Best Direct Lenders of September 2024
Direct lenders are different from loan comparison sites and peer-to-peer (P2P) lenders because they provide personal loans from their deposit bases. For example, banks borrow from their customers to lend to other customers. Likewise, credit unions use existing funds to provide loans. Similarly, online lenders partner with traditional banks to extend credit. The former handles the application, approval, and servicing process, while the latter provides the capital. Ultimately, all three can help you land an affordable personal loan.
Furthermore, our marketplace has options for borrowers of all credit scores. Whether a small or large loan, dozens of products are available. Moreover, inquiring doesn’t impact your credit score, so submitting multiple applications should help you land the lowest annual percentage rate (APR).
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Best Direct Lenders of September 2024
The direct lenders on our list provide loans ranging from $1,000 to $100,000, with APRs of 2.49% to 35.99%. Moreover, most of their minimum credit score requirements are in the fair credit range, but Upgrade, Universal Credit, and Avant are prudent for borrowers with bad credit.
| Lender: | Loan Amount: | APR: | Min. Credit Score: | Type: | Best For: |
|---|---|---|---|---|---|
| LightStream | $5,000 – $100,000 | 2.49% – 19.99% | 660 | Online Lender | Strong credit profiles |
| Wells Fargo | $3,000 – $100,000 | 5.74% – 19.99% | 660 | Bank | Wells Fargo customers |
| SoFi | $5,000 – $100,000 | 6.99% – 21.28% | 680 | Online Lender | No-fee personal loans |
| U.S. Bank | $1,000 – $50,000 | 5.99% – 18.49% | 660 | Bank | U.S. Bank customers |
| Upgrade | $1,000 – $50,000 | 8.49% – 35.99% | 560 | Online Lender | High DTI ratios |
| BestEgg | $2,000 – $50,000 | 5.99% – 35.99% | 550 – 600 | Online Lender | Wide range of credit scores |
| TD Bank | $2,000 – $50,000 | 6.99% – 18.99% | 700 | Bank | Good to excellent credit scores |
| Pentagon Federal Credit Union | $600 – $50,000 | 4.99% – 17.99% | 650 | Credit Union | High DTI ratios |
| Alliant Credit Union | $1,000 – $50,000 | 6.24% – 27.24% | 640 | Credit Union | Fast funding |
| Navy Federal Credit Union | $250 – $50,000 | 7.49% – 18.00% | Not Listed | Credit Union | Service members and affiliates |
| FreedomPlus | $7,500 – $50,000 | 7.99% – 29.99% | 620 | Online Lender | Debt consolidation |
| Laurel Road | $5,000 – $45,000 | 7.00% – 24.75% | 660 – 700 | Online Lender | Debt consolidation |
| UniversalCredit | $1,000 – $50,000 | 8.93% – 35.93% | 560 | Online Lender | Low credit scores, high DTI ratios |
| Marcus by Goldman Sachs | $3,500 – $40,000 | 6.99% – 19.99% | 660 | Online Lender | No-fee personal loans |
| LendingPoint | $2,000 – $36,500 | 9.99% – 35.99% | 580 | Online Lender | $25,000 annual incomes |
| PNC Bank | $1,000 – $35,000 | 5.99% – 35.99% | 660 | Bank | Online and in-person service |
| Avant | $2,000 – $35,000 | 9.95% – 35.99% | 580 | Online Lender | $20,000 annual incomes |
| OneMain Financial | $1,500 – $20,000 | 18.00% – 35.99% | 0 | Online Lender | Low credit scores |
LightStream
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| Loan Amount: | $5,000 – $100,000 |
| APR: | 2.49% – 19.99% |
| Min. Credit Score: | 660 |
| Approval: | 1 – 7 Days |
| Terms: | 3 – 12 Years |
| Fees: |
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| Qualification Criteria: |
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| Average Borrower Profile: |
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| Best For: | Strong credit profiles |
| Check rates | |
LightStream is one of the best direct lenders because it has the highest loan limit among the companies in our study. You can borrow $5,000 to $100,000, with 2.49% to 19.99% APRs and three to 12-year terms. Moreover, your funds come from Truist Bank, and LightStream’s loans are excellent for debt consolidation, home renovation, and unexpected emergencies. Furthermore, it’s one of the few direct lenders that doesn’t charge origination, prepayment, application, or late payment fees.
However, LightStream doesn’t offer prequalification, so you must apply to determine your eligibility. And since the direct lender conducts a hard credit check, your credit score could suffer. Second, LightStream’s minimum credit score requirement is 660, but a reading of at least 690 is necessary to obtain the lowest APRs. But LightStream has a best rate guarantee where the direct lender reduces your APR by one-tenth if you get a cheaper rate elsewhere. The promotion applies to unsecured fixed-rate personal loans with identical amounts, terms, usages, and repayment methods. Third, LightStream mandates that qualifying applicants have a reliable history of on-time repayment across products like credit cards, mortgages, and auto loans. Moreover, a high and stable income is preferable.
Ultimately, LightStream tops our best direct lenders list. So if you need a large loan and have a high income and low DTI ratio, it’s a perfect fit.
Pros:
- LightStream provides direct personal loans of $5,000 to $100,000.
- Low APRs are available.
- You can reduce your APR by 0.50% with auto-pay.
- There are no origination, closing, prepayment, or late payment fees.
- Unsecured, secured, and cosigner loans are available.
- On-time repayment can increase your credit score.
- LightStream may offer COVID-19 deferrals.
Cons:
- LightStream usually won’t approve poor credit applicants.
- A hard credit check can hurt your credit score, and there is no pre-qualification option.
- You can’t amend your payment date.
- Debt consolidation loans aren’t sent directly to creditors.
The impact of COVID-19:
While LightStream doesn’t list any specific policies or contact information to help struggling borrowers, customers should be able to inquire about their options by logging into their LightStream account.
Wells Fargo
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| Loan Amount: | $3,000 – $100,000 |
| APR: | 5.74% – 20.99% |
| Min. Credit Score: | 660 |
| Approval: | 1 – 7 Days |
| Terms: | 1 – 7 Years |
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| Average Borrower Profile: |
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| Best For: | Wells Fargo customers |
| Check rates | |
Wells Fargo is one of the best direct lenders among traditional banks because of its high loan limit and affordable APRs. You can borrow $3,000 to $100,000, with 5.74% to 20.99% APRs, and one to seven-year terms.
But like LightStream, there is no pre-qualification option, and applying results in a hard credit check, which may hurt your credit score. In addition, bad credit borrowers have a tough time qualifying at traditional banks. Moreover, Wells Fargo notes that only 10% of applicants receive the lowest APRs. Therefore, we don’t recommend the direct lender if you have poor credit. In contrast, Wells Fargo is a prudent option if you have fair or good credit because unsecured, secured, and cosigner loans are available. Thus, there are ways to qualify if your credit score is 660 or higher.
The downside is you must be a Wells Fargo customer to apply online. If not, you must visit one of the bank’s 7,200 in-person locations across the United States to inquire. But current customers receive 0.25% to 0.50% APR discounts depending on their checking account, and Wells Fargo doesn’t charge origination or prepayment fees. However, a $39 fee will apply for late payments and insufficient funds.
Lastly, $3,000 to $4,999 loans have one to three-year maturities, while $5,000 to $100,000 loans have one to seven-year maturities. As a result, you should consider the durations when analyzing your cash flow and finalizing your budget.
Pros:
- Wells Fargo provides direct personal loans of $3,000 to $100,000.
- Low APRs are available.
- Unsecured, secured, and cosigner loans are available.
- There are no origination or prepayment fees.
- Some checking account holders receive APR discounts.
- You can change your payment dates.
- You have access to free FICO Score analysis.
- On-time repayment can increase your credit score.
- Wells Fargo’s mobile app is easy to use.
- Wells Fargo may offer COVID-19 deferrals.
Cons:
- Late payments and insufficient funds will cost you $39.
- Wells Fargo usually won’t approve poor credit applicants.
- Only 10% of applicants get the lowest APRs, and you need a high income and credit score to meet the requirement.
- A hard credit check can hurt your credit score, and there is no pre-qualification option.
- New customers have to apply in person.
The impact of COVID-19:
Wells Fargo offers hardship exemptions to personal loan borrowers affected by the pandemic. You can contact a representative via phone or manage your account online. However, the critical point is you don’t need to make payments during the deferral period. For more information, please read Wells Fargo’s COVID-19 relief FAQs.
SoFi
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| Loan Amount: | $5,000 – $100,000 |
| APR: | 6.99% – 21.28% |
| Min. Credit Score: | 680 |
| Approval: | 1 – 7 Days |
| Terms: | 2 – 7 Years |
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| Best For: | No-fee personal loans |
| Check rates | |
We rank SoFi and Marcus by Goldman Sachs as the best direct lenders for no-fee personal loans. Moreover, you save money with SoFi because there are no origination, closing, prepayment, or late payment fees. In addition, SoFi conducts a soft credit pull upon application, so inquiring won’t impact your credit score. However, a hard credit check will commence before you finalize the agreement.
You can borrow $5,000 to $100,000, with APRs of 5.74% to 20.28%, and two to seven-year terms. Moreover, the direct lender notes that excellent credit borrowers receive an average APR of 6.59%, and good credit applicants receive 15.56%. Furthermore, SoFi’s loans are unsecured, so you don’t need collateral for approval. Also, opening a SoFi money account within 60 days of your application can land you a $10 bonus.
The only downside is you must have a minimum credit score of 680 to apply, and SoFi’s average borrower has a 753 FICO Score. Therefore, we recommend SoFi and Marcus by Goldman Sachs for borrowers with solid credit profiles.
Pros:
- SoFi provides direct personal loans of $5,000 to $100,000.
- Low APRs are available.
- You won’t incur closing, origination, prepayment, or late payment fees.
- You can obtain a $10 bonus by opening a SoFi money account within 60 days of your application.
- Applying won’t hurt your credit score.
Cons:
- SoFi has high credit standards.
- Bad credit borrowers won’t qualify.
The impact of COVID-19:
SoFi’s Special Handling Team offered assistance to borrowers struggling to make their loan payments during the pandemic. If you find yourself in a similar situation, contact SoFi at 1-855-456-7634 to learn more about the available options.
U.S. Bank
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| Loan Amount: | $1,000 – $50,000 |
| APR: | 5.99% – 18.49% |
| Min. Credit Score: | 660 |
| Approval: | 1 – 7 Days |
| Terms: | 1 – 7 Years |
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| Average Borrower Profile: | U.S. Bank doesn’t disclose average personal loan statistics |
| Best For: | U.S. Bank customers |
| Check rates | |
U.S. Bank made it on our best direct lenders list because it’s a prudent option for current customers with good credit. For example, personal loans range from $1,000 to $50,000, with APRs of 5.99% to 18.49% and one to seven-year terms. Moreover, you don’t incur origination or prepayment fees, but late payment charges are $10.
U.S. bank is best for current customers because new members can only borrow a maximum of $25,000 with five-year terms. Moreover, the company’s disclosures note that clients with a credit score of at least 800 that borrow $10,000 or more over one to three years receive the lowest APRs. Furthermore, you must link a U.S. Bank external checking or savings account and enroll in auto-pay. It’s not a requirement, but it’s how you land the lowest rates.
Ultimately, U.S. Bank has physical locations in more than 40 states, so it’s a well-known bank covering most of the U.S. And the 0.50% APR discount when you enroll in auto-pay is also a plus. So if you prefer direct lenders and have good credit, U.S. Bank should meet your needs.
Pros:
- U.S. Bank provides direct personal loans of $1,000 to $50,000.
- Low APRs are available.
- There are no origination or prepayment fees.
- There are APR discounts with auto-pay.
- Applying won’t affect your credit score.
Cons:
- You incur late payment fees.
- New customers can only borrow a max of $25,000.
- You need an 800 credit score to get the lowest rates.
- The direct lender doesn’t issue loans in all states.
The impact of COVID-19:
U.S. Bank created forbearance programs for borrowers affected by the pandemic. The policies covered multiple financial products, including large personal loans. To inquire about current policies, you can call U.S. Bank’s pandemic hotline at 1-888-287-7817. You can also obtain assistance by calling 1-800-872-2657 or emailing mobile@usbank.com.