Introduce
Borrowers are also turning to personal loans to consolidate their debt. That's because interest rates on personal loans are often lower than on credit cards, especially for applicants with good to excellent credit ratings. Traditional financial institutions, credit unions, and online lending platforms offer these loans. Applications for these loans can be submitted quickly online without the need to visit a bank branch in person. Plus, most of the best online personal loans process funds within a few business days, so you don't have to wait to get the money you need. The best personal loans offer qualified borrowers competitively low-interest rates, adjustable loan amounts, repayment terms, and little or no additional fees.
Best Online Personal Loans
LightStream Personal Loan
Those with excellent or better credit ratings can use low-interest loans and flexible repayment options from LightStream, SunTrust Bank's online lending arm. LightStream can provide credit for almost any purpose except college and small business loans. According to the organization's website, you can use the money from a LightStream personal loan to finance a wedding, a new car, a bathroom renovation, debt consolidation, or to consolidate other types of debt.
You apply for a loan when banks open for business. In this event, your application will be approved, and you will have until 2:30 p.m. to verify your direct deposit bank account information and electronically sign your loan agreement. Easter time, you can get your money the same day. LightStream's annual percentage rate (APR) ranges between 3.49% and 19.99% when you sign up for Autopay, among the lowest compared to the other lenders on our list. Before applying for a loan with LightStream, you can check the available rates on the company's website to see what to expect. Currently, the APR is 3.49% APR on auto loans and 5.73% APR on debt consolidation loans. Ultimately, this could change with Fed rate changes.
If you choose the invoice repayment option instead of signing up for automatic payments, your Annual Percentage Rate (APR) will increase by half a percentage point. Since the APR does not change over the life of the loan, the amount you must pay back each month remains the same. Loan terms range from 24 to 144 months, making it the longest-running option among the best loans on our list. LightStream charges no fees for borrowing, servicing, or prepayment.
SoFi Personal Loan
Refinancing student loans was SoFi's original business, but the company has since expanded to offer personal loans of up to $100,000 based on a borrower's creditworthiness. That makes the company ideal for consolidating high-yield credit card debt. If you have high-interest debt and want to refinance it, SoFi offers a simple and fast sign-up and application process and an easy-to-use app to manage payments.
SoFi lets you choose between variable and fixed annual percentage rates (APR), unlike most personal loan providers. If the annual percentage rate (APR) falls over the life of the loan, you can save money because variable rates can change over the life of the loan (although they can increase). A fixed-rate guarantees the same monthly payment throughout the life of the loan, making it easier to set a budget and stick to it. Use automatic electronic payments to reduce your APR by 0.25%. You can pay SoFi online by bank or by mail.
After you set the terms of your agreement, your loan funds should be available through SoFi within a few days. Through the SoFi mobile app, users can apply for and manage existing loans. If you took out a large loan and lost your job, SoFi can help. You can make irregular payments on your debt (and only pay interest) while you look for work. Accrued interest will not affect the progress of your income.
Discover personal loans
Discover personal loans can be used for debt consolidation, home renovations, weddings, and even vacations. Discover charges you a $39 late fee even with no commitment cost if you can't make your loan payments by the due date each month. Discover allows customers to set an annual percentage rate (APR) between 5.99% and 24.99% based on their credit history. There are no additional fees if you pay off the loan early or make other payments in the same month to reduce the interest you are entitled to.
Discover can forward payments to your existing creditors when you get a loan to consolidate debt. You can link your credit card account to Discover so the company can send you money as soon as you receive and accept the loan. You must provide information such as your account number, the amount you will receive, and the payment address.
Once all financial obligations have been met, you can transfer the balance to the bank account of your choice. If your application is submitted correctly, your money can be deposited into your account the next business day (loans are disbursed on business days). In this case, the transfer will take up to a week.
Diploma
Personal loans obtained online are often more accessible than traditional loans and may suit a broader range of financial needs. For this reason, many borrowers choose to obtain financing through Internet lenders rather than traditional banks or credit unions.
