Best Personal Loans of January 2024 - TITTECHSTOR
Best Personal Loans of January 2024 - TITTECHSTOR
Personal loans are excellent options for people in need of cash to cover expenses like medical bills or home improvement projects. There are personal loans for borrowers who want a sizeable chunk of money and for those who just need a small amount to tide them over.
Top 2024 Personal Loans from Our Partners:
- SoFi Personal Loan
- Upstart Personal Loan
- LightStream Personal Loan
- Compare Personal Loan Rates
Complete Editorial Review of the Top Personal Loans:
We've reviewed the best lenders for people with a range of credit scores, with a specific focus on finding the best loan companies that offer low APRs.
Best Personal Loans of 2024
- LightStream Personal Loan: Best for excellent credit
- Service Credit Union Personal Loan: Best for customer support
- SoFi Personal Loan: Best for fair credit
- PenFed Credit Union Personal Loan: Best for small loan amounts
- Avant Personal Loan: Best for low credit
- Upstart Personal Loan: Best for borrowers with limited credit history
- Wells Fargo Personal Loan: Best for flexible terms
- Best for excellent credit
- LightStream Personal Loan
LightStream stands out with some of the lowest personal loan rates available for borrowers with excellent credit scores. Truist created LightStream for online loans, and the bank offers personal loans for things like home remodels, medical debt, and debt consolidation.
Look out for: High credit score requirements. LightStream's minimum credit requirement for a personal loan is 660, so this lender might not be right for all credit types.
LightStream Personal Loan Review:
Best for customer support
Service Credit Union Personal Loan
Service Credit Union has some of the best customer support among personal lender loans and can get you your money fast. Customer support is available 24 hours a day, seven days a week. The approval process takes about 24 hours, and after your loan application is accepted, you may be able to have the funds in your account the same day.
Look out for: Membership requirements. Much like with most credit unions, you'll need to meet certain requirements to be eligible. If you've served in the military or Department of Defense or work at qualifying associations or organizations, you'll qualify If that doesn't apply to you, you can join the American Consumer Council for free with a promo code.
Service Credit Union Review:
Best for small loan amounts
PenFed Credit Union Personal Loan
PenFed Credit Union offers personal loans for smaller amounts than many other lenders, making it a good choice for those who just need to borrow a little bit of money for a short time. PenFed will lend you as little as $600. This could make the credit union an attractive alternative to a payday loan.
Look out for: Membership requirements. You don't need to be a member of the credit union to apply for a personal loan, but you'll have to be a member to get your loan. If you've served in the military or work at qualifying associations or organizations, you'll qualify.
However, you have a pretty easy workaround if that doesn't apply. You can join by opening a savings account with a $5 minimum deposit.
PenFed Personal Loan Review:
Best for fair credit
SoFi Personal Loan
SoFi personal loans have a minimum credit score requirement of 680, at the lower end of what's considered a good credit score. People with a good credit score will likely be able to get a good rate with SoFi, but borrowers with an excellent credit score may be able to get a lower rate with LightStream. SoFi offers forbearance in case you lose your job during your loan repayment. This unique feature allows you to apply for as many of 12 months of forbearance, in three-month increments.
Interest rates on these loans range by about 13 percentage points, making for a smaller range than offered by other companies. This means interest rates for borrowers with relatively lower credit scores can only go so high.
Look out for: A relatively high minimum income for approval. According to loan comparison site Credible, less than 1% of borrowers approved for personal loans through SoFi have an income of less than $50,000 per year, and a majority make more than $100,000.
SoFi Personal Loan Review:
Best for low credit
Avant Personal Loan
Avant stands out as a lender that applicants with low credit scores can turn to for personal loans. Personal loans are generally offered to those with better credit scores. Avant offers personal loan options for borrowers with credit scores as low as 600. It has a lower limit than other lenders, with $35,000 as the maximum loan amount.
Look out for: Administrative fees. Avant's personal loans carry up to 4.75% in administration fees with an undisclosed late fee and returned payment fee. Considering that many of the other loans on this list don't carry administrative fees, prepayment fees, or origination fees, Avant's fee is high.
