Finance

Top 10 Fintech Companies for Personal Loans

So, you need to find the best personal loan option? Perhaps you need to remodel the kitchen, add a pool to the backyard, or start your own business. And, you do not qualify for a home equity loan. Whatever the case may be, you want to be sure that you are getting the best loan for your circumstances. We have researched through 100’s of sites and 100’s of banks to prepare this list of current top 10 personal loan providers who are primarily Fintech companies. List Last Updated 7/21/2020

You can also shop for personal loans at PersonalLoans.com You get to choose the best rate among competing loan providers.

Get Started With Personal Loan

If you rather want to check Fintech companies directly, then follow the leads from the table below.

Rank Lender Interest rate Loan Range Comments
1 personalloans $6% – $36% $2,000 – $35,000 Check here first. They are not direct lenders, they are brokers to find the best loan for you in your state. With one application, you get multiple lender offers to compare and choose from.
2 SoFi
5.95% – 14.95% $5,000 – $100,000 Lowest interest rate. 650+ credit score required (unofficial). Many benefits for a borrower, Unemployment assistance, social events and gatherings. No hidden fee
3 Fundera From 6.67% $3,000 – $35,000 Best for starting business by taking on a loan.You only submit your application once and it’ll be run through many personal business loan Fintech companies and big banks for best rate
4 Kabbage   From 6.78%  $1,000 – $35,000  No hidden fees. Average interest rate via lending club is 14.8%
5 Trusted  6.68% – 36%  $2,000 – $35,000  No hidden fees. For Massachusetts residents, the minimum loan amount is $6,001
6 Bad Credit Loan  From 6.78%  $1,000 – $35,000  No hidden fees. Average interest rate via lending club is 14.8%
7 Prosper  6.68% – 36%  $2,000 – $35,000  No hidden fees. For Massachusetts residents, the minimum loan amount is $6,001
8 Lending Club  From 6.78%  $1,000 – $35,000  No hidden fees. Average interest rate via lending club is 14.8%
9 Payoff  6.68% – 36%  $2,000 – $35,000  No hidden fees. For Massachusetts residents, the minimum loan amount is $6,001
10 Net Credit  From 6.78%  $1,000 – $35,000  No hidden fees. Average interest rate via lending club is 14.8%

Why Fintech Companies

The main reason is their low overhead cost.

They do not have to maintain brick and mortars branches – Fintech companies are internet based. The entire loan processing happens online. The huge cost of maintaining branch network is not there.

They operate with lots of artificial intelligence  – Compared to a traditional company where risk analysis, loan approvals require human eyes,  Fintech companies employ lot of artificial intelligence and machine learning to approve your loan and for subsequent loan servicing. This brings their operating cost further down.

Chance of loan approval is more – Since there is lesser human eyes on your loan applications and mostly computer algorithms accept your application, if you have a good credit, or a good repayment history lately, there’s a greater chance of getting approved.

How to apply for Fintech personal loan

To me, the best personal loan is the one you get from your friends or relative, probably at no interest. We listed some ways to arrange for quick money when there is a sudden need. When personal loans are the best option, you should try to explore all your offers.  Presenting the best offers available today for your consideration.

Groundwork before application for best personal loan

All options mentioned in this article, cost sufficiently high-interest rates, but, they are the best in the market right now.

There are three main things that you should take notice of when applying for a personal loan:

  1. Will the loan amount meet your needs,
  2. The interest % (APR), and
  3. If there are any fees attached to the loan.

If you figure that you need $20,000, then you want to be sure that your financial institution will lend out that much money to an individual. If they do not, then you are simply wasting your time with the loan application.

The interest rate is very important and should be carefully reviewed. Ideally, you want this percent to be as low as possible given your credit rating. When comparing institutions, compare the rates second.

Finally, be sure to avoid all fees when signing up for a personal loan. Some institutions will try even try to sneak the fee into your overall loan amount. Be aware of this and negotiate your way out of fees or simply take your business elsewhere.

If the loan amount is large enough, the interest rate is generally lower, and there are no fees, be certain that you can afford the monthly payment. If you typically have an extra $500 at the end of each month, accept a loan with a payment amount of no more than $250. You will have emergencies and you want to be certain that you can always make the monthly payment.

Important – Now, bring copies of your pay stubs, tax return document or W2 (if applicable) and social security number. Continue reading the article and click on the links to finish your application process. Almost all lenders will need to check credit report and verify income before extending you a loan. And since having credit inquiry on your account makes your score go down, you want to have all the inquiries made in a short span, for personal loans, possibly in one day, so that all credit inquiries from all banks are treated as a single inquiry. Good luck!

After thorough research, our team has come up with an initial list of 10.

1) Personalloans.com 

They are the aggregator, they go out to different lenders to find the best rate for you. They get rave reviews from customers and they have a starting low rate of 6.35%, the rate will go up depending on your credit report and income. You can get a loan up to $35,000 if you have a good score. If I need a personal loan, I would go with PersonalLoans. Majority of our readers got the cheapest rate from personalloans.com

2) Sofi

We consider Sofi, the best direct loan provider. They have the least median interest rate, meaning,  you’re expected to get lowest interest rate from Sofi, compared to other places if your credit score is not among the best. Sofi has a unique advantage for borrowers who set up a monthly automatic repayment and link their checking account. Refer to the below rate table from Sofi.

  • Fixed:
    • 5.95%-12.99% APR (with AutoPay)
    • 6.20%-13.24% APR (without AutoPay)SoFi Personal Loan
  • Variable
    • 4.80%-11.40% APR (with AutoPay)
    • 5.05%-11.65% APR (without AutoPay)
    • Rate cap 14.95%

Low-interest rate, maximum loan amount ($100,000), various borrower events and assistance makes Sofi our second best choice for obtaining a personal loan. Just because the minimum credit score of 700 is required to get a loan from SoFi, we ranked it second best.

