Best Personal Loans Lenders

Cashably is affiliated with a network of reliable lenders who offer a variety of loan options to meet your needs. Our lenders provide competitive rates, flexible repayment terms, and a straightforward application process. Whether you’re dealing with an emergency, planning a major purchase, or looking to consolidate debt, our personal loan lenders can help you achieve lower interest rates and more manageable payments.

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5 What Is a Personal Loan?

A personal loan is a lump sum of money that you repay in monthly installments with a fixed interest rate (APR) over a set period. These loans can range from $600 to $200,000, though many lenders, like those on Cashably, offer loans up to $50,000. Generally, loans with APRs below 36% are considered affordable. Personal loan funds can be used for various purposes, including debt consolidation, home improvements, and covering large expenses. Taking out a personal loan can affect a borrower’s credit score, with potential positive impacts from timely payments and negative impacts from increased debt levels.

Definition and Explanation

A personal loan is a type of unsecured loan that allows individuals to borrow a lump sum of money from a lender, which is then repaid, along with interest, over a set period of time. Personal loans can be used for various purposes, such as debt consolidation, home renovations, medical bills, and more. They are often characterized by fixed interest rates, fixed monthly payments, and a set repayment term.

A personal loan is a lump sum of money that you repay in monthly installments with a fixed interest rate (APR) over a set period. These loans can range from $600 to $200,000, though many lenders, like those on Cashably, offer loans up to $50,000. Generally, loans with APRs below 36% are considered affordable.

Types of Personal Loans (Unsecured, Debt Consolidation)

There are several types of personal loans available, including:

Unsecured Personal Loans: These loans are not backed by collateral and are often based on the borrower’s creditworthiness. They are a popular choice for those who do not want to risk their assets.
Debt Consolidation Loans: These loans are designed to help individuals consolidate multiple debts into one loan with a lower interest rate and a single monthly payment. This can simplify your finances and potentially save you money on interest payments.
Secured Personal Loans: These loans are backed by collateral, such as a car or a house, and often offer lower interest rates than unsecured loans. However, if you fail to repay the loan, the lender can seize the collateral.

Personal loans come in two types:

1. Secured Personal Loans, which require collateral (an asset that can be taken if you don’t repay).

2. Unsecured Personal Loans, which don’t need collateral but rely on your credit history. Most personal loans are unsecured.

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Benefits of Personal Loans: Monthly Payment Options

Personal loans offer several advantages compared to credit cards and other loans, including:

Lump sum payments: When you get a personal loan, the full loan amount is deposited into your bank account upfront, unlike a credit card where you borrow from a line of credit.
Fixed interest rates: Unlike credit cards and lines of credit that often have variable APRs, personal loans come with a fixed APR, ensuring your monthly payments remain consistent, even if market rates change.
No collateral needed: Most personal loans are unsecured, meaning you don’t have to provide any collateral. If you can’t repay the loan, your property isn’t at risk, though your credit score might suffer.
Defined repayment terms: Personal loans have a set repayment schedule, so you’ll know when your debt will be fully paid off. This is different from credit cards, where making only the minimum payment can result in long-term debt.
Versatile use: Personal loans can be used for a variety of purposes, such as covering wedding expenses or emergency costs, though they typically can’t be used for business or education-related expenses.
Interest rate discounts: Some lenders offer interest rate discounts if you set up direct deposits into an eligible cash management account.
Quick funding: Cashably personal loans can be funded quickly, often within 24 hours, providing immediate access to cash.

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Importance of Credit Score and Creditworthiness

Your credit score and creditworthiness play a significant role in determining the interest rate and terms of your personal loan. A good credit score can help you qualify for lower interest rates and better terms, while a poor credit score may result in higher interest rates and stricter terms. Improving your credit score before applying for a loan can increase your chances of getting favorable terms.

Online Lenders vs. Traditional Banks and Credit Unions

Online lenders, traditional banks, and credit unions all offer personal loans, but they differ in their application processes, interest rates, and terms.

