Top 10 Companies for the Best Online Personal Loans
Trying to figure out how to get the best unsecured personal loan online? Find out how below!
There
are a lot of reasons why you might want to apply for a personal loan.
From wanting to renovate your home to having to buy a new car, personal
loans are a relatively easy way to access additional cash when you need
it. They also tend to offer much more attractive interest rates compared
to using credit cards for these types of expenses.
But
if you’ve never applied for a personal loan before, you might be
worried that the process will be difficult, time consuming, or
confusing. To help you navigate applying for an unsecured personal loan,
we made this quick guide.
1# Citizens Bank
Citizens Bank is a financial services company that offers a very wide
range of financial products, including traditional savings and checking
accounts, student loans, mortgages, and some of the best personal loans. Unlike
many other well-known online lenders, Citizens Bank has a great many physical
locations throughout the country. In fact, they are the 13th largest
retail bank in the United States. Their website offers an easy online
application process that is able to approve borrowers for personal loans
without requiring them to come in to a physical branch location of Citizens
Bank. It is definitely one of the best personal loan companies available today.
Citizens Bank Benefits
Citizens Bank does state
that it charges no origination, application, disbursement fees, or prepayment
penalties. There are interest rate reductions for auto-payment through a
Citizens Bank checking or savings account, and for customers using auto-pay.
Citizens Bank also has
an app for smartphone users. One helpful option available through Citizens Bank
that isn’t often available through other online personal loan lenders is the
ability to obtain a co-signer. If a potential borrower applies and is rejected,
they can reapply with a well-qualified co-signer. Citizens Bank will issue the
personal loan using only the credit score of the well-qualified co-signer,
which also saves the primary borrower money through a reduced interest rate.
- Unsecured loans available from $5,000 to as much as $50,000
- APR rates from 5.99% to 16.24% on personal loans
- Terms vary from 36 to 84 months
- Physical branch locations available
- No origination, application, or disbursement fees
- Does not offer much guidance on approval standards or post a minimum score requirement
- Online applications and online management of loans
- Ability to use a co-signer
- Smartphone app
2# SoFi
Since beginning in 2011,
SoFi
(or Social Finance) has grown into one of the best loan companies in the
nation. The online lender covers many different types of loans in different
industries; for instance, home mortgages, parent financing, personal loans,
student loan refinancing, and mortgage refinancing all fall under the SoFi
umbrella. One of these services, unsecured loans, competes well by offering
competitive interest rates and terms to a wide variety of applicants. Out of
all of the personal loan companies that we have reviewed, we have chosen SoFi
as one of the best.
- Variable rates as low as 5.17%
- Take out a loan as low as $5,000
- Qualify for a loan as much as $100,000
- Fixed rates as low as 5.49%
- No application or origination fee
- No prepayment penalty
- Unemployment protection is available
SoFi Benefits
There are several
aspects of SoFi and its unsecured personal loans that are beneficial to
potential borrowers. The first thing to mention is flexibility. SoFi has the
most flexible APR package by offering both variable and fixed personal loan
rates. Many other online lenders only offer fixed rates on its loans. On top of
this flexibility, SoFi has some of the lowest personal loan rates compared
to other lenders. SoFi is one of the best places to apply online in 2018!
Another unique aspect of
a SoFi unemployment protection. If a borrower loses their job and source
of income, then they are eligible for this protection. SoFi temporarily halts
payments until the borrower can find a new job; additionally, SoFi even helps
its customers find new opportunities in the workplace.
SoFi also offers the
auto pay options to borrowers, so they can make each monthly payment without
having to go through any trouble.
One last benefit to
mention is the application process. Since SoFi makes its name as an online
lending platform, it is only natural that its online application takes
only a few minutes.
Bottom Line
SoFi offers unsecured
financing with a few unique aspects compared to other lenders. There are both
good aspects and limitations to its unsecured loans. If you are considering
SoFi for an unsecured personal loan, then here are a few pointers to keep in
mind.
