If you are looking for personal loan apps, you arrived at the right place. We want to share with you and review 5 of the most popular apps that would be able to provide you cash next time you need it. Must know: the amount that you need, your income and your credit score will impact the price that you will pay for a loan. That’s why it’s so important to understand which lender is the best for YOU. Let’s dive into it:
- Request process: about 5 minutes
- Loan amounts are between $100 and $2,500
- Cost: well, it depends on the amount you wish to take and for how much time
- Sign up process: about 5 minutes
- Loan amounts up to $500
- Cost: 6% APR
- Can take as many loans as you want (but not in parallel)
Avant is one of the largest player in terms of online lending in the U.S. It focuses on “typical middle-class American” (that’s a quote from Avant president) and especially those with low credit scores. A few things you should know:
- Loan amounts are between $2,000 and $35,000
- You need a credit score of at least 580 to qualify
- You need an annual income of at least $20,000
- Payments are made monthly (loan terms are usually 2 to 5 years)
- Cost: up to 4.75% origination fee (taken directly from the amount you borrow) + a 9.95-35.99% APR
What we like about the Avant app is that you will get the money as soon as the next business day and that the term payments are pretty flexible. For example, if you miss a payment, you will be charged a $25 late payment fee. But that fee will be refunded if you make the few payments coming up after on time.
Prosper is a huge player in the lending place. The San Francisco-based lender does peer-to-peer lending: it connect borrowers with lenders. Meaning that if you are an investor, you can choose to fund loans and get paid an annual interest rate.
The Prosper app is different from the two products we review so far because you will be able to borrow through it only if you have a good to excellent credit score and a rather high income. Indeed the average annual income for a Prosper user is $89,000. Similarily to Avant, the loans sizes range between $2,000 and $35,000. If you are looking for less, FasterFunds is the move.
It will decide if you can borrow based on different criteria. Your credit score is one of them but it will also look at debt-to-income ration and other data points before investors will determine if they want to fund your loan or not.
Prosper is not as flexible in terms of payment schedule – you can’t change it and you will be charged a late payment fee if you fail to pay on time (Avant and Lending are more flexible). The late payment fee is 5% of the payment or $15 (the higher of the two)
- 640 minimum credit score recommended to qualify for a loan
- Relatively high income (although no minimum officially)
- DTI (debt-to-income) ratio: 50% maximum but that’s excluding mortgage
- Loan size: between $2,000 – $35,000
- Loan term: between 3 and 5 years
- Cost: origination fee of 1%-5% (depending on your grade) + APR of up to 36%
LendingClub is another giant in the online lending landscape. Similarly to Prosper and Avant, the loan sizes are large and for a relatively long period of time. We made a full review of the LendingClub app but here are the most important points:
- Loan term: up to 5 years
- Cost: up to 6% origination fee + up to 30% APR
- Approval process: not very clear. They do check your credit score, money you own to other lenders and might even ask you to apply with a co-borrower
LendUp is an online payday lender that will be able to provide smaller amounts of cash than Avant, Prosper or LendingClub. It is quite expensive but can be relevant if you are just in need of quick cash before your next paycheck. We also did a full review of the LendUp app recently but here are the few key points:
- Loan term: amounts are small so up to a few months
- Cost: expect some triple-digit APR here (short term = high APR). It will highly depend on the amount you need and the state you live in
- Approval process: they check your credit score but they are not very picky about it
Online loan app
The personal loan apps we reviewed here are all online – you can go through the entire approval process on the internet. For those of you who hesitate between online lenders and brick-and-mortar ones, we usually recommend the ones that are online. The main reason for this is simply because they are cheaper. Offline locations have to maintain more physical spaces and manpower than their online counterparts. That’s one of the reasons online lenders can afford to be cheaper than the offline incumbents. If you do feel like you absolutely need to see someone for real before you take a loan, make sure to know all the conditions. Offline lenders have a bad rep for a good reason.
Small loan apps
Except for FasterFunds and LendUp, the apps reviewed here lend amounts superior to $1,000. If you need small amounts (let’s say $50), then there are more adequate solutions for you. The Dave app or the Earnin app will do a wonderful job doing those kind of cash advances. Dave does cost $1/ month but it will be able to give a cash advance for up $75 with no interest (but with a transaction fee of about $5). Earnin gives you an advance on your paycheck before payday – up to a few hundred dollars with no interest as well. Best things about those apps? No credit score needed.
Personal loans online approval
You have to understand the lenders. All they care about is that you give them their money back. So the main approval process consists of the underwriting – assessing how risky of a borrower you are. To assess that risk, a lot of lenders will check your credit score but not all. It really depends on the lender. The amount you want to borrow will also influence their decision.
100% approval doesn’t exist but you should check your eligibility on the lenders’ websites before wasting time on an application. You should now that you have more choices than you think. At OverdraftApps.com we really try to review all the different options that you might have. Make sure to take a look at all the overdraft apps and personal loan apps.
We know that many of you are looking for instant cash. You should know that it usually take at least a few hours to actually get the cash to you. The approval process might happen in a few minutes but ACH/ wire transfers take a few hours, if not 24 hours (it’s called ‘next day transfer’). And that’s for the small amounts ($50-$1,000). For larger amounts, the approval process will usually be longer and you would typically get your money only after 3-5 days.