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Best 12 Personal Loan Providers In 2022

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Hospitalization, house improvements, debts from different banks, and other financial concerns could compel people to approach personal loan providers.

They need money - and they need lots of it.

A huge bill from a family member’s surgical procedure lies ahead.

The entire ceiling of the second floor of the house of a family of four leaks.

Heeding a financial advisor’s urgent recommendation, a single mom now considers consolidating her debts.

COPYRIGHT_WI: Published on https://washingtonindependent.com/ebv/personal-loan-providers/ by Stefano Mclaughlin on 2022-08-19T05:34:42.485Z

A young couple wants that honeymoon in Paris for their third-year anniversary.

For whatever legitimate financial reason or need, personal loan providers can help people with how much money it entails.

SoFi Personal Loans

What Is Meant By Personal Loan?

When people need money to pay for something (goods and/or services - or debt) and they don’t have it, they will borrow money.

So, they will now have a debt that they need to pay later.

A personal loan is a kind of debt.

If a home loan is for a house (or a condominium) and a car loan is for a car, a personal loan is for different individual reasons.

As Investopedia puts it:

A personal loan is an amount of money you can borrow to use for a variety of purposes.

It could be for a family vacation abroad, a funeral, a pair of generators for one’s farm, an overdue student loan, or an upcoming wedding.

Types Of Personal Loans

The four common types of personal loans are:

1. Unsecured personal loans

  • no collateral
  • good credit score a must

Per Experian, a consumer credit reporting company, one needs a credit score of 670 - 739 (higher will be better).

2. Secured personal loans

  • collateral required (e.g., one’s car)
  • interest rates tend to be lower compared to an unsecured personal loan

3. Fixed-rate personal loans

  • pay the same agreed monthly payment because the interest rate won’t change
  • help borrowers budget their money

4. Adjustable-rate personal loans

  • interest rate changes over time
  • rate usually starts small and then eventually increase

Forbes Advisor will “only recommend” adjustable-rate personal loans to those who are sure they can pay promptly.

Personal Loan Requirements

It varies as personal loan providers demand different requirements.

For HDFC Bank in Mumbai, one of the largest in India, it requires “a good credit track record.”

That’s one common requirement.

What Do We Call An Individual Or Entity That Lends Money?

They can be basically called lenders, or, to be more specific, personal loan providers.

They can be any of the following:

  • the government
  • financial institutions (e.g., banks)
  • registered lending companies
  • corporations

Investopedia advises borrowers to avoid those “predatory lenders” known as loan sharks.

Loan sharks impose very high interest rates and tend to harass or intimidate borrowers to make them pay on time.

A young couple used the money they got from personal loan providers to repaint their apartment
A young couple used the money they got from personal loan providers to repaint their apartment

Personal Loan Providers

Now that some basic but essential points about personal loans have been presented, it’s time to see where people can apply for one.

Here are among those considered by credible sources as some of the best personal loan providers of this year (in random order):

SoFi

Investopedia: “best overall” (rating: 4.7 stars out of 5 stars).

CNBC’s finance writer Megan DeMatteo: “best for refinancing high-interest debt”.

Forbes Advisor: “best overall personal loan” (rating: 4.0 stars out of 5 stars)

Loan Details In Figures
estimated minimum credit score 660
annual percentage rate (APR)7.99 percent - 22.73 percent
loan amount$5,000 - $100,000
terms24 - 84 months

Discover

Investopedia: “best for debt consolidation” (rating: 4.3 stars)

DeMatteo: “best for next-day funding”

Forbes Advisor: “best for no interest if repaid within 30 days” (rating: 3.5 stars)

Loan Details In Figures
estimated minimum credit score 660
annual percentage rate (APR)5.99 percent 24.99 percent
loan amount$2,500 - $35,000
terms6 - 84 months

LightStream

For DeMatteo: this one’s the “best overall” personal loan provider

Forbes Advisor: “best for low-interest rates” (rating: 4.0 stars)

Loan Details In Figures
estimated minimum credit score 660
annual percentage rate (APR)3.99 percent - 19.99 percent
loan amount$5,000 - $100,000
terms24 - 144 months

Marcus

DeMatteo: “best for debt consolidation”

Forbes Advisor: “best for terms up to 72 months” (rating: 4.0 stars)

Loan Details In Figures
estimated minimum credit score not provided
annual percentage rate (APR)6.74 percent - 19.74 percent
loan amount$3,500 - $40,000
terms36 - 72 months

Upgrade

Investopedia and Forbes agreed that this is one of the best personal loan providers people should go to for bad credit.

Investopedia: “best for small loans and best for bad credit” (rating: 4.3 stars)

Forbes Advisor: “best for bad credit” (rating: 4.0 stars)

Loan Details In Figures
estimated minimum credit score 550
annual percentage rate (APR)6.95 percent - 35.97 percent
loan amount$1,000 to $50,000

For smaller loans, DeMatteo recommended borrowing from the Pentagon Federal Credit Union (PenFed).

