If you’re looking for a personal loan, it’s important to shop around for the best rates. Many different lenders offer these loans and the terms, fees and repayment options can vary significantly. Some lenders may also have minimum or maximum loan amounts. You can also find online calculators that help you determine the cost of a personal loan.
The best personal loan providers offer competitive rates, have minimal fees and can fund your loan quickly. They typically review a variety of factors when assessing your creditworthiness, including your credit score and your debt utilization ratio. Some lenders have a minimum credit score requirement of 620, while others might consider alternative information such as employment history and education.
To qualify for a personal loan, you must complete an application and provide copies of documents that prove your identity (government-issued photo I.D.), income (recent pay stubs or tax returns) and finances (bank statements). In some cases, you can also use your 401(k) retirement account to secure a personal loan. Most lenders have a specific list of acceptable and unacceptable uses for a personal loan, so it’s important to check those before applying.
Most traditional banks offer personal loans, but they tend to charge higher rates than many online lenders and might be pickier about credit scores. They may also require collateral or limit the amount you can borrow.
Wells Fargo is one of the oldest and largest banks in America, and its personal loans range from $3,000 – $100,000. Its unsecured personal loans are offered to current customers with an excellent or good credit score, and you can choose from a wide array of repayment terms ranging from three to seven years. Wells Fargo also reports your payments to all three credit bureaus, which is a huge benefit for those seeking to build their credit.
Avant is a newer competitor on the scene, but it offers a compelling personal loan offering with low interest rates and no origination or administrative fees. It also has a relatively short application process and can fund your loan within 24 hours of approval. Its credit requirements are a bit high, however, and it hasn’t been able to secure the trust of many consumers.
Patelco is another newer lender with an impressive personal loan offering. Its APRs are among the lowest on the market, and it accepts applicants with credit scores as low as 620. It also has a low maximum loan amount and no prepayment penalty. Its only drawback is a lack of reviews from past borrowers.
USAA is a veteran-owned financial institution that provides an outstanding personal loan product to its members. Its low APRs are especially appealing, and it offers a flexible repayment term that allows you to save on interest costs by paying off the loan early. It’s worth noting, however, that USAA’s unsecured personal loans are only available to current and former military personnel.
