for their personal loans.
How To Apply
Simply fill out the online form with your personal information, submit it, and you’re good to go. Within a short time, their lending partner will reach out to you with clear instructions and guidance.
Eligibility Criteria
- Have a checking or savings account
- Can fulfill specific requirements set by the lender
- Are 18 years old or older
- Have a State ID or driver’s license
- Can provide a social security number and legally reside in the U.S
- Have proof of steady income
- Have been employed for at least 90 days
Summary
If you require instant access to emergency funds and are looking for guaranteed approval, 247FastFunds is the perfect online platform for obtaining the best personal loans for bad credit. Regardless of your credit score, you can be confident that you will receive approval for a loan from multiple lenders.
>>Find the best personal loans for bad credit with 247FastFunds
11. Upstart Personal Loans – Best for Zero Credit History
Pros
- Accepts borrowers new to credit
- Provides quick funds
- Change payment date once every 12 months
- Can pre-qualify for loans with soft credit check
Cons
- May charge origination fees
- Only two repayment term options
APR & Amounts
- From $1,000 to $50,000
- Website estimates 4.60% to 35.99%
Overview
Upstart is an online lending platform that connects borrowers with banks and credit unions to fund personal loans. While Upstart offers fast funding and flexible payment date options, borrowers need to be aware of potential origination fees and the limited repayment term options.
Why CashUSA Stands Out
What sets Upstart apart is its nontraditional underwriting method, which uses artificial intelligence and alternative data such as education, job history, and residence to qualify borrowers. This makes it a great provider of the best personal loans for bad credit.
This approach allows Upstart to consider a wider range of factors beyond just credit scores, increasing the chances for borrowers with limited credit histories or low credit scores to qualify for loans.
How To Apply
To apply, visit the company’s website and click the “Apply Now” button. From there, you’ll fill out the application, and upon submitting, you can select a loan based on the amount and repayment terms that are best for you.
Eligibility Criteria
- Provide verifiable income
- U.S. citizenship or permanent residency
- Are 18 or older
- Have a valid bank account under your name
Summary
Upstart Loans offers a range of personal loan options for borrowers new to credit or with limited credit history. Their nontraditional underwriting method allows them to assess the creditworthiness of borrowers who may not meet traditional lending criteria.
>>Find the best personal loans for bad credit with Upstart Loans
12. Pigeon Interpersonal Finance App – Best for Interpersonal Loans
Pros
- Simplifies the loan process between friends and family
- Helps borrowers and lenders create secure and simple loans
- Provides useful tools to set payment schedules and reminders, interest rates, etc.
- Increases the chances of getting paid back and prevents strained relationships
Cons
- May not have all the features and flexibility of traditional financial institutions—for example, you can’t alter an existing loan without making a new agreement
- Relies on trust and communication between the borrower and lender
APR & Amounts
- APR up to 35%
- Loan amount unlimited
- Term length up to 30 years
Overview
Pigeon is an all-in-one finance app designed to simplify and facilitate interpersonal loans. It aims to eliminate the discomfort and awkwardness associated with lending money to friends and family. Pigeon provides a platform for borrowers and lenders to create, manage, and track loans securely and effortlessly.
The app offers features such as setting payment schedules, setting interest rates, and sending automatic reminders to borrowers. Pigeon also provides educational resources and a reward program for users.
Why Pigeon Stands Out
Pigeon stands out by focusing on interpersonal loans and providing a user-friendly platform that streamlines the lending process. The app offers tools that help borrowers and lenders set clear terms, manage payments, and improve communication, reducing the risk of strained relationships.
Pigeon also addresses the needs of people with no credit or bank account, providing them with an opportunity to borrow money with dignity. Pigeon aims to empower users and promote financial literacy with its educational resources and reward program.
How It Works
To setup a loan through Pigeon, follow these steps:
- Create a free account on the Pigeon app.
- Once your account is set up, you can begin the loan application process. This usually involves specifying the amount of money you want to borrow, the purpose of the loan, and your preferred repayment terms.
Eligibility Criteria
Pigeon does not provide specific eligibility criteria on its website. It is recommended to contact the company directly or refer to the app for more information on eligibility requirements.
