top 5 personal loan lenders

Title of the webpage: “What are some good personal loan options?”

• The post was made on r/personalfinance over a year ago
• The person who posted was on behalf of their fiance; they live in the southeast US
• The fiance co-signed a loan with a family member to pay off credit card debt and is making additional payments to pay it off early
• Their kitchen ceiling fell in and they received a $3k auto repair bill
• They are working with their home insurance but have to come up with $4-5k
• They want to find a non-predatory loan and are looking for suggestions
• Loan amount: $4-5k
• The person can afford to pay max $300/month currently
• Trying to avoid using credit cards
• Related question: The person only has an online bank and does not have a brick and mortar bank. They are asking if this is important.

Comments:

• One user confirms that having an online bank is not an issue and suggests looking for a bank with good ratings and a low interest rate
  • Gotchas:
    • Unreasonable loan origination fees
    • Prepayment penalties
    • Fees for payments
    • Any great deals with deferred interest (payoff the loan before that deferred interest hits)
  • The user recommends googling “best personal loans” to find a bank
• Another user recommends using Lending Tree
• Someone suggests looking for 0% interest credit cards (for 12-21 months) and recommends paying it off before the interest hits
• Another user recommends finding a local credit union and getting a loan from there (heavily emphasizes having a local relationship with professionals like your banker, insurance agent, CPA, attorney, clergy, doctor, and dentist)
  • Emphasizes that relationships matter and suggests going local because it is not just about convenience
  • Someone else follows this up by stating that most credit unions have become large institutions cozy with Wall Street, but it is still beneficial to join one
• One more user provides an alternative idea by challenging the need for a loan and instead suggests raising cash through selling items or finding a part-time job. They suggest that taking out a loan will put you deeper in debt and that adult life requires making tough decisions to pay for unexpected expenses.

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• The webpage, from Reddit, discusses the different types of personal loans that a borrower can apply for, such as debt consolidation, major purchase, vacation, among others.
• The borrower can obtain a loan check or direct deposit, and the choice can affect the loan terms, especially the debt-to-income ratio.
• Some loan categories may offer more security to lenders than others and have better interest rates. For instance, a car or home loan may offer some security to the lender, and a consolidation loan may not require the borrower to repay more debt.
• Lenders may match the loan they are willing to offer to the borrower’s needs, and collateralizing the loan can reduce risk and result in better interest rates. However, collateralizing a loan can also mean extra monthly charges for insurance.
• The Bank Secrecy Act requires banks to know the purpose of all loans over $10,000 not secured by property, such as an auto or real estate.
• The borrower can use the loan check directly to pay off other debts, which may result in reduced debt-to-income ratio.
• Lenders may offer different products to the borrower depending on the loan category. For example, if the borrower applies for a home improvement loan, the lender may suggest a home equity loan.
• Lenders can take into account other factors, such as credit score, credit history, and employment status, alongside loan category, while making a lending decision.
• A commenter who is a loan officer notes that while it is nice to know the purpose of borrowing, it has no effect on their lending decision.

• The post is from a user on the r/CRedit subreddit who is having trouble getting a personal loan with fair credit and is asking for advice.
• The user’s credit score is 647 Vantage with 70% utilization due to a low limit. They could pay off their credit cards with a paycheck or two to increase their credit score.
• They have had two credit cards for three years, a mortgage for the last six months, and a small deferred school loan for COVID. They have a 100% payment history with no missed payments and only one derogatory medical bill in collections.
• The user has had around 10 hard inquiries from home buying within the last year. Their average credit history may be low due to the recent mortgage.
• Their income is around $54,000 per year with an 18% debt-to-income ratio ($3,600 gross monthly after bills). The user wants a loan for home improvement and a car.
• One commenter suggests finding better options through a site that specializes in loans for people with fair credit. (24 karma)
• Another commenter, possibly a loan underwriter, would deny the user due to high utilization and no comparable credit. (21 karma)
• An additional user recommends increasing income and reducing liability, stating that the user’s cash flow is out of control. (6 karma)
• The user refutes this suggestion, citing their state’s low cost of living and relatively high income. (0 karma)
• Another user suggests paying off credit cards and reducing liability instead of trying to get more credit. (7 karma)
• The user explains that they were planning to get a loan for home improvement and a car, but the car is now going up for auction and they have less credit than they’re used to. They plan to pay off credit cards and wait for their credit score to increase. (0 karma)
• One user explains that the user’s credit score may be preventing loan approval due to their high utilization and over-borrowing. (16 karma)
• The original user clarifies that their school loan is deferred for COVID and they have been making payments on it. Their credit card debt is currently around $700, and their limit is only $1,600. (0 karma)
• Another commenter warns the user about borrowing more money unsecured, stating that banks do not want to take on the risk of borrowers defaulting on their loans. (5 karma)
• The post does not mention any

