Best Direct Lenders for Personal Loans 2021

ElitePersonalFinance
Last Update: September 10, 2021 Loans

Many people prefer personal direct lenders instead of non-direct because they think that: the loan APRs will be lower; they are always legitimate; they come with fewer fees.

The main direct lenders for personal loans are online lenders, banks, credit unions.

ElitePersonalFinance will show you the best of them. They offer the highest amount of loans, the cheapest APRs, and the best overall terms. But, as expected, they have a high credit score and income requirements.

Those with bad credit should read this article:

Best Direct Lenders for Bad Credit 2021

Note! This list includes direct personal lenders only. There are others like mortgage, auto, student, business, etc. Here are the best:

Best Mortgage Rates 2021 Here are the best mortgage lenders for people with bad credit. Up to $1 Million, APRs start at 1.90%.

Best Auto Loan Rates 2021 Here are the best auto lenders for people with bad credit. Up to $1 Million, APRs start at 1.90%.

A full list of the best lenders can be found at our Marketplace:


Our pick for the best direct lenders 2021:

Loan Company: Min. Credit Score: APR: Amount: Type:
Upgrade (Direct Lender) 600 5.94% – 35.97% $1,000 – $50,000 Online Lender
EvenFinancial (Non-Direct Lender) 550 2.49% – 35.99% $1,000 – $250,000 Loan Comparison Site
Credible (Non-Direct Lender) 500 2.49% – 35.99% $600 – $100,000 Loan Comparison Site
LightStream (Direct Lender) 660 2.49% – 19.99% $5,000 – $100,000 Online Lender
WellsFargo (Direct Lender) 670 5.74% – 24.49% $3,000 – $100,000 Bank
Discover (Direct Lender) 660 6.99% – 24.99% $2,500 – $35,000 Bank
Citibank (Direct Lender) 670 7.99% – 23.99% $2,000 – $30,000 Bank
AmericanExpress (Direct Lender) 670 6.98% – 19.98% $3,500 – $25,000 Bank
NavyFederal (Direct Lender) 0 7.49% – 18% $250 – $50,000 Credit Union
FirstTech (Direct Lender) 0 Unsecured: 10% – 18%
Secured: 3% – 18%
$500 – $50,000 Credit Union

Online Personal Lenders

Let’s start with online personal lenders. Online lending is a growing business. Online lenders offer personal loans, and because of their competitive rates, we consider them a serious competitor to banks and credit unions. There are many online lenders that beat banks and credit unions in many ways.

Upgrade

Loan Amount: $1,000 – $50,000
APR: 5.94% – 35.97%
Min. Credit Score: 600
Approval: 1 Day
Terms: 3 – 5 years
Origination Fee: 2.9% – 8%
DTI Ratio: 40%
CHECK RATES 

Upgrade Disclaimer: Personal loans made through Upgrade feature APRs of 5.94%-35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. The lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower, and your loan offers may not have multiple term lengths available. The actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed-rate loan. There is no fee or penalty for repaying a loan early. Upgrade’s lending partners issue personal loans. Information on Upgrade’s lending partners can be found at https://www.upgrade.com/lending-partners/.

Upgrade is a direct online lender offering personal loans between $1,000 to $50,000, and their terms are competitive. Upgrade make the top of our list of direct lenders because they are among the best providers and have very low credit score requirements. Only a credit score of 600 is enough to apply. ElitePersonalFinance has information that even people with a credit score of 580 have been approved. However, those having a credit score of over 700 get their top-notch offers!

Upgrade has customizable offers and discounts for clients based on their credit score, income, and other lender criteria. Their discount varies based on the applicant, a spokeswoman says.

The lowest rates require Autopay and paying off a portion of existing debt directly.

Upgrade offers fixed-rates secured, unsecured, and co-signer personal loans.

Upgrade also beats their competitors in terms of their fast approval process. Some people have been approved instantly.

