Best Personal Loans With No Origination Fee

Also known as processing fees and administrative fees, origination fees are usually between 1% and 8% of the total loan amount. Some lenders even charge up to 10%. With no origination fee loans, you don’t have to worry about this extra expense and can potentially lower your overall cost of borrowing. To make your search for a no origination fee loan a bit easier, our financial experts reviewed and ranked more than 30 online lenders.

Best Personal Loans With No Origination Fee

How to Choose the Best Personal Loan With No Origination Fee? 

Even though most lenders charge origination fees, there are quite a few that do not. When our expert team began our search for the best personal loans with no origination fees, we considered a number of factors, including:

• Loan Features: It’s not uncommon for no origination fee lenders to fall short on loan features like loan terms, loan amounts, and loan use options. That’s why we worked hard to find those with flexible terms, large amounts, and limited restrictions on what you can do with the loan proceeds.
• Interest rates and fees: Of course, we made sure that every lender we explored does not charge origination fees. Bonus points were given to those with competitive rates as some lenders offer higher rates to make up for their lack of origination fees.
• Application process: We know you lead a busy life so we gave preference to lenders with quick, online applications as well as prequalification tools that allow you to check your offers without any impact on your credit.
• Qualification requirements: Our experts found that many lenders with no origination fee personal loans had higher than average minimum credit score and income requirements.
• Customer support: No origination fees don't mean much if a lender lags behind in the customer service department. For this reason, we explored lenders that offered multi-channel support through phone, email, online chat, and social media. 
• Online user reviews: All lenders claim they’re the best so we made it a point to browse unbiased reviews from current and former borrowers on independent review sites like Trustpilot and Better Business Bureau (BBB).
• Perks and Bonuses: We were particularly impressed with lenders that provide extras like credit building tools, repayment flexibility, and mobile apps.

What is a no origination fee personal loan?

An origination fee is a one-time expense you may have to pay when you receive a personal loan. While every lender is different, most lenders will deduct your origination fee from your loan balance. In most cases, origination fees range from 1% to 10% of the total amount. These fees are usually based on factors like your credit score, loan amount, repayment term, and whether you have a cosigner. A no origination fee personal loan is exactly what it sounds like: a loan that doesn’t include an origination fee.

The benefits of a no origination fee personal loan

If you take out a no origination fee personal loan, you won’t be responsible for an origination fee on top of interest and other fees. As long as you can land a low interest rate and favorable terms, this may save you money on the overall cost of your loan. It will also make it easier to determine your ideal borrowing amount because you won’t have to account for a fee that may be deducted from your proceeds.

How to Get a Personal Loan With No Origination Fees

Follow these steps to get a personal loan with no origination fees.

• Check your credit: First, find out where you stand credit wise so you know what loans you may qualify for. Go to AnnualCreditReport.com to pull free copies of your reports from Equifax, Experian, and TransUnion. If you notice any errors or inaccuracies, dispute them with the appropriate bureau.
• Decide how much to borrow: Now figure out what you’ll do with the loan proceeds and how much you can afford to repay. This information will give you an idea of the ideal loan amount to ask for.
• Shop around: Not all personal loans with no origination fee are created equal. Do your research and compare the rates, terms, fees, and perks of all your options. Our list of loans is a great place to start.
• Prequalify: Many lenders offer prequalification tools you can use to check your no origination fee loan offers without any impact to your credit. To prequalify, simply fill out a short online form with some basic personal information.
• Apply: Once you decide on a personal loan with no origination fee, fill out the lender’s application online or in-person. Be prepared to submit documents like your government-issued ID, pay stubs, tax forms, and bank statements.
• Wait for approval: Most lenders will approve you the same day you apply, within 24 hours, or within a few business days. Once approved, you’ll receive a loan agreement to review and sign.
• Accept the agreement: If the loan agreement looks good to you and you agree to the terms and fine print, sign it to accept the offer. You can expect the lender to distribute the funds shortly after.

Other Personal Loan Fees to Consider

In addition to origination fees, you may want to be on the lookout for these other common personal loan fees.

• Late payment fees: Lenders might charge late payment fees if you fail to make your payment on your due date.
• Prepayment penalty fees: Prepayment penalty fees are designed to penalize you for paying off your loan early.
• Insufficient funds fees: If there's not enough money in your bank account to cover a loan payment, you may be on the hook for a returned check fee.
• Application fees: Application fees are usually nonrefundable and intended to cover the cost of processing loan applications.
• Paper copy fees: If you request a physical copy of the loan agreement, you may have to pay a paper copy fee.
• Annual fees: Sometimes, lenders tack annual fees onto loan schedules to offset the costs of maintaining your account.

Have Good Credit? Consider No Origination Fee Loans

If you have solid credit, you may want to apply for a personal loan with no origination fee. However, if your credit isn’t in the best shape or you’re unsure of whether you’ll qualify, you may want to avoid no origination fee loans as these might come with higher rates that make your loan more expensive.

In some cases, a loan with an origination fee may actually be the better choice. This is when the combined interest and origination costs are lower than the interest rate of a no origination fee loan. Do your research and calculations to find the best option for your situation.