- Both variable and fixed APRs are available
- There is a $5,000 minimum for unsecured financing
- You can get a loan of up to $100,000
- There are five payment plans (3, 4, 5, 6 or 7 years) of moderate length
- There is no prepayment penalty
- The application process is completely free
- SoFi utilizes a credit score-based underwriting system
- Offer the best personal loans available
3# Prosper
Prosper
is a peer-to-peer (P2P) marketplace lending platform operating exclusively
online, which has to date facilitated more than $9 billion in loans. It was the
first large-scale P2P online marketplace lending platform, and in some ways
paved the way for future P2P lending platforms to enter the marketplace.
These days, Prosper offers loans for a variety of purposes, including debt
consolidation and healthcare financing. All loans through Prosper remain
unsecured, no matter the designated purpose.
- Easy online application
- Low interest rate
- Single monthly payment
- Checking your rate won't affect your credit score
The
Basics
A personal loan through
Prosper could be as low as $2,000 or as high as $35,000, and is always
unsecured. The minimum credit score requirement for a loan is currently 640.
Prosper offers only fixed-rate loans. Much like its main competitor,
LendingClub, Prosper uses a proprietary formula to gauge how risky a borrower
is and assign an interest rate based on that assessment. Borrowers should
expect to have their credit score, credit report, income, and debt-to-ratio
examined, but all the factors that go into an assessment by Prosper aren’t
publicly known.
Annual percentage rates
(APR) available through Prosper vary from a low of 5.99% to a high of 36.00%, depending upon the borrower, and
Prosper offers 36 and 60 month loan terms.** Like many other P2P marketplace
lending platforms, the company makes its money by charging investors an annual
servicing fee of 1% and charging the originating bank a marketing fee
associated with each originated loan.
Prosper Benefits
Applying through Prosper
is easy, and done 100% online. In fact, its website allows borrowers to get an
idea of whether they qualify without an impact to their credit score. By
entering general information such as the desired loan amount, loan purpose, and
rough credit score, Prosper will tell a prospective applicant whether they are
likely to get a loan approved, all without impacting their credit score.
Of course, a full credit check is still required for a final decision, but this
is a helpful way for those shopping for a loan to find out whether Prosper is a
likely fit for them.
With Prosper, borrowers
never pay a prepayment penalty.
Bottom Line
Prosper is offering
unsecured loans for almost any purpose, and it’s possible for borrowers to save
a lot of money by using a loan through Prosper to consolidate debt or avoid
higher-interest options. Here is a summary of what you can expect:
- Unsecured loans from $2,000 to $35,000
- Fixed interest rate loans only
- Borrowers are assigned a proprietary Prosper score that judges their risk factors
- No hidden fees, and a one-time origination fee to borrowers
- Fixed APR from 5.99% - 36.00%
- Easy online application
- Minimum credit score of 640
- Better rates going to more creditworthy borrowers
- No joint loan applications
4# Upgrade
Upgrade
is a personal loan lender based in San Francisco which launched in April 2017.
While the company hasn't been around for very long, two members of the founding
team, Soul Htite and Renaud Laplanche, previously co-founded Lending Club, the
popular peer-to-peer personal lender.
Lending Club is one of the top
online personal lenders serving over 2 million U.S. customers and giving out
over $28 billion in loans so far. Upgrade is slightly different in that it
targets borrowers who don’t have ideal credit and the company gives out the
loans themselves.
- Minimum credit score of 620
- Take out a loan as low as $1,000
- Qualify for a loan as much as $50,000
- Rates as low as 5.66%
- No prepayment penalty
- Credit monitoring tool
The Basics
If you’re interested in getting a
loan from Upgrade and your credit isn’t perfect – you’re in luck. Upgrade’s
minimum credit score is 620 although their borrowers’ average credit score is
675. They also use alternative underwriting criteria, which means that they
look at things outside just your credit score and income to make lending
decisions. One of those things is your free cash flow. Upgrade requires that
you have at least $1,000 left over each month after you pay all your bills.
