From home renovations to taking a vacation to many more, there are plenty of reasons to take out a personal loan. However, some loan companies and banks are better than others. And choosing one is a big decision! Let’s take a look at the best personal loan companies available in the United States…
SoFi (Social Finance)
Social Finance, or SoFi for short, ranks as one of the best loan companies for younger folk, since they started as a service for students! So, as you might imagine, they focus primarily on student loans, student loan refinances, mortgage loans, and personal loans. With SoFi, borrowers need not fear fees, as the interest is the only fee you’ll pay! Still, the interest sits right in the average range, from 5.99% to 17.67%. As for loan sums, any customer can take $5,000-$100,000 on three to seven-year terms. Plus, SoFi, unlike most loan companies, also features a unique unemployment protection feature!
Best Egg
While Best Egg might have a funny name for a loan company, borrowers should still take them seriously. The online lender focuses on debt consolidation and personal loans. Their loan range is a bit smaller than SoFi’s, at $2,000 to $35,000, but their interest rates are comparable, at 5.99% to 29.99%. Unfortunately, some fees come with the loan, in the range of 0.99% to 5.99% of the loan value. Still, if you meet the requirements (a credit score of at least 640), Best Egg is one of the best loan companies out there.
Earnest
Earnest remains one of the only loan companies with a truly great mobile app. In fact, borrowers can sign up for a loan right through the application! While applying, the app will check credit scores and then propose several monthly payment options. Interest rates can vary from 5.99% to 17.24% depending on the credit score, and the loan will include fees. The company offers loans from $5,000 to $75,000 with three, four, or five-year terms. Just don’t forget about the app once you get the loan! Earnest also offers student loan refinancing and home loans for any future plans. And you don’t even have to go out to the bank!
Earnin
Earnin is trying something different from other loan companies. In fact, some critics have even called the company nothing more than a payday loan company. However, Earnin claims otherwise. According to the company, when a user “cashes out” they can access a certain portion of their paycheck (up to what they’ve already worked). Then, when the borrower’s company pays them, the company takes the money out of their paycheck. Users can choose to tip “what’s fair,” or not pay Earnin at all.
Even if those personal loan companies offer incredible loans with no fees or no interest, make sure that you can pay back the whole sum borrowed. Of course, always ask a financial advisor for any advice you might need.
Sources: Finance101, The Balance.