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Whether you need money for a big purchase or want to consolidate debt, personal loans can be helpful. But you should carefully evaluate the lender’s terms, fees and borrowing requirements to determine whether it is a good fit.
The best personal loan lenders have flexible borrower requirements, offer low rates and fees and provide fast funding. Reviewers say US Bank is the best personal loan lender, with long weekend phone support and a high JD Power score.
1. LendingClub
LendingClub is one of the most well-known online lenders for personal loans. It launched in 2007 as a peer-to-peer lender, but it now debt consolidation loans bad credit offers banking services and has more than 4.7 million customers. It’s a good option for those looking to refinance debt, pay off credit card balances or cover unexpected expenses.
The application process is easy and uses a soft credit check that doesn’t impact your score. You can also prequalify to get a sense of rates and terms before you apply. LendingClub says most applications are approved within an hour and loan funds are available within 24 hours.
The company also offers a free checking account that earns interest and reimburses ATM fees. Its Finance Toolkit lets you budget, track spending and see trends. You can even link it to external accounts for a big-picture view of your finances. The bank also has a blog with personal finance news and tips.
2. Discover
Discover is one of the first major credit card companies to introduce mobile payment solutions, giving cardmembers the ability to use their smartphones at participating merchants. The company continues to focus on digital innovation and mobile technology, and in 2014 it launched the new Discover it Card with 5% cash back in rotating categories each quarter like gas and restaurants, and unlimited 1% on all other purchases.
Discover also offers a number of personal loans through Prosper, which connects borrowers and investors. Borrowers can receive up to $50,000 with terms of 24, 36, 48 or 60 months. Discover’s personal loan calculator can help you figure out your monthly payments before applying.
In an effort to support local business, Discover launched the Discover it Restaurant program in 2014. Each month, the company gives 200 randomly selected Black-owned restaurants $25,000. Discover also introduced a Parent Loan for parents who are looking to cover their student’s higher education expenses, offering no fees and U.S.-based loan specialists to assist. The company also offers Discover Home Equity Loans that can help homeowners pay for renovation projects or consolidate debt with a single, affordable monthly payment.
3. Upgrade
Founded in 2016, Upgrade is a fintech company that offers personal loans, credit lines and checking and savings accounts. It partners with Cross River Bank, which is FDIC-insured, to offer its products. Its rewards checking account, Upgrade OneCard, combines the immediate payment of a debit card with the reward perks and fraud protection of a credit card. It also features a savings account with a high yield and doesn’t charge overdraft fees. The company’s credit cards can be used as an open-ended line of credit with repayment terms ranging from two to seven years. Upgrade is best for people who want a combination of the benefits of a cash-back card, a credit-card-like account with fixed monthly payments and a savings account with a high yield.
4. US Bank
US Bank offers a wide variety of banking services, including checking accounts, savings accounts, certificates of deposit (CDs) and loans. Its checking account offerings include a free Smartly Checking account, as well as a low-fee Safe Debit card that allows you to avoid overdraft fees. The bank also has a large network of branches and partners with MoneyPass to give you access to over 40,000 ATMs nationwide. Its credit cards provide cashback rewards, low interest rates and travel perks. And its personal loans come with competitive rates, fixed monthly payments and no origination fees. US Bank is a member of the Federal Deposit Insurance Corporation.
5. First Tech Credit Union
First Tech Credit Union is a full-service federal credit union that serves technology company employees. Its banking products, including checking accounts, savings accounts and credit cards, offer competitive rates and low fees. It also offers loans and investment accounts, along with a range of other financial services. The Credit Union has branches in California, Oregon and Washington, along with more than 30,000 surcharge-free CO-OP ATMs nationwide.
The Credit Union has no minimum income or credit score requirement for personal loans, but it does require a steady source of income. It also offers a range of loan amounts and terms, from six months to seven years.
In 2019, the Credit Union integrated Plaid, which allows members to connect their external accounts during the account-opening process. This improves the member experience and reduces the risk of errors, such as mismatched names or account numbers. In addition, Plaid enables the Credit Union to verify that the external account belongs to the person attempting to connect it. This helps the Credit Union better protect its members from fraud and identity theft.