Free cash flow is different than
just your income because it looks at things like how much you pay in rent or
for your mortgage, how much you pay in taxes, and the average cost of living
where you live. That means that it will likely require that you make more in
order to qualify for a loan if you live in an expensive city than if you live
in a cheap rural area.
Upgrade makes loans of between
$1,000 and $50,000 and their term lengths are either 36 or 60 months. How much
you will pay in interest will depend on your personal financial situation, but
their typical APR is between 5.66% and 35.97%. Upgrade charges a fixed interest
rate over the life of your loan. They have a very quick application and it
typically takes a day to get your cash after you verify your income and
financials. They have no prepayment penalties.
Upgrade has a number of unique
programs for borrowers. For example, they provide a payment reduction option
for people experiencing financial emergencies. They will temporarily or
permanently modify your monthly payments. They also have programs that help you
improve your credit including a credit score simulator and a credit monitoring
tool. They also offer these tools to help people improve their credit score if
they don’t currently qualify for an Upgrade personal loan.
Upgrade loans are currently not
available in Connecticut, Colorado, Iowa, Massachusetts, Vermont, or West
Virginia.
Upgrade Benefits
Upgrade personal loans could be a
good choice for those who have bad credit. By looking at alternative lending
criteria other than just your income and your credit score, they provide an
opportunity for people who might not have ideal credit to borrow money or get a
more favorable rate.
They also specifically go out of
their way to try to make it easier for people to repay their loans if they
struggle by offering to reduce their payments if they experience a financial
crisis. They also allow you to decide when your monthly payment due date is in
order to ensure that it's at a time for that works best for you. Another
benefit of Upgrade is that they help you build your credit score whether or not
you qualify for an Upgrade Personal Loan.
Bottom Line
Upgrade personal loans are a good
option you don't have great credit as they might be more likely to lend to you
at a lower interest rate than other lenders because they use different criteria
to make lending decisions. They also have a number of different programs that
will help people who struggle with their debt. They also offer loans for as
little as $1,000 to as much as $50,000 – which allows borrowers to borrow just
what they need. However, Upgrade offers only two term lengths – which isn’t as
many options as other lenders.
Whether Upgrade personal loans is
the best personal loan option for you will likely depend on what kind of rate
that you qualify for. Some of their personal loan rates are actually quite
expensive, and it might not make sense to pay such a high interest rate when
you could potentially qualify for a lower interest rates with another lender.
5# Freedom Plus
Freedom Plus Personal Loans is an online lender
that looks at more than just your credit score when making lending decisions.
The company is based in San Mateo, California and their loans are made by Cross
River Bank. The company was founded in 2013 though their parent company Freedom
Financial Network started making online loans in 2008.
- Take out a loan as low as $10,000
- Qualify for a loan as much as $35,000
- Rates as low as 4.99%
- Simple online application
- Loan decision in as little as 2 - 3 hours
The Basics
Freedom Plus Personal Loans focusses
on lending to those whose credit score is at least 640 - although the average
score of Freedom Plus borrowers is 720. To qualify, you also have to earn at
least $30,000 a year and have a debt-to-income ratio as of under 40%, although
the average debt income ratio of borrowers is closer to 20%.
Freedom Plus Personal Loans offers
loans of between $10,000 and $35,000 for term lengths of between 2 to 5 years.
Their interest rates start at just 4.99% APR and go up to 29.99% APR. They
charge an origination fee of anywhere between 0% and 5%, depending on which
state you live in. They have a very simple online application to fill out and
they have no hidden fees.