Summary
Pigeon is a user-friendly finance app that specializes in interpersonal loans. It offers a secure and simple platform for borrowers and lenders to create, manage and track loans. With customizable features and educational resources, Pigeon aims to simplify the lending process and improve communication between parties.
>>Find interpersonal loans with the Pigeon Interpersonal Finance App
What Is a Personal Loan?
A personal loan is a type of loan that allows you to borrow a fixed amount of money from a lender, which you then repay in fixed monthly installments over a predetermined period. Personal loans are typically unsecured, meaning they don’t require collateral, such as a car or house, to secure the loan.
The best personal loans for bad credit or fair credit can be used for a variety of purposes, including:
- Debt consolidation
- Home improvement projects
- Medical expenses
- Wedding expenses
- Vacation costs
- Educational expenses
- Emergency situations
Loan amounts, repayment terms, and interest rates will depend on the lender and your credit score. The best personal loans for fair credit or bad credit typically have fixed interest rates, which means the interest rate remains the same throughout the life of the loan. This allows you to budget and plan your monthly payments with certainty.
How Do Personal Loans Work?
Personal loans work by providing borrowers with a lump-sum amount of money that is repaid over time.
Here’s a breakdown of how personal loans usually work:
- Application: You start by submitting an application to a lender, online or in person. The application will ask for personal information, such as your name, address, employment history, income, and credit score.
- Approval Process: The lender will automatically review your application and check your creditworthiness. Your qualification and interest rate will depend on things like your income, credit score, and debt-to-income ratio.
- Loan Terms: If you are approved for a personal loan, the lender will provide you with the loan terms, including the loan amount, interest rate, repayment term, and any fees associated with the loan. It’s important to carefully review these terms and ask any questions you may have before accepting the loan.
- Funding: Once you accept the loan terms, the lender will disburse the funds to your bank account. Depending on the lender, this process can take anywhere from a few hours to a few days.
- Repayment: You will be required to make monthly payments on the loan, typically for 1 to 7 years. These payments will include both principal and interest and will continue until the loan is fully repaid.
It’s important to make all your loan payments on time to avoid late fees and negative impacts on your credit score. If you experience financial difficulties and are unable to make a payment, it’s best to contact your lender as soon as possible to discuss your options.
>>Find the best personal loans with 1stPremierLending.com
Common Types of Personal Loans
There are several types of personal loans available to borrowers, each with its own advantages and considerations. Here are some of the most common types of personal loans:
Secured Personal Loans
Secured personal loans are loans that require collateral to secure the loan. Collateral is an asset, such as a car or a house, that the lender can seize if you fail to repay the loan. Because these loans are secured, they often have lower interest rates compared to unsecured loans.
However, if you default on the loan, you risk losing the collateral.
Unsecured Personal Loans
As the most common personal loans, unsecured loans do not require collateral, making them accessible to a wide range of borrowers. Since there is no collateral to secure the loan, lenders rely heavily on the borrower’s creditworthiness and income to determine eligibility and interest rates.
Debt Consolidation Loans
Debt consolidation loans are personal loans used to pay off multiple debts, like medical bills or credit card balances. By combining your debts into a single loan, borrowers can simplify their finances and potentially lower their interest rates. Debt consolidation loans can be a smart financial move for those struggling with high-interest debt.
Cosigned and Joint Loans
Cosigned and joint loans involve two or more borrowers who are equally responsible for repaying the loan. Having a cosigner or joint borrower with good credit can help you secure a loan or qualify for a lower interest rate.
However, all borrowers are equally responsible for repaying the loan, and any missed payments or defaults will affect everyone’s credit.
Fixed-Rate Loans
Fixed-rate loans have an interest rate that remains the same throughout the life of the loan. This means your monthly payments will remain consistent, making it easier to budget and plan your finances. Fixed-rate loans are a good option if you prefer stability and predictable payments.
>>Find the best personal loans for fair credit with 1stPremierLending.com
Variable-Rate Loans
Variable-rate loans, also known as adjustable-rate loans, have an interest rate that can fluctuate over time. These loans often have a lower initial interest rate compared to fixed-rate loans, but the rate can increase or decrease based on market conditions.
