Guide to the Best Signature Loans and Unsecured Personal Loan Lenders in 2024
Personal loans help provide fast funding for any expenses which you currently don’t have the money to cover. Many people have used low interest personal loans to consolidate credit card debts that have much higher interest. Because it is an unsecured loan, borrowers do not have to submit any of their property as collateral. The majority of the personal loans have fixed APR so you will be make the same monthly payment. So, it will be cheaper to borrow the same amount from a personal loan compared to a credit card. The following are the top 10 lenders that offers personal loans for borrowers with average to excellent credit scores.
1. Lending Club
Lending Club is the popular p2p lending platform that provides a loan amount of up to $40,000. it is not that strict as other p2p lenders when coming to credit score and borrowers only need to have a credit score of at least 600. Although it is not strict in credit score requirement, it has tough requirements in other areas like debt to income ratio. The APR range starts from as low as 5.99% to as high as 35.89% and the lowest APR is reserved for those with excellent credit score.
Lending Club is only available in 48 states exempting Iowa and West Virginia. It charges origination and check processing fees. The origination fee is 1%-6%. You can choose a loan term in between 3 – 5 years. Lending Club makes it possible for borrowers to obtain a loan at a low interest rate and they are also very straightforward about the fees. You should compare the interest rate with the other major P2P lending network, Prosper, before accepting the loan at Lending Club.
2. Wells Fargo
Wells Fargo offers unsecured loans with loan amount ranging from $3,000-$100,000 making it suitable for use in funding a small business. The interest APR ranges from 6.25% – 19.75% and borrowers can choose from a loan term of between 1-4 years. if you have a good credit score, getting approved at Wells Fargo will be an easy process. You will have to go to a physical Wells Fargo branch to apply for the loan. They may not be straightforward about the lending terms. They also do not have a higher customer ratings than their competitors.
Well Fargo loans is suitable for you if you need funding for your small business. The interest rate they offer is quite competitive. It is a reputable bank with over 6,000 branches. Besides personal loans, it also offer other types of loans such as personal line of credit, and CD. With Wells Fargo, borrowers have the ability to use their savings account as collateral for a loan.
3. Prosper
Prosper is the second largest p2p lending platform following Lending Club. Borrowers must have a minimum credit score of 640. other factors are also being taken into account in determining the APR interest rate of the loan. The loan amount is in between $2,000 – $35,000 and the APR interest rate is in between 5.99% – 35.97%.
You can get a quote on the APR interest from Prosper prior to applying. Prosper loans is available to residents in 47 states except for Iowa, Maine and North Dakota. Most people spend at least 1 week waiting for the funding of the loan. The repayment term is the same as other lenders and ranges in 3 – 5 years. It is safe to get a loan at Prosper because it is an established p2p lending platform. Prosper is very straightforward about its lending term and the loan requirements are also less stricter compared to other lenders.
4. LightStream
LightStream provides one of the lowest interest rate in the market for people with excellent credit score. The interest rate for LightStream loans is as low as 2.17% and can reach up to 17.49%. This interest rate applies to all loans except home mortgage and car loans. It does not charge fees that other lenders are charging such as origination, and early repayment fees.
Borrowers need to have an excellent credit score and be ready to provide financial documents to prove the income such as the statement of savings account. LightStream is great for people who want to obtain a loan in between $5,000 – $100,000. You can choose a repayment term from 12 months to 84 months. You can expect to receive the fund in the same business day which is much faster compared to P2P lending platform. If you are searching for a Money ASAP Loan to borrow cash quickly, then we also work with a variety of lenders who offer short term loans with quick approval.
5. Sofi
Sofi is famous for offering student loans for college students. Besides student loans, Sofi also provide personal loans with loan amounts varying in between $5,000 – $100,000. The fixed interest rate, which is in between 3.38%-6.74%, is more expensive than variable interest rate which varies from 2.19%-6.11%. There is no loan origination fee.
There are 3 loan term options including 3, 5, and 7 years. Having excellent credit score and a reliable job with good income is a must for getting approved. Sofi loans can be applied by residents in 47 states.
Sofi is the best option for people who need to borrow a huge sum of up to $100,000. You must possess excellent credit score to qualify. You can postpone the loan payment if you are not able to make the loan payment.
Signature Loans are Ideal For Consumers with Good to Excellent Credit Scores For Borrowing Online without Collateral
6. Earnest
Earnest is a new company that specializes in offering loans with cheap interest rate for people who are disciplined. The interest APR which ranges from 4.25%-9.25% is in fact one of the lowest in the market. Borrowers can apply a loan up to the maximum amount of $50,000. Several factors are used to assess the borrowers including college education, employment, and history of the savings account.