It's also worth noting that interest rates are high from this lender. While this is a good option for anyone with credit scores in the lower 600s, those with better credit could find better rates elsewhere.
Avant Personal Loans Review:
Best for borrowers with limited credit history
Upstart Personal Loan
Upstart differentiates itself from other personal loan lenders with its underwriting process, which is how it decides who gets a loan and how much to charge in interest. Like any lender, Upstart considers credit scores as part of the process. But it also considers employment history and education history, such as where you went to school and your area of study.
Look out for: Potentially high origination fees. Upstart's personal loans can have late fee of 5% or $15, whichever is greater. This can take a significant portion out of your overall loan proceeds.
Upstart Personal Loan Review
Best for flexible terms
Wells Fargo Personal Loan
Wells Fargo personal loans offer low interest rates, smaller minimum borrowing amounts, and shorter terms than many others. Wells Fargo offers loans between $3,000 to $100,000, for payoff terms as short as 12 months. Borrowers who want to get their debt under control quickly might find that Wells Fargo's personal loans are flexible enough to tackle debt consolidation.
Look out for: It's worth noting Wells Fargo's history with data security and compliance. The bank has faced several federal penalties for improper customer referrals to lending and insurance products, and security issues associated with creating fake accounts several years ago.
Wells Fargo Personal Loans Review
Personal Loan Frequently Asked Questions
Can I have more than one personal loan?
Where can I find personal loans besides a bank?
What are alternatives to a personal loan?
What can you use a personal loan for?
What credit score do I need for a personal loan?
How long does it take to get a personal loan?
Is it a good idea to get a personal loan?
What is the easiest personal loan to get approved for?
Personal Loan Lender Trustworthiness
Whether you're interested in taking out a $5,000 loan or a $40,000 loan, finding the right provider can help with your loan approval experience. The Better Business Bureau, a non-profit organization focused on consumer protection and trust, evaluates businesses using factors like their responsiveness to consumer complaints, honesty in advertising, and clarity about business practices. Here is each company's score:
All of our top picks, minus Wells Fargo, are rated A or higher by the BBB. Keep in mind that a high BBB score does not ensure a positive relationship with a lender, and that you should keep doing research and talking to others who have used the company to get the most comprehensive information possible.
The BBB gives Wells Fargo an F rating because of the business' failure to respond to 24 complaints and government actions against the business. Most recently, the Consumer Financial Protection Bureau in December 2022 ordered Wells Fargo to return $2 billion to customers and pay a $1.7 billion penalty for legal violations auto loans, mortgages, and deposit accounts. The bank illegally charged fees and interest penalties involving auto and mortgage loans. Additionally, it misapplied payments to those loans for many customers.
If this history makes you uncomfortable, you may consider using one of the other personal loan lenders on our list.
How to Choose the Best Personal Loan
To pick the best lender for you, take stock of the factors that are most important to you. Many borrowers zero in the lowest interest rate. But be sure to also look at any fees, the minimum credit score needed, and the accessibility of the lender's customer service before you apply for personal loans.
Also look at the different types of lenders you may borrow with. Some people may feel comfortable with an online lender, while others may prefer a credit union or bank. You'll also want to make sure you're able to select a term length that works for you and that your loan's purpose is allowed by the lender you choose.
Guides like this one will help you compare multiple lenders in the same place to weigh their pros and cons. Keep in mind that you should also read individual reviews of any lenders you're considering.
Why You Should Trust Us: Our Experts for the Best Personal Loans
Ryan Wangman:
"The best way to get a lower rate is to improve your credit history. You can do so by making on time, reliable payments and managing the amount of debt you take out compared to your overall limit."
Methodology
We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
Interest rate (20% of rating)
Fees (20% of rating)
Term lengths and loan amounts (15% of rating)
Funding speed (15% of rating)
Borrower accessibility (15% of rating)
Customer support (7.5% of rating)
Ethics (7.5% of rating)
Each category's weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience , but do not directly tie to a personal loan's terms, so they have less of an impact on the overall rating.
