With so many personal loan options out there, we sift through the details to make your decision easier.
Laurel Road Personal Loans
Get a personalized rate offer through a quick online application. Recommended for people with annual income of $60K+ and debt of less than 40% of their income.
- Min. Credit Score Required: 680
- Min. Loan Amount: $1,000
- Max. Loan Amount: 45000
- Starting APR: 5.5%
- Loan Term: 3, 4 or 5 years
- Rate discounts for autopay
- No prepayment fees
Three of the best personal loans you can apply for in October 2017
| Lender | APR | Best for… | |
|---|---|---|---|
| LendingClub | As low as 5.99% | People who want a one-stop shop lender for multiple borrowing needs, including auto refinancing and business. | |
| As low as 5.99% | Those looking for a no-frills peer-to-peer lender with a track record of transparent and fair practices. | ||
| As low as 5.49% | Borrowers with excellent who want additional perks like educational events and member dinners. |
Some of the best personal loans you could apply for
The three-step process to help you find the best personal loan
1. What do you need?
Decide why you’re taking out the loan and what you need from it. For example, you might need the loan to consolidate debt or purchase a new car and you want to be able to make additional repayments without penalties. Check out our guide on loan purposes to see the variety of situations a personal loan can be used for.
2. What is available?
Compare the types of loan you want to apply for. Personal loans can be secured or unsecured and can have fixed or variable rates. Compare different loan types according to their features and find one that offers everything you need. Then, check the eligibility criteria to make sure you can apply for it.
3. What does the loan cost?
It’s important to find a loan you can afford. Check whether the loan charges a fixed or variable rate, look for upfront and ongoing fees and see how flexible the repayments are. Make sure the ongoing repayments will fit your budget.
Once you’ve completed the third step, the only thing left to do is apply for the best personal loan that you’ve found.
How you can compare the best personal loans
It’s important to compare your options before applying for a personal loan. Pay attention to the following features, and you could enjoy considerable savings:
- Do you want a secured or unsecured loan?
If you get a secured personal loan, your loan will be backed by an asset used as collateral. An unsecured loan doesn’t use collateral but usually comes with a slightly higher interest rate since more risk is posed to the lender. - What is the interest rate and APR?
Interest rates and APR’s vary depending on the lender. In addition to what interest is charged on the loan principal, it’s important to know what the APR is, since this number includes any fees that will be charged. - What are the fees?
Some personal loans charge application fees and origination fees. Be sure to understand all the fees that are being charged and why they’re being charged. - What will the term of your loan be?
While a lower interest rate might seem promising at first, you should also compare loan terms. This is simply because the shorter the loan’s duration, the less you pay in the form of interest over the life of the loan.
Pros and cons of personal loans
- Online applications are easy and can offer quick turnaround
The application process is quick, and the majority of lenders allow you to complete the whole process online. Some lenders offer next business day turnarounds if you apply by a certain time. - Wide range of personal loans available
You can choose from secured and unsecured personal loans as well as lines of credit, car loans and business loans. - You can get access to a competitive interest rate
If you compare interest rates of personal loans with credit card interest rates, you’ll see why people prefer personal loans over credit cards for certain expenses.
- You may not be approved
You can expect strict eligibility criteria with some of the top personal loan lenders. If you don’t have good credit (680+), your chances of approval may be slim. - The loan purpose might be restrictive
Depending on the type of personal loan you choose, you may be restricted as to how you can use it.
Grace wants to improve her home before selling it
Grace was moving out of state and decided to sell her home. To increase the value of her home, she wanted to complete some renovations. She knew she’d make the money back once the sale of the home was finalized but needed the cash on hand sooner. She wanted to borrow $7,000.
Grace had good credit and a steady full-time job. Based on her annual salary of $75,000 and her regular expenses, she worked out she could comfortably afford repayments of up to $500 per month. She decided that an unsecured loan would best meet her needs as she wasn’t purchasing an asset to attach it.
As unsecured loans tend to have higher rates, she found one with minimal fees to help keep her costs down. She compared her options and found a loan with an APR of 9.26% that she could repay in three years, making her repayments $223.45 a month. There was also no penalty for early repayment.
Grace applied for the loan online and was approved. Since the repayments were well within her budget, Grace made extra payments throughout the term of the loan and was able to improve her home before selling it.
What to keep in mind when comparing best personal loans
While personal loans are helpful in many scenarios, it’s in your best interest to avoid certain traps and pitfalls.
- Read the fine print.
Scrutinize all your options carefully right from the start and remember to look for ongoing fees, early repayment fees and late payment fees. Read the terms and conditions document from start to finish. - Check that the lender is licensed.
There are a number of credit brokers and providers who operate illegally. If you wish to safeguard your information, it’s best to do your research to avoid these disreputable lenders. - Don’t take on a loan you can’t afford.
Just because you qualify for a large loan, doesn’t mean you have to take out the maximum amount. If you only need $10,000 for what you want to accomplish, there’s no need to get a $15,000 loan, for example.
Things to consider when applying for a personal loan
- Establish how much you want to borrow and your monthly repayment ability before applying. You should find out how long it might take for you to pay the loan off completely, remembering that payments are usually made monthly.
- Compare interest rates, fees, terms and requirements of different personal loans on finder.com. Once you find a loan you wish to apply for, proceed to the lender’s website by clicking “Go to Site”.
- Have your personal information ready such as your government-issued ID, pay stubs, details of other loans you have and bank account statements.
Frequently asked questions
What's the difference between fixed and variable interest rates?
Fixed interest rates stay the same throughout the entire term of the loan, while variable interest rates may change during the term of the loan. Read our guide to learn more about the differences between fixed and variable interest rates.
What's the maximum amount for a personal loan?
Maximum loan amounts vary depending on the lender. View our comparison table above to compare lenders who may offer the amount you need.
I have an excellent credit score. I'm guaranteed to get any personal loan, right?
Not exactly. Your likelihood of approval for a personal loan may be greater with an excellent credit score, but there’s no such thing as a guaranteed personal loan. Be sure to consider the lender’s other eligibility requirements, such as income and employment status, before applying.
Before you visit Laurel Road…
The most qualified applicants have a minimum credit score of 680. Laurel Road tends to be best for people with annual income above $60,000 and total debt of less than 40% their income. If you don’t think Laurel Road is best for you, explore other loan options.
Before you visit Laurel Road…
The most qualified applicants have a minimum credit score of 680. Laurel Road tends to be best for people with annual income above $60,000 and total debt of less than 40% their income. If you don’t think Laurel Road is best for you, explore other loan options.
