In the following lines, we try to find the best online personal lenders of 2021. There are several instances where you might want to get an online personal loan rather than applying to banks. Online loans are great alternatives for borrowers who prefer the convenience of applying virtually. You can find lenders of all types with unique features like low-interest rates, low charges, excellent customer support, and more.
Best Online Personal Lenders
Online personal lenders offer loans for different purposes and different credit scores. They often provide quick funding solutions when you want access to some fast cash. Online options also make your experience better as you can easily compare the offers right from the comfort of your home and pick the one that seems the most appealing. You also will not have to provide any collateral like a mortgage.
How To Find The Best Online Personal Lenders
If you are in the market for a personal loan, I recommend transparent lenders who do not require personal information for interest rate comparisons. If you are in the market to take out or refinance student loans, Credible could be the best online lender tool to compare student loans and personal loan rates. They can help you compare all the private loan companies and hopefully get the lowest interest rate for your search.
How Fast Are Online Personal Lenders?
You should make sure that the lender you are considering is offering the kind of online loans you need and that they are willing to provide them. Some online lenders can get your loan virtually overnight if you qualify. While some options offer loans with a similar structure, the borrower’s experience differs from that of a traditional lender, such as a bank or credit card company. You can go faster and use an online lender’s credit rating, credit history, and other information.
Finding The Best Online Personal Lenders
A few decades ago, it was almost impossible to get a personal loan from another bank or credit union. Today, there are many options to choose from, including some of the largest banks and newcomers to the market. Although it is easier to shop around and many online lenders are much more competitive than those listed above, you will still get competitive rates. The interest rate on personal loans can save most borrowers money on their personal loans and save them money in the long run.
Let’s look at some of the best online personal lenders you can consider when searching for a loan for home improvement, debt clearance, or any other purpose.
LightStream
LightStream is one of the most popular and reputed online personal lenders that offer funding options to borrowers with good credit.
Those who have a strong credit score can benefit from high loan amounts, low rates, and other features. You can apply for loans to fund home improvement, debt consolidation, or other significant expenses.
Pros
- Beats competitor interest rates
- Loans for several purposes
- High maximum loan amount
Cons
- Excellent credit score required
- Prequalification not available
SoFi
An excellent choice for borrowers who want access to financial advice and events in addition to a personal loan, SoFi offers fixed as well as variable-rate funding options. The online lender does not charge any origination fee or late payment charges.
It also offers the facility to apply for unemployment forbearance for up to three months if you lose your job during the loan period.
Pros
- Offers financial and career advice
- Flexible due date
- Prequalification available
- Competitive rate of interest
Cons
- Requires good credit scores
- Slow processing
- Lack of direct payment to creditors
Avant
Avant is ideal for borrowers with an average credit score as it provides financing and offers even better deals after six months of regular payments. This lender also gives loans to those with lower scores.
You can apply for loans to fund debt consolidation, home improvement, or emergency expenses. Qualifying applicants can receive up to $35,000 with interest rates as low as 9.95 percent, though you can pay more depending on your score and other factors. Most borrowers receive their funds on the next business day with this lender.
Pros
- Competitive minimum APR
- Prequalification available
- Transparent fees
- Flexible payment options
- Quick processing
Cons
- Co-signed options not available
- High late fees
- Low maximum funding amount
Payoff
Perfect for those who want to pay off high-interest debts, Payoff offers fixed-rate consolidation loans to help them clear credit card debt. It also gives access to interactive tools to correct your financial habits and recommendations to keep your finances in control.
The service aims to help you achieve your financial goals with personalized tools and resources. You can apply for a loan amount in the range of $5000 to $40,000 and repay it over 24 to 60 months.
Pros
- Potential for credit building
- Prequalification available
- Ideal for fair credit score
Cons
- Only available for debt consolidation
- High minimum APR
- Slow processing
Upstart
Upstart is a popular online lending service that works with several partners to give borrowers affordable loan options with fair credit ratings. With this lender, you can find benefits depending on your job history, education, and area of study. It claims to offer lower rates as compared to its competitors.
Qualifying borrowers can get up to $50,000 at an interest rate as low as 7.98%. Ninety-nine percent of borrowers receive their money within 24 hours of approval. With a prequalification facility, you can check the terms and rates without affecting your credit score.
Pros
- Low loan amounts
- Offers prequalification
- Quick processing
Cons
- Low maximum loan amount
- High average APR
- High origination fee
Marcus By Goldman Sachs
Flexible payment dates, no origination fees, and direct creditor payments are some of the features that make this lender great for borrowers who want a simple way to get an online loan.
Marcus doesn’t charge any fees for late payment or origination. If you apply for debt consolidation, the lender pays directly to the creditor. You can choose a loan term and monthly payment that suits your condition.
Pros
- No late fees
- Direct payment to creditors
- Flexible payment terms
- Tools to monitor your financials
Cons
- No option to include cosigner
- Low maximum loan amount
Rocket Loans
An online personal lender is known to offer competitive APRs and quick funding. Rocket Loans lets you apply for up to $45,000 with a repayment period of 36 to 60 months. Though this lender accepts borrowers with a low credit score, a strong profile can lower interest rates and other benefits.
You can apply for a personal loan to fund vacations, home improvement, emergency expenses, or debt consolidation. If you qualify, you can receive your funds on the same day of approval with Rocket Loans.
Pros
- Prequalification available
- Rate discount for autopayment
- Same day funding
- Competitive interest rates
Cons
- It doesn’t allow cosigners
- Charges origination fee
- Limited repayment term options
Upgrade
This lender offers affordable loans anywhere from $1000 to $50,000 with low monthly payments, low-interest rates, and charges. It doesn’t have strict credit score requirements, so it is an excellent option for those with not-so-good credit.
The personal loan Upgrade offers a 3-5 years repayment period and a fixed rate of interest. It charges an origination fee of 2.9-8 percent that deducts from the loan amount.
Pros
- Comparatively low fees and rates
- Higher loan amounts
- Allows cosigner
Cons
- Only two options for repayment terms
- Not available across all the states
- Charges origination fee
The Bottom Line
Online loans are outstanding because they make it easy to compare different offers to get the best deal. You can fill out applications for multiple lenders from your computer and save many fees and interest over the repayment term. It depends on what you can afford and how badly you need a personal loan. Personal loan rates are constantly changing and the best way to get a good deal on your first or second loan from a personal online lender is to qualify with multiple lenders so you can compare deals. When signing the Best Personal Loan, be sure to consider the cost of borrowing. Personal lenders will provide you with a breakdown of fees and credit terms before signing the final credit documents.
We hope the options listed here help you find the right online personal lender for your needs and preferences.
Nice blog.