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Best Online Loans to Consider in 2024
The best online loans make it easy to borrow money for a variety of purposes, including emergency expenses, home remodeling projects, and college tuition and fees. Our list of online lenders offer funding options with attractive terms and monthly payments you can afford.
Written by:Holly Johnson
The top online loans work well for borrowers who need cash but don't want to visit a brick and mortar bank. Online loan applications can take just minutes to complete, and cash can be sent to your bank account electronically upon approval. Our team of financial experts reviewed and ranked more than 100 online lenders to help you get funded, so read on to learn about our top picks, their loan offerings, and how you can apply.
Top Personal Loans Online
- Credible - Best for Comparison Shopping
- LightStream — Best Overall Personal Loan
- SoFi — Best for Loans with No Origination Fee
- BestEgg — Best for Debt Consolidation Loans
Top Small Business Loans Online
- Fundbox — Best Overall Small Business Loan
- Biz2Credit — Best for Equipment Financing
- BlueVine — Best for Business Lines of Credit
Top Student Loans Online
- College Ave Student Loans — Best Overall Student Loan
- Earnest — Best for Student Loans Without a Cosigner
- Laurel Road — Best for Student Loan Refinance
Our team of financial experts ranked lenders based on our ratings methodology found the best online loans on the market. This ratings methodology evaluates lenders based on loan length, APR, repayment terms, user experience, customer service, credit score history, banking and credit union use, and additional features.
Best Online Personal Loans for 2024 - Full Overview
Best Overall
Credible - Best for Comparison Shopping
APR.
2.49% to 35.99%
Loan Amount
$600-$100,000
Min. Credit Score
560+
Key Features
- Checking rates does not affect credit score
- Best rate guarantee
- Allows you to compare loans from top-rated lenders
- Loan amounts up to $100,000
- No hidden fees
- Easy online application
Pros & Cons
- Competitive interest rates
- No hidden fees or prepayment penalties
- Low credit accepted
- Flexible repayment terms
- Excellent customer service
- Not a direct lender
- Rates will vary by lender
- Some lenders may charge late fees
Overview
Credible offers online loans in the form of personal loans and they are a lending marketplace. This is great news for you, as it means you do not have to shop around for a loan. Instead, you’ll submit an application with Credible and they will match you to lenders you are prequalified for. From there, you choose the online lender you want to work with. Depending on which lender you choose, you could receive your funds in as little as 24 hours.
Main Features
Credible offers online loans from $600 to $100,000, with rates starting at 4.60%. Credible is not a lender but a loan marketplace connecting you with reputable lenders within minutes. There are no hidden fees and low credit is accepted. To apply for an online loan with Credible, simply fill out their easy online application. You’ll be matched with lenders you qualify for, and from there you can choose your loan amount, rate, and lender. If approved, you’ll sign for the loan and may receive funds as soon as the next business day.
If you need a personal loan and don’t want to leave your house or spend hours scouring the web, apply with Credible. Credible works with all types of borrowers, including those with bad credit or a low debt-to-income ratio, and all paperwork can be submitted from the comfort of your own home. Applying does not affect your credit score, but still gives you real-time offers to choose from.
LightStream — Best Overall Personal Loan
APR.
2.99% to 19.99%
Loan Amount
$5,000-$100,000
Min. Credit Score
Not Disclosed
Key Features
- Funding as soon as the same day
- Allows joint applications
- No origination fee
Pros & Cons
- Unbeatable rates for good credit
- Borrow up to $100,000 for any reason
- Check your rate with no impact on your credit
- Auto-pay discount available
- Repayment terms up to 240 months
- Good or excellent credit required
- Rates without auto-pay are .50% higher
- Minimum loan amount of $5,000 applies
Overview
LightStream made our list of top online lenders due to the fact they offer some of the lowest interest rates on the market today. This organization offers unsecured personal loans that can be accessed for any reason, whether borrowers have debt to consolidate or they need to finance a large purchase. LightStream personal loans offer some of the most flexible repayment terms of the top online lenders, and borrowers can get prequalified online before they apply.
