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The Best Place to Get A Personal Loan in 2020

date September 1, 2020 time 4 min read 540 views

Trying to find the best place to get a personal loan? Good news. Borrowers now have more personal loan options than ever before. Besides traditional financial institutions, anyone who wants to borrow money can get into P2P lending for better terms and rates.

If it’s been a while since your last loan, you might be surprised at how many choices are available. You can now choose between banks, peer-to-peer lenders, blockchain-based platforms, and more when looking for the best place to get a personal loan.

Do your research to find the best place to get a personal loan
Do your research to find the best place to get a personal loan (source: pixabay.com)

If you’re thinking to yourself, “I need to know where I can get a loan now,” then keep reading.

Traditional personal loans

Personal loans are usually unsecured loans that borrowers take out for personal use. The most prominent players in this industry have always been banks and credit unions.

Rates from the top banks today (APR)

  • Marcus by Goldman Sachs: 6.99% to 23.99%
  • Lightstream: 3.49% to 19.99%
  • Citibank: 7.99% to 23.99%
  • Wells Fargo: 5.99% to 24.49%
  • TD Bank: 6.99% to 18.99%

While Lightstream (a division of SunTrust bank) appears to be the best option on the list since it offers the lowest interest rate, that’s not necessarily true.

Most banks only give the lowest interest rates to borrowers with the best credit scores. You might get the best offer from a lender with higher overall rates.

Banks may not be the best place to get a personal loan for everyone. These days, fewer banks offer personal loans. Those that do use online loan options face competition from newer, more technologically advanced lenders.

Credit unions

Another option for loans is credit unions. They are often a better choice if you have poor credit thanks to their more favorable terms.  

National unions like Alliant offer rates between 6.24% and 10.24% APR and Penfed 6.49% to 17.99% APR — both have lower upper bounds than banks do.

However, there are often specific requirements for joining each credit union, and they still assess borrowers based on their credit scores.

Traditional lenders are still a popular source of personal loans
Traditional lenders are still a popular source of personal loans
(source: publicdomainpictures.net)

Peer-to-peer lending, the new place to borrow

Various peer-to-peer (P2P) platforms have emerged to solve the biggest problems with traditional lenders. Using technology, these sites for borrowing money bring together lenders and borrowers without involving traditional financial institutions as middlemen.

P2P platforms offer a new way to get a personal loan
P2P platforms offer a new way to get a personal loan (source: pxhere.com)

That means banks no longer have a monopoly over loan rates, and borrowers have more options. P2P platforms have positioned themselves as competitors to the big players driving interest rates down for everyone.

Some of the top P2P loan providers in the US:

  • Prosper

Prosper was the first US P2P platform and is still one of the major lenders in the space today. It offers 7.95% to 35.99% APR on loans with terms up to five years.

  • Lending Club

Lending Club was established shortly after Prosper. Its loans have slightly higher rates at 10.68%–35.89% APR, and it has loans that don’t require collateral.

  • Upgrade

A newer lender in the space, Upgrade’s rates range from 7.99% to 35.97% APR. Its principal differentiating factor is the flexibility of its loan terms.

  • Upstart

Another newer platform, Upstart, offers the lowest rates of the bunch, between 7.35% and 35.99% APR. It also boasts next day funding and uses AI to assess which borrowers are the riskiest.

However, P2P platforms don’t overcome every flaw of regular personal loans — many of them still credit check borrowers and don’t always offer better rates.

Luckily, there are more advanced solutions available.

Get personal loan rates as low as 6% and no higher than 7% on MyConstant

Blockchain and cryptocurrencies are changing personal loan options
Blockchain and cryptocurrencies are changing personal loan options (source: pxhere.com)

If you’d like greater security and reasonable interest rates without a perfect credit score, you might be interested in places that secure your loan with collateral instead.

On MyConstant, you use cryptocurrency to secure loans, removing the need for credit checks. 

That means you can access lower rates that a bad credit score would usually exclude you from.

Ultimately, the best place for you to get a personal loan depends on your individual circumstances and aims. But innovative platforms like MyConstant offer a fresh approach for borrowers of the future who want to leverage their crypto for low-interest, speedy loans.

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George Schooling

George Schooling

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