The Best Personal Loan Companies for Every Loan Type
There are many types of personal loans, sometimes also referred to as signature loans, available from online lenders. Although most loan providers offer more than one loan type, each usually has one area in which it specializes. If you are looking to borrow money on a short-term loan, you should turn to a different lender than if you are looking for a long-term loan. Some loan providers are strong in P2P lending, secured loans, or loans for those with poor or excellent credit. Here is a review of the best personal loan lenders to turn to for each type of loan.
Best Companies Compared:
Prosper is America's first peer-to-peer loan provider, and it still leads the market. Prosper helps borrowers to acquire loans of $2,000 to $35,000 at APR rates that can be extremely competitive, starting at 6.95% and reaching 35.99%. Prosper stands out by cutting out the middleman and serving as the board for direct communication between borrower and lender. With Prosper, once you've prequalified and your interest rate has been approved, you can share a short posting about the loan you're looking for. Lenders will bid to fund all or part of your loan.
This increases competition, lowers your final APR rates, and is an extremely transparent approach to lending. Prosper customers will always know exactly what they owe and when. Loan terms range from 3 to 5 years, and there are no early repayment penalties. You can also access your funds quickly, with the loan amount coming through within 1 to 3 days, and repayment is eased with an app that tracks your repayments and helps you manage money.
With APRs that can be as low as 3.29% and loan amounts up to $100,000, Monevo leads the market in short-term loan providers. Monevo is a loan provider marketplace; when you apply, your application will be shared directly with 50 of the millions of lenders who are part of Monevo’s database. This gives you access to more potential loan options to choose from without having to complete multiple application forms. Response time is fast, with replies coming in after just a couple of minutes, and your funding could be through within 1 day.
Since Monevo is a loan aggregator, it doesn’t guarantee your loan terms, which vary depending on the provider. However, loan repayment periods range from just three months, ideal if you just need a bridge loan to cover cash flow issues and reach up to 72 months.
SoFi is an online lender with some of the longest repayment terms for unsecured long-term loans. Loan repayment periods stretch up to 84 months (7 years) with highly competitive APRs that start at 5.895% and go up to only 15.49% maximum. When you borrow through SoFi, you can access a range of different long-term loan options that include student loan refinancing and parent loans that are designed to help parents pay for their kids’ college education.
SoFi really stands out thanks to its flexible payment system. Once your repayments have begun, you can change your monthly payment date. If you are usually on time with your payments but miss one, SoFi will waive the late fee, and everyone has a 15-day grace period in which to catch up on a missed payment before the late payment fee is applied. Late payment fees are low at $5 or 4% of the loan, whichever is lower. If you lose your job and have trouble making payments, you can request forbearance whereby you suspend payments. You can ask for forbearance for three months at a time for up to 12 months, although the interest will continue to accrue during this time. SoFi also doesn’t charge any origination fees, loan arrangement fees, or to process a personal check.
LendingTree is a loan marketplace that offers borrowers pre-approval on loans from hundreds of different providers. Unlike many secured loan providers, LendingTree includes RV loans, powersport loans, and boat loans as well as the more traditional home equity and auto loans. As a loan aggregator, LendingTree reminds borrowers that APR rates and terms vary depending on the lender. Interest rates begin at 3.19% for auto loans, 3.35% for RV, boat, and powersport loans and from 3.7% for home equity loans.
As you’d expect, the amounts and loan period for home equity loans – at up to $150,000 for up to 30 years – are longer than those for auto loans. An average auto loan is $25,000 for a five year repayment period, while there is no upper limit on loans for RVs and boats. LendingTree also provides great customer support and application processing times are swift.
GuidetoLenders connects borrowers with a number of lenders through just one simple application. GuidetoLenders prides itself on helping borrowers find the best loan option for them, even with less than perfect credit. After your initial application is approved, which takes only a few minutes, you’ll receive a number of pre-approved loan offers from different loan providers. GuidetoLenders provides a comparison tool to help you compare offers and pick the best option quickly and clearly. You can get an unsecured personal loan for any purpose at all in amounts that range from $1,000 to $40,000 and with APR rates of between 4.99% and 35.99%, depending on your credit rating. Repayment terms extend from 24 to 84 months.
Even Financial is an online loan marketplace that shares your application with the many lenders on its database so that you can get multiple pre-approved loan offers with the one application. Even Financial works with borrowers with credit scores of 580 or below, but its best APRs and highest loan amounts are available only for customers with excellent or good credit ratings. You can borrow up to $100,000 if your credit score is high, while APR rates begin at 4.99%. Even Financial doesn’t guarantee loan terms and conditions since they vary depending on the lender you go with, but loan repayment periods are between two and seven years.
OneMain Financial is a direct lender with both an online and physical presence that has been in business for over 100 years. There is no minimum credit score to apply for a loan, and the company will even lend to borrowers whose credit score is 550. The application process is not entirely online, but you will get an early answer on the same day that you apply. OneMain Financial offers loan amounts from $1,500 to $25,000 for any purpose you’d like, including unsecured personal loans and secured auto loans. APRs vary between 18.46% and 35.99% depending on your financial history and terms range from two to five years with no early repayment penalties. Although the APR rates are relatively high, for borrowers, getting a loan with bad credit is still reasonable compared to not getting a loan at all.
While some loan providers stand out no matter what loan you need, if you know you’re looking for a particular type of loan, it’s best to go straight to the experts. No matter which type of loan you need, you now know who to go to for the best rates, repayment terms, and loan amounts.