Sometimes life throws you a curveball, and your salary or savings arenâ€™t enough to cover a big expense like home repairs, college tuition or medical costs. Maybe you want to consolidate your debt or start a small business, but you would have a hard time qualifying for a business loan. Thatâ€™s when a personal loan can come in handy.
With a personal loan, you borrow a set amount of money that is paid back (usually monthly) with a fixed rate over a set period of time. Most personal loans are unsecured meaning you donâ€™t have to put down a deposit or have collateral such as a car or a home to get the loan. But because unsecured loans are riskier for lenders, they usually charge higher interest rates than they would for a secured loan.
Some major lenders donâ€™t offer unsecured personal loans. For example, Bank of America, the second largest banking institution in the United States, no longer offers personal loans.
But that doesnâ€™t mean youâ€™re out of options â€” there are plenty of online lenders, credit unions and banks that offer personal loans, including large traditional lenders like Citibank, Wells Fargo, U.S. Bancorp, PNC, and SunTrust Bank.
If youâ€™ve decided that a personal loan is a right fit for your needs, you can find them through local banks, credit unions, and online lenders. To get your best interest rates and terms, shop around. Just be aware that many lenders will do a hard pull of your credit if you apply for a loan, meaning that each credit check could ding your score. Luckily, here at MagnifyMoney, we allow you to review rates, fees, and other terms in ourÂ personal loan marketplace.Â
You can also use our widget below to compare offers from up to five different lenders on LendingTreeâ€™s marketplace by filling out an online form.
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LendingTree is our parent company. LendingTree is unique in that you may be able to compare up to five personal loan offers within minutes. Everything is done online and you may be pre-qualified by lenders without impacting your credit score. LendingTree is not a lender.
Many online lenders offer competitive interest rates for personal loans, especially if you have good credit. They also usually do just a soft credit pull when you apply, so you can get an interest rate quote without impacting your credit score. However, if you need to borrow a large amount of money, especially over $35,000 (generally the limit for many online lenders), you may need to look elsewhere. And although online lenders will approve loans for people with credit scores as low as 600, theyâ€™ll also charge much higher interest rates in those cases.
Hereâ€™s a look at some of the rates and terms for personal loans from leading online lenders:
To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.
SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, VA, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, TX, VA, WY, or for residents of IL for loans greater than $40,000.
Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
Best Egg loans are unsecured personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC. Equal Housing Lender. “Best Egg” is a trademark of Marlette Funding LLC. All uses of “Best Egg” on this site mean and shall refer to “the Best Egg personal loan” and/or “Best Egg on behalf of Cross River Bank, as originator of the Best Egg personal loan,” as applicable. Loan amounts generally range from $2,000-$35,000. Offers up to $50,000 may be available for qualified customers who receive offer codes in the mail. The minimum individual annual income needed to qualify for a loan of $50,000 is $130,000. Borrowers may hold no more than two open Best Egg loans at any given time. In order to be eligible for a second Best Egg loan, your existing Best Egg loan must have been open for at least six months. Total existing Best Egg loan balances must not exceed $50,000. All loans in MA must exceed $6,000; in NM, OH must exceed $5,000; in GA must exceed $3,000.
Borrowers should refer to their loan agreement for specific terms and conditions. A loan example: a 5â€“year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81, and a 3â€“year $5,000 loan with 5.99% APR has 36 scheduled monthly payments of $150.57. Your verifiable income must support your ability to repay your loan. Upon loan funding, the timing of available funds may vary depending upon your bank's policies.
To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you.
Loan approval and actual loan terms depend on your ability to meet our standard credit criteria (including credit history, income and debts) and the availability of collateral. Loan amounts subject to state specific minimum or maximum size restrictions. Collateral offered must meet our criteria. Active duty military, their spouse or dependents covered by the Military Lending Act may not pledge any vehicle as collateral. CA minimum loan amount is $3,000. GA minimum loan amount is $1,500 for present customers and $3,100 for others.
In some situations, banks are the lenders that offer the best interest rates, but thatâ€™s not always the case with personal loans. Because many personal loans are unsecured, and therefore riskier, banks tend to charge higher rates than credit unions.
As with other types of loans, bank loans generally are geared more toward people with good credit â€” scores of 680 and above â€” and the better your credit, the better your interest rate. On the plus side, banks tend to offer higher borrowing limits if you need more money.
Credit unions offer some of the lowest interest rates for personal loans, and will even approve loans for people with credit scores under 600. Unlike most banks, credit unions are nonprofit, so any profits they make tend to benefit their members in the form of better interest rates or lower fees. To apply for a loan, youâ€™ll need to join the credit union and meet all the requirements for membership.
When youâ€™re looking at personal loan offers, you should know how much the loan will truly cost you, including the interest rate, the length of the loan and any fees that youâ€™ll have to pay (an origination fee, for example). Youâ€™ll likely get better interest rates if your credit score is high and/or you have collateral to secure the loan. However, most personal loans donâ€™t require collateral.
A personal loan isnâ€™t your only option, and may not be your best option, depending on why you need the money and how you want to pay it back. There are other loans that accomplish similar goals. The important things to know are how much interest youâ€™ll end up paying, how long youâ€™ll be given to repay the loan, what kind of expenses the loan financing can be used toward and what happens if you miss a payment or default on the loan.
Many credit cards will offer a 0% APR introductory balance transfer offer. This offer, typically lasting anywhere from 6 to 21 months, means you wonâ€™t pay interest on your debt for that period of time. Make sure to find out if youâ€™ll be charged balance transfer fees and what the cardâ€™s interest rate will be after the introductory period. Take a look at credit cards with introductory 0% APR balance transfer offers at MagnifyMoneyâ€™s marketplace
A home equity loan is a second mortgage that borrows against the equity youâ€™ve built in your home. Like a personal loan, you receive the funding in a lump sum and the loan comes with a fixed interest rate.
A home equity line of credit (HELOC) also involves borrowing against your homeâ€™s equity, but in this case, youâ€™re approved for a certain amount of credit that you can draw from. But you only need to repay, and only pay interest on, the amount you draw. As with a home equity loan, your house is the collateral for the loan.
Banks, credit unions and online lenders arenâ€™t the only financing games in town. Peer to peer lending is when an individual or hedge fund is matched to someone looking for a loan, either through a company or a website. These loans are very similar to personal loans and tend to have competitive interest rates.
Although Bank of America doesnâ€™t offer personal loans, they do offer other loans that can be used to pay medical expenses, consolidate debt, make home improvements or fund a business. Bank of Americaâ€™s financing options include a credit card with a 0% percent introductory APR offer for 15 months, a home equity line of credit and an auto loan.
5.99% To 35.99% APR
6.99% To 14.99% APR
6.99% To 24.99% APR
3.34% To 16.99% APR
By clicking â€śSee Offersâ€ť youâ€™ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.
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