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Personal Finance: Top 5 Unsecured Loans

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Every year, thousands of Americans take out personal loans. For most, it’s a necessity – not many people can afford to pay the large expenses that life throws at us there and then.

Unsecured loans are a popular choice due to the fact you don’t need to put anything down as collateral. The fear of losing your house, your car, or your savings can put people off from taking out loans, but this isn’t something you need to worry about with unsecured loans.


If you’re in need of an unsecured loan, or you just want to learn more about the best unsecured personal loans out there, then keep reading for more information!

Prosper

Pros:

  • Can borrow up to $40,000
  • Competitive rates due to peer-to-peer system
  • Great for repairing your credit score
  • Application form will only take a few minutes to complete

Cons:

  • Origination fee may be costly

Because Prosper isn’t a direct lender (it’s more of a loan marketplace), there will be an origination fee when you receive your funds.

This can cost you anything between 2.4% and 5% of your loan – which is a reasonable fee considering you’ll be saving lots. If it weren’t for Prosper, hours and hours would be spent calling different lenders, browsing various websites, and filling out multiple application forms.

You can borrow up to a whopping $40,000, which is a lot higher than many other loan providers. It’s convenient that you can get quickly and easily connected with different lenders, meaning you can compare interest rates and terms with ease.

 

Best Egg

Pros:

  • Soft-pull application that won’t affect your credit score
  • Can borrow up to $35,000
  • Perfect for major purchases
  • Very competitive interest rates

Cons:

  • $2000 minimum amount

If you have a good, strong credit history, then you can appreciate the competitive loans that Best Egg offers.

Large unexpected expenses can occur at any time, and not everybody has thousands on hand to pay straight away. Well, with Best Egg, you can borrow anything between $2000 and $35,000 – which will cover anything from funerals to new cars.

As expected with many loan companies, you may incur a small origination fee. This can vary from a reasonable 0.99% to a slightly steeper 5.99%. The exact amount will depend on your credit score – so the higher your score, the lower the origination fee will be.

Marcus by Goldman Sachs

Pros:

  • Super competitive rates if you have a high credit score
  • No origination fees or missed payment fees
  • You can choose a repayment plan to fit your situation
  • Can change the due date up to three times before loan ends

Cons:

  • Your credit score must be near perfect to qualify

If you have excellent credit, you’re one of the few that can take advantage of the impressive rates that Marcus by Goldman Sachs offers. Unfortunately, there’s no option to apply with a cosigner, so your credit history alone will have to be squeaky clean.

You’ll be glad to hear there are no prepayment fees, no missed payment fees, and no origination fees. It’s rare to find such a fee-free loan!

The loan repayment is generally simple, and you have the freedom to choose the monthly amount you’re going to pay, and the loan term. Not every loan company will let you choose your repayment amounts and timescales, so this definitely gives Marcus an upper hand against others.

You can even change the loan’s due date three times – which is reassuring to know, as nobody knows where they’re going to be financially in the future.

Avant

Pros:

  • Relaxed approval guidelines
  • Can have up to 60 months to repay the loan
  • You may be able to borrow up to $35,000
  • Quick and easy application process

Cons:

  • Higher interest rates than its competitors

Not everybody has a sparking credit score – and if you’re one of the many Americans with a less-than-perfect credit history, then you may want to consider a loan with Avant.

Avant’s guidelines for approval are a lot more relaxed than other loan companies, which means you may get accepted for a loan even with a poor credit score. However, the interest rates aren’t the most appealing, ranging from 9.95% to 35.99%.

It won’t take you long to complete the online application form, and once it’s been submitted and accepted, you can have access to your funds as soon as 24 hours.

SoFi

Pros:

  • No origination fees
  • 25% discount on your interest rate with monthly autopay
  • Low interest rates
  • Loans can be anything from $5000 to $100,000

Cons:

  • Must have an excellent credit score to get accepted

Origination fees can be a pain, and can certainly discourage you from committing to a loan. Thankfully, SoFi boasts no origination fees as well as high interest rates – so if you’ve got a near-perfect credit score, it’s definitely worth looking into it.

SoFi is the perfect choice if you have a large expense coming up – as you can borrow up to $100,000. The lowest you can borrow is $5000, which is a reasonable minimum loan considering how high the loans can go up to!

The fixed monthly payments make SoFi a good choice for debt consolidation – it’s sure to look great on your credit score if you’re making your payments in a timely fashion.

 

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