Today we will be discussing the 10 Best Personal Loans of January 2023. A personal loan is a lump-sum financing that customers can obtain from a traditional bank, credit union, or internet lender and utilize for various costs. Medical expenses, auto repairs, home renovation initiatives, debt consolidation, wedding costs, getaways, and other common usage examples. Since personal loans frequently have lower interest rates than credit cards, especially for borrowers with fair to exceptional credit, many use them to consolidate their debt. Below are the 10 best Personal Loans of January.
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SoFi – Best Overall Personal Loan
Overview
SoFi is one of the best personal loans. It is an online lending platform that provides fixed-rate personal loans in every state, excluding Mississippi.
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Loan amount
$5,000 to $100,000
Loan APR range
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7.99% to 23.43% with autopay
Minimum Credit Score Needed
650
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Why did we choose it?
With loans ranging from $5,000 to $100,000, SoFi is an excellent choice for anyone with outstanding credit who requires a large loan. The lengths of repayment span from two to seven years, thus. Prospective borrowers can submit joint applications to SoFi; however, co-signers are not allowed.
Eligibility
The applicants’ credit scores must be at least 650; even though the average income of a SoFi borrower is over $100,000, applicants must have at least a yearly income of at least $45,000.
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Pros
- Funding in as short as one to two days.
- Soft Credit checks prequalification.
- Large loan amounts and lengthy durations.
Cons
- Does not provide direct payment to third-party creditors for debt consolidation
- Co-signers are not allowed.
LightStream – Best for Low-Interest Rates
Overview
After SunTrust Bank and BB&T merged, Truist created LightStream, a consumer lending division. The lending platform provides unsecured personal loans ranging in size from $5,000 to $100,000. LightStream is one of the best personal loans because it is a great choice for people who wish to spread out the payment of major expenses over time. After all, repayment terms range from two to seven years.
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Loan amount
$5,000 to $100,000
Loan APR range
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5.99% to 23.99% with autopay
Minimum Credit Score Needed
660
Why did we choose it?
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There are no origination, late payment, or prepayment fees with LightStream. It offers a 30-day loan experience guarantee to ensure borrower happiness. The lender also provides a 0.50% rate discount for customers who sign up for autopay, larger than most lenders’ comparable incentives. The lender’s customer service department is available to applicants seven days a week.
Eligibility
Before applying for a personal loan, LightStream advises candidates to have good to excellent Credit before applying for a personal loan. Applicants should also have several years of credit history, with numerous account types, a solid income sufficient to pay off current obligations, and a new LightStream loan to boost their chances of being approved.
Pros
- Low, competitive rates.
- Zero origination, prepayment, or late fees.
- Quick approval and funding
Cons
- There are no screening processes
- Conditions on how loan proceeds may be used
Marcus – Best for Terms up to 72 Months
Overview
The investment bank Goldman Sachs’ subsidiary Marcus Goldman Sachs provides personal loans ranging from $3,500 to $40,000. Marcus is one of the best personal loans, offering flexible loans with terms ranging from three to six years.
Loan amount
$3,500 to $40,000
Loan APR range
6.74% to 24.74% with autopay.
Minimum Credit Score Needed
Marcus does not disclose this information.
Why did we choose it?
APRs between 6.99% and 19.99% are available to borrowers, with autopay enrollees receiving a 0.25% discount. Marcus assesses no costs for registration, late payments, or upfront payments. Borrowers can also profit from the platform’s customizable payment dates and on-time payment rewards. Customers can contact customer service Monday through Saturday.
Eligibility
Although Marcus does not specify it, applicants must have a minimum credit score of 660. Marcus doesn’t specify an income requirement, but the site demands that applicants have enough money to cover loan payments. Additionally, Marcus doesn’t allow co-applicants or co-signers.
Pros
- Provides direct consolidation payments to third-party lenders.
- Allows borrowers to adjust their payment date up to three times throughout the loan.