People can use their loans for debt consolidation, home improvements, credit card refinance, auto refinances, extra expenses, etc.

Information from the Source:

An Upgrade spokesperson says that they don’t account for rent payments and other monthly expenses that can factor into your ability to repay a loan. The idea is to keep people from borrowing more than they can afford by “having a pretty high bar in terms of how much free cash you really have at the end of the month,” says Renaud Laplanche, Upgrade co-founder and CEO.

Pros:

  • Upgrade is a direct lender, and there are no upfront fees.
  • A high amount of loans, up to $50,000.
  • The minimum credit score is 600.
  • Competitive APRs.
  • Soft inquiry on the application process.
  • Discounts on debt consolidation loans.
  • Autopay discount: 0.5%.
  • Unsecured personal loans.
  • Secured and cosigner loans are available to those who aren’t happy with their terms or can’t qualify at all.
  • No prepayment fees.
  • Fixed interest rates.
  • Fast approval.
  • You can change your payment date by your choice.
  • Help jobless people.
  • Reports payments to three credit bureaus.
  • COVID and Hardship Programs.

Cons:

  • Charges an origination fee of 2.9% to 8%.
  • Late payment fees.

COVID:

Upgrade offer help to those who remain jobless, which is a significant advantage in COVID! Here people can find more information.

Hardship Program:

Consumers having a sudden hardship, like a job loss, may qualify for a temporary reduction of their monthly payment or modification that extends the length of their loan.

How to qualify for an Upgrade loan?

  • 18 years old,
  • U.S. citizen, permanent resident, or immigration visa holder,
  • SSN or passport,
  • U.S. bank account,
  • Min. credit score: 600,
  • Min. credit history: 3 years, 2 accounts,
  • Min. monthly free cash flow: $800,
  • DTI Ratio: No officially disclosed, but the highest varies between 55% to 65%.

Average terms:

  • Average borrower income: $87,000.
  • Average loan amount: $10,000.
  • Average repayment term: 40 months.

LightStream

Loan Amount: $5,000 – $100,000
APR: 2.49% – 19.99%
Min. Credit Score: 660
Approval: Several Days
Terms: 2 – 7 Years
Origination Fee: N/A
DTI Ratio: N/A
Check rates

LightStream is a direct lender, offering big loans from $5,000 to $100,000 on very low APRs, but it works only for people who can prove high income and credit history. To those who prove that LightStream offers cheap APRs of 2.49% to 19.99%.

Their funds come from Truist Bank.

List most of the personal lenders. Their loans can be used for any purpose like home improvement, debt consolidation, credit card refinance, etc.

After being approved, you have 30 days to decide whether to get the loan.

LightStream doesn’t have an origination, late, or prepayment penalty fee.

Information from the Source:

Although their officially listed minimum credit score is 660, people having a credit score of over 690 receive the best offers.

Rate beat program:

LightStream offers a discount of one-tenth of a percentage point to people who can show that they get approved by the competitor for an unsecured, fixed-rate loan with the same amount, terms, purpose, and payment method.

In addition, the lender offers a $100 discount to unhappy people who give back their loans for less than 30 days.

Important: LightStream performs a hard credit inquiry on the application process, and there are no prequalification options.

Tip: Apply with them only if you are sure that you meet all of their requirements and discuss your changes to get approves on a phone call with them.

Pros:

  • Serious direct lender, offering big loans between $5,000 to $100,000.
  • Low APRs.
  • Competitive rates.
  • Autopay Discount: 0.5%.
  • No fees.
  • Offer unsecured, secured, and cosigner loans.
  • Reports payments to three credit bureaus.
  • COVID help.

Cons:

  • People with bad credit can’t get approved.
  • Hard credit pulls and no prequalification options.
  • No option to change the payment date.
  • Not a direct payment to creditors with debt consolidation.

LightStream qualification criteria:

  • 18 years old,
  • U.S. citizen/permanent resident,
  • SSN,
  • Minimum credit score: 660,
  • Minimum credit score: several years, multiple account types.