While they decide who to lend to
based primarily on traditional lending criteria like your credit score and
income, they look at other criteria to set your interest rate. Like with many
other lenders, you get a discount if you have a co-signer on your account. But
they also have an interest rate discount for those who have a minimum of
$40,000 in retirement assets. If you have at least that amount, your interest
rate could drop by 2% to 4% - a significant difference! They also provide a
discount on your rate if you use at least 50% of the amount of your loan to pay
down existing debt.
They make loan decisions quickly
potentially responding to you within anywhere from 2 to 3 hours. Once you
accept the loan and complete the paperwork, you can get money within 48 hours.
Freedom Plus Benefits
Some of the benefits of choosing
Freedom Plus include their very quick online application and fast approvals. If
you need money quickly, Freedom Plus Personal Loans is a good lender to
approach. They make the lending process very easy.
The fact that they also have some
unique discounts for borrowers is also a benefit. These discounts are connected
to factors that they have found increases a borrower’s likelihood to repay
their loans and therefore they are willing to pass those savings on. That could
significantly decrease the amount you pay in comparison to another lender. For
that reason, they might be a good option for you.
Another great thing about Freedom
Plus is that they have a relatively low cut off credit score and minimum annual
income. This means that more people will potentially qualify for a loan with
Freedom Plus.
Bottom Line
From their extremely quick online
application to the fact that you can get discounts based on being financially
responsible, Freedom Plus could be a great lender for those who are hoping to
find a bank to lend to them who will look past their credit score and give them
a good rate anyways.
Some of the downsides of Freedom Plus
loans are that the top end of their interest rate spectrum is quite high at
29.99%. In addition, they charge an origination fee which can be as high as 5%,
which is a significant amount. In addition, they do not offer very flexible
loan amounts. The lowest amount you can borrow is $10,000, which is a
significance amount and more than some people might want to borrow. For these
reasons, another lender might be a better choice.
6# Upstart
Upstart
found its start recently in 2012 when ex-Google employees decided to create a
tech-lending platform. Upstart is unique because it incorporates a peer-to-peer
lending system which breaks from traditional companies. Peer-to-peer lending means
anyone can invest in a loan application, so this means that borrowers are
funded by multiple individual investors instead of Upstart itself. The tech
peer-to-peer lender specializes in unsecured personal loans which is its main
product. With great rates and benefits, Upstart lands in the 4th spot of our
best personal loan companies.
- Rates as low as 6.37% for fixed rates
- Qualify for loans between $1,000 and $50,000
- Choose between payment plans of 3 or 5 years
- Zero application or pre-payment fees
PersonalLoans.com
Finding the right
personal loan can be daunting because of the wide array of requirements by
different lenders. Instead of applying individually with many different
companies, a site such as PersonalLoans.com uses a proprietary screening process
to take a single borrower’s information and use it to find potential lenders
which are good matches. PersonalLoans.com then refers the applicant to the
lenders most likely to give an approval, saving time for the applicant and
helping them avoid having too many hard inquiries on their credit report.
The Basics
PersonalLoans.com is not
itself a lending institution, which means it does not advertise or offer APRs
on its website. However, the lenders it works with currently offer APRs between
a low of 5.99% and a high of
35.99%. The APR a borrower
qualifies for is dependent upon the borrower’s creditworthiness and the
particular lender’s requirements and APR offerings. In addition, the company
matches an applicant to loans within the range of $500 to $35,000.
Once an applicant
submits information through the website’s easy three-step process,
PersonalLoans.com will come up with several matches from its lender network.
Once successfully connected, borrowers can receive their money in as little as
a single business day and have between 6 to 72 months to repay the personal
loan. In order to be referred to a lender through PersonalLoans.com, an
applicant must have a regular income, and most lenders also require a checking
account.
