by Cameron Douglas
Personal Loan

Personal loans can help you sort emergency expenses at a lower interest rate. Some of them do not require collateral or stellar credit scores from borrowers.

Have you ever taken a personal loan to sort out an emergency expense when the cash runs out? Many of us have. Personal loans are often used to fund family expenses, including weddings, improvement projects, vacations, and sometimes major purchases like land.

Since personal loans’ interest rates are often lower than credit cards, some borrowers use personal loans to consolidate their credit card debts. Debt consolidation works best for individuals with excellent credit scores.

Personal loans can be awarded by traditional banks, online lending platforms, and credit unions because it is unnecessary to visit a bank to apply for them. Within a few days or hours after the application, you can access the money; no need to wait long for approval. Qualified borrowers can be awarded flexible loan amounts at limited fees and better repayment terms.

The actual interest rate on a personal loan depends on your annual income, credit score, and debt-income ratio. The loan one qualifies for may not be the best loan with that facility. Before we consider the best personal loans for 2022, let’s highlight the personal loan application process.

How to apply for a personal loan

Assuming that you have established the ideal platform to borrow a personal loan, here is how you can go about it:

  • Establish the amount you need- before requesting a personal loan; you need to determine your financial needs and factor in any processing fee that will be deducted from your loan amount.
  • Check your credit score- a higher credit score means you receive better lending rates; otherwise, you will need a co-signer to help you get a loan at a favorable rate.
  • Apply and get prequalified- Prequalification allows you to check your borrowing rate with the various lender.
  • Finalize your loan application process- You may need to submit your tax returns and identification documents during the application.

Best personal loans

This section discusses some of the best personal loans with little or no fees.


SoFi has competitive APRs, ranging between 6.99% and 21.78%, with no processing fees. You can get personal loans as high as $100,000 and to the lows of $5,000 from SoFi. The repayment terms vary from 24 to 84 months, and you receive the funding on the same day of application.

Though some competitors charge late or origination fees for personal loans, SoFi charges zero fees. Furthermore, you will not be charged prepayment penalties for those who desire to pay their loans early.

However, to qualify for SoFi’s loan, you must be a citizen of the United States or be at least an 18-year-old eligible visa holder. Other qualification requirements are that you need to live in a state where SoFi operates, have at least a 650-credit score, and have a stable source of income that can help you repay the loan.


  • You can prequalify for a loan
  • It is available in 49 states in the U.S
  • It provides an option for personal loan refinancing


  • It does not offer loans below $5,000
  • Its minimum credit score of 650 is fairly high.


Unlike its competitors that offer high minimum loan amounts, Upgrade has a low minimum loan amount of $1,000. Its maximum loan amount is $50,000, allowing individuals with less stellar credit scores to access loan facilities. People with a 550-credit score and living in 50 states can qualify for a loan at Upgrade.

Additionally, Upgrade provides funding the next day at a minimum and maximum APR of 5.94% and 35.97%, respectively. Individuals with an unfavorable credit score will receive a loan at higher APR rates.

Upgrade charges high origination fees between 2.9% and 8.00%, often deducted from the loan funds before disbursing to your account. The deduction means the loan amount you will get into your account will be lower than what you applied for. It is ideal for borrowers with unfavorable credit scores and those who want small loans.


  • You have the option of prequalification
  • Lower loan limits
  • It considers those with low credit score
  • You have the option of next day funding


  • It charges high origination fees
  • You cannot refinance a personal loan.


If you need a personal loan for debt consolidation, Discover is your ideal choice. It can help those who want to consolidate high-interest debt. Discover does not restrict how you use the loan money awarded to you. You can use the amount to consolidate any debt, including high-interest loans, credit cards, and medical expenses.

You can instruct Discover to pay your creditors directly when consolidating them, thus saving you the valuable time you could have wasted sorting your creditor.

Its minimum loan is $2,500, and the maximum is $35,000, with an APR ranging from 5.99% to 24.99%. You are expected to repay the loan between 36 and 84 months. Fortunately, you will not incur an origination fee, but late payments attract a fee of $39. It is available throughout the United States for U.S citizens.

Discover also allows you to apply for your loan online through a simple process, and the funds are disbursed the same day.


  • Zero origination fees
  • Most applicants have their loans on the same day of application
  • High customer satisfaction ratings.


  • It does not indicate credit score requirements.
  • You need an annual income of $25,000 or higher to qualify.

Rocket Loans

Rocket loans cater to everyone regardless of their credit score, offering a loan range between $2,000 to $45,000. You receive your loan funds the same day you make the application.

Its repayment duration is 36 or 60 months, attracting an origination fee ranging from 1% to 6% and an APR range of between 5.97% and 29.99% depending on the borrowers’ credit scores. Qualified borrowers must be U.S citizens living where the loan is offered except in Nevada, Iowa, and West Virginia.


  • You get your funds the same day
  • The initial APRs are relatively low


  • A 6% origination fee is high
  • It only has two repayment terms

First Midwest Bank

Personal loan limits for First Midwest Bank range from $5,000 to $35,000, with an APR ranging from 5.235 to 12.99%. This is a relatively lower APR with often averages at a fixed rate of 9.11%. First Midwest Bank’s repayment term is between 12 to 84 months. The bank allows you to apply for co-borrower or co-signer, and you can use the loan funds as you deem fit, including for medical expenses, debt consolidation, home improvement, etc.

There is no origination fee with First Midwest Bank, though you will need to part with a $150 documentation fee. These positives can only be enjoyed by 24 states, limiting those who can benefit from its unique features. 


  • It has long repayment terms of 84 months
  • No origination fees
  • A borrower can have a co-borrower or a co-signer


  • The minimum loan amount of $5,000 is high
  • It is only found in 24 states
  • Credit score requirements are not revealed.

The Bottom Line

Personal loans come in handy when you need emergency cash. You can also use it to consolidate high-interest credit card debts or loans. When choosing a personal loan facility, you want to select personal loans with favorable terms and convenience. Keeping your credit score higher to qualify for personal loans with favorable terms is also good. Which personal loans do you think stands out that we did not include in this article?

Related Articles