Variable-rate loans are a good option if you expect interest rates to decrease or plan to pay off the loan quickly.
Personal Line of Credit
A personal line of credit is a revolving line of credit that allows you to borrow money as needed, up to a predetermined credit limit. Similar to a credit card, you can borrow and repay funds as many times as you want, as long as you stay within your credit limit. Personal lines of credit can provide flexibility for ongoing expenses or unexpected costs.
Buy Now, Pay Later Loans
Buy now, pay later loans are a type of personal loan that allows you to make a purchase and pay for it over time. Retailers and online platforms often offer these loans and may have promotional periods with no interest or deferred interest.
Be sure to carefully review the terms and conditions of these loans, as they can become expensive if not paid off within the promotional period.
Holiday Loans
Holiday loans are personal loans specifically designed to help you cover the costs of holiday expenses, such as gifts, travel, and entertainment. These loans can provide a convenient way to finance your holiday celebrations, but it’s important to borrow responsibly and consider your ability to repay the loan.
>>Find the best personal loans for fair credit with 1stPremierLending.com
Reasons To Get a Personal Loan
The best personal loans for fair credit or bad credit can be used for a wide range of purposes, making them a versatile financial tool.
Here are some common reasons why people choose to get a personal loan:
- Debt Consolidation: If you are struggling with multiple high-interest debts, such as credit cards or medical bills, a personal loan can help you consolidate your debts into one monthly payment with a potentially lower interest rate.
- Home Improvement: If you’re planning a home renovation or repair project, a personal loan can provide the funds you need to complete the project without tapping into your home equity.
- Emergency Expenses: When unexpected expenses arise, such as medical bills or car repairs, a personal loan can help you cover the costs without depleting your savings.
- Wedding Expenses: Weddings can be expensive, and many couples choose to finance their big day with a personal loan. This allows them to have the wedding they’ve always dreamed of without compromising their budget.
- Vacation Costs: If you’re dreaming of a well-deserved vacation but don’t have the cash upfront, a personal loan can help you cover the costs and allow you to pay it back over time.
- Educational Expenses: Whether you’re pursuing a degree or taking a course to enhance your skills, a personal loan can help cover the costs of tuition, books, and other educational expenses.
- Business Financing: A personal loan can provide the capital you need to start or expand your business if you’re an entrepreneur or small business owner.
- Major Purchases: The best personal loans for bad credit or fair credit can be used to finance major purchases, such as a car, boat, or furniture. This allows you to make the purchase upfront and repay the loan over time.
>>Find the best personal loans for fair credit with 1stPremierLending.com
Personal Loan Interest Rates and Fees
When considering a personal loan, it’s important to understand the interest rates and fees associated with the loan.
Here are some key factors to consider:
- Interest Rates: Interest rates on the best personal loans for fair credit can vary widely depending on your creditworthiness and the lender. Generally, borrowers with higher credit scores will qualify for lower interest rates. Compare rates from multiple lenders to ensure you’re getting the best deal.
- Annual Percentage Rate (APR): The APR includes both the interest rate and any fees associated with the loan. It provides a more comprehensive picture of the total cost of the loan. When comparing loan offers, be sure to compare the APRs to get an accurate comparison.
- Origination Fees: Some lenders charge an origination fee, which is a one-time fee deducted from the loan proceeds. This fee is usually a percentage of the loan amount, ranging from 1% to 8% or more.
- Prepayment Penalties: Some companies charge a prepayment penalty if you want to pay your loan off early. Be sure to choose a lender that does not charge these penalties to avoid unnecessary payments.
- Late Payment Fees: Most lenders will charge a late payment fee if you miss a payment or make a late payment. These fees can vary, so it’s important to understand the late payment policy before taking out a loan.
