Introduction
Borrowers also turn to personal loans to consolidate their debt. This is because interest rates on personal loans are typically lower than those on credit cards, particularly for applicants with good to excellent credit. Conventional financial institutions, credit unions, and online lending platforms offer these loans. The applications for these loans can be quickly submitted online, eliminating the need to visit a bank branch physically. In addition, most best online personal loans can have their funding processed within just a few business days, which means that you won't have to wait to get the money you require. The best personal loans provide qualified borrowers with competitively low-interest rates, adaptable loan amounts, repayment terms, and few or no additional fees.
Best Online Personal Loans
LightStream Personal Loans
People with excellent credit or better can take advantage of the low-interest loans and flexible repayment options made available by LightStream, the online lending division of SunTrust Bank. Loans are available from LightStream for virtually any purpose, except those for higher education and small businesses. According to the organization's website, you may use the money from a personal loan from LightStream to pay for a wedding, a new automobile, a bathroom remodel, debt consolidation, or consolidation of other types of debt.
Suppose you apply for a loan on a day when banks are open for business. In that case, your application is approved, and you verify your direct deposit banking account information and electronically sign your loan agreement by 2:30 p.m. Eastern Time; you will be able to receive the funds on the same day. LightStream's annual percentage rates (APRs), which range from 3.49% to 19.99% APR when autopay is signed up, are the lowest available compared to the other lenders on our list. Before you apply for a loan with LightStream, you may see the interest rate ranges available on their website to get an idea of what to expect. Currently, the annual percentage rate (APR) for auto loans begins at 3.49%, and the APR for debt consolidation loans begins at 5.73%. As a result of the Fed's rate changes, this could end up being different.
Your annual percentage rate (APR) will be increased by one-half of a percentage point if you choose the invoicing option for repayment rather than signing up for the autopay option. Because the APR will not change during the term of the loan, the amount you will be required to pay back monthly will be consistent. The loan terms can be between 24 and 144 months, making it the choice with the most extended term possible among the best loans on our list. LightStream does not impose any fees for the loan's origination, administration, or early payoff.
SoFi Personal Loans
Refinancing student loans was SoFi's original business, but the company has since expanded to offer personal loans of up to $100,000 based on a borrower's creditworthiness. This makes the company an excellent candidate for consolidating high-interest credit card debt. If you have high-interest debt and want to refinance it, SoFi offers a simple and fast sign-up and application process and an app that is simple to use and manages payments.
In contrast to most personal loan providers, SoFi allows you to choose between a variable and fixed annual percentage rate (APR). You could save money if the annual percentage rate (APR) drops during your loan because variable rates are subject to changes throughout the life of the loan (but they can also rise). Fixed rates guarantee the same monthly payment throughout the life of the loan, making it simpler to create and stick to a budget. Using automatic electronic payments can result in a 0.25% reduction in your APR. You can pay SoFi either online through your bank or through the mail.
After you have finalized the terms of your agreement, the money from your loan through SoFi should be available within a few days. The SoFi mobile app enables users to apply for loans and manage existing ones. If you have taken out a hefty loan and then lost your job, SoFi can assist you. You can hold your regular payments (and make interest-only payments) on the debt while you look for a job. The accrual of interest won't impact the history of your payments.
Discover Personal Loans
Personal loans from Discover can be used for debt consolidation, home improvements, weddings, and even vacations. Even though there are no origination costs, Discover will charge you a late fee of $39 if you cannot repay your loan by the due date each month. Discover allows customers to lock in annual percentage rates (APRs) anywhere from 5.99% to 24.99%, depending on their creditworthiness. There is no additional cost associated with paying off your loan early or making additional payments within the same month to reduce the amount of interest you will accrue.
Discover can direct payments to your existing creditors if you secure a loan to consolidate your debts. You can link your credit card accounts with Discover so that the company can send the money to you directly after you have been approved for and accepted your loan. You will be required to submit information such as account numbers, the amount you would be paid, and the payment address.
After you have satisfied all your financial obligations, you can put any money left over into your chosen bank account. If your application was sent in without mistakes, your funds could be transferred to your account as early as the following business day (and the loan was funded on a weekday). In that case, the time required to transfer your payments will not exceed one week.
Conclusion
Personal loans obtained online are frequently more accessible to acquire than conventional ones, and they may be suitable for a wider variety of financial needs. Because of this, many borrowers choose to obtain financing from an internet lender rather than through a conventional bank or credit union.