3) Upstart Loans 

Upstart is rapidly rising to the top. Last year, they were not even in top 10. This is the place to check your eligibility second, because of their fast and superior service with lowest loan rate in the market, which starts at just, yes just 4.67%They say you are more than your credit score. They consider your education and work experience while determining your loan APR. Get your funds in the bank in just 3 days.  Many borrowers reported getting less than 10% APR on their loan. One unique feature about them is fund disbursement in a day. Yes! in a day, you can expect to receive fund in your checking account.

The below lines are from an existing Upstart borrower.  Isn’t this very exciting? “I was a little skeptical at first because of the low rates and the easy/online application process… I thought for sure there would be hidden costs and that it was too good to be true. So I researched online and read all these other great reviews and decided to go for it. I applied, got an awesome rate, verified my info online and over the phone, and saw the funds deposited this morning”.

4) Lending Club

APR starts from 6.78%. You simply enter your name, address, age, and your yearly income and the system will generate your rate. At this point, you can simply accept the offer and continue with the steps to complete the process. If funding is quick, you could receive your money in less than a week.

5) Prosper

This company is a peer-to-peer lending operation. So, having a lower cost of the source of money (as they pay lesser interest to individual lenders, as opposed to big banks) they can afford to extend personal loan at a lower interest With a good credit, you can get a rate as low as 6.68%.

 

Options 1-5 on this list can often be a cheaper option than your local bank or credit union, and the service can be quite good too! But, if you cannot get approved by these first five institutions, then I would say it is time to explore your local banks and credit unions. As those are really your next best option for getting some quick money in terms of a personal loan.

Their interest rates are often in between 10-15% on a personal loan and they might be simpler to work with since they are in the local area. You can just drive by at a local branch and talk to the loan officer. You may finish entire application process and receive loan approval while being in the branch. But I do encourage you to check the rates online first before you venture into the banks physically.  And don’t let the loan officer talk you into a pricey personal loan.

If, however, you cannot get approved for a loan by options 1-5 or by your local bank (or credit union), then remaining options might be the right choice for you.

6) Trusted Loan Network – You can get a quote on your loan just like any other financial institution. The interest rate is higher than previous 5 loan providers but their service is excellent as is their speed of loan approval. They’ll ask you a few questions about what you intend to do with the money and your plans to repay and if they like your answers, they might just reduce the interest rate for you. Compared to the other banks and credit unions, this might just be the breath of fresh air that you need. Loan disbursed ranges from $1,000 to $10,000.

 

7) LendUp – The process is very easy at LendUp, and they are great at getting you your money fast to fulfill your one-time cash needs. They supply funds up to $250 and require you to pay back the amount plus interest within 30 days. Because of the short time frame and quick nature of the loan, the interest rate percent is often astronomical (often 200% or more). But, if you need a couple hundred bucks now and can’t get it elsewhere, then this is probably your best option.

8) Lending Tree – This is a new company which actually broker your loan and forward to other institution for competitive quotes. They offer low-interest rate and very easy application process. Since they are new, I put them in 4th place. over the time lending tree has potential to move up to top position. Worth looking into.

9) 100 Day Loans – This company does exactly what their name states – they offer 100-day loans, typically for $1,000 and at a rate of about 36%. So, if you are looking to borrow from this company, you’d better have a plan together when you owe your $1,300 back to the company at the hundred day mark.

10) Net Credit – The typical APR% is 36% or more and they offer upwards of $10,000. This company is quite reputable and according to the reviews, they pay quickly and respond to any concerns that you might have. If you are going to borrow the full $10,000, realize that you will need to come up with nearly $14,000 if your term is a full year. The rates are not ideal, but if you need the money this is, at least, a reputable option.

Now that you shortlisted your lender, time to secure the best rate from your lender. How to do that? It’s by shopping smart and making sure your credit report is accurate and error free.

How to loan shop smartly?

The best way is to start working on your computer, we are a tech-savvy generation. Transacting online is safer than doing it in brick and mortar branches.

Visit the loan providers listed above, fill out the forms and note the interest rate and amount of loan you are approved for.

At the end, you have your lowest price and the amount you need as a loan. You should now finish the formalities by signing the paper works and sending over documents if needed.

So here’s the list of tasks towards cheapest personal loan

  • Check for rates online, price shop rates, note the lowest quote (if you want to stop here, you can, then apply online)
  • Check with your current bankers, often they have loyalty program with lower interest rate
  • Some local banks or credit unions often lure customers to open banking relationship with them by extending a low-interest loan
  • Get competitive quotes from various institutions or banks
  • Only apply for loans where there’s a chance of qualifying if you know the minimum credit requirement, and you don’t meet that, do not apply.

The Personal Loan Trap

At times, it can be necessary to reach out for a personal loan, which is why I am advising you of the options above, but I urge you not to make a habit of taking out loans and living your life on payments.

When you start living life on payments (a payment on your house, your car, the furniture, the washer and dryer, and maybe even your pets), your cash flow begins to dwindle, so much so that at the end of the month you might have only $50 left. No one should ever be living this tight and it is certainly not the best practice for getting ahead in life.

The wealthy often state that the best way to grow wealth is by first getting out of debt. If you wish to be wealthy, take loans out only when you absolutely have to. And, be diligent in your search to get only the very best rates. Once you pay off the loan, make it a practice not to jump into another form of debt, but instead put your additional money into savings – or better yet, an investment.

Personal loans are the almost always better option than spending on high-interest credit cards. If you need to buy a major item or need to pay a high medical bill, go for a personal loan instead of buying on a credit card. Best of luck to you and your future decisions.




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