If you need to consolidate debt, fund a home renovation or make an important purchase, personal loans are an ideal choice. They’re unsecured, don’t require collateral and have fixed interest rates that make them attractive options.
Many of these loans provide a range of loan amounts and payment terms, making them suitable for any budget. Some even provide direct creditor payments, enabling you to consolidate your debts and receive extra cash for any outstanding balances on credit card accounts.
Payoff
Payoff provides a loan that helps you consolidate high-interest credit card debt and save money by making one monthly payment. Furthermore, they provide tools and resources to build or rebuild your credit score, so that you can reach your financial objectives while staying on track with finances.
The company boasts an A+ rating with the Better Business Bureau and was rated 4.3 out of 5 stars by U.S. News for affordability, eligibility and customer service. Furthermore, there are no application, prepayment or late fees, plus there’s no annual fee either.
Happy Money offers a range of personal loans to meet different needs, with its focus on credit card debt consolidation. It provides loans up to $5,100 and requires that applicants have a credit score of at least 550 in order to be approved. Unfortunately, it charges an origination fee and does not provide its loans in Massachusetts or Nevada.
Debt consolidation with a personal loan is possible, but it’s essential that you select the right lender for your requirements. Look for one with low interest rates, flexible terms and no origination or early payoff fees.
Finding the personal loan that’s ideal for you requires research and comparison. NerdWallet provides a free comparison tool that asks 16 questions and assesses several loan offers, displaying the top deals and recommending which are your top options.
Comparing lenders using a comparison tool can help you avoid those with exorbitant borrowing costs or who charge large fees to apply for the loan. Some companies are known for keeping their fees low, making them more competitive with other lenders.
Use a payoff calculator to estimate how much interest you’ll save if you pay off your debt early. However, keep in mind that doing so could temporarily lower your credit score since credit scoring models typically weigh open accounts more heavily than closed ones.
Fair credit consumers may want to consider SoFi or Happy Money, which offer excellent customer support and consumer-friendly features. Furthermore, these loan companies are highly transparent; they provide a breakdown of the factors that go into their approval process so you know exactly what qualities they look for when reviewing borrowers.
SoFi
SoFi is an online lender offering various personal loans, such as home improvement loans, student loans and more. Furthermore, SoFi provides unemployment protection which enables borrowers to pause their payments in case of job loss.
SoFi offers competitive interest rates and you may qualify for a 0.25% rate reduction when setting up automatic payments. Moreover, applying for a co-borrower makes it easier to qualify for large loans without needing a credit check is another benefit of SoFi’s services.
Prequalifying for a SoFi loan takes just two minutes and doesn’t impact your credit score. Once approved, you can complete the full application process.
Once approved, SoFi will send you a loan agreement to sign electronically, and your funds will be deposited directly into your bank account. In most cases, SoFi will approve you for the amount needed and deposit the money into your bank account on the same day; however, please be aware that some delays may occur after being approved.
Another advantage of SoFi’s private loans is that they come without fees – no origination or prepayment fees, late payment charges or penalties for missing payments. You’ll save on interest with a 0.25% rate discount and have access to member benefits like career coaching and networking events.
Furthermore, SoFi stands out among lenders in that it provides unemployment protection – this allows you to pause your loan payments if you lose your job and are actively searching for a new position. While you will still owe interest on the balance, your payment history won’t be affected.
SoFi offers a range of loan options to meet your needs, such as home improvement loans, vacation loans and credit card debt consolidation. They don’t charge any origination or prepayment fees and you can apply for loans up to $100,000 with ease. Plus, their user-friendly online application process makes applying from desktop or mobile device a breeze.
LendingClub
LendingClub is an online lender that offers personal loans for people with fair credit. It has various loan products and a swift application process. Furthermore, its free member center provides customers with information regarding their loan status and credit score.
Lenders use credit-rating systems to determine whether borrowers are likely to repay their loans on time and in full. These rates are based on factors like creditworthiness, debt-to-income ratios and other details. The company assigns each loan a letter grade (A, B, C or D) plus numerical subgrades which take into account aspects such as loan amount and borrower’s credit history.
The website includes a tool that enables potential borrowers to check their interest rate and other terms before applying for the loan. There are no fees associated with prequalification, which only triggers a soft credit pull that does not affect your credit score.
Once you decide to apply for a loan, the lender will run a hard credit check which could lower your score a few points. After accepting your loan offer from LendingClub, they’ll send you details such as loan amount, interest rate and monthly payments.
You have the option to pay off your loan early without incurring a penalty, and the funds can be deposited directly into your account or paid to the original creditors. The company’s maximum repayment term is 60 months.
LendingClub not only offers loans, but it also provides several savings and checking accounts. Its High-Yield Savings account (HYSA) boasts an attractive 2.85% annual percentage yield with no fees, while Rewards Checking gives customers 1% cash back on debit purchases.
The company offers various prepaid cards, such as an ATM card and student credit card. Furthermore, the firm provides online tools and services to help customers manage their money and credit more effectively.
LendingClub also provides personal loans and short-term business loans. These can be used for any business-related expense, such as start-up costs and equipment purchases. They’re even capable of financing large purchases like a new car.
Avant
If you’re searching for a straightforward personal loan with low interest rate, Avant is an excellent option. Their online process is quick and painless, plus they perform soft credit pulls to pre-qualify customers without impacting their credit scores.
They provide a range of loans, from debt consolidation to home improvement. Furthermore, they work with borrowers who don’t have perfect credit or who have complex financial situations that don’t appear on their credit report.
Applying for an Avant loan is easy – simply provide your name, Social Security number and other basic information on their website. Plus, they offer a pre-qualification estimate based on your budget and income level.
Once approved, you can select the loan amount and repayment terms that best meet your needs. The lender may require additional documents like pay stubs or bank statements to verify your information. While application can take a few days, most loans are approved the next business day.
For a small fee, you can utilize the Avant mobile app to make payments, adjust your payment date and view your loan account. It has an impressive reputation and can be downloaded free from Apple and Google Play stores.
If your credit score falls below 600, it is highly unlikely that you will qualify for an Avant loan; however, those with fair to excellent credit (600+) may find loans at competitive rates. You might want to search other lenders who provide tailored solutions or incentives like discounts on interest rates when setting up automatic payments.
Avant stands out among other lenders by not charging a prepayment penalty if you pay off your loan early. This can be an advantage to those borrowers looking to consolidate credit card debt or other high-interest loans into lower monthly payments.
Furthermore, they provide flexible repayment terms for their personal loans. These include the option to skip a payment up to two times annually.
The company’s mobile apps have earned high praise, as they enable borrowers to monitor their loan history and make payments anytime, anywhere – something many other online lenders don’t offer.
