If you're considering a personal loan, there are a lot of lenders to choose from — especially if you have an excellent credit score.
It's important to shop around to make sure you're paying the least amount of fees and lowest interest rate possible. Also pay attention to how long it takes to pay off the loan. Your loan term has a huge affect on the cost of credit. Here's where you should start.
MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.
Lender | Interest Rates (APR) | Loan Amounts | Fees | Terms |
|---|---|---|---|---|
Achieve | 8.99%-29.99% | $5,000-$50,000 | - Origination fees 1.99%-9.99% -No prepayment fees | 2-5 years |
LendingClub | 6.53%-35.99% | $1,000-$60,000 | - Origination fees 0%-8.0% - No prepayment fees | 2-7 years |
LendingPoint | 7.99%-35.99% | $1,000-$36,500 | - Origination fees 0%-10% - No prepayment fees | 2-6 years |
Zable | 9.22%-35.99% | $1,000-$35,000 | - Origination fee - No prepayment fee | 1-5 years |
Prosper | 8.99%-35.99% | $2,000-$50,000 | - Origination fee - Check payment fee - Late fee - Insufficient fund fee | 2-5 years |
Avant | 9.95%-35.99% | $2,000-$35,000 | - Administrative fee up to 9.99% | 2-5 years |
Upgrade | 7.74%-35.99% | $1,000-$50,000 | - Origination fee 1.85%-9.99% | 2-5 years |
OneMain | 18.00%-35.99% | $1,500-$20,000 | - Origination fee 1%-10% - Late fee -Insufficient fee | 2-5 years |
Upstart
Upstart can help connect you to lenders. That way, you can see all of your potential rates in one place. They offer loans that range from $1,000 to $75,000 and rates from 6.5% to 35.99%. Although they guarantee no prepayment fees, origination and late fees will depend on the lender.
Achieve
Achieve, formerly FreedomPlus, offers personal loans and debt consolidation loans. For personal loans, you can borrow from $5,000 to $50,000 with terms from 24 to 60 months. Loan origination fees, which can be rolled into your monthly payments, range from 1.99 to 9.99%. Interest rates range from 8.99% to 29.99% (including the origination fee).
Borrowers with excellent credit and a loan amount of $12,000 or less may qualify for the lowest rates. You may earn rate discounts if you are using at least 85% of the loan funds to pay off existing, high-interest credit card debt.
LendingClub
LendingClub offers installment loans for up to $60,000, with terms of three to seven years and an APR of 6.53% to 35.99%. Origination fees may range from 0% to 8%. They also offer long repayment terms that range from two to seven years.
LendingPoint
LendingPoint offers personal loans ranging from $1,000 to $36,500. No minimum credit score is required to qualify, but you must have income of at least $35,000 per year. Interest rates range from 7.99% to 35.99%, with terms from 24 to 72 months.
A reputable financial services company, LendingPoint has funded more than $9 billion in business and personal loans since 2015.
Zable
Zable is one of the few online lenders that offers customer service by phone, although you can also email your loan representative.
Zable offers rates from 9.22% to 35.99% and terms from one to five years for loans of up to $35,000 according to Credible data. There are origination fees of 5% to 9%. Although Zable loans are smaller than many others on this list, the company will consider borrowers with a credit score as low as 600, making it a good loan to rebuild your credit.
Prosper
Prosper offers personal loans from $2,000 up to $50,000, serving 1 million customers since 2005. As a peer-to-peer lending platform, lenders are traditional investors and regular people who view your profile as a good credit risk. Loan terms range from two to five years, with interest rates ranging from 8.99% up to 35.99% and loan origination fees of 1% to 9.99%.
It's important to note that Prosper charges a lot of fees compared to other lenders on this list.
Avant Personal Loans
Avant personal loans range from $2,000 up to $35,000, making them perfect for emergency expenses, debt consolidation, home repairs, or even a vacation. Interest rates range from 9.95% to 35.99%, with terms from 24 to 60 months. There is an administration fee of up to 4.75% associated with every loan.
Upgrade
Upgrade is best for people looking to consolidate high-interest credit card debt with a fixed rate installment loan. To qualify for the best rates, you'll want to pay off a portion of your credit card debt directly through Upgrade and set up Autopay to make your monthly payments.
Loans carry an APR of 8.49% to 35.99%, with terms of 24 to 84 months. You can borrow between $1,000 to $50,000. A credit score of at least 600 is required for potential loan qualification, according to Credible.
OneMain Financial
OneMain Financial is a top rated financial services provider with an A+ rating with the Better Business Bureau and a 4.8-star score on TrustPilot. Loans range from $1,500 to $20,000, with APRs from 18% to 35.99%. Choose from two- up to five-year terms. OneMain also charges origination fees that can go as high as 10%
How to Choose the Right Loan for You
Every lender has a different application process and a different way of deciding how much interest they'll charge you to borrow money. Common factors include:
Your credit score and history
The amount of money you want to borrow
Your income
Getting prequalified lets you see what rates a lender will offer you without lowering your credit score. It's best to get prequalified with several lenders to make sure you're paying the least amount of money in fees and interest as possible.
FAQs
What is an installment loan?
An installment loan is any loan where funds borrowed are paid out in a lump sum and then paid back over time with fixed monthly payments, or "installments." Installment loans can help you budget your money, since you know what to expect every month, unlike credit card minimum payments which fluctuate based on how much you charge.
Do you need good credit for an installment loan?
Most lenders require a credit score of just 580 or above to qualify for an installment loan. However, some lenders, like Upstart, use other factors to evaluate your creditworthiness, and may grant loans to borrowers with no credit history or a credit score as low as 300.
However, to qualify for the best rates and terms, the higher your credit score, the better.
What is the difference between an installment loan and a regular loan?
Most loans — including mortgages, auto loans, and personal loans — are installment loans because they are paid off with fixed monthly payments. When people use the term "regular loan," they might be thinking of a personal loan, which is an unsecured installment loan where the funds can be used for a variety of purposes.
Does installment affect credit score?
An installment loan affects your credit score in a variety of ways. As long as you make your payments on time, your credit score should rise incrementally. On-time payments make up 35% of your FICO credit score.
An installment loan may also add diversity to your credit profile, which will also help increase your credit score.
Your installment loan doesn't affect your credit utilization, however, which is another big factor in your credit score.
Photo Credit: iStock.com
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