PersonalLoans.com Benefits
For applicants who have
less than stellar credit and won’t have a high approval rate across all lenders
out there, using PersonalLoans.com can save stress and time. Instead of
applying individually with lenders out of the blue, applicants who use PersonalLoans.com
can think of it as a sort of screening tool. It will let applicants know ahead
of time where their best bet for approval is, and then facilitate the
application process between the applicant and different lenders. The three-step
process on PersonalLoans.com is easy and doesn’t take the average applicant
much time. It’s also great that the website does not cause any hard pulls on
the applicant’s credit score. Until they actually apply with a lender,
PersonalLoans.com does only a soft pull in order to help identify the best
lender matches.
Bottom Line
PersonalLoans.com is an
excellent tool for those seeking a personal loan who are unsure of where to
start. Its unique and proprietary process will help to weed out lenders whose
qualifications don’t match a potential borrower’s income and credit score. An
applicant has nothing to lose by giving PersonalLoans.com a try since using the
service is totally free to the applicant. Here are some of the benefits of
using PersonalLoans.com:
- Screens different lenders and identifies an applicant’s best matches
- Partners with lenders offering loans between $500 - $35,000
- Low minimum income and credit requirements with many partner lenders
- All partner lenders accept electronic payments
- Partner lenders offer many different types of loans, including peer-to-peer, personal installment, and bank personal loans
- Easy, three-step process
- Free!
7# Earnest
Earnest
started up in 2013 and developed into an online lending marketplace that offers
both student loan refinancing and some of the best personal loans. Since it
specializes in online servicing and convenience, Earnest is an attractive site
with easy to understand resources and services. It has one of the fastest
application and approval notification processes in the market which makes it
more competitive as a whole. Earnest is a well-respected and trusted company
that you can't go wrong with choosing.
The Basics
Earnest does not break
away from any trends as far as its offers are involved. Borrowers can apply to
Earnest for unsecured personal loans ranging from $2,000 all the way to
$50,000. Earnest offers both small personal loans as well as decently large ones,
allowing them to serve a wide variety of customers.
Only fixed annual
percentage rates are offered by Earnest, but they are low and competitive. The
lowest possible APR is 5.25% while the
highest fixed APR is up to 14.24%.
These are some of the best personal loan rates in the industry!
There are only a few
payment plans without much flexibility; these plans limit Earnest to short term
financing. Borrowers can decide between repayment plans of either one, two, or
three years.
No hidden fees are
present in the Earnest online application process. This includes
application fees or origination fees which is standard for most of the best
personal loan lenders. On top of this, paying off a debt early does not
warrant a prepayment penalty fee.
Earnest Benefits
Earnest boasts a quick
approval and disbursement process; in fact, online applicants can hear a
decision within two days of submitting the application. This is especially
helpful for borrowers in need of quick cash.
Possibly one of the most
beneficial aspects of an Earnest is the underwriting system. Earnest
underwrites its products based on extra data in addition to credit score and
history. This extra data includes job history, earning potential, future income
potential, saving patterns, and growth potential. This information helps
Earnest make date-driven decisions on loan approval, and it improves an
applicant’s chances of getting one of the best unsecured loan.
Earnest offers a mobile
app that makes it easy for borrowers to monitor your repayment From the app,
borrowers can check the principal loan balance, the next payment due date, and
they can set up automatic payments (another perk of Earnest).
Bottom Line
Just like any lender,
Earnest has both positives and negatives when it comes to its unsecured loans
and offers. Borrowers who are looking for quick financial help should consider
these points.
- Application approval notice within 2 business days
- Data driven underwriting process (not just credit score)
- Possible borrowing ranges of $2,000 to $50,000
- Fixed APR range of 5.25% to 12.99%
- Short payment plan options: 1, 2, or 3 years
- No prepayment penalty
- No origination fee
- Convenient mobile app
8# LightStream
LightStream is a division of SunTrust Bank, which has
existed in some form or another since the early 1890s, long before online
lending took off. These days, LightStream exclusively makes online personal
loans at competitive interest rates. Its website boasts “Loans for Practically
Anything” and online reviewers agree. The only significant categories
unavailable are business loans, post-secondary education, and the refinancing
of existing LightStream loans. LightStream's offerings land it in the 5th spot
of our best personal loan lenders.
