Good Places to Take Out a Loan for Your Financial Needs

If you're in need of a loan, there are several good places to consider. Online lenders such as Lending Club and Prosper offer peer-to-peer lending options with competitive interest rates.

These platforms connect borrowers with investors, allowing for more flexible loan terms and lower costs. Some online lenders also offer same-day funding, which can be a lifesaver in an emergency.

However, be aware that some online lenders may have stricter credit requirements than traditional banks. For example, Lending Club requires a minimum credit score of 600.

If you have a good credit history, you may also want to consider traditional banks like Wells Fargo or Bank of America. They often offer more favorable loan terms and lower interest rates for borrowers with excellent credit.

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There are several types of lenders that offer personal loans, each with their own unique characteristics. Online lenders are a popular option, offering the fastest way to get a loan, with some loans approved and funded the same day you apply or the next business day.

Some online lenders cater specifically to good- or excellent-credit borrowers, offering high loan amounts and low interest rates, while others target fair- or bad-credit borrowers, who may have to pay higher interest rates.

If you're a good-credit borrower, you may have more options to choose from, as some lenders don't have a minimum credit score requirement, such as SoFi, which offers loans with no minimum credit score.

Here are some types of lenders you may encounter:

Keep in mind that bad-credit loan rates are usually higher, but a lender may consider factors beyond your credit score, such as your education or employment.

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If you're looking to borrow money, there are several options to consider. Banks are a good place to start, offering a wide range of financial products and larger funding amounts than other lenders. However, they often have stricter credit score requirements and higher maximum APRs.

Credit unions are another option, offering more flexible credit score requirements and lower maximum APRs. They may not have as much funding power as banks, but you can find good ones in your area that you qualify for based on specific eligibility criteria.

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Online lenders are also available, offering the fastest funding timelines but often with high maximum APRs. You can check out WalletHub's editors' picks for the best online loans to find some excellent options.

You may also be able to borrow directly from the government or a company backed by a government enterprise, but these loans are usually for very specific purposes.

If you need to borrow money fast, you can consider taking out a personal loan, charging your expenses to a credit card, or borrowing from a friend or family member.

Here are some of the best banks for personal loans:

USAA and Wells Fargo are considered the easiest banks to get a personal loan from, with USAA considering people with scores below 640 and Wells Fargo requiring a credit score of 660.

Credit unions offer some of the lowest interest rates, with APRs capped at 18% by the National Credit Union Association (NCUA). They may require membership, which can be exclusive to certain areas or groups.

Here are some of the best online lenders for personal loans:

Remember to consider the pros and cons of each option before making a decision.

Online lenders offer the fastest way to get a personal loan, with some loans approved and funded the same day you apply or the next business day.

Most online lenders let you pre-qualify to preview your potential rate and term before formally applying, without impacting your credit score.

Consider the annual percentage rate, which includes the interest rate and any extra fees, as it's the best apples-to-apples cost comparison between two loans.

Typical loan terms are two to seven years, with a longer loan term meaning lower monthly payments, but more total interest.

Some lenders, like SoFi, offer loan amounts up to $100,000, while others, like Upgrade, have a minimum credit score requirement of 580.

To ensure you're dealing with a trustworthy lender, look for accreditation from the BBB, insurance from the FDIC or NCUA, and high ratings from WalletHub's editors.

Here are some of the top online lenders for personal loans, with their loan amounts, APRs, and minimum credit score requirements:

By comparing offers from reputable lenders and considering factors like APR, loan term, and consumer-friendly features, you can make an informed decision and find the best loan for your needs.

When taking out a loan, it's essential to consider your credit score. A good credit score can qualify you for better loan options, such as personal loans from banks with interest rates as low as 6.99%.

For those with poor credit, peer-to-peer lending platforms can offer more flexible terms, including loan amounts up to $40,000 and repayment periods of up to 5 years.

If you're self-employed or have irregular income, you may want to consider online lenders that use alternative credit scoring models, such as income-based credit scoring.

