The Best Personal Loans of 2020

September 09, 2020
Top10.com StaffByTop10.com StaffSep. 09, 2020
The Best Personal Loans for {year}
The personal loans industry is competitive, with hundreds of lenders competing for the attention of borrowers.

With so much choice, it can be hard to know where to begin your personal loan comparison and how to find the right loan for your individual needs.

We wanted to help, so we sat down and compared all the most popular lenders by different factors like loan amounts, rates, fees, and customer service. Read on to discover who we have selected as the 5 best personal loan companies.

Here are our best personal loan providers:

1. Credible

credible

Credible is our best overall choice for online personal loans

  • APR:  3.49%-35.99%
  • Loan term: 24-84 months
  • Loan amount: up to $100,000 
  • Minimum credit score: 680

Credible is an online loans marketplace that lets borrowers see prequalified rates from multiple lenders based on their credit history. Credible works with only a select group of the best personal loan lenders. Filling out a single form gets you offers from a selection of reliable lenders without any impact on your credit score.

The main benefits to using Credible are the speed and breadth of its service. It takes only a couple of minutes to fill out the form and see a personal loan comparison of prequalified rates. Credible’s partners offer a broad range of loan amounts and loan terms, making this a good option for personal loans service overall. 

Credible promises $200 if you find a better rate elsewhere.

Read the full Credible review >>

Credible Credible Visit Credible

2. LendingTree

  • APR: 3.49% - 35.95%
  • Loan term: 3-180 months
  • Loan amount: up to $50,000
  • Minimum credit score: None

LendingTree is an experienced online loans marketplace, with a network comprising dozens of the best personal loan companies. LendingTree offers a very broad service, with personal loans, mortgages and other types of loans. The personal loans industry was one of the first markets it got involved in, and remains one of its specialties.

The main reason to use LendingTree is to run a personal loans comparison in the shortest time possible. With LendingTree, a short online form is all that’s required to see the lowest prequalified rates from a list of hundreds of lenders. LendingTree works with all types of lenders, from big to small and national to local. Its powerful search tool quickly scans your details and its lending network to find low rates to suit you—no matter your credit score.

In addition to its useful search tool, LendingTree also provides a wealth of free educational tools and resources to help borrowers with personal loan calculations.

Read the full LendingTree review >>

LendingTree LendingTree Visit LendingTree

3. Upgrade

upgrade

  • APR: 7.99% - 35.97%
  • Loan term: 36-60 months
  • Loan amount: up to $50,000
  • Minimum credit score: 620

Upgrade offers personal loans of up to $35,000 for a range of purposes such as paying off credit card debt, financing a home improvement, or making a large purchase. It is quick, easy to use and offers free credit monitoring and financial-education resources that can help you better understand and improve your credit score.

Read the full Upgrade review >>

Upgrade  Upgrade Visit Upgrade

4. OneMain Financial

onemain

  • APR:   18.00% - 35.99%
  • Loan term: 24-60 months
  • Loan amount: $1,500-$20,000
  • Minimum credit score: 620

OneMain Financial is a subsidiary of OneMain Holdings, Inc., a publicly traded financial services company founded in Baltimore in 1912. It specializes in providing unsecured and secured personal loans to consumers across America. It operates online and in branches around the country. As of the end of 2019, it had more than 1,500 branches in 44 states.

Read the full One Main Financial Review >>

OneMain Financial OneMain Financial Visit OneMain Financial 

5. Marcus

marcus

  • APR: 6.99% - 19.99%*
  • Loan term: 36-72 months
  • Loan amount: $3,500 - $40,000
  • Minimum credit score: 680

Marcus, a new personal loan provider by Goldman Sachs, offers loans that are fee-free and can be tailored to suit each individual customer. Fast funding is also a crucial component of the Marcus strategy, and many Marcus customers receive funds in as little as 5 days.

Read the full Marcus review >>

Visit Marcus

How to Find the Best Lender 

Finding the right lender is an essential first step to finding the best personal loans. Here are the main things to look out for when trying to find the best personal loan companies.

  • Type of lender: There are marketplaces like Credible and LendingTree, direct lenders like Marcus by Goldman Sachs, and P2P lending platforms like LendingClub. All these lender types offer different advantages, so it’s important to know who’s who when searching for a loan.
  • Ease of use: These days, all the best lenders allow their customers to apply for loans over the internet. Compare lender websites and read lender reviews to understand which are the easiest to access and use.
  • Reputation: There are 2 types of lenders in the personal loans business: trusted lenders that are completely open and transparent about their terms; and shifty lenders that make a bad name for everyone else. These days, all it takes to find out if a lender is trustworthy or not is to read reviews.
  • Customer service: When you take out a 4-figure, 5-figure, or 6-figure loan, you deserve the best customer service. All the lenders mentioned on this page are known for offering excellent customer service.

How to Find the Best Personal Loan 

Now that you’ve got a shortlist of lenders, it’s time to compare personal loan options. Here are the things to look out for when making your personal loan comparison:

  • APR: This is the annual percentage rate your lender collects for providing the personal loan. The best lender for you is the one that can offer the best APR for your credit rating, not the one that offers the lowest APRs in general.
  • Fees:Some lenders offer no origination fees, no prepayment penalties, and/or no (or minimal) late payment penalties. Some of the lenders advertised on this site do charge fees. Check the terms of your loan carefully. 
  • Terms: While rates and fees are important, it’s important not to neglect the terms because this can have a big impact on your monthly payments. The shorter your repayment term, the lower your total interest paid but the larger your monthly payments. The longer your term, the more interest you’ll pay overall but the less you’ll pay each month.
  • Loan amount: You might need a personal loan for $1,000 or you might need to borrow $100,000. Either way, make sure your chosen lender can satisfy your loan requirements.

How to Get the Best Rates on Your Personal Loan

Here are our top 5 tips for finding the best personal loan rates:

  • Shop around: Running a personal loan comparison of at least 3-5 lenders is a crucial first step to finding the cheapest rates.
  • Improve your credit score: If a low credit score is preventing you from getting the best rates, the good news is there are ways to repair your credit, e.g. taking out a small loan or raising your credit limit.
  • Sign up for auto-pay: Some lenders offer a small rate discount if you use auto pay, because this gives them confidence that you’ll make your monthly payments on time.
  • Take a secured loan: If you’re confident of your ability to pay back the loan, adding collateral can help convince your lender to offer you a lower rate.
  • Bring a cosigner: Only some lenders allow a co-applicant; if your cosigner has better credit than you, this can help get you a significantly lower rate.

Conclusion

The golden rule to finding the best personal loans can be summed up in one word: compare. Each of us has different requirements and a different credit history and what suits one borrower doesn’t necessarily suit another. Therefore, it’s important to research the personal market and read reviews of the best personal loan lenders before settling on any one provider. Small differences between lenders in APRs, loan amounts, or repayment terms mightn’t seem like a big deal at the beginning, but it can be the difference between paying your lender a small amount or large amount in the long run. Investing time in a personal loan comparison now can help save you money later.

Still can't decide? Feel free to check out more reviews and articles to discover the best personal loan lenders for you.

About The Author

Top10.com StaffByTop10.com StaffSep. 09, 2020
Our editorial staff is comprised of writers who are knowledgeable about financial services. We specialize in simplifying the process of choosing the right personal loan provider for your needs.
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