One can borrow $600 and up to $50,000 (terms: 1 - 5 years).

If the need is urgent, there are personal loan providers that can lend people quickly.

Investopedia named Rocket Loans (“best for quick funding”) as one of them.

One can receive the loan ($2,000 to $45,000) in one day.

The APR range is 7.73 percent to 29.99 percent (only two payment options, though: 36 or 60 months).

Note that the loan details for the aforementioned personal loan providers were based on articles updated as of August 2 and 4, 2022.

Female personal loan applicant counting one-dollar bills
Female personal loan applicant counting one-dollar bills

Best Online Personal Loan Providers

Even personal loan providers go digital to widen their reach and make the application process more convenient.

Be reminded that Discover, Marcus by Goldman Sachs, Rocket Loans, SoFi, and Upgrade are all online personal loan providers.

They, at the time of writing, have been deemed as some of the best by established finance sites, such as Forbes and Investopedia.

This part of the article will include other online lenders that also received good reviews.

Happy Money

Experian rating: “Fair - Exceptional”

Business Insider’s editor rating: 3.5 stars out of 5 stars

Loan DetailsIn Figures
estimated minimum credit score 640
estimated monthly payment $150 - $1,528
annual percentage rate (APR)5.99 percent - 24.99 percent
loan amount $5,000 to $40,000
terms36 months

Upstart

Experian rating: “Poor - Exceptional”

Business Insider’s editor rating: 3.25 stars

Forbes Advisor: “best for loans as low as $1,000” (rating: 3.5 stars)

Loan Details In Figures
estimated minimum credit score 600
estimated monthly payment$30 - $2,262
annual percentage rate (APR)5.40 percent - 35.99 percent
loan amount $1,000 - $50,000
terms36 months

Avant

Business Insider’s editor rating: 3.75 stars

Forbes Advisor: “best for a range of repayment terms” (rating: 3.5 stars)

Loan Details In Figures
estimated minimum credit score 580
annual percentage rate (APR) 9.95 percent - 35.99 percent
loan amount $2,000 - $35,000
terms60 months

Prosper

Experian rating: “Exceptional”

For whom: borrowers looking for “a loan with a long repayment term”

Loan Details In Figures
estimated monthly payment$39 - $830
annual percentage rate (APR) 7.95 percent - 12 percent
loan amount $2,000 - $40,000
terms60 months

OneMain Financial

For Select, CNBC’s money section, this personal loan provider is “best for flexible terms.”

Loan Details In Figures
estimated minimum credit scoreno figures given but for those with Poor/Fair credit score
annual percentage rate (APR)18 percent - 35.99 percent
loan amount $1,500 - $20,000
terms24, 36, 48, 60 Months

There are plenty of other online personal loan providers whose loan details could be more suitable for one’s financial means.

People Also Ask

Which Type Of Loan Does Not Require A Credit Check?

According to personal finance website WalletHub, those loans are the following:

  • payday loans
  • no credit check personal loans
  • “most” of the student loans from the government
  • “some” credit-builder loans

How Can I Get A Personal Loan Fast?

PersonalFN, an Indian financial planning services company, gave these tips:

  • Try an online application.
  • Make sure to have a good credit score before applying.
  • Your credit score should at least meet the minimum required set by the personal loan provider you picked.
  • Maintain a good balance in your bank account.
  • Submit all the required documents.
  • Avoid applying simultaneously at different personal loan providers.

What’s The Biggest Loan I Can Get With No Credit?

According to CNBC Select, Upstart grants personal loans to those with bad credit or no credit score at all.

They can borrow up to $50,000.

Same with OneMain Financial but up to $20,000 only.

How Do You Get A Loan When No One Will Approve You?

An article at CreditNinja.com suggests that you simply borrow from someone you know (e.g., a family member, relative, friend, etc.).

A pawnshop loan is also a good option (no credit check; less documents to present).

An empty Times Square at nighttime during the coronavirus lockdown in New York City
An empty Times Square at nighttime during the coronavirus lockdown in New York City

Conclusion

Personal loan providers help people attain or accomplish something that involves money.

It’s a good thing, as noted by The Motley Fool, that personal loans typically come with low interest rates.

The number of cash-strapped individuals and families increased during the onslaught of the COVID-19 pandemic.

An $18-billion increase in outstanding loan debt was recorded in 2020, according to Forbes.

In 2022, the collective personal loans of 20 million Americans reached $178 billion.

It added that in comparison, the total amount of personal loans in the U.S. was $88 billion back in 2015.

People usually borrow money when something unexpected happens.

The pandemic pushed people to rely on personal loan providers to make ends meet.

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About The Authors

Stefano Mclaughlin

Stefano Mclaughlin - For the first five years of his career, Stefano worked as a financial advisor on state and local tax matters, developing internal marketing technology for his multinational tax business. With over 12 years of experience designing high-performance web applications and interactive interactions, Stefano is now a marketing technology specialist and founder.

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