- Has no origination, late payment, insufficient money, or prepayment fees;
Cons
- Unable to be applied to a current student loan refinancing
- Following loan approval, funding may take up to four days.
LendingPoint– Best for Fast Funding & Below-Average Credit
Overview
The Atlanta-based online lender LendingPoint provides personal loans to potential borrowers in 48 states plus Washington, D.C.; it does not provide loans in Nevada or West Virginia. Prospective borrowers in qualified conditions can submit an online application and receive funding quickly.
Loan amount
$2,000 to $36,500
Loan APR range
7.99% to 35.99%
Minimum Credit Score Needed
600
Why did we choose it
The range of LendingPoint personal loans is $2,000 to $36,500; the lowest loan amount in Georgia is $3,500. Repayment lengths range from two to five years or 24 to 60 months.
Eligibility
You must reside in one of the 48 U.S. states or Washington, D.C., and have a minimum credit score of 600 to be qualified for a LendingPoint personal loan. Nevada and West Virginia prospective borrowers are not eligible for loans.
Pros
- Fast funding
- Requires a low credit score.
Cons
- Origination fees between 0% and 6%
- Co-signers or joint loans are not allowed.
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Upgrade – Best for Bad Credit
Overview
Upgrade was founded in 2017. Except for West Virginia, Vermont, and Iowa, Upgrade offers accessible online and mobile credit and banking services. The platform has given more than 10 million applicants access to more than $3 billion in credit and has continued to grow its web and mobile offerings.
Loan amount
$1,000 to $35,000
Loan APR range
7.96% to 35.97%
Minimum Credit Score Needed
560
Why did we choose it?
Loan amounts are flexible and start at just $1,000, although they are capped at $35,000 less than those offered by lenders concentrating on lower-risk applicants. There are loan lengths of three and five years available. There are no reductions for autopay, and borrowers must pay a $10 fee if their payment is over 15 days overdue or fails to process. However, there is no prepayment penalty for upgrade borrowers. Loans are made available to people with bad credit history through Upgrade.
Eligibility
A credit score of at least 560 is required for potential borrowers to be approved for an Upgrade personal loan, making it a viable alternative for people with fair Credit. Furthermore, despite borrowers earning an average of $95,000 a year, the lender does not set a minimum income criterion for applicants. The maximum pre-loan debt-to-income ratio for applicants, excluding their mortgage, should be 45%.
Pros
- It requires a low minimum credit score requirement.
- Loans can be used by borrowers to pay for business expenses.
Cons
- The APR range is high
- Fees for origination, late payment, and inadequate money are imposed.
Universal Credit – Best for Comparing Multiple Offers
Overview
Through its partners, the online lending network Universal Credit provides unsecured personal loans ranging from $1,000 to $50,000. The lengths of repayment range from three to five years or 36 to 60 months.
Loan amount
$1,000 to $50,000
Loan APR range
11.69% 35.93%
Minimum Credit Score Needed
560
Why did we choose it?
Thanks to Universal Credit, even those with lousy Credit can acquire a personal loan.
Eligibility
` A minimum credit score of 560 is needed for Universal Credit, making it accessible to various borrowers.
Pros
- The qualification requirements are flexible.
- Next-day funding
Cons
- The APRs are high.
- All personal loans have origination fees ranging from 4.25% to 8%.
Discover– Best for No Interest, If Repaid Within 30 Days
Overview
Discover is an online bank that provides users with personal loans, credit cards, and retirement options in all 50 states. Discover’s online application and mobile banking features, reputable customer service staff, and speedy funding make it stand out as a lending platform.
Loan amount
$2,500 to $35,000
Loan APR range
6.99% to 24.99%
Minimum Credit Score Needed
660
Why did we choose it?
Loans range from $2,500 to $35,000 and can be granted for three to seven years. As a result, the repayment conditions are somewhat flexible even when borrowers may obtain a larger loan from a different lender.
