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Unlike credit cards and payday loans, online personal loans are available to anyone with a valid checking account. Many lenders offer an easy application process and loan approval in minutes.
Borrowers can choose repayment terms that match their income and expense patterns. Using a lender’s loan calculator can help them determine if a personal loan is the right fit.
SoFi
Founded in 2011 to help people get their money together, SoFi helps its members borrow better, save smarter and invest wiser. Its mission is to give its 6.9 million members the freedom to achieve their ambitions. To that end, it offers a variety of financial solutions including student loan refinancing, personal loans and mortgages. Applicants can prequalify and get a rate online or with a mobile app in minutes. Once approved, SoFi sends the funds to the loan servicers within a week or 10 days. Borrowers can sign up for auto pay to receive a 0.25% interest rate discount on all SoFi products. If a borrower loses their job, SoFi offers an Unemployment Protection Program, which suspends payments in three-month increments while the borrower seeks employment.
The company also offers rewards for its banking products and has a mobile app with robust features that make it easy to manage finances on the go. It doesn’t charge loan origination fees ofw loan , prepayment penalties or late charges, although these can add up over time. SoFi’s checking and savings account rates are competitive, with no monthly fees and free overdraft coverage for qualifying accounts.
SoFi’s model has been successful, with 98% of borrowers in a recent survey saying they would recommend the company to friends and family. However, complaints to the Consumer Financial Protection Bureau and elsewhere online center on issues such as strict credit requirements and customer service.
LightStream
LightStream is an unsecured personal loan company that offers competitive interest rates and a fast funding timeline. Its loans can be used for a variety of purposes, including debt consolidation and home improvements. It also offers a 0.50% autopay discount. However, the lender’s strict qualification requirements and lack of loan preapproval may make it a less-than-ideal choice for some borrowers.
Applicants must have excellent credit and sufficient income to qualify for a LightStream personal loan. Additionally, borrowers must be willing to provide a copy of their driver’s license or passport to verify their identity. They must also agree to submit to a hard credit inquiry, which will temporarily ding their credit score.
The application process is quick and easy, but borrowers should be prepared to provide several pieces of documentation, such as pay stubs and investment or retirement account balances. In addition, borrowers must be willing to undergo a credit inquiry and sign a loan contract.
LightStream is a good choice for borrowers with excellent credit who need an unsecured personal loan. The lender has low loan fees and offers an online application. It also provides exclusive member perks, such as travel discounts and member workshops. However, it has low customer service ratings and requires a high credit score to qualify for its loan products. Moreover, the lender does not offer a loan preapproval feature, so borrowers must complete a full application to receive a rate.
Upgrade
If you have a less-than-perfect credit score but need to pay down debt, Upgrade can help. This financial services company specializes in affordable credit products, including personal loans and checking accounts. It offers competitive rates and flexible terms, as well as an easy application process. It also allows you to apply with a co-applicant, which could increase your eligibility for a loan.
Unlike many other online lenders, Upgrade does not charge advance fees for a personal loan. This is a sign of a legitimate lender, but it’s important to read all of the fine print before taking out a loan. Additionally, Upgrade does not charge an origination fee upfront, but instead subtracts it from the total loan disbursement.
Upgrade also lets you check loan offers without a hard credit inquiry, making it easier to compare rates and choose the right option for your needs. Its repayment terms range from 24 to 84 months, but be aware that a longer term will mean you’ll pay more in interest overall.
Another benefit of Upgrade is its Short-Term Hardship program, which can reduce your payments for a set period of time. This is a good option for borrowers who are struggling to keep up with their monthly payments due to unexpected hardship. You can find more information on how it works on the company’s website.
