Are you ready to renovate your bathroom or make a large purchase, but currently lacking the proper funds? Applying for a personal loan can be a great option if you’re strapped for cash.
But it can be a challenge to find the best option for your financing needs. If you don’t know where to start, you’re in the right place because we’ve done the heavy lifting for you.
Read on to discover our top seven picks for the best low interest personal loans.
Who has the best low interest personal loans?
Interest rates vary widely depending on your credit, income, and the lender you are dealing with. As of 2018, the average interest rate for a 24-month loan with a commercial bank was 10.22%.
However, you can get lower rates if you deal with the right lender and meet their requirements for prime borrowers. Consider these top lenders as you begin your research for the best personal loan options.
While LendingClub requires a minimum credit score of 600, only those with great credit will qualify for the lowest rates.
The lender offers flexible loan amounts and a fast lending process. There are no prepayment fees, however they do charge other fees that could end up being costly depending on your loan size.
But with low rates and an easy application process, LendingClub is a top option you’ll want to consider.
Learn more about LendingClub to see if their best low interest personal loans are right for you.
SoFi offers low interest personal loans with competitively low interest rates. However, they only extend their lowest rates to high-income borrowers with excellent credit.
The lender doesn’t charge origination or prepayment fees, and offers additional benefits such as:
- One-on-one career coaching.
- Exclusive member events to help you achieve financial success.
- Unemployment protection in case you lose your job.
- Entrepreneurial Program which provides capital and an accelerator program.
- Referral program to earn cash for referring your friends.
- Member Advisory Board to provide feedback for all products and services.
So, if your credit is in tip-top shape, SoFi is one of the first places you should look when shopping for a low-interest personal loan.
Discover more and find out if you qualify for a SoFi personal loan.
Many people turn to Prosper when looking for a personal loan for debt consolidation. But the loan can be used for virtually any purpose.
Prosper extends low rates to people with good credit, and the funds are deposited directly into the borrower’s account upon approval.
There are no prepayment penalties, but the lender does charge an origination fee. And, unlike many lenders, you don’t have to option to adjust your loan terms with Prosper.
Learn more about getting a personal loan from Prosper.
Upgrade is a newer online lender founded by the same founders of LendingClub. Along with offering low interest personal loans, the company also helps people manage and improve their credit.
This can be beneficial to people who are denied a loan outright or can’t currently qualify for a decent rate.
Upgrade doesn’t charge a prepayment penalty, but they do charge an origination fee. You can pick your payment due date, and funds are quickly transferred into your account upon approval.
Find out more details about Upgrade and their best low interest personal loans.
Peerform is a good option for borrowers with a lower credit score. You may receive a decent interest rate on a personal loan as long as your credit score is above 600.
The lender charges an origination fee, but there are no prepayment penalties.
With a fast application process and low credit score requirement, Peerform is a top option for many borrowers.
Discover more to see if Peerform is right for you.
In addition to evaluating borrowers credit scores, Earnest will also consider your savings patterns, investments, and career trajectory to determine what rate to offer you.
The lender does not charge origination, prepayment, or early payment fees. They do, however, require a score of at least 700 to qualify.
So, if your credit is in good standing, Earnest is a good option to consider.
Learn more about getting the best low interest personal loans from Earnest.
FreedomPlus is affiliated with the Freedom Financial Network (FFN). FFN specializes in consumer advocacy services, including personal loans.
The lender does charge an origination fee, but not a prepayment fee.
You need a credit score above 670 to qualify for a FreedomPlus personal loan, making this lender a good option for borrowers with poor credit.
Find out more details about FreedomPlus and their best low interest personal loans.
Can you get a low interest personal loan with a credit score of 550?
A credit score below 669 is considered fair or subprime. If you have a bad credit score, it may be challenging to find a lender that will offer you a personal loan.
Consider fixing your credit score before you begin applying for personal loans.
Lenders that offer loans to borrowers with fair or poor credit
But if you’re in need of cash now, look for personal loans with no credit check or that accept low credit scores.
Lenders that offer loans to borrowers with bad or no credit
Another option is to apply for a secured loan. This means you have to put up collateral to secure the loan. So, make sure you know what you’re getting into before you commit. Auto title loans are a popular source of credit for borrowers who have bad credit but own a car.
The bottom line
Personal loans can be a great option to get the funds you need, when you need them. But like any important financial decision, you must do the proper research before making a commitment.
By doing so, you can be confident you’re getting the best deal for your specific needs.