- Rates as low as 2.49%* APR w/ AutoPay
- Qualify for loans between $5,000 and $100,000
- Choose between payment plans of 2 to 7 years*
- Zero application, origination, or pre-payment fees
LightStream Benefits
LightStream advertises
that they charge no fees. This means no origination or servicing fees, and no
prepayment penalty. By signing up for autopay, borrowers can save a hefty half
a percentage point in interest each month, which can save a lot of money over
the life of the loan.
Since the application
process is entirely online, borrowers don’t have to travel to a physical branch
of LightStream’s parent company, SunTrust Bank, to fill out an application. And
the company’s Rate Beat Program will beat a competitor’s published rate by
0.10% if certain conditions are met For borrowers who qualify,
LightStream has it all – competitive rates, long loan terms, and a huge variety
of approved loan purposes.
Bottom Line
LightStream doesn’t
publish a minimum credit score requirement, and this combined with their
emphasis on well-qualified borrowers makes them unlikely to be a good choice
for those seeking a debt consolidation loan on high-interest cards or wanting
to raise their credit score. However, their very low rates make them a
competitive choice for the most qualified borrowers. Here is a summary of what
you can expect:
- Unsecured loans available from $5,000 to as much as $100,000
- APR ranges from 2.49% - 17.49%* APR w/AutoPay, or slightly higher with no autopay feature
- Loan terms from 24 - 84 months*
- No origination fees
- No prepayment penalties
- Very low advertised rates for well-qualified borrowers
- Rate Beat Program available
9# LendingClub
Peer-to-peer lending has
been gaining a lot of traction in the online lending marketplace in recent
years, and perhaps no lender is better known for this than LendingClub. Often abbreviated as P2P lending, this type of
lending involves individual investors making loans to individual borrowers, and
consequentially assuming some or all of the risk of non-payment on the loans.
LendingClub is headquartered in San
Francisco, California, but connects borrowers and investors across the United
States through its online-only lending platform. Only borrowers in Iowa and
West Virginia are ineligible to apply, based upon state laws. The majority of
loans facilitated by LendingClub are unsecured personal loans used by borrowers
to consolidate debt and pay off higher-interest credit cards, although personal
loans can be used for almost any purpose. LendingClub now makes auto loans and
small business loans, too. As a unique company with unique offerings,
LendingClub lands 7th on our top personal loan companies list.
- Fixed rates as low as 5.99%
- Qualify for loans between $1,000 and $40,000
- Choose payment plans up to 5 years
- Zero application or pre-payment fees
The Basics
Borrowers who sign up
with LendingClub can borrow as little as $1,000 or as much as $40,000 in an
unsecured loan, and the APR varies wildly based upon how risky LendingClub considers
the borrower. At the time of approval, borrowers are assigned a risk grade
between A and G, with an A grade being the safest borrower. APR for the most
well-qualified borrowers is currently as low as 5.99%, while those deemed risky by
LendingClub could expect to pay as much as 35.89%. This is a large range and your
creditworthiness will determine if you qualify for the best rates.
Currently, LendingClub
is accepting borrowers with credit scores as low as 600, although they look
beyond credit score and also check an applicant’s credit report, calculate
their debt-to-income ratio, and consider other factors. In turn, investors get
to pick and choose whether they want to invest with a risky borrower and earn a
higher rate of return, or invest with a safer borrower with a lower rate.
LendingClub makes its money by charging borrowers an origination fee and
investors a servicing fee.
Loan terms are available
up to 60 months, and LendingClub never charges a prepayment penalty for paying
off a loan early. It also allows joint loan applications.