Main Features
The features of LightStream personal loans can vary based on the purpose of your funding. Home improvement loans can be paid off over 240 months through the platform, yet shorter timelines are offered on debt consolidation loans and personal loans for an auto purchase. Loan amounts range from $5,000 to $100,000, and interest rates can fall between 3.49% to 19.99% APR with auto-pay. LightStream personal loans come with no origination fees, no prepayment penalties, and no hidden fees of any kind.
LightStream offers reputable online loans you can count on, whether you need to borrow money to consolidate debt or you want to finance a wedding or a backyard pool. You can even check your rate without any impact to your credit, so there's nothing to lose.
SoFi — Best for Loans with No Origination Fee
APR.
6.99% to 21.78%
Loan Amount
Up to $100,000
Min. Credit Score
680+
Key Features
- No origination, prepayment, or late payment fees
- Joint applications accepted
- Offers .25% discount for autopay
- Borrowers up to $100,000
Pros & Cons
- Borrow up to $100,000
- Check your rate with no impact on your credit
- No origination fees or hidden fees
- Unemployment protection included
- Auto-pay discounts can apply
- Minimum personal loan amount of $5,000
- Good or excellent credit required
- Lowest rates require auto-pay
Overview
SoFi is worth considering if you need a large amount of funding, and that's true regardless of the reason. Their personal loans are available in amounts up to $100,000, and they are free of hidden fees that can make borrowing more costly. SoFi says their personal loans are ideal for "home improvements, credit card consolidation, IVF, even unplanned life events that call for emergency funds, and more."
Main Features
Online personal loans from SoFi are offered in amounts that range from $5,000 to $100,000, and interest rates currently fall between 6.99% and 21.78% with auto-pay. Funding can be repaid over 24 to 84 months, which helps borrowers tailor their loan payment to their needs. SoFi personal loans also come with no origination fees and no hidden fees, although a good credit score is required.
Consider SoFi for your online loan if you want to borrow up to $100,000 and repay with flexible terms. You can qualify for the cash you need if you meet their minimum requirements, and their low rates and lack of fees means you won't wind up paying more than you need to.
BestEgg — Best for Debt Consolidation Loans
APR.
5.99% – 35.99%
Loan Amount
$2,000-$50,000
Min. Credit Score
Undisclosed
Key Features
- Wide range of loan amounts available
- Fast application process
- Direct payments to creditors as an option
Pros & Cons
- Check your rate with no impact on your credit
- Competitive rates eligible applicants
- Borrow up to $50,000 for debt consolidation
- Available for fair credit and poor credit
- Origination fee of 0.99% to 5.99%
- High APRs for bad credit
- Limited repayment options available
Overview
While many of the top online loans can work for debt consolidation, BestEgg personal loans are ideal for this purpose. This is mainly due to their generous loan amounts and repayment terms, as well as the fact individuals with fair credit and poor credit may be able to get approved. This lender also lets borrowers check their rate before they apply, which can help you gauge your approval odds early on.
Main Features
Personal loans from BestEgg come in amounts as low as $2,000 all the way up to $50,000, which makes them perfect for debt consolidation. Interest rates range from 5.99% to 35.99% depending on creditworthiness, and borrowers can repay their funding over 36 or 60 months. While applicants with a credit score as low as 550 may be eligible, all borrowers pay an upfront origination fee of 0.99% to 5.99% on their loan.
BestEgg personal loans work well for consumers who want to consolidate high-interest debts or borrow for other reasons, and those with imperfect credit can get approved. Consider this lender if you need funding up to $50,000 for any purpose.
Upgrade — Best for Loans for Fair Credit
APR.
5.94% to 35.97%
Loan Amount
$1,000-$50,000
Min. Credit Score
Not disclosed
Key Features
- Funding as soon as the next day
- Can be approved with fair credit
- Variety of discounts on rates
Pros & Cons
- Check your rate with no impact on your credit
- Available for borrowers with fair credit
- Borrow up to $50,000
- Repay over 24 to 84 months
- Origination fee of 2.9% to 8% applies
- Potential for a high APR
Overview
Borrowers with "fair credit," or a FICO score from 580 to 669, can get the funding they need from Upgrade. These loans come with low fixed rates and affordable monthly payments, and applicants can check their rate without any impact to their credit scores. Upgrade personal loans can also be used for any reason, from debt consolidation to funding a vacation, a wedding, or plastic surgery.