COVID:

LightStream helps those affected by COIVD.

Banks

All banks are direct lenders. Banks offer high-amount loans at very low APRs, but their income and credit score requirements are high. That’s why not all people can get approved. Even those with high income and credit scores can be required to secure their loans or add a cosigner. Those with bad credit shouldn’t waste too much time on banks.

A full list of all banks can be found at our Marketplace:

Best Banks for Personal Loans 2021

Here are a few reviews of the best banks.

WellsFargo

Loan Amount: $3,000 – $100,000
APR: 5.74% – 24.49%
Min. Credit Score: Not Disclosed
Approval: Several Days
Terms: 3 – 7 Years
Origination Fee: No
DTI Ratio: N/A
Check rates

WellsFargo, founded in 1852, is one of the largest banks in the United States. WellsFargo is one of the few banks offering the highest amount of unsecured personal loans that we know – up to $100,000! Like all other banks, they are a direct lender. Their APRs vary between 5.74% to 24.49%, making them very competitive. However, people who qualify should be able to prove a high income and credit score. Although WellsFargo doesn’t disclose their minimum credit score required, people with less than 670 shouldn’t waste time.

WellsFargo offers both secured, unsecured, and co-signer loans. Their loans can be used for many things like home improvements, debt consolidation, credit card refinance, unexpected expenses, etc.

WellsFargo doesn’t charge origination and prepayment fees. However, they charge a $39 late fee.

With WellsFargo, people qualify for a free FICO score every month.

Important! WellsFargo performs a hard credit check, and there are no prequalification tools.

Like every other big bank, WellsFargo tries to get more regular customers who will use more of their services. That’s why customers who open a checking account and make their payments via WellsFargo, receive a discount of 0.25%.

According to the information on their site, only about 10% of the people have qualified for the lowest rates.

Based on the above-mentioned information, we can conclude:

Who is WellsFargo best for?

  • People with high credit scores and income.
  • People who plan to use other services from the bank.
  • People looking for large-amount loans.
  • Debt consolidation.

Pros:

  • WellsFargo is a bank and offers its loans as a direct lender.
  • Large amount loans of up to $100,000 are available.
  • Competitive APRs.
  • Offer secured, unsecured, and co-signer loans.
  • No origination and prepayment fees.
  • Discount for regular customers.
  • Funds are available in less than a day.
  • Allows changes to the payment date.
  • Free FICO score for their regular customers.
  • Reports payments to three credit bureaus.
  • A mobile app is available.
  • COVID help programs.

Cons:

  • People with low credit scores and income can’t qualify.
  • Only 10% of the people qualify for their lowest rates – these having a very high credit score and income.
  • Hard credit pull and no option to prequalify.
  • People who are not their existing customers have to visit them to apply for a loan.
  • $39 late fee.

How to qualify for a Wells Fargo loan?

To apply, you need:

  • Great credit score,
  • 18 years old,
  • U.S.citizen or permanent resident,
  • SSN or ITIN,
  • Contact details, including a permanent address, email, and phone number,
  • Employment and income to verify this information,
  • Monthly mortgage or rent payment amount.

COVID:

Wells Fargo is offering financial hardship help for people with personal loans.

  • People can always call and discuss their problems with them, without visiting their offices.
  • In addition, all people are offered to manage their accounts fully online, so no visit will be required.
  • People are not required to make a payment during your deferral period.

Read more about WellsFargo COVID programs.

Discover

Loan Amount: $2,500 – $35,000
APR: 6.99% – 24.99%
Min. Credit Score: 660
Approval: Several Days
Terms: 1 – 5 Years
Origination Fee: No
DTI Ratio: N/A
Check rates

Discover bank is a direct lender. They are one of the largest U.S. banks. Discover offers high-amount loans of up to $35,000 at competitive rates between 6.99% to 24.99%. Discover doesn’t list their minimum credit score, but people with bad credit scores shouldn’t waste time. People with a credit score of over 720 get the best offers.

