Online Personal Loans Reviews

More and more people are going online to find their personal loans, especially with the increase of services like peer-to-peer lending. So which online loan services are the best? Here are reviews of the top online loan services. You can choose one to read as an individual review or choose two to compare the services side-by-side.

SoFi

Upstart

Lending Club

Prosper

Avant

Select 2 Products to compare side by side

Getting a personal loan can be a struggle, especially if you have bad credit. Even if you have good credit, finding a personal loan that fits your needs and won’t cost you an arm and a leg in interest can be difficult.

Basic Personal Loan Facts

Personal loans allow for flexibility and can be used for a number of purposes. But it’s good to know the facts about personal loans before you start shopping, so you can choose the best option to fit your needs.

  • What Is a Secured Loan?
  • What Is an Unsecured Loans?
  • What Is Payment Protection?
  • What Is a Secured Loan?

    A secured loan is a loan that is backed by an asset as collateral (home or car) . If you default on the loan, the lender can take the asset. A secured loan typically offers lower interest rates and better overall loan terms.

  • What Is an Unsecured Loans?

    Unsecured loans have no collateral, however if default occurs the bank can take legal action in hopes to recoup the money. Due to the fact that these type of loans tend to be riskier, they have higher interest rates and often poor loan terms.

  • What Is Payment Protection?

    Most lenders will give you the option to add payment protection to your personal loan. On the surface, payment protection insurance (PPI) sounds like a good idea, especially if you are worried that you will slip back into bad financial habits.

    A closer look at PPI shows that it is rarely a good idea for the borrower. PPI can add 10 percent or more to your loan. If you borrow $5,000, PPI will increase your overall repayment by at least $500. It is often higher for people with bad credit scores. 

    If you are worried that you cannot make your payments every month, then this will not help. Instead, focus on lowering your expenses so you can make every payment on time.

    What Is a Secured Loan?

    A secured loan is a loan that is backed by an asset as collateral (home or car) . If you default on the loan, the lender can take the asset. A secured loan typically offers lower interest rates and better overall loan terms.

    What Is an Unsecured Loans?

    Unsecured loans have no collateral, however if default occurs the bank can take legal action in hopes to recoup the money. Due to the fact that these type of loans tend to be riskier, they have higher interest rates and often poor loan terms.

    What Is Payment Protection?

    Most lenders will give you the option to add payment protection to your personal loan. On the surface, payment protection insurance (PPI) sounds like a good idea, especially if you are worried that you will slip back into bad financial habits.

    A closer look at PPI shows that it is rarely a good idea for the borrower. PPI can add 10 percent or more to your loan. If you borrow $5,000, PPI will increase your overall repayment by at least $500. It is often higher for people with bad credit scores. 

    If you are worried that you cannot make your payments every month, then this will not help. Instead, focus on lowering your expenses so you can make every payment on time.