Main Features
Borrowers can turn to Upgrade for loans from $1,000 up to $50,000, and repayment options can last from 24 to 84 months. Interest rates range from 5.94% to 35.97% APR based on creditworthiness, and an origination fee of 2.9% to 8% applies to all of their loans. Upgrade personal loans may be available to borrowers with credit scores as low as 580 as long as other qualifications are met.
Borrowers with less than stellar credit can still get the funding they need with Upgrade. This lender even lets you gauge your approval odds and check your rate before you apply.
LendingClub — Best for Joint Loans
APR.
7.04%-35.89%
Loan Amount
$1,000-$40,000
Min. Credit Score
Not Disclosed
Key Features
- Wide range of personal loans
- Co-signer option
- Soft credit pull
Pros & Cons
- Available for borrowers with fair credit
- Low loan amounts available
- Check your rate with no impact on your credit
- Funding available 24 hours after approval
- Average APR of 15.95% for past customers
- Only two repayment options
- Potential for a high APR
- 3% to 6% origination fee applies
Overview
LendingClub is somewhat unique among the best online lenders since this company lets you apply for a personal loan with a joint borrower or a co-signer. This can make sense if you need a wedding loan and you want to apply with your partner, but it can also make sense if a couple wants to work together to consolidate debt. Loan amounts from LendingClub aren't as high as other lenders, but their loans are available to borrowers with imperfect credit.
Main Features
LendingClub personal loans come in amounts that range from $1,000 to $40,000, and they can be repaid over 36 months or 60 months. Interest rates range from 6.34% to 35.89% APR depending on creditworthiness, and loans may be available to borrowers with credit scores as low as 600. Note that an origination fee of 3% to 6% of the loan amount applies on every personal loan.
LendingClub is perfect for joint loan applicants, as well as anyone who needs access to cash for any reason. Consider this lender if your credit isn't great and you don't mind paying an origination fee to access the cash you need.
Best Online Small Business Loans for 2024 - Full Overview
Online small business loans can help borrowers get funding to cover payroll, equipment or investments in their company. The following small business loan reviews can help you get the funding you need.
Best Overall
Fundbox — Best Overall Small Business Loan
APR.
4.66 - 8.99%
Loan Amount
$5,000 - $150,000
Min. Credit Score
600+
Key Features
- Borrow up to $150,000
- Loan repayment 6-12 months terms
- Interest rate 4.66% minimum
- No monthly fees or prepayment penalties
- Same-day or next-day funding
- Best for business lines of credit
Pros & Cons
- No origination fees or hidden fees
- Get a loan or a line of credit
- Access up to $150,000 in funding
- Easily apply online
- No hard inquiry to apply
- Excellent reviews from past users
- Payments require automatic debiting
- Potential for a high APR
- Lower loan limits than other borrowers
Overview
Fundbox offers both small business loans and small business lines of credit, and their loans earned the top spot in our ranking since they come with no application fees, no prepayment penalties, and no origination fees. Once an applicant is approved for funding, their loan offer is valid for the next 30 days. Next-day funding is also available.
Main Features
Small business owners who apply with Fundbox can borrow between $1,000 and $150,000 with their small business loans. Payments are automatically debited from a business bank account on a weekly basis, and repayment terms are offered in 24-week and 52-week increments. Interest rates range from 8.33% to 18% depending on the repayment plan chosen.
If you are a small business owner who needs up to $150,000 in funding, Fundbox can help you get what you need without any hidden fees. You can choose this lender for a loan or a line of credit based on your borrowing needs.
Biz2Credit — Best for Equipment Financing
APR.
Starting from 10%
Loan Amount
$25,000 - $6,000,000
Min. Credit Score
600+
Key Features
- Borrow up to $2 million
- Loan Repayment 12-36 months terms
- Variable APR depending on the applicant
- Multiple loan types available
- Funding in 72 hours
- Soft credit pull
Pros & Cons
- Borrow up to $500,000 with a term loan
- Larger loan amounts up to $6 million
- Good reviews from past users
- Fast disbursement of funds
- One prepayment plan available
- Strict eligibility criteria
- No information on fees
Overview
Biz2Credit offers three different borrowing options for small businesses, including working capital, term loans and larger loans that can be secured with commercial real estate. This makes the company a smart option to seek out if you need equipment financing with multiple plans to choose from. Their term loan is available in larger loan amounts than many other lenders, and applicants can apply online and get in answer in a matter of minutes.