>>Find the best personal loans for fair credit with 1stPremierLending.com
Pros and Cons of Personal Loans
Like any financial product, even the best personal loans for fair credit or bad credit have both advantages and disadvantages. Understanding these pros and cons will help you determine if a personal loan is the right choice for you. Let’s take a closer look:
Pros
Here are some of the reasons to consider the best personal loans for fair credit:
- Flexibility: Personal loans can be used for a variety of purposes, giving you the flexibility to finance different expenses without restrictions.
- Quick Access to Funds: Unlike other types of loans, the best personal loans for bad credit often have a streamlined application process and quick approval times. This means you can access funds relatively quickly, sometimes within a few days, similar to how emergency loans for bad credit work.
- Fixed Rates and Payments: Many personal loans have fixed interest rates and fixed monthly payments, making it easier to budget and plan your finances.
- Debt Consolidation: Personal loans can help you consolidate multiple high-interest debts into one loan with a potentially lower interest rate, simplifying your monthly payments and potentially saving you money on interest.
- Credit Building: Successfully repaying a personal loan can help improve your credit score by demonstrating responsible borrowing behavior.
Cons
However, consider the following cons before accepting terms for personal loans:
- High-Interest Rates: Depending on your creditworthiness, personal loan interest rates can be higher compared to other types of loans, such as bad credit loans, home equity loans, or auto loans.
- Risk of Overborrowing: Personal loans can provide access to a significant amount of money, and it’s important to resist the temptation to borrow more than you need. Taking on too much debt can lead to financial stress and difficulty repaying the loan.
- Origination Fees: These fees, charged by select lenders, can add to the overall cost of the loan. Be sure to consider these fees when comparing loan offers.
- Impact on Credit Score: Applying for a personal loan requires a hard credit inquiry, which can temporarily lower your credit score. If you miss payments or default on the loan, your credit score will suffer negative consequences.
By carefully considering these pros and cons, you can determine if a personal loan aligns with your financial goals and needs.
How To Get a Personal Loan for Bad Credit
Having poor or no credit may limit your options when you need money. However, some companies on our list offer the best personal loans for bad credit.
Here are some tips for getting personal loans for bad credit:
- Improve Your Credit Score: Before applying for a loan, work on improving your credit score. For example, you should pay off any previous debts, make all your payments on time, and address any errors on your credit report.
- Explore Secured Loans: Secured personal loans may be easier to qualify for if you have bad credit. These loans require collateral, such as a car or savings account, to secure the loan. By offering collateral, you lower the lender’s risk, making you more likely to be approved.
- Consider a Cosigner: If you have a trusted friend or family member with good credit, you may qualify for a loan by having them cosign the loan. Remember that the cosigner is equally responsible for repaying the loan, and any missed payments will affect both of your credit scores.
- Look for Alternative Lenders: Traditional banks and credit unions may be more stringent in their lending criteria. Consider alternative lenders, such as online lenders or peer-to-peer lending platforms like the Pigeon Interpersonal Finance App, which may have less strict requirements for approval.
- Build a Relationship with a Lender: If you have a longstanding relationship with a bank or credit union, they may be more willing to work with you despite your bad credit. Building a positive relationship and demonstrating responsible financial behavior can increase your chances of approval.
While it may be more challenging to get the best personal loans for bad credit or fair credit, it’s not impossible. By taking steps to improve your credit and exploring alternative options, you can increase your chances of securing a loan that meets your needs.
>>Find the best personal loans for fair credit with 1stPremierLending.com
Alternatives to a Personal Loan
Depending on your financial situation and goals, there may be alternative options to consider. Here are some alternatives to personal loans:
Home Equity Loan or HELOC
As a homeowner, you may be able to tap into your home equity through a home equity loan or a home equity line of credit (HELOC). These loans use your home as collateral, allowing you to borrow more money at lower interest rates. This would, however, put your home at risk if you fail to repay the loan.
Credit Cards
A credit card may be a more convenient option if you need to make a smaller purchase or cover short-term expenses. Credit cards offer flexibility, allowing you to make and pay off purchases over time. Just be sure to pay off the balance in full each month to avoid high-interest charges.
Personal Line of Credit
A personal line of credit works similarly to a personal loan but offers more flexibility. With a personal line of credit, you can borrow money up to a predetermined credit limit as needed. This can be useful for ongoing expenses or unexpected costs.