Online Lenders: Often offer faster application processes, more competitive interest rates, and more flexible repayment terms. They are a good option if you need funds quickly and prefer a fully online experience.
Traditional Banks: May offer more personalized service, more flexible repayment terms, and a wider range of loan options. However, the application process may be slower, and you might need to visit a local branch.
Credit Unions: Often offer more competitive interest rates, more flexible repayment terms, and a more personalized service. Membership is usually required, but the benefits can be worth it.
Ultimately, the best lender for you will depend on your individual needs and circumstances. Be sure to research and compare different lenders before making a decision.

Where to Get a Personal Loan?

The best place to get a personal loan depends on your needs, and there are three main types of financial institutions that offer them:

Banks: It’s a good idea to start by checking with your current bank, as some, like Wells Fargo, require you to be an existing customer. Although the application process may take longer than with online lenders, banks might offer benefits like no-fee loans. However, you might need to visit a local branch in person to finalize your loan.
Credit Unions: To borrow from a credit union, you’ll usually need to become a member, which might involve a small fee or deposit. Be sure to check membership requirements, as some credit unions serve specific groups, like those with military connections. Credit unions often offer smaller loan amounts compared to banks and online lenders, with benefits like capped APRs at 18%, which is helpful if you’re struggling to find lower rates.
Online Lenders: If you prefer flexibility and want to avoid becoming a credit union member or bank customer, online lenders are a good option. The process is entirely online, and without the need for membership or a banking account, online lenders may approve and fund your loan more quickly.

How to Get a Personal Loan

Different lenders have varying application processes and eligibility requirements for personal loans, but many follow similar steps:

Check Your Credit Score: Before applying, review your credit score to gauge your creditworthiness. A higher score may help you get better terms and lower interest rates. If your score is low, consider improving it before applying. Use a personal loan calculator to estimate your monthly payments and total interest.
Compare Lenders: Look at interest rates, fees, terms, and loan amounts from different lenders to find the best deal. Many lenders offer prequalification, which lets you check your eligibility and potential rates without affecting your credit score. Note that not all lenders offer prequalification; some may require a hard credit check. Prequalification does not guarantee final approval or exact rates.
Verify Your Information: After choosing a lender, you’ll need to confirm the information on your application. This usually involves verifying your identity, employment, and income with documents like a government-issued ID and pay stubs. A hard credit check may be required at this stage, which can temporarily lower your credit score.
Close on Your Loan: Once approved, you’ll sign a loan agreement. The lender will then either deposit the funds into your bank account or send you a check. The time it takes to receive the funds depends on the lender and your bank.

Affordable Personal Loans for Every Need

No matter what your financial needs are, Cashably has a personal loan solution for you:

Debt Consolidation: Simplify your finances by consolidating multiple debts into a single personal loan with a lower interest rate.
Home Improvement: Fund your next home improvement project with a personal loan tailored to your budget and timeline.
Medical Expenses: Cover unexpected medical bills and expenses with a personal loan that provides the funds you need when you need them most.
Major Purchases: Whether it’s a new appliance, a wedding, or a dream vacation, our personal loans can help you finance significant life events.

Pros and Cons of Personal Loans

Pros of Personal Loans

You can use personal loans for almost anything, like consolidating debt, paying medical bills, or funding a big purchase.
Most personal loans come with fixed monthly payments, making budgeting easier.
Unlike some loans, personal loans usually don’t require you to put up your house or car as security.
Many lenders offer fast approval and funding, which can be helpful if you need money quickly.
If you make timely payments, it can positively impact your credit score.

Cons of Personal Loans

Interest rates on personal loans can be higher than other types of loans, especially if you have a low credit score.
Some personal loans come with fees, such as origination fees or prepayment penalties, which can add to the cost.
Applying for a personal loan can result in a hard inquiry on your credit report, which might temporarily lower your credit score.
Personal loans often have shorter repayment terms compared to other loans, which can mean higher monthly payments.
Because personal loans are relatively easy to get, there's a risk of borrowing more than you can afford to repay.