Main Features
Biz2Credit offers term loans in amounts up to $500,000, working capital in amounts up to $25,000, and larger secured loans in amounts up to $6 million. Their term loans can be repaid over 12, 18, 24, or 36 months on a weekly or monthly basis, and interest rates start at 8.99%. Unfortunately, Biz2Credit does not disclose their fees, including any origination fees.
Biz2Credit is a solid online lender to consider if you need business funding in almost any amount. Just make sure to check for loan fees before you apply.
Credibly — Best for Bad Credit
APR.
8% - 25%
Loan Amount
$5,000-$400,000
Min. Credit Score
500+
Key Features
- Simple application process
- As soon as same day funding
- Open to high-risk industries
Pros & Cons
- Multiple loan options available
- Check your rate with no impact on your credit
- Borrow up to $400,000
- Quick and easy funding
- Overall business health considered
- Available for applicants with bad credit
- High rates can apply
- Origination fees make borrowing expensive
- Daily or weekly payments
Overview
Credibly offers a range of unsecured loan options for small businesses, including working capital loans, long-term loans, and business lines of credit. Applicants can check their rate and see how much funding they can qualify for without any impact to their credit, and daily, weekly and monthly repayment options are available. Approval in as little as 24 hours is a real possibility with Credibly loans, and applicants with bad credit have a good chance of approval.
Main Features
Credibly offers several loan options that let applicants borrow between $5,000 and $400,000 for their business needs. Applicants can have a credit score as low as 500, although they need to be in business for at least six months with average monthly revenue of $15,000 or more. Repayment terms vary depending on the type of funding applied for.
Credibly offers flexible borrowing options for small business owners, including those with poor credit. If you need funding and you know your credit score isn't that great, this top online lender may be the answer you're looking for.
Bluevine — Best for Business Lines of Credit
APR.
As low as 4.8%
Loan Amount
$5,000-$250,000
Min. Credit Score
625+
Key Features
- Funding up to $250,000
- Interest rates as low as 4.8%
- Loan Repayment 6-12 months terms
- Quick and simple application
Pros & Cons
- Check your rate with no impact on your credit
- Easy application process
- Only borrow what you need
- Available for fair credit
- No hidden fees
- Weekly or monthly payments
- Short repayment terms
- Potential for a high APR
- Not available in ND, NV, or SD
- Repayment through automatic debiting
Overview
Bluevine is an online lender that focuses on offering lines of credit for small businesses. This funding option makes it possible for business owners to borrow only what they need, and to access more funding as required up to loan limits. A line of credit also replenishes as payments are made, so this type of funding works well for those who may have ongoing financing needs to keep their business afloat.
Main Features
Approved borrowers can turn to Bluevine for a line of credit that ranges from $5,000 to $250,000, and repayment terms can be for six months or 12 months. Weekly or monthly payments are available, and interest rates can be as low as 4.8% depending on creditworthiness. On their website, Bluevine says applicants must have a FICO score of 600+, six or more months in business, and at least $10,000 or more in monthly revenue. The business applicant must also operate in the U.S. or be incorporated in an eligible U.S. state.
A Bluevine line of credit makes sense for business owners who aren't sure how much funding they need, as well as those who may need to borrow small amounts over time. This type of loan also works well for borrowers who want to avoid origination fees and hidden fees.
Fora Financial — Best for Startup Business Loans
APR.
1.1 to 1.3 factor rate
Loan Amount
$5,000-$750,000
Min. Credit Score
550+
Key Features
- Ideal for plenty of industries
- Approval not solely credit based
- Early payoff discounts
Pros & Cons
- Considers alternate data for approvals
- Check your rate with no impact on your credit
- Quick and easy funding
- Borrow up to $750,000
- Potential for a high APR
- Pricey borrowing fees
Overview
Fora Financial offers working capital loans and small business loans with relatively large loan amounts and the promise of speedy funding. Their application process is simple and transparent, and borrowers can even check their rate without any impact to their credit. Since Fora Financial considers alternative data for approvals, this lender is ideal for entrepreneurs whose credit scores need some work.