Retirement Loan
If you have a retirement account, such as a 401(k) or an individual retirement account (IRA), you may be able to borrow against it. While this can provide access to funds, it’s important to consider the long-term impact on your retirement savings and any potential tax implications.
Best Personal Loans: Methodology
The information provided in this guide is based on thorough research and analysis of various reputable sources. We’ve reviewed and compared multiple lenders, considering factors such as interest rates, loan terms, fees, customer reviews, and overall reputation.
It’s important to conduct research and carefully consider your financial situation before making any borrowing decisions. Remember to read the terms and conditions of any loan offer carefully and ask questions if anything is unclear. Taking the time to compare loan offers and understand the terms will help you make an informed decision.
>>Find the best personal loans with 1stPremierLending.com
Best Personal Loans: FAQs
Let’s take a look at some of the most common questions surrounding the best personal loans for bad credit or better.
What Are the Best Banks for Personal Loans?
The best bank for a personal loan will depend on your individual needs and financial situation. It’s important to compare loan offers from multiple banks to find the best deal. Companies like 1stPremierLending.com offer competitive APR, flexible payment terms, and quick access to cash.
What Type of Personal Loan Is Easiest to Get Approved For?
Secured personal loans, which require collateral, may be easier to get approved for if you have bad credit or a limited credit history. By offering collateral, you reduce the lender’s risk, making it more likely that you will be approved. However, it’s important to carefully consider the risks and only borrow what you can afford to repay.
Which Bank Gives Personal Loan With Lowest Interest Rate?
On our list, LendingTree and Credible offer the lowest interest rates for the best personal loans for fair credit. However, APRs are tied to several factors, including your credit score.
What Is a Good Interest Rate on a Personal Loan?
Interest rates on personal loans can vary widely depending on your creditworthiness and the lender. Generally, borrowers with higher credit scores will qualify for lower interest rates. As of late 2023, average interest rates for personal loans range from 6% to 35.99%. It’s important to compare rates from multiple lenders to ensure you’re getting the best deal.
How Are APRs Determined for Personal Loans?
APRs for personal loans are determined by considering the interest rate and any fees associated with the loan. This provides a more comprehensive picture of the total cost of the loan. When comparing loan offers, be sure to compare the APRs to get an accurate comparison.
How Many Personal Loans Can You Have at Once?
The number of personal loans you can have at once depends on various factors, such as your creditworthiness and the lending institution’s policies. Generally, there is no specific limit on the number of personal loans you can have simultaneously.
However, lenders will consider your existing debt burden, credit score, income, and overall financial stability before approving multiple loans. It is advisable to manage your debt responsibly and avoid taking on more loans than you can comfortably repay.
Can You Refinance a Personal Loan?
Yes, it is possible to refinance a personal loan. Refinancing involves taking out a new loan to pay off an existing one, typically with more favorable terms. By refinancing, you may be able to secure a lower interest rate, extend the loan term, or modify other loan terms to better suit your financial situation.
Refinancing can help you save money on interest payments or provide more flexibility in managing your debt. However, it is important to carefully consider the terms and fees associated with refinancing before proceeding.
How Long Does It Take To Get a Personal Loan?
The time it takes to get a personal loan can vary depending on several factors. Generally, the process involves submitting an application, providing necessary documentation, and undergoing a review and approval process by the lender. Online lenders often offer faster processing times, with some providing emergency loans with instant approval and disbursal within a few business days.
Traditional banks and credit unions may take longer, typically from a few days to a couple of weeks. The time frame can also be influenced by factors such as the complexity of your application, the lender’s workload, and the efficiency of your document submission.
>>Find the best personal loans for fair credit with 1stPremierLending.com
Best Personal Loans: Final Thoughts
Personal loans are a great option for borrowers who need short-term cash to cover an unexpected expense or pay for a major life event, such as a wedding, house renovation, or medical emergency.
The best personal loans for fair credit or bad come from companies like 1stPremierLending.com, our top pick. These loan matching services provide competitive interest rates, flexible repayment plans, and plenty of offers for you to choose from.
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