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Charles Schwab personal loan alternatives
Don't want to borrow against your investments? You've got options elsewhere.
If you’ve been banking with Charles Schwab for a while, you know it isn’t the best bank when you’re looking for a loan. But there are plenty of other personal loan providers out there you could apply with instead.
Why doesn’t Charles Schwab offer personal loans?
Though Charles Schwab hasn’t provided an exact reason, it’s safe to assume it doesn’t offer personal loans because its real bread and butter is banking and investing. While it has two secured line of credit options, it’s more focused on offering retirement, stock trading, investment and financial planning services to customers.
3 alternatives to Charles Schwab personal loans
Even though you won’t be able to get a personal loan from Charles Schwab, you still have options. These alternatives stand out because they cover a wide range of needs, from competitive rates to flexible loan amounts.
Best for multiple financing options: Wells Fargo
Wells Fargo offers both secured and unsecured personal loans and lines of credit — all starting at a competitive 5.24% APR. While you may be able to borrow up to $100,000, you’ll need good to excellent credit to qualify for the lowest rates and largest loan amounts.
Already bank with Wells Fargo? You may also be eligible for a rate discount. And it also comes with the added bonus of visiting a branch to discuss your application in person.
- How much you can borrow. $3,000 to $100,000
- APRs. 5.24% to 20.24%
- Terms. 12 to 84 months
- Eligibility requirements. Proof that you can pay back the loan, be 18+ years old and US citizen or permanent resident.
Best for competitive rates: LightStream
A subsidiary of SunTrust, LightStream offers personal loans up to $100,000 with competitive rates thanks to its Rate Beat program. If you receive a better offer from a competing lender, LightStream promises to beat that rate by 0.1% — provided the lender meets certain terms and conditions.
But like with Wells Fargo, you’ll need to have good to excellent credit to qualify for the lowest rates. And it also doesn’t have that local banking experience since everything is done entirely online.
- How much you can borrow. $5,000 to $100,000
- APRs. Competitive
- Terms. 24 to 84 months
- Eligibility requirements. You must have a good or excellent FICO and be an American citizen or a permanent resident of the US.
Best for peer-to-peer lending: LendingClub
LendingClub, one of the largest peer-to-peer (P2P) lenders in the US, may be a good fit for borrowers only looking to take out a small loan. You can borrow as little as 6.95%, making this a less-expensive alternative to taking out a short-term loan.
It doesn’t have as stringent credit requirements as the other lenders on this list. And you can also apply with a cosigner to strengthen your application. Its rates run a bit higher, though, topping out at 35.89%.
- How much you can borrow. $1,000 to $1,000
- APRs. 6.95% to 35.89%
- Terms. 3 to 5 years
- Eligibility requirements. US citizen or permanent resident, verifiable bank account, steady source of income, ages 18+.
Does Charles Schwab offer similar loans?
Sort of, but they’re all secured. It has two personal line of credit options — the Pledged Asset Line (PAL) and margin loan — which allow you to borrow against your equity securities, mutual funds, CDs and bonds. It also offers a home equity line of credit (HELOC), which requires you to borrow against the equity you own in your home. However, these won’t be much help if you don’t have enough money tied up in liquid assets or your home to use as collateral. And you risk losing these assets should you default.
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Updated February 17th, 2020
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Bottom line
Charles Schwab isn’t the end of the road when it comes to personal loans. There are other lenders out there that can get you the money you need — without having to use your assets as collateral.
Compare even more providers and learn more about how it all works with our guide to personal loans.
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