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Personal Loan Companies – What You Should Know Before You Make The Call

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Loans are important aspects of easing people’s day to day lives and economic burden. People take loans for various reasons.

Some do it to boost businesses, buy homes and cars, home improvement, pay for educational needs among many more reasons.

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There are a number of good personal loan companies that many Americans have sworn by for years. Read about them below.

 

LendingClub

LendingClub is an American peer-to-peer lending company, headquartered in San Francisco, California. It was founded in 2007 initially as one of Facebook’s first applications.

It was the first peer-to-peer lender to go public. In 2014, it registered its offerings as securities with the Securities and Exchange Commission, and to offer loan trading on a secondary market.

LendingClub screens potential borrowers and services the loans once they’re approved. The Investors, and not LendingClub, make the final decision whether or not to lend them money.

The typical LendingClub client has a good credit score and a lengthy credit history (an average of 17 years). The average annual income for a LendingClub borrower is $79,145 and the average debt-to-income ratio is 18.29% (excluding mortgages).

LendingClub accounted for $8.987 billion in loans in 2017.

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The purpose of these loans has been refinancing a home (43.36%); paying off credit cards (17.89%) and other (38.85%). 

LendingClub also makes traditional direct to consumer loans, including automobile refinance transactions, through WebBank, an FDIC-insured, state-chartered industrial bank that is headquartered in Salt Lake City Utah. The loans are not funded by investors but are assigned to other financial institutions.

 

LightStream

Lightstream offers uncomplicated lending, according to its website.

It is an online lending division of SunTrust Bank, has one of the highest limits for personal loans, offering amounts up to $100,000. It works for people who have good credit, need money for a car or home improvement project or those who need to borrow a larger amount.

Most LightStream loans come with two- to seven-year terms, though its loans for home improvement, swimming pools, and solar financing may extend to 12 years. With Lightstream, you can get loans amounting between $5000 to $100,000 within the same business day.

LightStream loan APRs start at 3.49 percent, which is very competitive. It also doesn’t charge any fees on its loans.

It charges no origination fees, prepayment penalties or late fees, and there’s also no fee if you set up an automatic ACH debit through your bank account.

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Rocket Loans

Rocket Loans, the sister company to Quicken Loans and its online Rocket Mortgage, offers unsecured personal loans for fair-credit borrowers (630 – 689 FICO) who can use the funds for almost any purpose, including debt consolidation, home improvement, auto and medical expenses or any large purchase.

Rocket Loans offers same-day and next-day funding for most loans, and applicants can get a loan estimate with no impact on credit scores. 

The company says 85% of borrowers are funded by the next business day. The longest it would take for a loan to fund is about three business days.

Rocket Loans lets you apply for prequalification to check your options — including potential interest rates, repayment lengths, and origination fees — with a soft credit inquiry, which won’t affect your credit scores.

It offers relatively low rates for borrowers with fair credit. Rocket Loans charges an origination fee of 1% to 6% on each loan it issues.

 

Upstart

Upstart is an online lending marketplace founded in 2012 that provides personal loans using non-traditional variables, such as education and employment, to predict creditworthiness.

It caters to borrowers with short credit histories but regular income and high earning potential.

Upstart requires a minimum credit score of 580 in most states, no recent bankruptcy or delinquent loans and fewer than six inquiries on a credit report in the past six months, not including inquiries related to student loans, car loans or mortgages.

These personal loans can be used for a variety of purposes, including debt consolidation, medical expenses, home improvements, and college tuition. Most borrowers use their funds to consolidate debt, according to the company.

Upstart provides quick loans that typically fund the next business day after approval, except for loans for educational expenses, which are subject to a three-day waiting period.

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