Discover bank doesn’t charge origination and prepayment fees. However, there are late fees: $27 for the first time and $39 after that.

Discover doesn’t perform a hard credit pull like WellsFargo, so don’t worry about applying with them.

Pros:

  • Discover bank is a direct lender.
  • Offer up to $35,000.
  • Competitive APRs between 6.99% to 24.99%.
  • No origination and prepayment fees.
  • No hard credit inquiry.
  • Loans are available within a day.
  • Free FICO score to their regular customers.
  • Reports payments to three credit bureaus.
  • 30-day money-back guarantee.
  • A mobile app is available.
  • COVID help programs.

Cons:

  • People with bad credit can’t qualify.
  • No secured and co-signed loans.
  • $39 late fee, $27 for the first time.
  • No rate discount for autopay.

To qualify, you must be:

  • At least 18 years old,
  • To be a U.S. citizen or permanent resident,
  • To have a minimum annual income of $40,000,
  • To have a credit score of at least 720.

COVID:

Discover offers a few repayment programs to those affected by COVID:

  • Payment Deferral. People can defer past-due payments until the end of their loan term.
  • Short-Term. People can pay only their interests for the next 6 – 12 months.
  • Long-Term. People can reduce their monthly payments and request changes to their repayment terms.

Citibank

Loan Amount: $2,000 – $30,000
APR: 7.99% – 23.99%
Min. Credit Score: 670
Approval: 1 – 5 Days
Terms: 1 – 5 Years
Origination Fee: No
DTI Ratio: N/A
Check rates

Citibank is is a direct lender offering installment personal loans between $2,000 to $30,000. Like almost all other banks, their APRs are competitive. They are between 7.99% – 23.99%, which puts them high enough below 36% – the traditional personal loan cap. But their approval criteria are high. Citibank doesn’t disclose its minimum credit score but multiple third-party sources report a threshold of over 670.

Citibank offers unsecured personal loans. However, those who aren’t happy with their offer can secure their loans or add a co-signer. People should use these options if they want to increase the loan amount or lower their APR.

There are no origination fees and prepayment penalties. But there is a late fee of $25. We consider this a high fee, although it is less than the previously reviewed banks: WellsFargo – $39, Discover – $39.

A significant disadvantage of Citibank is that only their existing customers can apply for a personal loan. People interested in benefiting from their loans should have a checking, saving, or money market account for at least 3 months. Citibank also awards their regular customers who link their checking account with Citi ThankYou. People who do this receive monthly points. People also receive a 0.50% discount for setting up auto payments. They also offer an additional 0.25% discount to Citigold and Citi Priority customers.

Important! Citibank performs a hard credit check, and there are no prequalification tools.

Pros:

  • Citibank is a direct lender.
  • Citibank allows people to use their loans for many purposes, including home improvement, debt consolidation, extra expenses, etc.
  • High amount loans of up to $30,000.
  • Competitive APRs, between 7.99% – 23.99%.
  • Secure, unsecured, and co-signer loans.
  • No origination fees and prepayment penalties.
  • Points for regular customers.
  • Rate discount for autopay.
  • Reports payments to three credit bureaus.
  • A mobile app is available.
  • COVID program.

Cons:

  • A hard credit check and no prequalification options.
  • High credit score and income requirements.
  • A high late fee of $25.
  • Currently available to Citibank customers only.
  • No direct refinancing options.
  • No option to change your payment date.

COVID:

Citibank offers help to those affected by COVID in a few ways. People can:

  • Lower their loan amounts,
  • Lower theirAPRs,
  • Waiving account fees.

People affected by COVID are invited to discuss their options with them by phone. More information can be found at the Citi COVID official page and Citi PPP.

