Best Personal Loans in Chicago

Many loan options exist for Chicagoans, including those from traditional banks, credit unions, and online lenders. However, borrowers mst expect that their credit scores will be checked via a hard credit inquiry at the time of application. And the best personal loans in Illinois are typically from national lenders that make loans available to all U.S. residents age 18 or older. The best personal loans in Chicago are offered to consumers with a credit score of 700 or higher.

Personal loans can have serious implications on your financial situation. For this reason, you should review your options to ensure you’re getting the best possible loan rates and terms. Also, comparing your rates across multiple lenders can ensure you get the best deal for your credit history and financial situation.

Our team of financial experts ranked lenders based on our rating methodology for personal loans and found the best loans in Chicago. This rating methodology evaluates lenders in Chicago and nationally based on loan length, APR, repayment terms, user experience, customer service, credit score history, banking and credit union use, and additional features.

Best Personal Loans in Chicago - Full Overview 

Here are some of the best personal loans available to residents of Chicago and the surrounding communities. 

All in all, if you are looking for personal loans in Chicago, you should pay attention to what is most important to you. Most borrowers want a competitive yet low APR, a low credit score threshold, fast funding, and high borrowing limits. Check out this terms comparison of the lenders we discussed above.

How to Choose the Best Personal Loans in Chicago 

Choosing personal loans in Chicago, Illinois, or finding the right loan places in Chicago takes a bit of time and some homework. However, we have documented some best practices for choosing your personal loans. Our experts use these parameters to rank lenders, whether you are looking for bad credit loans in Chicago or personal loans for good credit. 

Here’s what to look for:

• Loan features - Ensure you understand the loan terms, amount of the loan and any use limitations. Some lenders restrict how you use the money from their loans.
• Interest rates and fees - Know what you will be paying each month in interest (ensure you can identify the APR for the loan) and have fees such as origination fees, late payment fees, or early payoff penalties.
• Application process - Though the application process is relatively consistent from lender to lender, you should know that when you apply for a loan from a Chicago loan company, you will be subject to a hard credit inquiry. This can impact your credit score by five points and will remain on your credit report for up to two years.
• Qualification process - Check if the lender requires a minimum credit score, has any income requirements, has a membership requirement, or allows a co-signer or joint application if you need it.
• Customer support - See what options the lender has for you to reach out should you need help with your loan. Look at their hours of operation and see if they have a chat, phone, or even a text option to schedule a call.
• Online user reviews - Check Google and TrustPilot for reviews from customers that have used the lender you are considering.
• Perks and Bonuses - Some loan companies offer perks and bonuses such as payment flexibility or advanced technology for your communication preferences. Check to see if the lender offers you free access to your credit score too, which can help you stay on top of your credit.

Reasons to Get a Personal Loan in Chicago? 

There are many reasons why personal loans in Chicago could be beneficial. Specifically, personal loans can be used to finance the following types of transactions:

• Paying for medical emergencies such as a broken bone or injuries from a car accident
• Debt consolidation to allow you to obtain a lower total monthly payment at a more competitive interest rate
• Pet expenses such as veterinary visits or surgeries
• Travel 
• Moving expenses including packaging supplies plus the costs for a professional moving company to manage your move
• Home improvement such as building a new deck or adding landscaping 
• Rent or mortgage payments, provided you can manage your other expenses

How to Get a Personal Loan in Chicago?

Although the process varies by lender, the process to get a personal loan in Chicago works something like this.

• Identify the lender(s) you want to apply to - remember that every time you apply for a loan, a hard credit inquiry will be conducted (this can impact your credit score by up to five points and will remain on your credit report for up to two years).
• Fill out the application and include any requested documentation (such as the above identification information).
• Wait for your loan approval - depending on the lender, this can take several minutes to several days. 
• Once you have been approved, review your loan agreement for all loan terms and what will be expected of you throughout the course of the loan. Specifically, look to ensure the date of the agreement is accurate and that the interest rate and repayment terms are called out as part of the Truth in Lending Agreement.
• Sign the loan agreement and submit it as requested - do not complete the loan agreement or accept the loan terms if you are unable to meet the loan requirements.

Getting a personal loan in Chicago is beneficial as the identification and verification requirements are easy to obtain. To get a personal loan in Chicago, the lender will ask you for the following at the time of your application:

• A government-issued photo ID  such as your driver’s license, passport, permanent resident card, etc.
• Proof of income which could include bank statements, pay stubs, income statements, invoices, etc.
• Proof of your residency in Chicago or a surrounding community, such as bank statements, a utility bill that has come in the mail, etc.

How to Deal with Loan Scams in Chicago

With a population of over 2.5 million, consumers in Chicago would inevitably be the targets of loan scams. However, understanding how to spot loan scams can save you time, money, and headache. 

Here is what to be on the lookout for.

• The lender guarantees approval before receiving any of your personal information.
• The lender isn’t registered in Illinois - check with the Attorney General, Better Business Bureau, or Illinois Department of Financial & Professional Regulation.
• The lender demands payment up front - even with a secured personal loan, you will not be asked to provide a deposit until you have signed your loan agreement.
• The lender calls you, sends you a letter, or appears on your doorstep. According to the FTC, it is not legal for companies to over a loan in the U.S. over the phone or asks you to pay before the loan is delivered.
• You are unable to locate a physical address for the lender.
• The lender pressures you to take action immediately. A reputable lender will give you time to review the offer and loan terms and your loan agreement.
• The lender has hidden fees.
• The loan and terms sound too good to be true.

If you have a consumer complaint against a legitimate or illegitimate consumer loan lender in Chicago, file a complaint with the Illinois Better Business Bureau.

Personal Loan Alternatives in Chicago 

If you cannot apply for a personal loan because you do not have the required information for approval, or if you can’t get approved, there are personal loan alternatives in Chicago. 

The best alternatives are:

• Using the available credit on your credit card - if you can keep your balance below 30% of your credit limit.
• Taking out a personal line of credit from your credit card issuer - however, note that this might come with a cost for a cash advance and may be subject to a higher interest rate
• Taking out a peer-to-peer (P2P) loan from an investor
• Taking a loan out against your mortgage - this is referred to as a home equity loan or home equity line of credit
• Taking a 401(k) loan from your employer or investment firm - this allows you to take a loan out from yourself and usually has only a small fee associated with the process.
• Asking for a salary advance from your employer
• Taking out a small business loan if you are a small business owner

Conclusion 

The fact is that there is no shortage of great personal loan places in Chicago. Whether you need a bad credit loan in Chicago or simply want to work with a loan company in Chicago that has a physical presence, you won’t have trouble finding what you need. Our article lists only a snapshot of the lenders available to you. The key to finding the right personal loan is to ensure the terms align with your financial goals and that you can always make your minimum monthly payment.