Personal loans give you quick access to cash that can be used at your discretion.
As such, they’re a great option for borrowers looking to consolidate credit card debt, improve their homes, pay off medical expenses, or use in any other way they desire.
The best personal loans are unsecured and come with low fixed interest rates.
If you have an excellent credit score, you can save significant money by choosing a personal loan. Even borrowers with poor to average credit can access personal loans from some lenders. It’s all about finding the right company for your needs.
Here, we’ve compiled a list of the best of the best personal loan companies. Read on to see how they compare and make an informed decision as you shop for personal loans.
Our Top 8 Picks for Best Personal Loan Companies in 2020
Ready to start shopping for personal loans?
There’s no shortage of personal loan companies on the market, but the lenders below take the cake.
LendingTree is one of the premier lending platforms, with a robust offering of financial tools and resources.
When you go to LendingTree’s website, you simply select the type of loan you’re looking for and its intended use, then click through an interactive application where you’ll answer a few basic questions.
Based on your answers, you’ll be matched with up to 5 of the best personal loan offers you qualify for, all in a matter of minutes. It’s a great place to start your personal loan search.
And as a bonus, when you sign up for a free LendingTree account, you get access to your credit report and pointers to improve your score.
Similar to LendingTree, Credible is basically a search engine for loans. Credible boasts prequalification for top loan offers in 2 minutes’ time.
They also offer a Best Rate Guarantee, which promises, with terms and conditions, to pay you $200 if you find a better rate elsewhere, meaning they’re confident in their comparison services.
Credible clearly features its partners across its website, including Prosper and Lending Club, both of which are featured below.
Like LendingTree, Credible is free to use and won’t harm your credit score. It also comes with resources like a savings calculator that show you how much money you could be saving by consolidating your credit card debt with a personal loan.
And if you’re in the market to take out or refinance a student loan, Credible could be your one-stop-shop for comparing student loan and personal loan rates.
Much like Credible, SoFi’s roots are in the student loan industry. The online lender now provides mortgages, personal loans, and wealth management services as well.
Credible offers personal loans ranging from $5,000 to $100,000 with terms between 3 and 7 years.
These loans have low-interest rates, offering both fixed and variable rates. When you enroll in auto-pay, you can get rates as low as 5.990%
SoFi is also completely fee-ree, with no origination fees, pre-payment fees, or late fees.
But SoFi stands out most for its job loss protection.
If you lose your job during the life of your loan, SoFi will press pause on your payments and even help with the job search.
Consider partnering with SoFi as your lender if you’re a young borrower looking for student loan resources in addition to competitive personal loans with unique perks.
4. Lending Club
Lending Club takes a different approach to personal loans than the companies above. The top-notch personal loan platform is a peer-to-peer marketplace.
Instead of getting your funds directly from Lending Club, the loan is sourced by individual investors. Lending Club comes with relatively competitive interest rates, depending on your credit score, for loans up to $40,000.
Lending Club is a good option for borrowers with lower credit scores who wouldn’t qualify elsewhere, with some loans for applicants with a score of 600. While you may face an origination fee up to 6% of the total amount of the loan, you can get approved with a lower credit score.
Lending Club is quick, too, giving you access to funds in as little as 3 days after your application is submitted.
If you want to be sure you’re getting the best loan available to you without having to compare quotes yourself, you’ll love Fiona.
Fiona reconceptualizes the concept of the personal loan marketplace that most of its competitors use.
Like Credible and other platforms, Fiona combs through top lenders’ offers to see what rates and terms you qualify for.
But instead of giving you all of your options to choose from, Fiona narrows it down to one, pinpointing the best loan for your needs.
Fiona will match you with loans up to $100,000 with APR as low as 3.84%.
Fiona is a great option if you want to take the guesswork out of personal loan shopping.
A division of the fintech company Quint Group, Monevo is yet another marketplace that lets you compare your best personal loan options.
Like its competitors, Monevo brings you quick rates from top lenders after you provide a few personal details. The website claims to give you quotes in 60 seconds.
Your credit score won’t be harmed by the initial application, and you’ll get offers from lenders like Lending Club, Prosper, and SoFi.
Monevo is an excellent tool, especially for borrowers with poor or average credit scores who might struggle to find loans on their own, to compare all of their options.
Though it’s a newer platform, Monevo is BBB-accredited with an A rating and positive customer reviews.
7. Federal Trust
Rounding out our list of lenders is newcomer Federal Trust, a platform proving to be beneficial for loan shoppers with varying credit levels and financial needs.
Another loan comparison tool, Federal Trust curates loan options between $1000 and $100,000 with competitive interest rates and terms between 24 and 84 months.
Like its competitors, Federal Trust requires you to fill out a quick form online to gain access to offers you’re eligible for.
Federal Trust is less upfront on its website about what all lenders it partners with, something to keep in mind as you shop.
However, the site is secure, and so is your information. Federal Trust is a great marketplace to add to the list as you shop for rates, with no harm done to your credit.
Most of what you read about Lending Club above applies to Prosper. Another peer-to-peer marketplace, Prosper comes with comparable rates, fees, and terms.
When you apply, you’ll undergo a soft credit check, which won’t penalize your score like a traditional loan application would.
Prosper’s loan limits are slightly lower than Lending Club’s, topping off at $35,000, but so are their fees. The highest of Prosper loans’ fees are 5%. While one percent might seem insignificant, it adds up on a five-year $35,000 loan.
Be sure to factor both the fees and the rates in as you decide on a loan. In some cases, borrowers with excellent credit can get the loan fee reduced to less than 1%, making Prosper a great alternative to a traditionally funded personal loan.
Which Best Personal Loan Company Works For You?
There’s a personal lender out there for everyone, but not every lender is right for you.
A lender might be known for offering awesome personal loans, but they may not have the best rates you’re eligible for.
Before you sign the dotted line, take the time to shop around so you can rest assured that the loan you get is the one you deserve.
Starting with the list of lenders and comparison tools above, you can be sure you’re getting the best terms possible on your personal loan.
In the next five minutes, you could be looking at personal loan offers tailored to meet your needs. You’re only a few clicks away!