Whether you’re looking for a secured or an unsecured loan, you deserve to know that you have access to the best loans. It’s these best personal loans that offer a low interest rate, no origination fee, and great customer service.
But finding the right loan can be intimidating. Fortunately, if you’re considering a new loan in 2021, you’re in the right place. We’ve scoured hundreds of options to bring you the best loans today. Read on to discover what to look for in a loan, how to get one, and when it’s the right choice for you.
- Reducing high interest debt: Upstart
- Borrowers with good credit: LightStream
- Low overall APR: Marcus
- Low APR for borrowers with high income: SoFi
- Reducing high-interest credit card debt: Payoff
- Borrowers with poor credit scores: Avant
- Diverse offerings: FreedomPlus
- Debt consolidation: Discover Personal Loan
What is a personal loan?
A personal loan is money borrowed from a bank, credit union, or online lender in a lump sum. You’ll normally make set monthly payments until you’ve paid off the debt.
Some loan types are used to pay for specific purchases, like a home or vehicle. But the best unsecured personal loans can be used for almost any reason. For example, you can use personal loans to finance home renovations or emergency home repairs. You can also use them to cover the cost of an engagement ring, or pay for medical expenses.
You’ll pay a small fee — the “interest rate” — for the loan. If your credit isn’t in the best shape, you can probably still qualify for a personal loan with bad credit. However, you’ll likely pay a higher interest rate than other borrowers.
When is a personal loan a good option?
Personal loans are a good idea when you have a clear purpose in mind. For example, the top personal loans can provide you with the funds you need to repair or remodel your home, cover an emergency expense, or consolidate debt. As with any debt, personal loans are not a good option if you’re not sure how you’ll pay the money back or you’re borrowing for something you don’t actually need.
If you need the money from your personal loan quickly, look for a loan with “streamlined approval.” This means you won’t need to wait very long to receive the loan funds. Because some loans are funded same-day, if you run into a financial roadblock, a personal loan can help you overcome it — even when you need the cash fast.
What should I look for in a personal loan?
There’s a wide range of personal loan options available. That’s why it’s so important to know how to identify the best loans. Whether you enjoy excellent credit or are specifically looking for a loan for borrowers with bad credit, the best personal loans have three things in common: