Top 5 Rated Lenders If You Need An Instant Loan

Banks Editorial Team · August 22, 2019

You may be seeking an instant loan if you need money fast. We all understand that there are times when you need money fast in order to cover emergencies or expenses that won’t wait until your next paycheck. You may be able to qualify for an instant loan that can quickly give you those funds, but researching which financial institution is your best option in this space can be overwhelming. You definitely don’t want to end up with terms that weren’t properly disclosed to you before you signed for the loan.

 

 

And this begs the question, what should you look for in a trustworthy instant loan lender?

Features of Top Instant Loan Lenders

  • The money is deposited into your account quickly. You don’t have days to wait, so you need an instant loan that is awarded to you in minutes.
  • The rate is reasonable. You’ll pay more interest for a short-term instant loan than you would for other types of borrowing, but you don’t want to bear predatory rates like you might find at a payday loan shop. Look for rates close to 10% and no higher than 30%.
  • The application process is easy. You should be able to apply online or via a mobile app, any time of the day, without talking to a loan officer in person or by phone.
  • Origination fees, sometimes called administrative fees, are less than 5%. This amount will be taken from the total of your loan to pay for the cost of setting up the loan.

Five of the Best Instant Loan Lenders

1. Rocket Loans

Detroit-based Rocket Loans is a sister company to Quicken Loans and offers unsecured personal loans to those with good credit. Typically, you’ll have to have at least a 640 FICO score and income of at least $40,000 a year, though many borrowers exceed these.

The instant loan process at Rocket Loans is entirely online and can be funded in the same day. Depending on your needs, you could qualify for up to $45,000. Rates are determined by your credit score and your payment method — you’ll get a discount for setting up automatic payments. There are no pre-payment penalties.

  • Loan Amount: $2,000 to $45,000
  • Loan Term: 36 months or 60 months
  • Interest Rate: 7.161% to 29.99% APR
  • Minimum Credit Score: 640
  • Origination Fee: 1% to 6%
  • Application Process: Online, often completed the same day but otherwise, within two business days

2. Upstart

Designed for those with little credit history or average credit, Upstart instant loans are best for those who have higher earning potential. Funds can be used for education, unlike with some instant loan providers. Upstart was founded by former Google employees who promise three quick steps to applying for your loan. Automated payments are preferred and pre-payment can be made without penalty.

  • Loan Amount: $1,000 to $50,000
  • Loan Term: 3 years or 5 years
  • Interest Rate: 4.68% to 35.99% APR
  • Minimum Credit Score: 620
  • Origination Fee: 0% to 8%
  • Application Process: Online, often completed the same day but sometimes up to three days

3. Earnest Loans

Earnest Loans offer some of the lowest interest rates for instant loans and have no origination fees, but your credit must be pretty good and you could wait for up to a week for the funds to be available. The company says it analyzes a lot of your financial data to make decisions, which lets them keep rates lower as their risk is reduced. You’ll likely need to have a minimum of unsecured consumer debt, like credit card debt, in order to qualify.

One nice benefit: You have some flexibility with your monthly payment and the day of the month when you make it, and can adjust the payment amount and date via Earnest’s mobile app.

  • Loan Amount: $5,000 to $75,000
  • Loan Term: 3 to 5 years
  • Interest Rate: 6.99% to 18.24% APR
  • Minimum Credit Score: 680
  • Origination Fee: None
  • Application Process: Online, usually 1 to 2 weeks for decision, signing and funding

4. LendingClub

Unique among instant loan providers, LendingClub uses a peer-to-peer model. That means that investors with funds are paired up with those seeking a loan. Investors and borrowers don’t have each other’s details and never communicate; LendingClub handles all the details, including assigning borrowers a risk score based on their financial data. You don’t see this score but the investor does, though none of your other financial information is shared. Typical borrowers have a longer credit history and a reasonably high credit score and income. Joint loan applications are possible through LendingClub, which is different from many instant personal loan providers.

  • Loan Amount: $1,000 to $40,000
  • Loan Term: 3 years or 5 years
  • Interest Rate: 6.95% to 35.89% APR
  • Minimum Credit Score: 600
  • Origination Fee: 1% to 6%
  • Application Process: Online, usually a few business days

5. Avant

Avant is a good option for borrowers without perfect credit, as they have the lowest required minimum FICO score. Interest rates are slightly higher as your credit does not have to be quite as good as with other lenders. Avant offers a mobile app to schedule payments and also has late fee forgiveness, where you’ll get fees refunded if you make the next three payments on time.

  • Loan Amount: $2,000 to $35,000
  • Loan Term: 2 years to 5 years
  • Interest Rate: 9.95% to 35.99% APR
  • Minimum Credit Score: 580, but typically between 600 and 700
  • Origination Fee: Up to 4.75%
  • Application Process: Online, often funded the next business day

 

 

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