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The Best Personal Loan Companies to Use in 2018
Sometimes you need a little extra cash. Where do you turn? Some people use credit cards, but high-interest rates and a temptation to spend more and grow your balance means credit cards may not be the best choice. If this situation sounds familiar, you may want to consider a personal loan.
If you are in the market for a personal loan, make sure you only borrow what you need and have the ability to pay back any funds you borrow. Also plan to pay off the loan early, if you can afford to, as that will save you money over the life of the loan.
Your next big choice is going to be where to get your personal loan. But before you do that, let's take a glance at what criteria you need to consider to get the best personal loan possible. First, check the interest rate — it's how much you pay to borrow and interest rates vary with your credit score and market interest rate conditions. A lower rate is better. Next is fees: Some lenders charge origination and other fees. Always do your best to avoid fees when possible. If you can find a loan with no origination fee, that’s your best personal loan option. One other thing to consider is prepayment penalty: Some loans charge a fee if you pay the loan back early. This is a bad thing! You should never sign up for a personal loan with a prepayment penalty.
Another Information
Best Overall: Marcus by Goldman Sachs
Wall Street titan Goldman Sachs offers Marcus as its personal banking and borrowing brand. Marcus offers personal loans and savings accounts, both among the best in their respective industries. For lending, Marcus focuses on debt consolidation, credit card consolidation, home improvement and other personal loans.
Marcus offers online loans from $3,500 to $40,000. As of this writing, interest rates range from 6.99 APR to 24.99 percent APR and loans are available with terms from 36 months to 72 months. All loans have a fixed interest rate with a fixed monthly payment.
In addition to competitive interest rates, the reason Marcus is at the top of our list is its no fee guarantee and simple five-minute application. There is no origination fee, no prepayment fee and there are no late fees, though you should always make your full payment on time each month.
Best for Young Professionals: SoFi
SoFi started as a student loan lender, so it knows young professional finances inside and out. It offers student loans, student loan refinances and mortgage loans in addition to personal loans. SoFi also offers wealth management and life insurance products and has a bank account coming soon.
SoFi, short for Social Finance, empowers borrowers with tools to repay their loans and offers a range of useful services. Interest rates currently range from 6.99 to 15.24 percent with automatic payments. Loans are available from $5,000 to $100,000 in value in terms of 3, 4, 5, 6 or 7 years.
There are no fees for personal loans from SoFi, just interest. SoFi also offers a unique unemployment protection feature so you don’t get stuck in a jam should you lose your job. That’s a useful backup plan in any job market.
Best for Marketplace Loans: Prosper
Prosper is a marketplace lender where individual investors join forces to fund your loan. It offers competitive rates and terms that put it head-to-head with even many traditional lenders and other online lenders.
Prosper personal loans are available from $2,000 to $40,000 with interest rates ranging from 6.95 to 35.99 percent APR. Low credit borrowers beware of the high-interest rates here, while those with the best credit history may find market leading rates.
Also be on the lookout for some fees at Prosper you don’t see at all online lenders. While there is no prepayment fee, there is an origination fee. That fee ranges from one to five percent of the loan value depending on your credit history.
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