The Best Personal Loan Sites For Your Credit Score (in 2016)

Potential borrowers should do their homework to understand the personal loan options available to them. Here are the best personal loan sites for your credit score.Personal loans can be a convenient way to get cash to cover a short-term financial hurdle.

They are also a popular tool for consolidating and eliminating high interest credit card debt—and their fixed interest rates and payments can certainly save some borrowers money.

However, since personal loans are unsecured, just like credit card debt, borrowers who struggle with self-discipline and those without a great credit history may find that a personal loan will actually cost them in the long run.

This is why potential borrowers should do their homework to understand the personal loan options available to them based on their own credit score.

Each of the following online lenders has different requirements and alternatives for borrowers. They are listed in order of credit score requirements.

Read on to see which one will work best for you:

Avant

Learn more about Avant

AvantBorrowers with poor credit often have nowhere to turn if they need personal loans, which can lead to a downward spiral into payday loans. Now, those types of borrowers can get fast cash with flexible terms and fair rates from Avant. Borrowers can receive loans between $1,000 and $35,000 for terms lasting between 2 and 5 years.

Unlike most other lenders, Avant only asks for a minimum credit score of 580 (although most of their borrowers have credit scores in the 600-700 range). There are also no minimum requirements for income, credit history, or debt-to-income ratio.

This kind of flexibility does mean that Avant’s interest rates are higher than those of other lenders. The lowest APR with an Avant loan is 9.95%, rising to a maximum of 36%. However, Avant offers loans with no origination fees, as well as something they call “due date adjustment,” which allows borrowers facing a money crunch to have a little extra time before their next payment is due.

In addition, there is a $25 late fee for a missed payment, but borrowers who then make three consecutive on-time payments after the missed payment will see their late fee refunded to them. Avant also allows qualified borrowers to refinance their loans to a lower rate up to two times over the life of the loan.

Avant provides quick funding, with most loans fulfilled the same day, although some may take up to a week.

Loan Minimum/Maximum: $1,000 to $35,000

Loan Repayment Terms: 2 to 5 years

Rates: Fixed rates range from 9.95% to 36% APR

Fees: There are no origination, prepayment, or check-processing fees. There is a $25 late fee, which can be refunded if you make three consecutive on-time payments after the late fee is assessed.

Minimum Credit Requirements: A FICO score of 580. There are no other hard credit requirements.

Get started at Avant.com

Lending Club

Learn more about Lending Club (read our full review)

Lending ClubLending Club is currently the largest peer-to-peer lending network, responsible for over $13 billion of loans as of September 2015. It is available to borrowers in every state except Iowa.

The peer-to-peer model allows borrowers to access loans at better rates than they could get through traditional banks because they are borrowing from individual investors. Lending Club offers personal loans ranging from $1,000 to $40,000 at fixed rates from 5.99% to 35.96% APR and loan terms of either 36 or 60 months. You will pay an origination fee of between 1% and 6% on your loan, with an average origination fee of 3.34% for the highest rated borrowers.

Lending Club deposits your loan directly into your bank account, and beginning one month after you receive your funds, Lending Club will debit your monthly payment from the same account.

Loan Minimum/Maximum: $1,000 to $40,000

Loan Repayment Terms: 36 or 60 months

Rates: Fixed rates from 5.99% to 35.96%

Fees: Origination fee ranges from 1% to 6%. If you choose to pay via check, there is a check-processing fee. There is no prepayment penalty.

Minimum Credit Requirements: Experian credit score of 600 or better, strict debt-to-income requirements.

Get started with at LendingClub.com

FreedomPlus

Learn more about FreedomPlus

Freedom PlusIf you need money in a hurry, a FreedomPlus loan might be your answer. This lender offers same day online loan approvals and loan funding within 48 hours—within some restrictions.

Borrowers can access up to $35,000 from FreedomPlus with fixed rates ranging from 7.93% APR to 29.90% APR.

If you’re thinking those rates seem pretty steep, you’re right. FreedomPlus is geared more toward borrowers who may not have the best credit. According to Taylor Gordon of Magnify Money, who had to place a phone call to get this information, borrowers must have a credit score of 600 or above, $25,000 worth of verifiable income, and no bankruptcies in the last two years.

Borrowers will pay an origination fee ranging from 1.38% to 5% and repayment terms range from 24 month to 60 months.

Loan Minimum/Maximum: $5,000 to $35,000

Loan Repayment Terms: 2, 3, 4, or 5 years

Rates: Fixed rates range from 7.93% to 29.9%

Fees: The origination fee ranges from 1.38% to 5%. There is no prepayment fee. Other fees, such as check processing fees or late fees are not spelled out on the website. It is a good idea for borrowers to fully read all fine print on any loan offers to know if there are other potential fees.