Some lenders, like those offering home equity loans, require a minimum credit score of 620 to qualify.

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If you're in a rush and need a loan as soon as possible, choose a lender that lets you apply online. Luckily, that's most lenders.

Look into the lender's approval timeline and see how long it typically takes them to fund a loan. Some lenders, such as LightStream, advertise the ability to deliver funds the same day under certain conditions.

A loan is a type of debt that allows you to borrow money from a lender to cover expenses or fund a purchase. Loans can be secured or unsecured, with secured loans requiring collateral and unsecured loans not requiring collateral.

Interest rates on loans can vary widely, with some lenders offering rates as low as 6% and others as high as 36%. The interest rate you're offered will depend on your credit score and other factors.

Your credit score plays a huge role in determining the interest rate you'll qualify for, with good credit scores typically resulting in lower interest rates. For example, a credit score of 750 or higher can qualify you for a 6% interest rate.

The loan term, or the amount of time you have to repay the loan, can also impact the total cost of the loan. A longer loan term can result in lower monthly payments, but you'll pay more in interest over the life of the loan.

The total amount you'll pay back on a loan includes the principal amount borrowed, plus interest and fees. For instance, if you borrow $10,000 at an 8% interest rate, you may pay back around $11,000 over the life of the loan.

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When choosing a loan, consider the repayment period. Different lenders offer varying loan lengths, such as 24 months or 48 months, so you'll need to pick one that fits your budget.

To refinance a personal loan, you'll need to pay off the existing balance with a new loan or a balance transfer credit card. The goal is to save money by switching to a loan or credit card with a lower APR and fees.

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When choosing a repayment period for your refinanced loan, it's essential to select a length that fits your financial situation. Different lenders offer loan lengths, such as 24 months or 48 months, so you'll need to choose one that aligns with your ability to pay.

Refinancing is a smart move if you want to save money on your personal loan. To refinance a personal loan, you need to pay off the loan balance with either a new loan or a balance transfer credit card.

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The goal of refinancing a personal loan is to save money, so the new loan or credit card should have a lower APR than your original loan. This will help you save money as you repay the new loan.

Refinancing a personal loan can be a straightforward process if you choose the right option. A balance transfer credit card can be a good choice if you have good credit and can pay off the balance within the promotional period.

Having a lower APR on your new loan or credit card is key to saving money. You should aim to find a new loan or credit card with an APR that's lower than your original loan's APR.

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Cash advances can be a good option for borrowing small amounts of money, especially if you need to cover a financial emergency. You can get a cash advance from an app or a credit card, but be aware that these methods come with different costs and requirements.

Some cash advance apps offer favorable terms compared to traditional payday loans, and you can get up to $500 a pay period if you meet their qualifications. These apps often have mobile apps and may require you to connect your bank account or share information about your paycheck.

A cash advance from a credit card can be accessed quickly, but it comes with a fee and a high interest rate. You'll need to use a credit card PIN to get the cash directly from an ATM, and some card issuers charge a fee for cash advances.

Be cautious of fees associated with cash advances, especially if you're using a buy-now, pay-later app. These apps may charge fees for late payments, which can negatively affect your credit scores.

You'll likely need to have an active checking or savings account with the bank to apply for a personal loan. Some banks, like Wells Fargo, require this as a condition for loan applicants.

Banks may have a branch near you where you can speak with a loan officer in person, which can be helpful if you have questions or concerns about the loan process.

Credit history plays a big role in personal loan approval or rejection. Generally, the best unsecured personal loans providers will require a credit score of 600 or higher, often even 660 or higher.

If you have a lower credit score, you may need to put down collateral to secure the loan. This is a common requirement for those with lower credit scores.

You can find step-by-step instructions on how to secure a loan with a lower credit score below.

The exact requirements for credit history vary by lender, so it's essential to shop around for the best options.

Getting personal loan offers from up to 5 lenders in minutes can help you compare rates and find the best deal.