Citibank qualification criteria:

  • 18 years old;
  • U.S. citizen/permanent resident;
  • SSN, ITIN, or passport;
  • A minimum credit score of 670;
  • A minimum annual income of $10,500;
  • Citi deposit account opened for at least three months;
  • No more than one open Citibank personal loan.

AmericanExpress

Loan Amount: $3,500 – $25,000
APR: 6.98% – 19.98%
Min. Credit Score: 670
Approval: 1 – 5 Days
Terms: 1 – 5 Years
Origination Fee: No
DTI Ratio: N/A
Check rates

AmericanExpress is one of the main banks in America. The direct lender offers personal loans between $3,500 to $25,000 at competitive rates between 6.98% to 19.98%. To qualify for a personal loan, you have to wait to receive an offer and meet their eligibility criteria. Once this happens, people shouldn’t worry about their credit scores. The lender performs a soft credit pull, which is not typical for most bank lenders.

AmericanExpress doesn’t list their minimum credit score requirements, but according to our personal research and feedback, the approval threshold is about 660. But with this people shouldn’t expect to get their best offers. Banks prefer people with excellent credit scores.

There are no origination and prepayment penalty fees, but we consider their late fee of $39 high. Most banks have high late fees.

AmericanExpress, like all other personal lenders, allows people to use their credit for many purposes like credit card finance, home improvements, etc.

Pros:

  • AmericanExpress is a direct lender.
  • Competitive APRs.
  • No origination and prepayment penalty fees.
  • No hard credit check.
  • Direct payment to lenders on debt consolidation.
  • Free FICO score.
  • 100% online application process.
  • Reports payments to three credit bureaus.
  • COVID program.

Cons:

  • Their high amount loans are low.
  • A high late fee: $39.
  • High insufficient funds fee: $39.
  • Available only to existing cardholders.
  • No secured and cosigner loans.
  • Not an option to change your payment date.
  • No rate discount for autopay.
  • Additional restrictions.
  • COVID programs.

COVID:

Here is a link to their COVID program.

AmericanExpress qualification criteria:

  • 18 years old,
  • U.S. citizen/permanent resident,
  • SSN,
  • Min. credit score: 660,
  • Have an AmericanExpress credit card.

Credit Unions

All credit unions are direct lenders. Credit unions offer large amounts of personal loans, and some of their loans are even cheaper than banks. According to the National Credit Union Administration, credit unions’ APR average was 8.95%, while banks’ APR average was 10.09.

Credit unions cap their APR at 18% on personal loans and 28% on their PALs.

People with good credit can get very cheap loans.

However, there are some disadvantages.

  • They are available only to their members.
  • There are monthly fees.
  • Many credit unions are created by and for certain groups of people, such as employees of a certain company or residents of a certain town – and some are still fairly restrictive. This means that people who are not in these groups can’t apply for membership.
  • Most credit unions perform a hard credit pull, which means people have to be careful with their credit scores.

Below we will review the best of them for people with bad credit.

A full list of all credit unions can be found at our Marketplace:

Best Credit Unions for Personal Loans 2021

NavyFederal

Loan Amount: $250 – $50,000
APR: 7.49% – 18%
Min. Credit Score: N/A
Approval: Several Days
Terms: 1 – 5 Years, 15 Years for Home Improvement
Origination Fee: No
DTI Ratio: N/A
Check rates

NavyFederal is a federal credit union and is a direct lender. This is one of the largest credit unions in the U.S. Their personal loans that people can use for any purpose like debt consolidation, home improvements, cover unexpected expenses, etc.

NavyFederal offers personal loans of up to $50,000 with a competitive APR between 7.49% to 18%.

Their APR and loan terms are different for the types of loans that they offer.

Important! NavyFederal performs a hard credit check, and there are no prequalification tools.

Personal Expense Loan

Amount:

  • $250 – $50,000

Terms:

  • Loans of up to 36/month come with APR between: 7.49% – 18%.
  • Loans of up to 37 to 60/month come with an APR between 14.79% and 18%.