Earnest loans can be applied in 36 states. Washington D. C is included. You can choose 1,2 and 3 years of the repayment term. Earnest is suitable for people without any credit history. to get approved, it is a must to have an almost clean credit history, reliable income, and some savings in your savings account.
7. InstallmentLoansQuick.com
InstallmentLoansQuick.com is a loan network that offers all kinds of lenders including bank, p2p and online loans. It can be applied by customers in the 50 states in USA. The maximum loan amount is $35,000 with an interest rate in between 5%-36%. Before signing up for a loan, make sure you visit the official site of the particular lender to find out the APR interest.
InstallmentLoansQuick.com offers fast approval for the loans. The loan application only have 3 steps. Shopping for a loan at InstallmentLoansQuick.com can save you a lot of time in comparing the loans.
8. Peerform
Peerform provides p2p loans for people with a minimum credit score of 600 which is much lower compared to other P2P lending platform. The interest rate ranges from 7.12%-28.09%. Peerform only provides loans to residents in 37 states. It takes 2 weeks for the loan to be funded. It charges origination and service fees like most p2p loans. It also charges a collection fee.
Peerform offers one of the lowest rate and highest loan amounts for borrowers with average credit. All loans have 3 years repayment term and there is no option for the repayment term.
9. Avant
Avant provides loans for people with a credit score as low as 580. It offers a loan amount in between $1,000 – $35,000 with the interest rate ranging from 9.95% – 36%. Residents in 47 states including District of Columbia can apply for Avant loan.
Avant provides a loan amount of up to $35,000 which is normally not approved for people with an average credit score. The interest rate is fair and it takes a shorter time to fund the loan. borrowers can choose a repayment term in between 2 – 5 years.
10. Vouch
Vouch, as its name suggested, requires you to get someone to vouch your loan. The person will have to put in at least $1000 to vouch for the loan in the event that you neglect to repay the loan. Vouch can approve a loan amount in between $500-$15,000. The interest rate varies from 7.35%-29.99%. each loan is charged with an origination fee of 1-5%. The minimum credit score is 600 and the repayment term is 1 – 3 years.
Vouch is easier than finding a cosigner as you just need to find friends who can vouch for the loan at an amount that they can afford. Vouch is ideal for people who want to apply a smaller loan with a short loan term.
How to Choose the Best Personal or Unsecured Loans
Several factors should be taken into account when choosing the best personal loans including low APR interest, low fees, high cap on loan amount, ability to choose a repayment term, availability in the maximum number of states, straightforward in the loan terms, A+ BBB rating and good reputation.
There are two main types of personal loans. Unsecured personal loans don’t require collateral while secured personal loans require collateral. A credit card is also considered an unsecured loan. The lenders do not bother about the purpose of the loan.
Compare Online Loans In California, Texas, Idaho, Ohio, Missouri, North Dakota
You need a credit score of at least 640-660 to get approved for a p2p loan. you can try applying for a loan from a local bank or credit union if you have a low credit score. You can also consider signing up for a secured loan that requires collateral as a security deposit. Another option is to find a cosigner with sufficient income to act as a backup. Lenders that promise unsecured loans without checking the credit score usually charge high-interest rates. The high-interest rate can cause you to miss the repayment date and get charged with a penalty fee.
Choosing the Right Signature Loans
Prior to applying for a personal loan, make sure you shop at many different lenders to compare the fees and interest rates. The best way to compare loans is to do research on a loan network. You can opt to use a zero percent credit card with an intro period of 15-18 months if your credit score is good enough for you to apply for it.
It is important to find out all the different types of fees that you will be responsible for paying such as origination, late payment, fees charged on unsuccessful repayment, and early repayment.
Your lender should give you the ability to select the loan term. A longer loan term means lower monthly payments but higher interest rates. On the other hand, a shorter loan term means higher monthly payments and lower interest rates.
You must be aware that there are many scam loan companies. Some of the signs that a loan company is a scam include collection of upfront fees, making fake guarantees, and invalid office addresses. The lender should not approach you first for the loan and you should not be pressured to sign up for the loan.
Conclusion
It doesn’t mean that you have to get your loan online all the time. You can also try applying for the loan from a local bank or credit union if you find that they offer more favorable lending terms. It is advised that you read the fine print to determine the lending terms and fees prior to making a decision in signing up for the loan.
Connect Online With A Short Term Loan Lender Operating In These States:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,Missouri, Montana, Nebraska, New Hampshire, Nevada, New Mexico, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
Originally written in November of 2013 and revised in 2024 by Don