A personal loan will be a great option if you need an emergency and quick way of cash for any expense. The interest rates for personal loans are less than the credit cards options. For those with a low income or a low credit score, you can still find good deals for personal loans. You can get a lump sum of cash to consolidate debt at a certain time which is very helpful. The process of grouping of debts makes it easier to meet the time frame within which you are supposed to pay the balances. One of the best advantages of using a personal loan to pay off your credit card bills is the lower rates of interest that are given to you. This also gives you an advantage of higher borrowing limits. In the United States, the loan lenders usually have a fast approval and funding timeline which makes things easier. Lastly, the best part is that you won’t need to give collateral security.
5 Best Low Income Loan lenders in the US
Avant: My Best Pick Among All Low Income Loan Lenders in the US
If you are looking for a loan for a smaller amount but also with a great APR rate Avant is the one for you. It has a 4.7 rating from Trustpilot. It has helped more than 2 million people. The minimum credit score required is 550. The APR rate is 9.95% to 35.99%. The amount for loan ranges between $2000 to $35000 and the term is between 12 to 60 months.
What I like about Avant as a lending provider?
One of the most unique advantages at Avant as a loan lending provider is that people with poor credit facilities may also be eligible for a personal loan. This sets Avant apart from its other competitors as many lenders require that lenders must have a high credit score. In this company if you want to borrow more money at a certain time or your financial situation is better you can qualify for a better rate and you can refinance your loans with Avant. Avant provides its customers with great customer service which is available for all the 7 days in a week.
Disadvantages of taking a loan from Avant
You can only take one loan at a time from Avant. You cannot take loans from Avant for business purposes. Another major setback is that they charge a processing fee of up to 4.75% as administration fee which is non refundable. There is a late fee charge for every time you do not make the payment by the due date.
Best Egg offers personal loans at lower rates as compared to most lenders. By August 2021 it had over $ 14 billion funded in the form of cash and a round $i1 million funded loans and 95% customer satisfaction. The APR rate at Best Egg ranges from 5.6 % to 35.99%. The amount for loans is from $2000 to $ 50000 for a term of 36 to 60 months. The minimum credit score required a 550.
What I like about Best Egg as a lending provider in the US?
They allow soft pull inquiry that means they allow you to check your credit score and availability for a loan according to your credit score without a reduction in your scores. You can take more than one loan from Best Egg at the same time. They provide you with a wide variety of loan uses such as to consolidate debts, business loans, auto and student loans. Best Egg holds an A+ rating and has been accredited by the Better Business Bureau(BBB).
Disadvantages of taking a loan from Best Egg
Best Egg is not available in all the states in The United States. They charge you a processing fee of 0.99% to 5.99% of your loan amount. You are not allowed to use a joint application here.
Prosper Loans: Best P2P Lending Platform for Loans in the US
Prosper is the first ever peer to peer personal loan leading platform in the US. It was first of its own kind hence we know that it is the oldest and most trusted platform. People and companies both can invest in this loan and earn massive returns. Prosper handles all the loan servicing by connecting the lender to their borrowers directly. The minimum Credit score requirement is a decent 600. The APR rate is 7.95% to 35.99%.The amount for loan ranges between $2000 to $ 40000 and the term is 36 or 60 months.
Why we think taking a loan from prosper is a good idea?
They allow you to get a joint loan which is the most unique feature as rarely any lender provides this service. So if you want a lender with this service blindfolded you can choose this. You can take multiple loans at one time. They have a flexible repayment date system wherein you get a 15 day grace period after your due date.
Disadvantages of taking a loan from Prosper Loans
The term length provided is either 3 years or 5 months which doesn’t give you more than 2 options unlike the other lenders. The mobile app of Prosper doesn’t give you an option of checking or working on your loan account. For any loan related work one must go offline. There is a 5% late fee charged if you do not pay within the allotted time.
Upstart is one of the top leading artificial intelligence marketplace designed to improve reach to inexpensive credit while reducing the risks and costs of the lending for our bank partner. Upstart has originated approximately $28.6 billion and 73 % are fully automated loans. Fully automated loans are end to end loans with no involvement of humans which makes procedure very peaceful and risk free.
Why we think taking a loan from Upstart is a good idea?
Upstart provides loans at the lowest credit score which is at 300 points. It also gives loans starting from a small amount at $1000 and ranging up to $50000. Its APR rate is 5.6% to 35.99% and the term ranges from 36 to 60 months. It is the best option for someone with a very low income. It has a flexible repayment date. Surprisingly, Upstart does not take any processing or administration fee.
Disadvantages of using Upstart
Upstart provides slightly higher rates of interest as compared to others. There is an availability for joint application and it is not available in all the states.
SoFi is an accredited business by the Better Business Bureau program (BBB) . It currently holds an A+ rating based on the company records. The minimum credit score required is 680. The APR rate is 9.93% to 23.43%. The term ranges from 24 to 84 months. While the amount for loans are from $2000 to $100000.
Why you should take Personal Loans from Sofi?
SoFi allows its customers to take more than one loan at the same time. They allow joint borrowers or applications. They have no late repayment fees . They also don’t have any processing fees unlike any other lending firm. They have flexible repayments. You get a 10% discount if you use autopay method. They provide unemployment protection which sets SoFi apart from all the other lenders. These features make SoFi one of the best US based lending providers for a low income loan.
Disadvantages of using SOFI
It has a slower turnaround time and they take a longer time period to process your loan. Their loans have limited uses. They make the loans available to those with a strong and good borrowing background. It is not available in all the states.
Knowing your credit score is an important and the very first step while taking a personal loan. One must read the contracts well.
You must compare the options well before making your choice. We have made this part easier for you by setting out the best 5 options and stating their upsides and downsides .
- Personal Loan Calculator – Check Different Types of Personal Loans
- Low Credit Score? Know How You Can Still Avail a Personal Loan