Find the Best Personal Loan for Your Needs

So, you’ve decided that you want a personal loan to help you cover some personal expenses. The hardest part about the process is choosing the right personal loan company to work with. There are more personal loan companies than ever in the United States. But this makes the decision process much harder. While you have a variety of different lenders to choose from, you’ll also have a problem deciding which one is the best for you.

Navigate

Background

Personal Loan Companies

That’s why it’s important to equip yourself with as much information as possible. You don’t want to end up working with a bad personal loan company, it can have way more of an impact on your life than you probably think. This article has all the information you need to determine the best personal loan companies to work with. It explains what you should expect from your personal loan company, and how to assess if a company is worth working with.

Make sure that you read all the information in this article prior to deciding on which company to work with. This guide is the perfect way to make sure that you have the information you need to make an educated decision. If you have any questions about personal loan companies, they’re sure to be answered somewhere in this article!

Who Provides Personal Loans

There are a variety of different providers that will issue people with personal loans. The one that is right for you will depend on the amount of money your looking for and your financial background. We will explore each of these different options in more detail below.

Traditional Lenders

Traditional lenders are long established lenders that have physical locations around the United States. In most instances, these lenders are traditional banks and lending institutions. These lenders are hard to get loans through, they are much more risk averse than many other lenders. Their applications take a long time, as they typically want you to come in and do a face-to-face interview. This being said, many traditional lenders are beginning to increase their online capabilities.

Advantages of Traditional Lender

Below are some features that make using traditional lenders an attractive option:

  • Low Interest Rates
  • Physical Locations for Face-to-Face Meetings
  • Other Financial Products on Offer
  • Longstanding Reputations
  • Capable of Securing Loans

Online Personal Loan Companies

Online personal loan companies have exploded in popularity in recent years. These firms have been set up to help meet demand for quick online personal loans. People don’t want to have to waste time with a long bank applications – plenty of people want to apply from the comfort of their own homes. These lenders have been able to provide people with very fast application speeds. The only major downside of online personal loan companies is that they tend to have higher interest rates. Most of their loans are unsecured.

Advantages of Online Personal Loan Companies

Below are some features that make using online personal loan companies an attractive option:

  • Quick Application
  • Variety of Lenders
  • Quick Money Transfer
  • Online Application Portal
  • Unsecured Loans

Peer to Peer Lending

Peer to peer lending is another type of personal loan that you can obtain. Peer to peer lending companies simply facilitate loans from consumer to consumer. You can head to one of their websites and lend out money to borrowers – you receive interest in return for your capital, the host site takes a small commission to facilitate the transaction. These loans are typically very easy to obtain, and they don’t require you to work with a traditional lender. The only major downside is that interest rates are quite high and you can’t borrow large amounts.

Advantages of Peer to Peer Lending

Below are some features that make using peer to peer lending an attractive option:

  • Quick Application
  • No Credit Check
  • Easy to Qualify
  • Quick Money Transfer
  • Don’t Have to Work with Traditional Lender

What to Look for in Personal Loan Companies

Now that you have a deeper understanding of what different types of personal loan companies are available, it’s time to decide which one is right for you. The first thing you should do is assess what you want to get out of your lender. We’ve compiled a list of certain things you should be looking for in a personal loan company. Assess the different features and determine which ones you value.

Quick Application

There’s nothing worse than wasting time on an application. You don’t want to spend hours filling out an application that you might not end up being approved for. We highly recommend that you work with a lender that has a quick application process. There is no reason not to have a lender that has a decent application speed. Most online lenders can provide you with the quickest applications.

Low Interest

The biggest cost burden associated with any loan is the amount of interest that you have to pay on it. If you want to save money, you need to make sure that the interest rate is low. Interest rates don’t seem like a lot of money in raw numbers, but when they accumulate over years they can be extremely expensive. Don’t underestimate the burden that interest rates can be.

Low Fees

Many lenders will attract you with low interest rates but then load on a high amount of fees after you’re approved for the loan. This is a good way of sucking borrowers in and getting them to make lending agreements on the basis of affordability. You want to make sure that you don’t fall victim to this. Make sure to read the fine print and ask your lender about any fees that might be associated with the loan.

Accessible

The number one thing that you should be looking for in a lender is your ability to access the loan. You need to make sure that they work with borrowers that have similar credit backgrounds to you. You don’t want to work with a company that will end up rejecting you. This will have a negative impact on your credit score and mean that you have to start the entire process over again. Never apply for a loan that you know you can’t get – there’s no point shooting in the dark when it comes to finance.