Home Improvement Loan

This type of loan is great for people with plans to improve their homes, office, etc. The lender doesn’t require collateral for those approved for this loan, but the terms change.

Amount:

  • The minimum amount for loans between 61 to 84 months is $25,000.
  • The minimum amount for loans between 85 to 180 months is $30,000.

Terms:

  • Loans of up to 36/month come with APR between: 7.49% – 18%.
  • Loans of up to 37 to 60/month come with an APR between 14.79% and 18%.
  • Loans of up to 61 to 180/month come with APR between: 15.29% – 18%.

Debt Consolidation Loan

Those having other loans and NavyFederal has a better offer for them can consolidate them in one.

Amount:

  • $250 – $50,000

Terms:

  • Loans of up to 36/month come with APR between: 7.49% – 18%.
  • Loans of up to 37 to 60/month come with an APR between 14.79% and 18%.

Savings Secured Loan

Those having savings account with the lender can get some amount, putting their accounts as collateral.

Amount:

  • The minimum amount for loans between 61 to 84 months is $25,000.
  • The minimum amount for loans between 85 to 180 months is $30,000.

Terms:

  • Loans of up to 60/month come with APR: Share rate + 2%.
  • Loans of up to 61 to 180/month come with APR between: 15.29% – 18%.

Certificate Secured Loan

Those having CDs with the lender can get a loan.

Amount:

  • The amount of the loan can’t exceed the CD amount.
  • The loan term has to be equal to or less than the certificate term.

Terms:

  • Loans of up to 60/month come with APR: Certificate rate + 2%.

Pros:

  • NavyFederal is a direct lender.
  • One of the largest credit unions in the U.S.
  • Large amount loans of up to $50,000
  • Competitive APRs, capped at 18%, even for those having bad credit.
  • Secured and cosigner loans are available.
  • No origination and prepayment penalty fee.
  • The lender offers many types of personal loans.
  • Reports payments to three credit bureaus.
  • A mobile app is available.
  • COVID program.

Cons:

  • Available only to its members.
  • Late Fee: $29.
  • Returned Payment Fee: $29.
  • Federal Express Fee: $5.65.
  • Certified Mail Fee: $5.83.
  • Hard credit pull and no prequalification options.
  • No rate discount for autopay.
  • People can’t change their payment date.

NavyFederal qualification criteria:

  • 18+ years old,
  • U.S. citizen or permanent resident,
  • SSN,
  • NFCU membership.

COVID:

Navy Federal Credit Union offers options to members who have been affected by the COVID. Some of them include loan extensions, payment deferment, pandemic relief loans, and more. Here are the latest updates from the lender:

COVID Resources

Financial Relief

FirstTech

Loan Amount: $500 – $50,000
APR: 6.70% – 18%
Min. Credit Score: N/A
Approval: Several Days
Terms: 2 – 7 Years
Origination Fee: No
DTI Ratio: N/A
Check rates

FirstTech is a federal credit union and is a direct lender. FirstTech offers mainly unsecured personal installment loans, but those who haven’t been approved on or want to get a better offer have the chance to secure their loans or add a cosigner. The loan amount range is between $500 to $50,000. Like every other federal credit union, FirstTech cap their APRs at 18%.

FirstTech has minimal fees if we compare them with the credit unions and banks reviewed above. There is only one late fee of $25, and there are no other fees.

Be careful when you apply. The lender will perform a hard credit pull. Prequalification is available only to their registered members.

Types of loans that FirstTech offer:

  • Personal Loans: Up to $50,000; APR: 6.70% – 18%.
  • Personal Line of Credit: Up to $25,000; APR: 9% – 18%.
  • Stock Secured Loans: $25,000 – $1,000,000; APR: 4.50% – 18%.
  • Stock Secured Line of Credit: $25,000 – $1,000,000; APR: 9% – 18%.
  • Certificate Secured Loans: $500 – $500,000; APR: 3% – 18%.
  • Savings Secured Loans: $500 – $500,000; APR: 3% – 18%.

