Zooming In on 5 Personal Loan Leaders
Personal loans are a diverse product, and it should be no surprise that the lenders that issue them are diverse as well. Below is a list of the top lenders in the industry, and what makes them uniquely qualified to meet the lending needs of their customers.
SoFi is a peer-to-peer lender known for its low rates and flexible terms. It differentiates itself with its commitment to student debt refinancing, and will even help with career placement when customers graduate from school or lose their jobs.
Top Pro: Flexible loan amounts and terms
Top Con: Minimum 660 credit score and proof of income needed to get approved
Best For: Young professionals and recent graduates
What's Unique About SoFi: SoFi is committed to helping loan seekers develop skills to instill a sense of more responsible financial decision-making. The company offers wealth management solutions, private placements, and even provides market commentary and investment resources to help you understand the process and make better investing choices.
LendingTree is an online marketplace connecting potential borrowers with qualified lenders. Using LendingTree means being able to select from several lenders to choose the loan terms that will best meet your needs.
Top Pro: A marketplace of reliable lenders competing for your business
Top Con: Not directly a lender, so rates may vary between providers
Best For: Borrowers seeking to compare a variety of loan options
What’s Unique About LendingTree: LendingTree allows you to avoid the complicated process of applying for several loans separately, or having to do intense research on your own. Instead, it handles all the heavy lifting by delivering a list of lenders that are likely to approve you.
As a public company and a peer-to-peer lender, Lending Club is one of the best capitalized alternative lending marketplaces in the world. With an emphasis on technology to determine creditworthiness, they can reduce transaction costs to provide low interest rates, which is why they have issued over $13 billion in loans since inception.
Top Pro: Online application takes minutes and funding is issued within a few days
Top Con: Credit score of 660+ and proof of income required
Best For: Borrowers with good credit who want competitive rates without the hassle of a bank
What’s Unique About Lending Club: Borrowers can get loans of up to $40,000, with the money deposited into their accounts in as little as 7 days.
Prosper is an unique peer lending platform. In addition to a creditworthiness check, potential borrowers can explain the reasoning for their loans. Lenders can fund people directly based on their loan reasons.
Top Pros: Great range of interest rates available
Top Cons: Origination fees can be relatively high
Best For: Customers with good credit looking for excellent rates on consolidation loans
What's Unique About Prosper: Prosper can match borrowers to the investors that are most likely to fund their loans, helping them locate financing much quicker.
LoanStart is one of the top loan aggregators in the industry. Its expertise in building technology solutions designed to qualify borrowers perfectly matches a borrower’s loan qualification with the lenders that can provide the best terms.
Top Pros: Loans are available for borrowers with less-than-perfect credit.
Top Cons: Since LoanStart is not a direct lender, help and support is limited.
Best For: Borrowers who don't want to go through the trouble of making applications to multiple lenders on different websites.
What's Unique About LoanStart: It uses a network of reliable affiliate lenders to help you find money that you need to cover whatever your financing needs might be.
Now that you know what makes personal loan companies applicable and unique, find the best lender to match your borrowing needs.