Ask you lender what type of credit score ranges they accept. You should also ask if there are any credit report items that automatically exclude people from qualifying for their finance. Don’t apply for a loan you’re already disqualified from – many lenders have automated systems deciding whether to accept you or not, they will automatically reject you if you don’t qualify.

Online Platform

You want to make sure that your lender provides you with a good online platform where you can view your loan balance and make payments. You don’t want to miss payments simply because you weren’t aware they were due. Having a fully functional online platform is pretty standard for lenders these days – make sure that the lender you’re working with has one.

Good Customer Satisfaction

Customer satisfaction is much more important than you may think. Working with a lender that has a poor customer satisfaction record is a sure way to have a horrible experience. You may think you might not be having much interaction with your lender after you borrow money, but you don’t want to be on the bad end of a dodgy company.

Consumer Affairs and the Better Business Bureau both provide platforms for customers to review companies they have worked with in the past. They also do some of their own research to determine if a company is an ethical operator. Make sure to run your prospective lenders through this database before you decide to work with one.

Electronic Money Transfer

You need to make sure that lenders you work with have electronic money transferring capabilities. It can be a nightmare making payments if they don’t have this feature. It’s much easier to transfer money via the electronic channels. If the company you’re working with has this feature, you’ll most likely be able to receive cash within 24 hours of approval.

Should I Secure My Loan?

This is one of the most common questions we get from our readers. Many people want to know if they should have a secure or unsecured loan. You don’t want to end up with the wrong type of loan. For those who don’t know, unsecured loans are loans that are not tied to the value of any of your assets. If you default on the loan, the bank or lender will not be able to use your assets to pay back their debts.

On the other hand, secured loans are tied to the value of an asset that you put forward as collateral. If you end up defaulting on your loan, your lender can seize your property and require you to liquidate it to pay back the money that you owe. In this regard, it is a much riskier option for borrowers.

If you’re worried about your ability to pay back your loan, you should never secure the loan. This is because most secured loans are secured against a home or a car – both of which are very valuable assets. You don’t want to put the wellbeing of your family at risk to get a personal loan. If you’re someone who is very financially responsible, you may find that securing a loan is beneficial. It will drastically reduce the interest rate you are offered by lenders.

No matter what you do, if you do end up securing a loan, you will probably need to work with a traditional lender. Many online lenders don’t have the ability to secure loans for you.

Application Tips

It’s important to take your application seriously, you should never underestimate how important it is to be prepared for any type of financial application you make. We’ve provided the following tips to help our readers better prepare for their application.

  • Check Your Credit – Make sure that you’re eligible for the loan that you’re applying for by checking your credit. You need to make sure that everything on your credit report is correct – there are more mistakes on credit reports than you realize. You can request to the reporting bodies that mistakes on your report are removed.
  • Have All Your Information – You need to make sure to have proof of income, addresses, personal details, and your SSN. You don’t want to have to start the application process over again simply because you forgot important details.
  • Choose One Lender – Applying for multiple loans at the same time is a huge mistake. You should choose one lender and commit to applying with them. If you get rejected by a lender, you shouldn’t apply through another one straight away. Lenders can see that you’ve been rejected on your credit report. Applying for a lot of finance at once is considered a huge red flag – lenders will view you as a risky borrower and won’t extend credit to you.

Verdict

You should have all the tools you need to determine which personal loan companies are best for you. Make sure that you consider all the features mentioned in this article before you decide on a particular lender. You need to be certain that you’re working with a company that you can trust – it’s very important to be in accordance with the firm you’re working with.

We’ve provided a list of reputable personal loan companies that you can work with. Head to our homepage to see who we currently recommend. We are committed to providing non-biased assessments of personal loan companies. We want our readers to have as much knowledge as possible regarding who is best to work with.

If you have any more questions about personal loans and how they work, make sure to check out some of the other content that we have here on our site. We have information on a wide variety of topics related to personal loans.

FAQ

Personal loan companies lend money to individual borrowers for many different reasons, from simply being low on cash to needing to buy a car or home. The following questions aim to help you find which company is best for you, and even help you ease your concerns about the legitimacy of some.