Pros:

  • FirstTech is a direct lender.
  • Large loan-amount loans are available.
  • Competitive APRs.
  • Minimal fees.
  • One-day funding.
  • Secured, unsecured, and cosigner loans are available.
  • People can change their payment date.
  • Direct payment to creditors on debt consolidation.
  • Reports payments to three credit bureaus.
  • A mobile app is available.
  • COVID program.

Cons:

  • Late fee: $25.
  • Available only to its members.
  • Hard credit pull.
  • Prequalification is available only for registered members.
  • No rate discount for autopay.

FirstTech qualification criteria:

  • Work for a qualifying tech or telecom company,
  • Work for the state of Oregon,
  • Work or live in Lane County, Oregon,
  • Be an immediate family member of a FirstTech member.

COVID:

FirstTech helps those who have been affected by the COVID.

The lender offers a short-term loan between $500 to $1,000 at an APR of only 3.25%, with a repayment plan between 6 to 36 months.

Here are more useful links with updates on how FirstTech can help:

Consumer Loan Payment Assistance Request

COVID Updates

Are There Good Direct Online Lenders for People with Bad Credit?

ElitePersonalFinance researched many direct lenders for bad credit. We found that most of them are scams. Most of them were payday lenders, trying to mislead people by manipulating the terminology. Payday lenders attract people by telling them that they are direct lenders. That’s true, and their loans remain very expensive. We highly recommend that people avoid them because there are cheaper loans to those with really bad credit.

The best options for people with bad credit in brief:

  • Nondirect online personal lenders, working with people with bad credit.
  • Direct online lenders. There are only a few reliables among them.
  • Credit unions. Credit unions work with people with bad credit and offer loans capped at 18%, and PALs capped at 28%.
  • Other companies like loan apps, BNPL.

Here are the best direct lenders for bad credit:

Best Direct Lenders for Bad Credit 2021

Who Offer Cheaper Loans – Direct vs. Non-Direct Lenders?

Many people think that direct lenders are always cheaper than loan marketplace because they avoid extra fees. However, that is not always true.

There are many big loan marketplaces that offer competitive terms and could become cheaper in the end.

Loan marketplaces collect many lenders in one place. These can be direct and nondirect lenders, banks, and credit unions. By applying once, you get many offers. This helps you find the best offers at once.

Another great advantage of these marketplaces is that lenders compete for your offer, making them constantly improve their terms. This leads to higher amounts, lower APRs, and better terms for us. And hopefully, this is a growing process.

But what about the extra fee if you get a loan via a loan marketplace. Most of these companies don’t get anything from you. Typically they get only a fee from the lender if you get the loan. And your loan is NOT affected in any way.

So, what are better – direct or nondirect lenders?

No one can answer this question until you don’t try.

Shop around. Register with many companies, direct and non-direct, and see what will be the best for you.

Who Offer Cheaper Loans – Online Lenders, Banks, Credit Unions?

Again, we have t answer that way – shop around.

A few clarifications:

Personal online lenders offer loans capped at 35.99%. They are the best choice for people with bad credit.

Banks offer loans only to those with high credit scores and income. Even people that meet their criteria can be required to secure their loans or add a cosigner.

Credit unions work with people with bad credit and offer loans capped at 18%, and PALs capped at 28%. However, people should be able to prove a good income and free cash flow to get approved.

Conclusion

The best direct lenders are online lenders, banks, credit unions. These institutions offer high-amount and low-interest loans. But they have high credit score requirements, making their loans not accessible for many people.

People shouldn’t always go with direct lenders. There are many non-direct lenders that offer legitimate personal loans. People who want to find the best offer should shop around.

Personal loans cap their APRs at 35.99%.

Loans over this are not personal loans. Lenders telling you that they offer you a personal loan over this are scams!

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