Top Unsecured Loan Companies
1. SoFi: Best for High Loan Amounts and Career Support
SoFi stands out as a leader in the unsecured loan market due to its unique approach that combines financial products with career support. SoFi offers personal loans ranging from $5,000 to $100,000 with no origination fees and fixed interest rates. The company is known for providing various benefits beyond the loan itself, such as career coaching, networking opportunities, and unemployment protection.
SoFi’s interest rates range from 5.99% to 20.69% APR, depending on creditworthiness and the loan term, which can extend up to seven years. The company is especially appealing to professionals and graduates looking to consolidate debt, pay for a wedding, or finance home improvements. SoFi’s customer service is highly rated, with 24/7 support and a user-friendly mobile app.
2. Marcus by Goldman Sachs: Best for No Fees
Marcus by Goldman Sachs is an excellent choice for those who want a straightforward loan with no hidden fees. Marcus offers personal loans ranging from $3,500 to $40,000 with fixed interest rates between 6.99% and 19.99% APR. The company does not charge any fees, including origination, prepayment, or late fees, which is rare in the industry.
The loan terms range from three to six years, and Marcus allows borrowers to choose their payment due date. This flexibility, combined with competitive interest rates, makes Marcus a preferred lender for those with good to excellent credit. The application process is entirely online, and customer service is available via phone and email.
3. LightStream: Best for Low-Interest Rates
LightStream, a division of SunTrust Bank, offers some of the lowest interest rates in the unsecured loan market, making it an attractive option for borrowers with excellent credit. LightStream provides loans ranging from $5,000 to $100,000, with interest rates starting as low as 5.95% APR for those with good credit and higher for others.
One of the standout features of LightStream is its Rate Beat Program, which promises to beat any qualifying rate from another lender by 0.10 percentage points. The loan terms are flexible, ranging from two to seven years, and the company offers a satisfaction guarantee, promising $100 if you are unsatisfied with your experience. However, LightStream does not offer pre-qualification, which means a hard credit inquiry is required to apply.
4. Avant: Best for Fair Credit
Avant specializes in offering unsecured loans to borrowers with fair to average credit, typically those with credit scores ranging from 580 to 700. Avant provides loans from $2,000 to $35,000, with APRs between 9.95% and 35.99%. While the interest rates are higher than those offered to borrowers with excellent credit, Avant provides a valuable option for those who may not qualify for other lenders.
Avant charges an origination fee of up to 4.75%, which is deducted from the loan proceeds, and offers loan terms ranging from two to five years. The company is known for its fast approval process and funds disbursement, often within one business day. Avant’s customer service is accessible via phone, email, and chat, providing multiple channels for support.
5. Upstart: Best for Borrowers with Limited Credit History
Upstart is a unique lender that uses artificial intelligence to assess borrowers' creditworthiness, considering factors such as education, employment history, and income. This approach allows Upstart to offer unsecured loans to individuals with limited credit history or those who are new to borrowing.
Upstart provides loans ranging from $1,000 to $50,000, with APRs between 6.95% and 35.99%. The loan terms range from three to five years, and there is an origination fee of up to 8% of the loan amount. Upstart’s AI-driven underwriting process enables a higher approval rate for those who may not qualify with traditional lenders. The company is known for its fast application process and quick funding, often within one business day.
6. Discover Personal Loans: Best for Consolidating Debt
Discover is a well-known name in the financial industry, and its personal loan offerings are particularly suited for debt consolidation. Discover provides unsecured loans ranging from $2,500 to $35,000 with fixed interest rates between 6.99% and 24.99% APR. The loan terms range from three to seven years, and there are no origination fees or prepayment penalties.
Discover allows borrowers to use their loan to pay off existing debts directly, making it easier to manage multiple credit card balances or other loans. The company’s customer service is highly rated, with 100% U.S.-based support available 24/7. Discover also offers a 30-day loan guarantee, allowing borrowers to return the loan without any fees if they change their minds.
7. Best Egg: Best for Quick Funding
Best Egg is a top choice for borrowers who need funds quickly. The company offers unsecured loans ranging from $2,000 to $50,000, with interest rates between 8.99% and 35.99% APR. Best Egg is known for its fast approval process, with funds often disbursed within one business day.
Best Egg charges an origination fee of 0.99% to 5.99%, depending on creditworthiness. The loan terms range from three to five years, and the company offers a seamless online application process. Best Egg is particularly appealing to borrowers with good to excellent credit who need funds for a specific purpose, such as home improvement or medical expenses.
8. LendingClub: Best for Joint Loans
LendingClub is one of the few lenders that offer joint loans, making it an excellent option for couples or business partners looking to combine their credit profiles to secure better terms. LendingClub offers loans ranging from $1,000 to $40,000, with APRs between 8.05% and 35.89%.
The loan terms range from three to five years, and LendingClub charges an origination fee of 2% to 6% of the loan amount. The company’s peer-to-peer lending platform allows investors to fund loans, offering competitive rates to borrowers with good to excellent credit. LendingClub’s customer service is available via phone and email, and the company provides an online platform for managing loans.
9. Prosper: Best for Peer-to-Peer Lending
Prosper was one of the first companies to offer peer-to-peer lending in the United States, allowing individuals to borrow directly from investors. Prosper offers unsecured loans ranging from $2,000 to $40,000, with interest rates between 7.95% and 35.99% APR.
The loan terms range from three to five years, and Prosper charges an origination fee of 2.41% to 5%, depending on creditworthiness. Prosper’s peer-to-peer model allows for more personalized lending, with investors choosing which loans to fund. The company’s platform is user-friendly, and customer service is available via phone and email.
10. Earnest: Best for Customizable Terms
Earnest is a unique lender that allows borrowers to customize their loan terms based on their financial goals. Earnest offers unsecured loans ranging from $5,000 to $75,000, with APRs between 5.99% and 19.99%.
Earnest’s standout feature is its Precision Pricing model, which allows borrowers to choose their exact monthly payment and loan term, ranging from three to five years. The company does not charge any fees, including origination or prepayment penalties. Earnest is ideal for borrowers with good to excellent credit who want flexibility in their loan terms. The company’s customer service is available via phone and email, and the application process is entirely online.
Conclusion
Choosing the right unsecured loan company depends on your financial situation, creditworthiness, and specific needs. Whether you’re looking for low-interest rates, quick funding, or the ability to customize your loan terms, there’s an option out there for you. It’s essential to compare the different features, interest rates, and fees of each lender to find the one that best suits your needs.
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