Minimum Credit Requirements: A FICO score of 600, $25,000 worth of verifiable income, and no bankruptcies within the last two years.

Get started at FreedomPlus.com

Prosper

Learn more about Prosper

ProsperLike Lending Club, Prosper is a peer-to-peer lending platform that offers better loan rates than those available through a traditional bank. Prosper is available in every state except Iowa, Maine, and North Dakota.

Prosper requires borrowers to have a minimum Experian credit score of 640, but it takes other factors into consideration when calculating your “Prosper Rating,” its proprietary credit rating system. Borrowers can receive loans amounts from $2,000 to $35,000 at APRs ranging from 5.99% to 35.97%. Repayment terms are either 36 months or 60 months. Prosper charges what it calls a “closing fee” (what most other lenders would call an origination fee) that is a percentage of the amount borrowed and can vary based upon your Prosper Rating.

Prosper also deposits your funds directly into your bank account, and automatically debits your monthly payments starting the month after your loan is funded.

Loan Minimum/Maximum: $2,000 to $35,000

Loan Repayment Terms: 36 or 60 months

Rates: Fixed rates from 5.99% to 35.97% APR

Fees: You pay a closing fee based upon your Prosper Rating, generally between 1% and 5%. Borrowers who pay via mail or phone may have to pay a $15 processing fee each time. There is no prepayment penalty.

Minimum Credit Requirements: Experian credit score of 640 or better. Prosper uses a proprietary credit rating system known as Prosper Rating.

Get started at Prosper.com

Upstart

Learn more about Upstart

This is a peer-to-peer lending platform that connects borrowers with accredited investors who fund their loans. What makes Upstart different from other peer-to-peer platforms is the fact that it can use more than just your credit history to determine your creditworthiness.

Borrowers who have not had the time to build a credit history can use their academic history (such as what college they attended, their GPA, and even their SAT scores) and other proof of financial responsibility to secure a loan with Upstart. That means Upstart evaluates your potential based on factors that include what college you attended, your GPA, and even your SAT scores. However, if you do have a credit score, it must be at least 640 in order for you to be eligible for an Upstart loan.

You can borrow between $1,000 and $50,000 for loan terms of either 36 or 60 months, with fixed rates ranging from 4.66% to 29.99% APR. The platform charges an origination fee that varies based upon the borrower’s history and underwriting.

Loan Minimum/Maximum: $1,000 to $50,000

Loan Repayment Terms: 36 months or 60 months

Rates: 4.66% – 29.99% APR, fixed.

Fees: Origination fee between 1% and 6%. This fee is rolled into your APR. There are no pre-payment fees or check-processing fees. Late fees are either 5% of payment amount or $15, whichever is greater.

Minimum Credit Requirements: Experian credit score of 640 or better, unless you have not built up enough credit history to generate a credit score.

Get started at Upstart.com

Payoff

Learn more about Payoff (read our full review)

Payoff LogoThis lender is all about helping people get out of debt and achieve financial freedom. Their loan model assumes that borrowers are taking on personal loans in order to pay off credit card debt. You can borrow between $5,000 and $35,000 from Payoff for a fixed rate between 6% and 19.65% and terms between 24 and 60 months. Payoff partners with First Electronic Bank to originate loans—it is neither a bank nor a peer-to-peer lender.

Payoff offers complete transparency about its credit qualifications. If any of the following do not apply to you, then you will not be eligible for a Payoff loan:

FICO Score: 660 or higher

Debt-to-Income ratio: 50% or less

Years of credit history: 3 years of good credit

Open and Satisfactory Trades (Lines of credit you have opened and on which you have made on-time payments): 2

Delinquencies: No current delinquencies and no delinquencies greater than 90 days within the last 12 months.

Once you are approved, your funds will be deposited in your bank account within two to five business days. You will pay an origination fee based on the repayment term you have chosen—2% for a two-year loan, 3% for a three-year loan, and so on.

Payoff is currently only available in 30 states.

Loan Minimum/Maximum: $5,000 to $35,000

Loan Repayment Terms: 2, 3, 4, or 5 years

Rates: Fixed rates between 6% and 19.65% APR

Fees: The origination fee is based strictly on the repayment term—2% for a two-year-loan, 3% for a three-year, and so on. There are no other fees whatsoever.

Get started at Payoff.com

LendingTree

Learn more about LendingTree

Lending TreeThis site is an online loan marketplace, where borrowers can fill out a single form in order to receive multiple customized offers from lenders on the LendingTree network. The borrower pays no fees whatsoever in order to use LendingTree. Depending on which lender you choose, however, you may have to pay an application fee, processing fee, and/or closing costs.