Eligibility
To be qualified for a Discover personal loan, applicants must have at least a credit score of 660; however, the typical Discover borrower has a score of 750. Applicants only need a minimum amount of credit history to apply with Discover. A minimum household income of $25,000 must also be shown by applicants, although the average income is not reported. Each applicant’s credit history, recent credit activity, and other credit inquiries are also considered by Discover. Co-applicants and co-signers are not accepted.
Pros
- No origination or prepayment penalties.
- The choice to pay creditors directly
Cons
- Charges late fees
- Has a low maximum loan amount.
Upstart – Best for loans as low as $1,000
Overview
Because of its borrower qualification strategy based on artificial intelligence and machine learning, Upstart has built a name for itself in the personal loan market. Indeed, according to Upstart, it has been able to approve 27% more applicants than would have been possible using a conventional lending strategy.
Loan amount
$1,000 to $50,000
Loan APR range
6.50% to 35.99%
Minimum Credit Score Needed
600
Why did we choose it?
Thanks to Upstart’s flexible loan options, you don’t have to borrow more money than you need, starting at only $1,000. Additionally, even though Upstart’s loans have a lower maximum than some lenders at $50,000, many potential borrowers will likely find this amount sufficient.
Eligibility
While the platform advertises at least a credit score of 600, Upstart can even accept borrowers without enough credit history to have a score. When assessing prospective borrowers, Upstart considers college education, residence, job history, debt-to-income ratio, bankruptcy and delinquencies, and a number of credit inquiries. Borrowers must also have a full-time job or offer to start in six months, a regular part-time job or another regular income with a minimum annual income of $12,000.
Pros
- Open to borrowers with fair credit.
- Prequalification is available with a mild credit check.
Cons
- Imposes an origination fee of up to 8% of the loan amount
- • No option for securing or co-signing.
Avant – Best for a range of repayment terms
Overview
Avant is a consumer lending platform based in Chicago, established in 2012 and provides unsecured and secured personal loans through a third-party bank (WebBank). The platform needs a minimum credit score of 580 to be eligible and focuses on middle-class consumers with acceptable Credit.
Loan amount
$2,000 to $35,000
Loan APR range
9.95% to 35.99%
Minimum Credit Score Needed
580
Why did we choose it?
The cheap minimum loan amount and flexible payback terms (two to five years) make it an accessible alternative for borrowers despite the low maximum loan amounts compared to other lenders. The platform is highly recommended for borrowers with poor credit who require quick financial access.
Eligibility
The lowest credit score needed for Avant is 580, while the typical borrower has a score between 600 and 700. The minimum income criteria for Avant is under $20,000, despite most borrowers having an average household income of between $40,000 and $100,000. Avant similarly targets low- to middle-income borrowers. Avant will consider alimony, child support, and other sources of income from within your home and your employment income to broaden your eligibility. However, Avant does not accept co-applicants or co-signers.
Pros
- It is possible to obtain both secured and unsecured loans.
- Minimum credit rating required (580)
Cons
- Has an upfront administrative cost.
- Prime borrowers’ starting APR is high.
Best Eggs – Best for Low APR
Overview
Best Egg provides a special secured loan that functions like a home equity loan without risking your house.
Loan amount
$2,000-$50,000
Loan APR range
8.99-35.99%
Minimum Credit Score Needed
600
Why did we choose it?
Eligibility
` A minimum credit score of 600, three accounts, and a minimum of three years of credit history. The minimum required income is $3,500; the average borrower’s salary is $80,000. The borrower’s cash flow must be sufficient to meet their existing financial obligations. The borrower must provide a valid U.S. address and Social Security number. Evidence of income; part-time workers are permitted.
Pros
- Provides a wide range of loan sizes.
- Offers homeowners a secured lending option.
Cons
- There is an origination fee.
- No rate discounts.
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