The pandemic has had dire consequences for much of the world’s population. Although the COVID-19 pandemic is not over yet, it has caused unemployment on a massive scale. In the U.S. alone, some 35 million people have filed for unemployment benefits.
In these trying times, people have lost jobs, businesses have incurred losses and investments have failed. With economic hardship looming all around, almost everyone needs some guidance on financial matters. If you are considering acquiring a personal loan, it is best to review your options before making a decision. This article reviews the ten best companies you can take a personal loan from during COVID-stricken times.
How to Choose the Right Personal Loan
The loan rate is the most critical factor to look out for when comparing personal loan options. Potential lenders include banks, private creditors, or any other non-banking financing company, all with variable loan rates and loan amounts. The lowest loan rate is the best option, of course, but taking a look at the loan requirements, terms and conditions, as well as processing charges is also essential. You should only proceed with a loan when you have read all the related information, and you are sure that it is the best option for you.
Top 10 Personal Loan Options
SoFi: Personal loans from SoFi are a combination of lucrative interest rates and impressive incentives. For instance, you can temporarily pause your loan payments if you lose your job or your income has dwindled. The loan rates start from 5.99% with autopay, and you can borrow between $5000-$100,000 on repayment options spanning over 2-7 years. To qualify for a personal loan, you need a minimum 680 credit score. Besides that, SoFi will check your credit history and other factors like income and employment. The unemployment protection plan offered by SoFi helps it top the list of best loan companies during a pandemic.
Marcus by Goldman Sachs: Taking a personal loan from Marcus by Goldman Sachs is a great option if you are looking for debt consolidation. Paying off loans by taking another loan works best if you can find long-term repayment options. This creditor offers repayment options up to 72 months, and if you have a good credit score, you can acquire a loan for as low as 6.99% with no processing charges. However, the loan amount is only up to a maximum of $40,000. Thus, placing the company as runner up.
LightStream: If you have a strong credit report, there may be no better option for you other than LightStream. The online extension of SunTrust banks offers the lowest interest rates to borrowers who qualify. The finance company provides personal loans up to $100,000 at a meager 4.99% interest rate. However, it is hard to qualify for a loan at such low-interest rates without a stellar credit report. Additionally, all applications are online, and you do not have to meet any loan officers in person, which only makes it a better option during a pandemic.
Upstart: Upstart is another online lending platform that uses AI to help make the qualification process more automated. The AI considers alternative information, which means that even people with fair credit scores have a good chance of qualifying for a loan. With a FICO score as low as 620, you may be eligible for a loan up to $50,000. The interest rates vary from 4.66% to 35.99% based on your credit score and alternative data. The alternative data: education, residence, and job history might help you qualify at better rates.
Avant: Acquiring a personal loan from Avant should be considered by people who have lower than average credit scores. Once qualified, a borrower with a low credit score can borrow up to $35,000 at interest rates starting from 9.95%. The mentioned interest rate is not the lowest offered by Avant, however, it is the lowest rate offered by any creditor to low-credit loan seekers.
Best Egg: Best Egg is famous for its high-rated customer service and inexpensive loan rates. Being an online lender, it has some of the lowest rates out there despite the origination fee. Loan seekers acquire personal loans on rates as low as 5.99% and terms ranging from 36-60 months. The freedom to take more than one loan makes it a unique option during the trying times of a pandemic.
Wells Fargo: Wells Fargo is one of the biggest banks in the U.S. Visiting a branch is not necessary as existing customers can apply for a personal loan via an online application as well as over the phone. Being the best bank for a personal loan in this list, it offers cheap rates, a vast range of loan amounts, and low credit requirements than its competitors. This is not a very viable option if you are a new customer because new customers have to visit the bank in person.
First Tech Credit Union: First Tech Credit Union is viable for applicants with low to average credit scores as it provides access to lower rates and nominal fees. Furthermore, it is easy to become a member of the union. To qualify for a loan, you need a Financial Fitness Association or the Computer History Museum membership and open a savings account with the union with $5. The credit union offers unsecured personal loans at rates starting at 7.70%.
Payoff: If you want to take a personal loan to get rid of expensive credit card debt, Payoff might be the best option. Because Payoff loans are designed specifically for consolidating credit card debt, loan usage options are limited. The creditor offers loans up to $35,000 at rates starting at 5.99%. The minimum credit score requirement is 640.
Lending Club: LendingClub is a peer-to-peer finance company that acts as a mediator between creditors and borrowers. The unsecured personal loans you can take at the Lending Club range from $1,000 to $40,000 at affordable rates. LendingClub charges an origination fee, and you need a good credit score to qualify for a loan. Not only applicants but creditors are also facing problems during the pandemic, so acquiring a loan may be a bit tough. However, if you manage to strike a good deal, it can prove to be the best option for you out of all of them.
Having cash available to make important purchases is essential to achieving many of our goals in life. A personal loan can make some of our most important goals more easy to accomplish. However, it's important that you as a consumer analyze your situation carefully before determining that any loan product is right for you. A…