Loan Companies Comparison

There are many good loan companies, not just one. This section describes the differences between specific loan companies to help you find a good one to use for your specific needs.

test
Is Quicken Loans a good company?
Quicken Loans is a good company that is perfect for convenience and fast customer service. It offers fully online applications online at its website www.quickenloans.com.
Is Loan Solutions a real company?
Loan Solutions is a real company based off Los Angeles. They are hard money lenders that have been in business since 1993. Their website is www.loansolutions.com.
Is Avant a good loan company?
Avant is a good company that is geared towards people with bad credit scores who want to consolidate debt or a general loan. You can visit them at their website www.avant.com.
Is Quicken Loans a good company to refinance with?
Quicken Loans is a good company to refinance with. They are especially good if your debt to income ratio is higher than average.  You can contact them at www.quickenloans.com.
Is Lending Club a legitimate loan company?
Lending Club is a legitimate loan company. The company can offer lower interest rates as it doesn’t maintain a physical location. The company operates exclusively through their website www.lendingclub.com.
Is LoanDepot a legitimate company?
LoanDepot is a legitimate company that has 180 affiliated loan stores nationwide. It also has many services it fulfills online at www.loandepot.com.
Is Springleaf a good loan company?
Springleaf is a good loan company. The company is now known as OneMain financial after Springleaf acquired them. Visit their website at www.onemainfinancial.com.
Is Prosper a legitimate loan company?
Prosper is a legit loan company that connects good-credit borrowers with investors that can finance their loans. Their website is www.prosper.com.
Is Zippy loan a legitimate company?
Zippy loan is a real company that does not actually do any lending itself. It is just a platform where lenders and borrowers can connect to do business. Visit them at www.zippyloan.com.
Is Spotloan a legit company?
Spotloan is a legit company that offers small loans to its customers. The loans range from three-hundred to eight-hundred dollars. Their website is www.spotloan.com.
Is Loan Away a legit company?
Loan Away is a real company that approves eighty-three percent of its applications. You can apply for a loan with them in less than six minutes. Apply at their website www.loanaway.com.
Is SoFi a good loan company?
SoFi which stands for Social Finance is a legit loan company. They give loans to lenders with good credit and steady income. Their website is www.sofi.com.
Is Loan Mart a legitimate company?
Loan Mart is a legitimate company that offers title loans to its customers. You can keep driving your car while paying off the title loan. Look for them at www.800loanmart.com.
Is Lending Club a good loan company?
Lending Club is a good company that doesn’t give out loans itself. Lending club works as an online marketplace for borrowers and lenders. Their website is www.lendingclub.com.
Is Light Stream a good loan company?
Light Stream is a good loan company that believes if you’ve earned good credit you deserve lower interest rates. Go to their website at www.lightstream.com.
Is Avant a legitimate loan company?
Avant is a legitimate company that boasts fast approval times and applications only take five minutes. There are no prepayment fees. You can apply online at www.avant.com.
Is Best Egg a legitimate loan company?
Best Egg is a legitimate loan company that is geared to customers with good income and credit. Most loans are usually funded within a day. Learn more online at www.bestegg.com.
Is Advance America a legit loan company?
Advance America is a legit company that offers payday, title or installment loans. They can give loans either in-store or online at www.advanceamerica.com.
Is Rise a good loan company?
Rise Credit is a good loan company. It offers installment loans to its customers with lower rates than traditional payday loan companies. They are online at www.risecredit.com.
Is Upstart a good loan company?
Upstart is a good loan company. It takes into to consideration future earning potential such as from college degrees. Learn more at their website www.upstart.com.
Is LoanDepot a reputable company?
LoanDepot is a reputable company that has many loan products that nearly rivals banks. It even offers a home equity loan program. Their website is www.loandepot.com.
Is Navient a federal loan company?
Navient is a federal loan company. Sallie Mae split into two with Sallie Mae handling private loans and Navient servicing federal loans for the government. Their website is www.navient.com.
Is LendingTree a good loan company?
LendingTree is a good company that is in the peer-to-peer online loan business. The loans it offers comes from individuals and small companies. Learn more at www.lendingtree.com.
Is Upgrade a good loan company?
Upgrade is a good loan company that offers to lend up to fifty thousand dollars. They offer fixed rates. You can learn more at their website www.upgrade.com.

