What is the best Best Personal Loans? When it comes to financing your expenses, personal loans have become a popular choice for many individuals. Whether you’re planning home renovations, consolidating debt, or covering unexpected medical expenses, personal loans offer a flexible and affordable solution.

In this article, we will explore the six best personal loans available in July 2023. We have carefully evaluated and selected lenders based on their interest rates, fees, loan amounts, term lengths, and additional features. So, let’s dive in and find the perfect personal loan option for you.

The 6 Best Personal Loans of July 2023: Find the Perfect Fit for Your Financial Needs

LightStream Personal Loans

LightStream offers personal loans with competitive interest rates and flexible terms. Whether you’re consolidating debt, improving your home, or covering medical expenses, LightStream has got you covered. Here are the key details:

• Annual Percentage Rate (APR): 7.99% – 24.99%* APR with AutoPay
• Loan purpose: Debt consolidation, home improvement, auto financing, medical expenses, and more
• Loan amounts: $5,000 to $100,000
• Terms: 24 to 144 months* dependent on loan purpose
• Credit needed: Good
• Origination fee: None
• Early payoff penalty: None
• Late fee: None

Pros:

• Same-day funding is available through ACH or wire transfer (conditions apply)
• Loan amounts up to $100,000
• No origination fees, no early payoff fees, no late fees
• LightStream plants a tree for every loan

Cons:

• Requires several years of credit history
• No option to pay your creditors directly
• Not available for student loans or business loans

Who’s this for? LightStream is an online lending arm of SunTrust Bank that offers low-interest loans for people with good credit or higher. Whether you’re looking to finance a new car, remodel your bathroom, consolidate debt, or cover medical expenses, LightStream provides a reliable and affordable solution.

LightStream stands out for its same-day funding option, allowing you to receive your funds quickly and efficiently. Additionally, the platform offers loan amounts of up to $100,000 and has no origination fees, early payoff fees, or late fees. LightStream’s commitment to environmental sustainability is noteworthy, as the company plants a tree for every loan they provide.

Happy Money

Happy Money specializes in personal loans for debt consolidation and refinancing. If you’re burdened with credit card debt and seeking a lower interest rate, Happy Money is an excellent choice. Let’s explore the details:

• Annual Percentage Rate (APR): 11.25% – 24.50%
• Loan purpose: Debt consolidation/refinancing
• Loan amounts: $5,000 to $40,000
• Terms: 24 to 60 months
• Credit needed: Fair/average, good
• Origination fee: 0% to 5% (based on credit score and application)
• Early payoff penalty: None
• Late fee: 5% of the monthly payment amount or $15, whichever is greater (with a 15-day grace period)

Pros:

• The peer-to-peer lending platform makes it easy to check multiple offers
• Loan approval comes with Happy Money membership and customer support
• No early payoff fees, no late fees
• Fast and easy application
• U.S.-based customer service

Cons:

• Higher loan minimums ($5,000)
• Must submit a soft inquiry to see origination fees and other details

Who’s this for? Happy Money specializes in helping individuals consolidate their credit card debt at a lower interest rate. If you’re looking to eliminate your credit card balances and pay them off over time, Happy Money offers personalized loan options and access to various financial literacy tools.

Happy Money offers an easy-to-use peer-to-peer lending platform that allows you to compare multiple loan offers. The company does not charge any early payoff fees or late fees.

While the minimum loan amount is $5,000, Happy Money provides access to a U.S.-based customer service team and offers various financial literacy tools to help you manage your money effectively.

SoFi Personal Loans

SoFi is a reputable lender that offers personal loans for various purposes, including debt consolidation, home improvement, relocation assistance, and medical expenses. Here are the details:

• Annual Percentage Rate (APR): 8.99% to 25.81% when you sign up for autopay
• Loan purpose: Debt consolidation/refinancing, home improvement, relocation assistance, or medical expenses
• Loan amounts: $5,000 to $100,000
• Terms: 24 to 84 months
• Credit needed: Good to excellent
• Origination fee: No fees are required
• Early payoff penalty: None
• Late fee: None

Pros:

• No origination fees, no early payoff fees, no late fees
• Unemployment protection if you lose your job
• Can have more than one SoFi loan at a time (state-permitting)
• May accept an offer of employment (to start within the next 90 days) as proof of income
• Co-applicants may apply

Cons:

• Applicants who are U.S. visa holders must have more than two years remaining on the visa to be eligible
• No co-signers allowed (co-applicants only)

Who’s this for? SoFi is an ideal choice for individuals looking to refinance high-interest credit card debt. With a simple application process and a user-friendly app for managing payments, SoFi offers competitive rates and the option to choose between fixed or variable APRs.

SoFi stands out for its excellent customer service and borrower benefits. The platform offers unemployment protection if you lose your job, allowing you to pause your monthly bill while you search for new employment.

SoFi also accepts offers of employment as proof of income, providing flexibility for borrowers who are transitioning between jobs. With no origination fees, early payoff fees, or late fees, SoFi is a solid choice for refinancing high-interest debt.