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• The article provides 8 tips to successfully apply for a loan, including:
  • Reviewing your finances to ensure you need it and deciding how much you can afford to repay each month.
  • Researching options to learn if a loan is suitable for the goods or service you want to buy.
  • Checking your credit score through a credit reference agency or obtaining your statutory credit report to know where you stand
  • Building up your credit history by paying bills and other payments on time and aiming to reduce any debt you may have.
  • Reviewing outstanding credit as having many forms of credit can affect the likelihood of getting a loan, but it depends on the lender.
  • Comparing lenders to provide suitable loans for your situation.
  • Double-checking information on your application, such as contact details, date of birth and residency status.
  • Spacing out credit applications and being mindful of how many ‘hard’ credit checks a lender sees on your file over a short time period
• The tips are essential for boosting your chances of getting approved for a personal loan.
• The creditors will assess your application to determine if you meet their eligibility requirements.
• Being refused for a loan before doesn’t mean you can’t apply again or be successful. In some cases, you can address potential issues, and the earlier you start, the sooner you can access finance.
• Common reasons for loan rejection include applying too many times in a short period, a poor or limited credit history, or making a mistake on your loan application.
• It would be best if you researched the market and explore the range of credit options available to you to find the best personal loan to fit your needs.
• It may be practical to check your credit score before applying for a loan and finding ways to enhance it, such as paying off outstanding debt or setting up direct debits to make payments on time.
• It’s also essential to manage other debt, such as credit cards and other loans, as it may affect your chances of getting another loan.
• There are different forms of credit available, such as personal loans and secured loans, and you should consider which would suit your current situation or how much you need to borrow.
• Comparing lenders is an easy way to improve your chances of successfully getting a personal loan, but ensure that you check their eligibility criteria and apply for loans suitable for your situation.
• When applying for a loan, you should double-check your information, such as your name, date of birth, employment status, and other relevant details, as

• The post is a question from 11 months ago on the SoFi subreddit asking about chances of approval for a personal loan
• The user is considering taking a personal loan out via SoFi, but is wondering about chances of approval and payment schedule upon approval
• They provide their specifics, including a credit score in the 790s, looking to borrow $15K to $35K, income of just over $80K, and requesting repayment for 48 to 60 months
• The user is curious about their chances of approval, especially for higher amounts, and if they can do better than SoFi for that specific personal loan
• Users in the comments shared their own experiences with personal loans, with some taking out loans from SoFi with almost identical pay, credit score and geographical location, and instant approval.
• Some users suggest looking into credit unions for more competitive rates, with one user mentioning a 6% unsecured personal loan from a credit union.
• Users also suggest other personal loan lenders like iLoanFund.
• One user warns that SoFi personal loans put a negative impact on FICO scores, while another user states that as long as your current monthly obligations are relatively modest to that income level, you’re guaranteed approval with that credit score and modest ask.
• Some users share their personal experiences with getting approved for a SoFi personal loan, with one user saying the process took a week, while another has been waiting for 17 days for the funds to be dispersed.
• The post also includes a bot that asks users to not share personal information and direct customers to the link to connect directly to an agent on the secure platform.
• The post also has a moderator announcement about scammers in the subreddit.

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• A user on Reddit posted a question asking if anyone had experience with personal loans and could recommend a good lender. (2 years ago)
• The original poster says they went through Lending Club to consolidate their credit card debt and while they were fine, the rate was higher than they liked. They ask for suggestions on another lender for a better rate.
• Another Reddit user replies, saying there is no way around shopping for the best rate for you as there is no one perfect lender. (2 years ago, 7 karma)
• They say Lending Club was the best for them, but that was several years ago and suggest trying local credit unions for personal loans. (2 years ago)
• A different Reddit user responds to the original poster’s question about personal loan lenders, bringing up the possibility of churning 0% promotional APR credit cards to pay off the balance of an existing credit card debt in full. (2 years ago, 1 karma)
• They warn against opening new debt accounts to pay off old debts and against borrowing more money if you are in danger of running up balances again. (2 years ago, 1 karma)
• The original poster replies, thanking the user for their information and saying that they definitely don’t want to get into more debt but had unexpected expenses arise that they weren’t able to cover. They say that their current credit card has a balance of about $4,900 and that there’s no interest until April. They hope to get a loan before the interest kicks in, and then pay it off so they can be debt-free. (2 years ago, 4 karma)
• The same Reddit user from before responds, saying that if the credit card debt is their only debt, they have very good credit, and those expenses are not likely to occur again, they should consider the promo 0% APR route through balance transfer. They say that paying the one-time 3% balance transfer fee is going to be far less than the interest paid on a personal loan. They recommend committing to paying $250/month to pay it off and that it should take about 20 months to do so, without having to transfer it a second time. (2 years ago, 3 karma)
• They acknowledge that expecting to be able to get 0% promo APR a second time is always a little risky, as those deals are not always available. (2 years ago, 3 karma)
• Another Reddit user suggests looking into local credit unions, as they tend to be good with personal loans.

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• User with a credit score of 680 is looking for personal loans that would help increase credit score but doesn’t have an extremely high-interest rate. The user plans to pay off the loan in 90 days to one year.
• One user suggests discussing the issue with a loan officer at the credit union and asks about increasing the existing personal loan or a personal line of credit.
• Another user suggests getting a credit card from the credit union and using it responsibly to build credit.
• One user recommends lender2u.com for personal loans and states they were able to qualify for a $5,000 loan with a 630 credit score.
• User mentioned taking out a $7,500 personal loan from a credit union.
• User asked whether to get a personal loan through a credit union or another small personal loan company.
• One user suggests taking a loan from a credit union as they almost always have better rates than personal loan companies.
• Acquiring a loan from a small personal loan company may lead to an extremely high-interest rate.
• Asking for a new loan will decrease average credit age and may impact credit score.
• One user states that they started by getting payday loans from lender2u.com, then later switched to their personal loans when their credit got better.
• Loan seeker states that they may need another personal loan of $3,000 in the next upcoming 3 months.

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