The big selling point for LendingTree is the fact that lenders are bidding for your business, rather than the other way around. Once you have submitted your loan request, your information is passed along to prospective lenders. Interested lenders email you their offers, and you can choose among the various loans. To help you determine the best choice, LendingTree allocates each lender a “Lender Score” based upon user reviews.

You can accept any loan that best fits your needs, and you are not obligated to choose any loan if none will work for you. LendingTree also recommends that borrowers negotiate with the lenders in order to get the best terms.

While LendingTree does pull your credit report when you submit your loan request, the inquiry is a “soft pull” and does not negatively affect your credit score.

Get started at LendingTree.com

SoFi

Learn more about SoFi (read our full review)

SoFiSoFi is a non-traditional lender that uses a novel underwriting process. Their approach focuses on only lending to financially responsible borrowers, and they analyze “forward-looking” factors to determine each applicant’s future potential and ability to pay. For instance, as of early 2016, SoFi no longer uses FICO credit score in underwriting, but instead takes employment history and other factors into consideration.

Though there are no minimum credit or income requirement, the average SoFi borrower does have good credit and a high income, and not everyone will qualify for a personal loan with them.

SoFi offers borrowers competitive rates—variable rates starting at 4.74% APR and fixed rates starting at 5.95% APR—as well as other services such as unemployment protection. You can borrow between $5,000 and $100,000 from SoFi for loan terms of either 3, 5, or 7 years, and there is no origination fee.

Loan Minimum/Maximum: $5,000 to $100,000

Loan Repayment Terms: 3, 5, or 7 years

Rates: Variable rates range from 4.74% to 11.34%, and fixed rates range from 5.95% to 12.99%. Variable rates are currently capped at 11.49%.

Fees: There are no application or origination fees, and there is no prepayment penalty.

Get started at SoFi.com

CommonBond

Learn more about CommonBond

CommonBondThis peer-to-peer style platform began as a refinancing tool for student loans, but it has expanded to offer personal loans ranging from $1,000 to $50,000. Borrowers can choose between variable rate loans, which range from 4.50% to 11.35% APR, and fixed rate loans, which range from 5.74% to 12.99% APR. Repayment terms can be as short as two years, or as long as seven.

In addition, CommonBond offers high-touch customer service, and member protection. For instance, if a borrower loses her job, she can reach out to CommonBond to have her payments paused and even get help with finding a new job.

Funds are transferred to your account within two to three business days of you signing the final paperwork. Your monthly payments are automatically debited from the same account.

Loan Minimum/Maximum: $1,000 to $50,000

Loan Repayment Terms: 2, 3, 4, 5, 6, and 7 years

Rates: Variable rates ranging from 4.5% to 11.35%, fixed rates ranging from 5.74% to 12.99%. (CommonBond offers a 0.25% rate discount for signing up with autopay, which is included in the above rates).

Fees: There are no application or origination fees, and there is no prepayment penalty.

Get started at CommonBond.com

Earnest

Learn more about Earnest

http://oc.cardsynergy.com/t/?cr=19050&c=246211251&aid=128310&sid=17946&last_updated=1456868459Like Upstart, Earnest is a lender created for individuals without a long credit history. Instead of focusing on credit scores, Earnest looks at other markers of financial responsibility, such as employment history and salary, savings, income-to-expense ratio, and retirement savings. Earnest analyzes more than 80,000 data points for each prospective borrower, which means you must be comfortable giving the lender permission to scan your bank account.

Earnest is also committed to offering flexibility for its borrowers. Once you have been approved for a loan, you can easily alter your monthly payment amount or payment schedule. There are no late fees if you miss a payment. Instead, Earnest’s Client Happiness team will work with you to avoid default by adjusting terms or setting up payment plans. You can take out a loan for any amount between $2,000 and $50,000.

Loan Repayment Terms: 1 year to 3 years

Rates: Fixed rates ranging from 5.25% to 12% APR

Fees: None

Get started at Earnest.com

Last Edited: November 11, 2016 @ 9:55 amThe content of ptmoney.com is for general information purposes only and does not constitute professional advice. Visitors to ptmoney.com should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.
About Emily Guy Birken

Emily Guy Birken is a former English teacher and respected personal finance blogger. She lives in Milwaukee, Wisconsin with her engineer husband and two high-energy little boys. She has written two books: The Five Years Before You Retire and Choose Your Retirement. Emily's thoughts on parenting and life in general are found at The SAHMnambulist.