Payoff Benefits
One of the best things
about using LendingClub is that borrowers can apply for and manage their loan
completely online. The website interface for LendingClub is known for being
user-friendly, which makes sense considering all of its business is conducted
through the website. LendingClub does not yet have an app for borrowers to
track their accounts on the go, but borrowers can log in to their accounts
using the browser on their smartphones.
Bottom Line
LendingClub is a great
non-traditional choice for borrowers to obtain an unsecured personal loan,
particularly for debt consolidation purposes. Here is a summary of what you can
expect:
- Unsecured loans from $1,000 to $40,000
- Fixed-rate loans with easy to understand terms
- Borrowers are assessed and assigned a risk grade at application
- Origination fees that differ according to risk grade
- Fixed APR from 5.99% - 35.89%
- Credit score minimum of 600, but with better rates going to well-qualified borrowers
- Easy online interface
- Loan terms up to 60 months, with no prepayment penalties
- Allows joint loan applications
10# Payoff
Founded in 2009 and
based in Costa Mesa, California, Payoff
is a peer-to-peer (P2P) online lender that focuses on helping its borrowers
consolidate and get rid of credit card debt. The company begun as an online
portal that incorporated social media aspects to encourage and support people
paying off their credit cards, and has evolved into a true P2P lender
connecting investors with borrowers. One thing that sets Payoff apart from many
other P2P online lenders is the fact that Payoff focuses exclusively on debt consolidation
loans. To date, the company has helped refinance more than $100 million in
credit card debt for its borrowers. Thought it is ranked 6th, Payoff is a great
personal loan lender who deserves your consideration.
- Rates as low as 8.00% for fixed rates
- Qualify for loans between $5,000 and $35,000
- Choose payment plans from 2 to 5 years
- Zero application or pre-payment fees
The Basics
A borrower with Payoff
can expect a Fixed APR between 8.00% – 25.00%, with actual interest rates between
5.94% - 22.60%. No variable rates are available. Available loan terms come as
short as 24 months or as long as 60 months, and amounts available range from a
minimum of $5,000 to a maximum of $35,000. If you need a very small personal
loan, you may have to look elsewhere.
Payoff’s origination
fees vary according to loan term, as opposed to the creditworthiness of the
borrower. Expect to pay an origination fee of 2%, 3%, 4%, or 5% depending upon
whether the length of the loan is 24, 36, 48, or 60 months, respectively. The
good news is, the origination fee is all that the borrower pays other than
interest. Payoff states that they have eliminated all other common fees,
including application fees, late fees, and prepayment fees from their loans.
According to a study of
Payoff users between March and July 2016, the average borrower saw a 40 point
uptick in their FICO score within two months of receiving a Payoff Loan if they
used it to pay off at least $5,000 in credit card debt. The minimum FICO score
required by Payoff is 660, which makes it one of the P2P companies with the
highest minimum score requirement.
Payoff Benefits
Payoff has favorable
reviews online from their borrowers, and is one of the more flexible P2P
lenders. They’ve also eliminated late fees. If you experience a sudden
financial hardship, such as unexpected job loss, Payoff claims it will work
with you to adjust your payments and avoid defaulting on your Payoff loan. Not
only that, Payoff offers extra services such as resume review and interview
advice.
They also offer a
streamlined application process that allows prospective borrowers to link their
bank accounts to Payoff instead of independently uploading supporting documents
for proof of income and resources. Payoff borrowers receive free monthly FICO
score updates to help them stay on top of their credit score as they pay off
their loan.
Bottom Line
Payoff offers some
services other P2P lenders can’t match, such as flexible payments during job
loss, but is more limited than most other P2P lenders because it only offers
personal loans for the purpose of credit card debt consolidation. Here is a
summary of what you can expect:
- Unsecured loans from $5,000 to $35,000
- Loan purpose is limited to debt consolidation
- Fixed interest rates only
- Easy application process
- Origination fees that vary according to length of loan term
- APR from 8.00% - 25.00%
- Credit score minimum of 660
- Loan terms up to 60 months