Main Features
Funding through Fora Financial can be pricey due to the borrowing fees they charge, which fall between 10% and 30% of the loan amount. An origination fee of 2.5% can also apply, and factor rates from 1.1 to 1.3 determine the long-term costs of borrowing. Loan amounts are offered from $5,000 all the way up to $750,000. Also note that Fora Financial business loans require repayment within 4 to 15 months.
Fora Financial offers a convenient, albeit expensive, way to borrow money fo a start-up endeavor or an existing small business. However, the fact they don't rely on credit scores for approval means this borrower will work for a broader range of customers.
Best Online Student Loans for 2024 - Full Overview
Many student loan companies also offer online loans with preferable rates and terms. The following providers offer the best options for borrowers who need to pay for college tuition and fees, room and board, or books and supplies.
Best Overall
College Ave Student Loans — Best Overall Student Loan
Variable APR.
0.94% - 11.98%
Loan Amount
$1,000 up to the cost of attendance
Min. Credit Score
Not disclosed
Key Features
- Auto-pay discount available
- Flexible repayment terms (up to 15 years)
- Prequalify without a credit check
Pros & Cons
- Check your rate with no impact on your credit
- No hidden fees on student loans
- Competitive fixed and variable rates
- Flexible repayment terms
- Easy online application
- Undergraduate students may need a cosigner
- Satisfactory academic progress required
Overview
College Ave Student Loans earned the top spot in our ranking of online student loan companies due to the variety of loans offered, their competitive interest rates, and their flexible loan terms. This company offers student loans for attending college as well as refinance options for existing student loans you have. Rates are some of the lowest in the industry, and there are no origination fees or hidden fees.
Main Features
College Ave offers undergraduate student loans, graduate student loans, loans for parents and student loan refinancing, and the rates can vary by loan products and whether they are fixed or variable. As an example, their undergraduate student loans offer variable rates between 1.19% and 11.98% APR and fixed rates that fall between 3.49% and 12.99%. Student loans can be repaid over 5 to 15 years. Although this company does not list minimum credit score requirements, they do let you check your rate and gauge eligibility before you apply.
College Ave student loans offer the lowest rates in the business and no hidden fees. Consider checking your rate whether you need an online student loan to attend college or you need to refinance your existing student loans before rates increase.
Earnest — Best for Student Loans Without a Cosigner
Variable APR.
0.94%-11.69%
Loan Amount
$1,000 up to the cost of attendance
Min. Credit Score
650+
Key Features
- Long 9-month deferment period
- Opportunity to skip one payment per year
- No origination fees or prepayment penalties
Pros & Cons
- Check your rate with no impact on your credit
- Get approved with or without a cosigner
- Private loans and refinancing available
- Low fixed and variable rates available
- No hidden fees
- Auto-pay discount available
- Borrowing limits apply
- Not available for poor credit
Overview
Even though most of Earnest's customers have a cosigner when they apply, this student loan company does offer options with no cosigner required. Earnest also lets customers check their rate and see if they can qualify before they fill out a full loan application, and applicants with credit scores as low as 650 may be considered for refinancing. Earnest also offers competitive rates and loan terms, and their online application is a breeze to complete
Main Features
Earnest offers private student loans and student loan refinancing with rates and terms that vary by loan product. Interest rates for undergraduate student loans can be as low as 0.94% variable or 3.24% fixed, and several flexible repayment plans are available. Applicants applying for undergraduate student loans without a cosigner need a minimum credit score of 650 and to be enrolled in school full-time. Other requirements include being in pursuit of a bachelor's degree and having a minimum income of at least $35,000.
Earnest is a good choice to consider if you need to apply for college financing with or without a cosigner. Applicants can even check their rate without any impact to their credit before they apply.
Laurel Road — Best for Student Loan Refinance
Variable APR.
1.64%-5.65%
Loan Amount
$5,000 up to the cost of attendance
Min. Credit Score
660+
Key Features
- Loans are tailored for future healthcare professionals
- No application, origination or disbursement fees
- No hard credit check for the initial qualification process
Pros & Cons
- Check your rate with no impact on your credit
- Competitive fixed and variable rates
- Five repayment plan options
- Easy online application process
- Auto-pay discount available
- Not available for fair credit or poor credit
- Strict eligibility requirements apply
Overview
Laurel Road is a top provider of student loan refinancing products, and it shows in their seamless application process and their competitive rates and fees. Applicants can discover their rate and repayment options with no impact to their credit, and they can choose from variable or fixed rates along with flexible repayment terms.