How Loan Companies Work

This section is about how loan companies operate. It will answer questions on what a loan company can do and how they can do it. Read the following questions to know more about the topic.

test
Can a loan company contact my employer?
A loan company can contact your employer, but they can only contact them once unless given permission to contact them again.
How to stop loan companies texting me?
You can always block a number from texting or calling you. If it is a scam message you can forward the text 7726 and it will be reported to the big network providers as spam.
How do loan companies verify employment?
Loan companies verify employment by contacting your employment. They also ask for paystubs and bank statements to verify income.
Can a company give loan to an individual?
A loan company gives loans to many different people. Any type of private company can still give a loan to an individual.
How much interest can a loan company charge?
The maximum interest a loan company can charge you varies state by state. A payday loan usually has the highest interest which can be around four hundred percent annually.
How do loan companies work?
Financial institutions pay low interest rates on depositor’s accounts such as savings accounts. They then use that money to lend money to borrowers at a high interest rate.
Which loan companies use Experian?
Amex and chase both usually use Experian but sometime uses Equifax or Transunion. Different lenders use different companies it just depends on the lender.
Do loan companies ask for money up front?
Normal lenders can charge for application, appraisal or a credit report. However, they will not require to pay up front for a loan.
How do loan companies verify income?
Loan companies verify income by checking different documents such as, bank statements, paycheck stubs, W-2 forms, and tax returns.
Who regulates loan servicing companies?
The Consumer Financial Protection Bureau makes sure that banks, lenders, and other financial institutions treat people fairly in the US.
Can a loan company come to your job?
A loan company or debt collector cannot come to your job to collect a payment. They can call your job but cannot reveal to your coworkers that they are collecting a debt.
Which loan companies use Equifax?
Loan companies, banks and credit card providers don’t release which credit bureaus they use. The more money they loan to a client the more likely it is that they will use multiple credit bureaus.
Can a loan company garnish my wages?
A loan company can only garnish your wages with a court order. If you don’t repay your loan the payday lender can sue you to get a court order.
Do personal loan companies confirm how money is spent?
Some loans have restrictions on what you spend the money on and some don’t. You can check the terms of your loan to find out. A loan company can take legal action against you if they find out about a misused loan.

Other Questions

The following section answers questions on a variety of topics such as, what is a good loan company, what is the best consolidation loan company, and what loan companies accept bad credit.

test
How to check if a loan company is legitimate?
You can dial their phone number and see if you can talk to a customer service representative. If you only get an automated system and cannot seem to speak to a person it could be a fraudulent company.
What is a good personal loan company?
Earnin is a good loan company if you’re looking for a payday loan. Payoff is good for when trying to payoff credit card debt. Quicken Loans is perfect for mortgage loans.
What is the best consolidation loan company?
Payoff is one good consolidation loan company that requires no minimum income for a loan. Citizens bank is another good one that will loan up to fifty thousand dollars.
What is a good loan company for bad credit?
There are many good companies for bad credit. Avant would be a good company for an installment loan with bad credit. Earnin would be perfect for a payday loan with bad credit.
What loan companies accept bad credit?
There are many loan companies that accept bad credit. One company being OneMain financial. Any payday loan doesn’t check credit when giving out a loan.
Are there any legitimate online loan companies?
There are plenty of online loan companies that are legitimate. Quicken Loans is one that is fully online and a real business. Lending tree and credible are also legitimate options.
How to report a fraud loan company?
You should report the crime to the FTC. First write down your story of what happened down. Then visit their website at www.ftccomplaintassistant.gov for more instructions.
How to tell if a loan company is legit?
One way to tell if a loan company is legit is to look for their address. If their address is just a P.O. Box the company could be illegitimate.
What is the best quick loan company?
There are many loan companies that can give you a loan within two business days. Some of them being, Avant, Best Egg, Light Stream, and OneMain Financial.
What are some good online loan companies?
There are many good loan companies. Upstart is a good loan company for college graduates. Best Egg is good for people with good credit and income. Quicken Loans gives fast service as it is online.
Why do loan companies need bank statements?
Loan companies sometime require bank statements to verify income. They verify income to make sure the borrower is able to pay back the loan.
What loan company is easiest to get?
There are many loan companies that are easy to get approved for. Avant has fast approval times. Rise has installment loans that are really easy to get.

How Helpful was this Article?

3.4
3.4 rating
3.4 out of 5 stars (based on 29 reviews)
Excellent28%
Very good27%
Average14%
Poor17%
Terrible14%

Please Rate this Article

Christine has a solid background in personal finance as she spent the last eight years working at one of the biggest banks in the US. She managed her own team of financial advisors that helped hundreds of people with their financing needs. Her innate understanding of different financial products and loans helped her move up the ranks quickly after graduating with a degree in Business Administration.