In 2024, personal loans continue to be a popular financial tool for individuals seeking to manage debt, make significant purchases, or cover unexpected expenses. With a variety of lenders and loan products available, finding the right personal loan can be challenging. This article will explore some of the best personal loan options in the US for 2024, highlighting their key features, benefits, and eligibility requirements to help you make an informed decision.
1. LightStream Personal Loans
Overview: LightStream, a division of SunTrust Bank, is renowned for offering competitive interest rates and flexible loan terms. It is a strong contender for those with good to excellent credit scores.
Key Features:
- Loan Amounts: $5,000 to $100,000
- Interest Rates: Starting as low as 5.99% APR with AutoPay
- Terms: 24 to 144 months
- Fees: No fees (no late fees, no prepayment penalties)
- Eligibility: Requires a good to excellent credit score; minimum credit score of 660.
Benefits: LightStream offers low rates, no fees, and a fast online application process. Its Rate Beat Program guarantees to beat a competitor’s rate by 0.10% APR, making it a compelling choice for those who are eligible.
Drawbacks: A higher credit score is required to qualify for the lowest rates, which might limit accessibility for those with less-than-perfect credit.
2. SoFi Personal Loans
Overview: SoFi provides personal loans with competitive interest rates and additional member benefits. It is a popular choice for borrowers seeking flexible terms and added financial perks.
Key Features:
- Loan Amounts: $5,000 to $100,000
- Interest Rates: Starting at 7.99% APR
- Terms: 24 to 84 months
- Fees: No origination fees, no prepayment penalties
- Eligibility: Minimum credit score of 680; requires a strong credit history.
Benefits: SoFi’s benefits include unemployment protection, career coaching, and financial planning. The absence of fees and flexible terms add to its attractiveness.
Drawbacks: The interest rates might be higher for those with average credit scores. Also, eligibility requirements are more stringent compared to some other lenders.
3. Marcus by Goldman Sachs
Overview: Marcus by Goldman Sachs is well-known for its straightforward personal loan options with competitive rates and no fees.
Key Features:
- Loan Amounts: $3,500 to $40,000
- Interest Rates: Starting at 6.99% APR
- Terms: 36 to 72 months
- Fees: No fees (no origination fees, no prepayment penalties)
- Eligibility: Minimum credit score of 660; requires a stable income and credit history.
Benefits: Marcus offers a transparent loan process with no fees and flexible repayment terms. It also provides the option to skip a payment once a year.
Drawbacks: The loan amounts are lower compared to some competitors, which might not suit those needing larger sums.
4. Upstart Personal Loans
Overview: Upstart uses artificial intelligence and machine learning to offer personal loans, making it a good option for those with less traditional credit profiles.
Key Features:
- Loan Amounts: $1,000 to $50,000
- Interest Rates: Starting at 6.18% APR
- Terms: 36 or 60 months
- Fees: No origination fees; late payment fees apply
- Eligibility: Minimum credit score of 300; considers alternative data like education and job history.
Benefits: Upstart’s innovative approach helps those with limited credit history qualify for loans. It offers relatively low starting APRs and flexible terms.
Drawbacks: Higher interest rates may apply for those with weaker credit profiles, and late payment fees can add up.
5. Avant Personal Loans
Overview: Avant specializes in personal loans for those with average credit scores. It offers a quick and easy application process.
Key Features:
- Loan Amounts: $2,000 to $35,000
- Interest Rates: Starting at 9.95% APR
- Terms: 24 to 60 months
- Fees: Origination fee up to 4.75%; late payment fees apply
- Eligibility: Minimum credit score of 600; considers income and financial stability.
Benefits: Avant is accessible to those with lower credit scores and provides a straightforward loan application process. The availability of larger loan amounts compared to some other lenders is also a plus.
Drawbacks: The higher interest rates and origination fees might not be ideal for everyone.
6. Discover Personal Loans
Overview: Discover offers personal loans with competitive rates and the benefit of a well-known financial institution backing the product.
Key Features:
- Loan Amounts: $2,500 to $35,000
- Interest Rates: Starting at 6.99% APR
- Terms: 36 to 84 months
- Fees: No fees (no origination fees, no prepayment penalties)
- Eligibility: Minimum credit score of 660; requires a stable income and good credit history.
Benefits: Discover’s loans come with no fees and competitive rates. Additionally, Discover provides a 30-day money-back guarantee if you change your mind after accepting the loan.
Drawbacks: The loan amounts are lower compared to some competitors, which might not be sufficient for larger needs.
7. LendingClub Personal Loans
Overview: LendingClub is a peer-to-peer lending platform offering personal loans with flexible terms and competitive rates.
Key Features:
- Loan Amounts: $1,000 to $40,000
- Interest Rates: Starting at 8.05% APR
- Terms: 36 or 60 months
- Fees: Origination fees between 3% and 6%; late payment fees apply
- Eligibility: Minimum credit score of 600; considers income and credit history.
Benefits: LendingClub offers a range of loan amounts and flexible terms. Its peer-to-peer model can lead to competitive rates.
Drawbacks: Origination fees and higher interest rates for lower credit scores can be a downside.
8. Earnest Personal Loans
Overview: Earnest stands out for its personalized loan terms and a focus on borrowers with solid financial profiles.
Key Features:
- Loan Amounts: $1,000 to $75,000
- Interest Rates: Starting at 6.99% APR
- Terms: 12 to 60 months
- Fees: No fees (no origination fees, no prepayment penalties)
- Eligibility: Minimum credit score of 650; considers a comprehensive financial profile.
Benefits: Earnest offers personalized loan terms and a smooth application process. The absence of fees and competitive rates are significant benefits.
Drawbacks: The eligibility requirements might be stringent for some borrowers.
9. Best Egg Personal Loans
Overview: Best Egg offers personal loans with a straightforward application process and competitive rates.
Key Features:
- Loan Amounts: $2,000 to $50,000
- Interest Rates: Starting at 5.99% APR
- Terms: 36 to 60 months
- Fees: Origination fee of 0.99% to 5.99%; late payment fees apply
- Eligibility: Minimum credit score of 600; requires a stable income and good credit history.
Benefits: Best Egg provides a quick and simple application process with competitive rates and a range of loan amounts.
Drawbacks: The origination fees can be high, and higher rates apply for those with weaker credit profiles.
10. Prosper Personal Loans
Overview: Prosper is another peer-to-peer lender offering personal loans with competitive rates and flexible terms.
Key Features:
- Loan Amounts: $2,000 to $50,000
- Interest Rates: Starting at 7.95% APR
- Terms: 36 or 60 months
- Fees: Origination fee of 2.41% to 5% of the loan amount; late payment fees apply
- Eligibility: Minimum credit score of 640; considers income and credit history.
Benefits: Prosper’s peer-to-peer lending model offers flexibility and competitive rates. Its platform is user-friendly and straightforward.
Drawbacks: Origination fees and higher interest rates for those with lower credit scores can be a concern.
Conclusion
Choosing the best personal loan in 2024 requires careful consideration of your financial situation, credit score, and loan needs. Each of the lenders mentioned in this article offers unique benefits and features, so it’s essential to compare them based on your individual criteria. By understanding the key features, benefits, and drawbacks of each option, you can make a well-informed decision that aligns with your financial goals.