Main Features
Laurel Road offers student loan refinancing for working professionals who earned an eligible degree from an approved school. Interest rates vary depending on the repayment plan chosen, but variable rates are currently at 1.64% to 4.70% for five-year loans while fixed rates fall between 2.74% and 4.80%. Borrowers can repay their loans over five to 20 years depending on their needs and how much they want to pay each month.
Check out Laurel Road if you need to refinance your student loans in order to secure better rates or a more affordable monthly payment. You can even check your rate before you apply.
Splash Financial — Best Student Loan Comparison Site
Variable APR.
Starting at 1.74%
Loan Amount
$5,000 up to the cost of attendance
Min. Credit Score
Not disclosed
Key Features
- Checking rates will not show up on a credit report
- No fee to check your rate or apply for a loan
- Lots of lender options
Pros & Cons
- Check your rate with no impact on your credit
- Lenders compete for your business
- Competitive rates and terms
- No origination fees or hidden fees
- Refinance loans only
- Strict eligibility requirements apply
Overview
Splash Financial is a student loan comparison site that makes it easy to shop around for and compare loans in one place. Applicants can check their rate with multiple lenders before they apply, and more than one lender may be willing to compete for their business. The online application only takes a few minutes to complete, and the entire process takes place virtually for convenience.
Main Features
Splash Financial offers refinance loans with varying repayment plans. Their loans offer variable rates from 1.74% to 8.27% with auto-pay and fixed rates from 1.99% to 8.27% with auto-pay. Applicants must have earned an eligible degree at an approved school as defined by Splash Financial. Since Splash Financial is a loan aggregator, qualification requirements like a minimum income or minimum credit score can vary.
Splash Financial is worth checking out if you want to compare multiple student loan refinance options on a single platform. This company offers incredibly low rates and fair terms, and you can check your rate in a matter of minutes.
Discover Student Loans — Best for Graduate Student Loans
APR.
5.99-24.99%
Loan Amount
$2,500-$35,000
Min. Credit Score
660+
Key Features
- No origination fees
- Nine month deferment period
- Direct payments to creditors with debt consolidation loans
Pros & Cons
- Check your rate with no impact on your credit
- Broad loan options for graduate students
- Easy online application process
- Auto-pay discount available
- Rewards for good grades
- No origination fees or hidden fees
- Satisfactory academic progress required
- Not available for bad credit
Overview
Discover may be better known for their credit cards and personal loans, but they also offer student loans for undergraduate and graduate students. Their graduate school loans are especially broad since they can apply to traditional graduate school programs as well as residencies and bar exams. Rates are competitive and terms are flexible, although you'll need good credit to qualify.
Main Features
Discover student loans come with variable rates from 1.79% to 11.09% and fixed rates from 3.99% to 11.59%, and there are no origination fees or hidden fees involved. Borrowers can qualify to borrow up to 100% of school-certified college cost of attendance, although aggregate loan limits apply. Available repayment terms depend on the loan amount and the repayment plan selected.
Choose Discover if you need to borrow money to fund your graduate school education. You may be able to borrow up to the full cost of attendance, and these loans come with no origination fees and no hidden fees. You can even qualify for a one-time reward for good grades worth 1% of the loan amount if you can prove a 3.0 GPA or equivalent.
How to Choose the Best Online Loan?
Before you can choose the best online loan company, you should take the time to compare them based on the factors that matter the most. Our experts considered the following criteria when selecting the reputable online loans for our ranking.
- Loan features: Compare online loans based on their loan terms, loan amounts, repayment plans offered, and limitations on how you can use funding. Look for online loans that will lend you the cash you need with a monthly payment that makes sense,
- Interest rates and fees: Compare lenders based on the interest rates they charge, whether you are considering loans with variable rates or a fixed rate loan. Also compare lender fees and strive to choose a loan company that charges minimal fees, if any.
- Application process: See what it takes to apply for an online loan, and look for lenders that let you get prequalified without a hard inquiry on your credit report.
