Unsecured loans are generally known as personal loans, which means that there is no collateral involved. Personal loans can be obtained with bad credit but are also considered to be high risk since they come with higher than normal interest rates. Personal loans are a good way to help establish credit, unexpected expenses, and living expenses. Paying a loan off is great and ends up getting reported to the credit bureaus. Interest rates will vary depending upon your credit score and history. Lending Tree, SoFi, and The Lending Club are three personal loan companies that we like. Continue reading for more information about these companies.
Top 3 Personal Loan Providers:
One of the most well known personal lending businesses is Lending Tree. "When banks compete, you win," is their slogan. The will act as a broker when they get banks to compete for your business. They normally will give you offers from a few banks and lenders so you can see what your options are once you apply on their site. Their application process is very simple online. Their loan terms range anywhere between three and 180 months for amounts between $1,000 to $35,000. They also have interest rates that range in between 5.9% to 39.5%. Upon approval, the money is deposited into the checking account of your choice. You will have to show proof of your ability to repay the loan, whether that is through your bank statements and or your pay stubs from your employer. Once you are matched with a lender, you can negotiate your loan terms with them. This is a great option especially if you do not agree with the loan terms that were given to you.
Different from the rest, Lending Club is becoming more widely known. It's different from the rest because it is not connected to any financial institution. They have a similar and straightforward application process. Once you apply for a loan you will be given different options from different lenders for a loan. You will have the option to pick the one you like the most. The next step following, an investor will make a decision on your loan based on the information you provided. You may not get approved for the amount you originally selected. The process takes a bit of time since the investors examine every single detail submitted on your application. If you are not approved for the amount you wanted, you have the option of negotiating new terms with the lender. On the other side, if you run into any issues, you can always negotiate different terms to repay them.
SoFi offers both personal loans from $5,000 to $100,000 and student refinance options. They offer both variable rate and fixed rate loan options. You won't have to worry about any hidden or origination fees. They have interest rates that range between 5% to 15%. If you happen to become unemployed during your loan term, SoFi offers the option to suspend your payments for a bit of time. For repayment options, they offer three, five, and seven year options. The interest rate that you receive will be dependent upon your credit history as well as your employment information you provide. SoFi is also good for debt consolidation and paying off any credit card debt that you may have.
Even though these three lenders are great options for personal loans, you need to also make sure you are aware of the dangers. You should avoid using personal loans for purchases that are non-essential. That is because the interest rates on these loans are tremendously a lot higher than normal. However, as you repay the loan you will notice a huge impact on your credit score and history. Personal loans are great for people that have good credit and can easily be accessed. There are many benefits to taking out a personal loan. You can use them to re-build your credit, to establish credit, or even to consolidate debt. There are disadvantages as well. You should avoid taking out a personal loan for things that may end up putting you in debt. If you are considering taking out a personal loan, make sure that you check out these three lenders.