PenFed Personal Loans

PenFed, a federal credit union, offers personal loans for debt consolidation, home improvement, medical expenses, auto financing, and more. Let’s take a closer look:

• Annual Percentage Rate (APR): 7.74% to 17.99% APR
• Loan purpose: Debt consolidation, home improvement, medical expenses, auto financing, and more
• Loan amounts: $600 to $50,000
• Terms: 1 to 5 years
• Credit needed: Good/Excellent
• Origination fee: None
• Early payoff penalty: None
• Late fee: $29

Pros:

• Credit union membership available to anyone
• Loans as low as $600
• Can pick up a physical check at a branch
• May apply with a co-borrower

Cons:

• Funds come as a physical check (may require expedited shipping if not near a branch)
• A late fee of $29

Who’s this for? PenFed Personal Loans are an excellent choice for individuals seeking smaller loan amounts. Whether you need to cover medical expenses, finance a small home improvement project, or consolidate debt, PenFed offers competitive rates and flexible terms.

PenFed is unique in that it offers credit union membership to the general public. The minimum loan amount of $600 makes it an attractive option for those who require smaller loans. While PenFed does charge a late fee of $29, the platform provides competitive APRs, flexible terms, and the ability to apply with a co-borrower.

Discover Personal Loans

Discover Personal Loans provide quick funding for various purposes, including debt consolidation, home improvement, weddings, vacations, and more. Here are the details:

• Annual Percentage Rate (APR): 6.99% to 24.99%
• Loan purpose: Debt consolidation, home improvement, weddings, vacations, and more
• Loan amounts: $2,500 to $35,000
• Terms: 36, 48, 60, 72, and 84 months
• Credit needed: Good
• Origination fee: None
• Early payoff penalty: None
• Late fee: $39

Pros:

• The same-day decision in most cases
• Funds can be received as early as the next business day
• No origination fees, no early payoff fees
• Multiple payment options are available

Cons:

• A late fee of $39

Who’s this for? Discover Personal Loans are a great option if you need your funds quickly. With a streamlined application process and same-day decisions, Discover provides borrowers with the flexibility to cover various expenses efficiently.

Upstart Personal Loans

Upstart Personal Loans are designed for individuals with lower credit scores or limited credit history. The lender considers factors beyond just credit scores, such as education, employment, and work experience. Let’s explore the details:

• Annual Percentage Rate (APR): 8.27% – 35.99%
• Loan purpose: Debt consolidation, credit card refinancing, home improvements, and more
• Loan amounts: $1,000 to $50,000
• Terms: 36 and 60 months
• Credit needed: Fair/Average
• Origination fee: 0% to 12%
• Early payoff penalty: None
• Late fee: Greater than 5% of the last amount due or $15

Pros:

• Accessible to individuals with lower credit scores or limited credit history
• Consideration of factors beyond credit scores during the approval process
• No early payoff penalties

Cons:

• Origination fees may apply (0% to 12%)
• Significant late fees

Who’s this for? Upstart Personal Loans are suitable for individuals with lower credit scores or limited credit history who are looking to borrow smaller to medium-sized loan amounts. If you have a credit score of 300 or more on at least one credit report, Upstart’s unique underwriting model may work in your favour.

While Upstart charges origination fees between 0% and 12%, they don’t impose early payoff penalties. It’s worth noting that late fees can be significant, equal to the greater of 5% of the last amount due or $15.

Frequently Asked Questions (FAQs)

How do personal loans work?

Personal loans are installment loans that allow you to borrow a specific amount of money and repay it over time with fixed monthly payments. These loans often come with a fixed interest rate and term length. Personal loans can be used for various purposes, such as debt consolidation, home improvement, or cover unexpected expenses.

What factors should I consider when choosing a personal loan?

When selecting a personal loan, consider factors such as interest rates, fees (including origination fees and late fees), loan amounts, term lengths, and any additional features or benefits offered by the lender. It’s also important to assess your own financial situation and determine how much you can comfortably afford to borrow and repay.

Can I pay off my personal loan early?

In most cases, you can pay off your personal loan early without incurring any penalties. However, it’s always a good idea to check the terms and conditions of the loan and confirm with the lender to ensure there are no prepayment penalties.

What credit score do I need to qualify for a personal loan?

The credit score requirements for personal loans can vary depending on the lender and the specific loan product. Generally, lenders prefer borrowers with good to excellent credit scores (usually above 670). However, there are options available for individuals with fair or average credit scores as well.

How long does it take to receive funds from a personal loan?

The time it takes to receive funds from a personal loan can vary depending on the lender and the application process. Some lenders offer same-day funding or next-day funding, while others may take a few days or longer to process your application and disburse the funds. It’s advisable to check with the lender for the estimated timeline.

In conclusion, finding the right personal loan for your needs involves considering factors such as interest rates, fees, loan amounts, and term lengths. The lenders mentioned in this article offer competitive options for a variety of purposes. Whether you need to consolidate debt, cover expenses, or fund a project, comparing these top six personal loan providers will help you make an informed decision that aligns with your financial goals.