Guide to the Best Signature Loans and Unsecured Personal Loan Lenders in 2021

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.

personal loans online

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 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 higher customer rating 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 applyin. Prosper loans is available to residents in 47 states except 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 range 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 striter 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 excellent credit score and be ready to provide financial documents to prove the income such as 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.

unsecured loan options to $50,000

Earnest loans can be applied in 36 states. Washington D. C is included. You can choose 1,2 and 3 years of repayment term. Earnest is suitable for people without many 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
InstallmentLoansQuic.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 interest rate in between 5%-36%. Before signing up with 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 provide 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 amount 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 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 a collateral while secured personal loans require a collateral. Credit card is also considered as 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 the loan from a local bank or credit union if you have low credit score. You can also consider signing up for a secured loan which requires a collateral as 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 charges high interest rates. The high interest rate can cause you to miss the repayment date and get charged with penalty fee.

Choosing the Right Signature Loans

Prior to applying 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 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. Longer loan term means lower monthly payment but higher interest rate. On the other hand, shorter loan term means higher monthly payment and lower interest rate.

You must be aware that there are many scam loan companies. Some of the signs that a loan company is scam include collection of upfront fees, make fake guarantees, and invalid office address. 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 2021 by Don

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  • Short-Term Lending and Personal Loan FAQ Guide

    Borrowing money for the first time can be intimidating. There is a whole range of financial tools used by lenders to determine the borrower’s creditworthiness. For good reasons, however, personal loans and short-term lending are increasingly becoming popular for covering sporadic and massive expenditures.

    Here’s a guide that covers short-term lending and finding the best personal loan that suits you.

    What are business needs suitable for short-term financing?
    Different types of short-term lending are appropriate for varied business needs. Examples of needs projected to have short-term ROI include physical renovation, hiring new staff, and purchasing new equipment.
    Is APR an ideal way to make cost calculations?
    The annual percentage rate is only a single way to represent total interest cost and fees as a yearly payment which may appear higher than the overall cost of a short-term loan. When you look at other factors like the total cost of your loan and different business needs, you’ll realize that a short-term loan would better fit your business needs. At a glance, a short-term loan with a higher APR is more affordable than a long-term loan with a lower APR.
    How long does it take to receive a response?
    Depending on the loan issuer, your credit history and loan amount, the typical wait time could be 45 minutes or less. However, some lenders could take up to 3 working days to approve, it will vary from lender to lender and based on your unique lending needs.
    How does the lender determine the interest rate?
    Your personal short-term loan interest rate is determined based on your risk profile. The general rule is that the lower your credit score, the higher the risk. Lower risk means a lower interest rate, and higher risk means a correspondingly high interest rate.
    How long will I have to repay the loan?
    You’ll have to begin repaying the loan within 30 days in installments. Most lenders provide repayment terms ranging from six months to six or more years. The interest rate and monthly payment will be impacted by the period you choose to repay the loan.
    Are there other fees associated with personal loans?
    Creditors may charge sign-up, processing coupled with landing fees. In most cases, these charges are billed only once and are often outlined in the application documents. Although it’s not uncommon to have obscured payments, hidden fees would generally add up between 1 to 5% of the entire amount.
    Do I need a good credit score?
    Before you start applying for a short-term personal loan, it’s crucial to know you’ll qualify with your credit score. Most loan issuers are looking for customers with good credit scores. However, if you have a good relationship with the creditor, you may get a favorable term, particularly if your account shows a history of timely payments and honoring the terms of past loans.
    Can I get a loan with a low credit score?
    Loan issuers have different loans designated for people with varying credit scores. Lending options meant for consumers with bad credit are, without a doubt, different from those with good scores. While a higher score boosts your approval chances and gives you favorable terms, there are specific loans meant for people with low credit scores.
    How do I apply for a short-term personal loan?
    Once you’ve identified the financing option ideal for you, assemble all the documentation needed. Do not yield to the pressure to have money as soon as possible to offset the chances of making a shoddy application. It’s always good to fill the documents comprehensively, attach personal information, your resume if needed, business and personal tax returns, financial statements, and the collateral value that may be required.
    Will the lender approve my application?
    Your business and personal credit will be essential metrics in determining a lender’s decision. At its core, one of the handiest tools used by the lender is looking at your credit score. At the same time, other factors include your debt ratio, business debt, revenue trends, personal and business debt coverage.

    How do I improve my chances of getting approved?
    It sounds harsh that most loan requests are rejected. Looking at the reasons that contribute to applications’ inevitable rejection, the ideal way to improve your standing is to build your credit score. Aside from convincing the lender that you’re better suited for approval, a healthy credit score helps you qualify for favorable interest rates.

    Personal Loan Markets

    Innovative Finance helps connect consumers who are searching for help with consolidating debt, home improvement projects, credit card consolidation and more with online personal loan lenders. If you are searching for an online, unsecured loan product and live in these markets, we have lenders who may be able to assist you.
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