- Qualification process: Determine what the minimum qualifications are for the online loan you want. Criteria can include a minimum credit score, a minimum income, a maximum debt-to-income ratio, and more.
- Customer support: Find out how you can contact the company if you need assistance. Most companies that offer reputable online loans have phone customer support, an email support contact, and an online chat feature.
- Online user reviews: Compare reviews from past users on websites like Trustpilot and the Better Business Bureau (BBB).
- Perks and Bonuses: Check for added perks you can qualify for, such as an auto-pay discount or a referral bonus program.
What Is an Online Loan?
An online loan is a type of loan that is easy to access from the comfort of your home. The top online lenders let you apply virtually without having to visit a loan office, and your funding is automatically sent to your bank — sometimes in as little as 24 hours.
Online loans are advantageous because they're easier to access than loans from traditional financial institutions. Without a brick and mortar building to maintain, online lenders can also offer funding with better rates and terms.
Reasons to Get an Online Loan?
There are an endless number of reasons to apply for an online loan, including the most common ones we list below:
- High-Interest Debt: You need to consolidate high-interest debts and you want to secure a lower APR and a fixed monthly payment you can afford.
- Higher Education: College expenses are coming up and you need funding to cover tuition, fees, and living expenses.
- Wiggle Room: You're short on cash to pay your bills this month and you don't want to fall further behind.
- Home Upgrades: Roof repairs and other home upgrades are on your agenda, but you don't have enough cash to pay upfront.
- Big Expenses: You have a large expense coming up and you need cash to cover it.
- Major Purchases: You want a way to pay for home improvements, a wedding, or the vacation of your dreams.
- Business Growth: Small business funding is crucial if you want to grow your business, and you need a lender that can help.
How to Apply for an Online Loan?
The process involved in applying for an online loan can vary widely depending on the lender, yet most applications require the same basic information. The following steps can help you apply with the best online loan company for your needs.
- Step 1: Assess your borrowing needs, and look for a lender that offers loan amounts that fit with your goals.
- Step 2: Compare the best online loans and their providers to find out which ones offer the type of funding that suits your needs best.
- Step 3: Check your rate with at least three different lenders so you can compare offers.
- Step 4: Compare loan terms offered to you, and see how their monthly payment options stack up.
- Step 5: After you compare reputable online loans based on their features, see how they compare in terms of their fees.
- Step 6: Choose an online lender and move forward with your loan application
- Step 7: Fill out all the information they require, which will likely include your name, your contact information, your address, your Social Security number, and more.
- Step 8: Wait to see if you're approved for funding, which could happen within a matter of minutes or within a few days.
- Step 9: Wait for your loan funds to show up in your bank account.
- Step 10: Begin making payments on your online loan based on the payment plan you agreed to ahead of time.
Pros and Cons of Online Loans
Online loans offer a convenient way to get funding, but there are advantages and disadvantages to be aware of. Read on to learn the pros and cons of working with legitimate online loan companies.
Pros
- Convenient Applications: Borrowers can complete the entire application process without having to speak with a loan officer or visit a loan office in person.
- Flexible Loan Options: With so many reputable online loans available, you can choose from several lenders that offer repayment plans or monthly payments that could work.
- Easy Comparison Shopping: Online loans make it easy to compare lenders based on their loan terms, rates, and fees
- Competitive Rates and Terms: Many online lenders offer competitive rates and terms that can make borrowing very affordable.
- Broad Approval Requirements: There are online lenders that work with borrowers with any type of credit profile, from excellent credit all the way down to no credit.
Cons
- No Personal Touch: You may apply for a loan and get funding without ever speaking to a live human being.
- Online-Only Service: Online lenders do not have branches you can visit if you want in-person customer service or assistance.
- Spam Emails and Calls: Checking rates with several online lenders can leave you getting spam emails and phone calls for months
Conclusion
Online loans can be used for a variety of purposes, and the lenders that operate in this space tend to be fair and reputable. That said, you should take the time to compare the best online loans based on their features and fees, and don't stop looking until you find a lender that offers exactly what you need. Once you're ready, online lenders let you apply and get funded without ever leaving your home.
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About the Author
Holly Johnson
Holly Johnson is an award-winning writer who covers personal finance topics such as insurance, loans and loan products, budgeting, credit cards and loyalty programs.
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