Best Personal Loans of 2020 and 2021

Best personal loan companies of 2020 and 2021

A personal loan allows you to borrow a particular amount of money that you can use for a variety of purposes like covering emergency expenses or financing a large purchase. Here, we have mentioned the best personal loan companies that will allow you to borrow money.

If you are doing a job and have a steady income, then finding the best personal loan can save you a lot of money. What you need is a strong credit card and you’ll get a personal loan at a low-interest rate. However, you still need to find the best personal lender and get your loan approved.

The best personal loan companies are

  1. Lightstream
  2. Discover
  3. Marcus
  4. Prosper
  5. SoFi
  6. USBank
  7. Upstart
  8. Lending Club
  9. Rocket Loans

All these are the best companies from where you can buy personal loans in 2021. You will know furthermore about these companies as you scroll down.

The Best Personal Loan Companies of 2021

Before we start with the organizations, let’s discuss some topics that you should know, such as what is a personal loan? Where can you get a personal loan? and what is the interest rate on a personal loan?

Best personal loan companies of 2020 and 2021
Credit: financebuddha.com

What Is a Personal Loan?

It is the amount of money you borrow from a lender, bank, or credit union for a fixed amount of time and repay it after the duration gets over. In most cases, the loan is up to $100,000 and borrowers pay back it after two to five years in fixed installments.

Where Can You Get a Personal Loan?

You can get personal loans from anywhere because there are dozens of organizations that provide you the best personal loans. What you need is to review the pros and cons of each organization or lender. Credit unions and banks can also offer personal service if a location is nearby. But most prefer online lenders as they offer more convenience than banks or credit unions.

How Can You Choose a Personal Loan Company?

The first and foremost thing you should do while buying a personal loan is checking that the lender must be licensed in your state. However, every lender organization has its terms and conditions that you should know before buying a personal loan. 

You can choose the personal loan accordingly by doing some research and comparing different companies. That’s why here, we made the list of best personal loan companies of 2021 so that it gets easier for you to choose the best personal loan.

Lightstream

Lightstream was launched in 2013 as a division of SunTrust Bank. It offers personal loans of up to $100,000.

Minimum FICO score: 660

Maximum debt-to-income ratio: N/A

Preapproval or rate quotes available: No

Loan amounts: $5,000 to $100,000

Loan terms: 24 to 144 months

Loan use restrictions: Funds need to be used for loan approval

Discounts: None

Origination fee: None

Best features of Lightstream

  • It has 30+ different loan uses.
  • It provides loans of up to $100,000.
  • There is no origination, prepayment, or late fees.

Discover

Discover is one of the best personal loan companies that offer personal loans for a term of three to seven years. It provides loans for home improvement, debt consolidation, and major purchases. 

Minimum FICO score: 660

Maximum debt-to-income ratio: N/A

Preapproval or rate quotes available: Yes

Loan amounts: $2,500 to $35,000

Loan terms: 36 months to 84 months

Loan use restrictions: Only debt consolidation, unexpected expenses, and home repairs/improvements.

Discounts: N/A

Origination fee: None

Best Features of Discover

  • Other than a late fee, there are no charges.
  • Loan terms from 36 to 84 months.
  • Borrowers can get access to FICO credit scores.

Marcus

If you want to buy a loan, then you can apply with Marcus by Goldman Sachs for fixed-rate unsecured personal loans. There is no origination, prepayment, or late fees with this lender.

Minimum FICO score: Not disclosed

Maximum debt-to-income ratio: Not disclosed

Preapproval or rate quotes available: Not disclosed

Loan amounts: $3,500 to $40,000

Loan terms: 36 months to 72 months

Loan use restrictions: Only debt consolidation, home improvement, and major purchases.

Discounts: N/A

Origination fee: None

Best Features of Marcus

  • No fees charged on its personal loans.
  • Allows borrowers to adjust their payment due date.

Prosper

As of now, there are over 900,000 borrowers that have been served by Prosper since 2005. Borrowers with up to 50% debt-to-income ratio can get approved for personal loans.

Minimum FICO score: N/A

Maximum debt-to-income ratio: N/A

Preapproval or rate quotes available: N/A

Loan amounts: $2,000 to $40,000

Loan terms: 5 years

Loan use restrictions: N/A

Discounts: N/A

Origination fee: N/A

Best Features of Prosper

  • Offers pre-approval with a soft credit check

  • Those who have fair to excellent credit can easily get loan approval.
  • Loans of $2,000 are also available.

SoFi

SoFi is offering online personal loans since 2011. You can apply for a $5,000 to $100,000 personal loan with fixed and variable-rate.

Minimum FICO score: 680

Max DTI: N/A

Preapproval or rate quotes available: Yes

Loan amounts: $5,000 to $100,000

Loan terms: 2 to 7 years

Loan use restrictions: Only for relocation assistance, home improvements, credit card debt consolidation, and medical expenses.

Discounts: You can get good discounts

Origination fee: Nil

Best Features of SoFi

  • No-fee loans
  • No late fees.
  • Loans of up to $100,000 available.

USBank

You can get both short- as well as long-term personal loans including fixed interest rates.

Minimum FICO score: N/A

Maximum debt-to-income ratio: N/A

Preapproval or rate quotes available: Real-time decision

Loan amounts: $100 to $1,000

Loan terms: Up to 3 months

Loan use restrictions: N/A

Discounts: N/A

Origination fee: None

Best Features of USBank

  • Quickly pays out loan funds.
  • No origination fee.

Upstart

Upstart is one of the best personal loan companies and it uses automation to originate credit. As of now, Upstart has funded over $3.5 billion to 250,000 borrowers. 

Minimum FICO score: 620

Maximum debt-to-income ratio: Not disclosed

Preapproval or rate quotes available: Yes

Loan amounts: $1,000 to $50,000

Loan terms: 3 to 5 years

Loan use restrictions: Loan funds should not be used for any prohibited uses.

Discounts: N/A

Origination fee: 0% to 8%

Best Features of UPstart

  • May accept applicants with no credit history

Conclusion

The above-listed are the best personal loan companies of 2021. However, any personal loan companies are not selected on the basis of consumer ratings or product availability.

Featured Image Credit: foxbusiness.com

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