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The process of comparing the best no fee personal loans

The Concept of No Fee Personal Loans

Fees can be annoying, especially for individuals with a great interest in personal loans. No fee personal loans are a type of credit advance to an individual without charging upfront fees, ongoing fees or early repayment charges.

Types of Fees Related to Personal Loans

Likewise, No Fee Personal Loans do not charge individuals the origination fees. When there are application and the origination fees, the total cost for your loan is usually high. You have to endure the pain of paying the origination fees even before you receive your funds. These personal loans are likely to advance nonsufficient funds charges for late repayment or non-repayment as well.

Interest Rates

This type of a loan has usually fixed interest charges. This means that the repayment installments are charged the same for the entire loan repayment period. These types of costs are technically also a form of fees, but you do not have to worry much about them. They only come if you fail to repay your loan within the agreed time.

Offering No Fee Personal loans is, therefore, a significant step towards ensuring individuals are incentivized to take up personal loans to meet their financial needs.

How to Pass the Challenge of Finding Suitable No Fee Personal Loans

So, if you need a way out of credit card liability or a need to make a big purchase, personal loans can be a great choice provided you look out for the right lender.

If you have an accurate credit history, there is no reason at all to get a personal loan with an origination fee.

The question of No fee personal loans, however, boils down to discovering the best personal loans lenders. It is not easy to find them, but they are worth the effort of looking out for them.

Top-Five Personal Loans Lenders That Offer Low-Interest Loans

Here is a list of the top five personal loans lenders that advance low-interest personal loans to individuals and their various cost features.

LightStream

The personal loans offered by the LightStream can either be unsecured or secured. It all depends on your credit profile as well as the type of the loan that you want to take. You can use up the personal loan provided by this creditor for any personal preference apart from higher education funding.

LightStream charges an interest rate between 3.09% – 14.24%. Lightstream is grounded on the belief that as long as you have good credit ratings, you can get a hassle-free personal loan to use for whatever reason other than prohibited.

This creditor leads a transparent process and offers best personal loans with no origination fee. LightStream inarguably provides bottom rates regarding interest charged. Additional costs are pre-empted from the personal loans advanced.

This creditor offers $ 5,000 to $ 100,000 depending on your personal financial needs. They also avail the loaned funds fast, to your earliest convenience. You can even get the loan the same day after meeting all your application and eligibility requirements.

LightStream customers can repay their loans for 24 months to a maximum of 144 months for the home renovation loans. There are no origination or application fees charged. This lender also does not advance late payment fees or charge prepayment penalties.

Citizens Bank

Citizens Bank is a personal loan lender that is best known for rendering discounts on interest rates. They offer unsecured debt and usually advance loyalty discounts to the existing customers.

You can also get a reduction on your interest payments if you have an automatic repayment plan for your personal loan in place. This lender charges 5.99% to 18.99% in interest.

It can lend any amount from $5,000 to $50,000. Citizens Bank offers a repayment period that ranges from $36 to a maximum of 84 months. This lender does not charge any application or origination fee. Moreover, Citizens Bank does not charge late payment fees or prepayment penalties. Your loaned funds come in a period not exceeding two working days.

Earnest

Earnest is a personal finance lender that looks not only at your credit eligibility but also your financial profiles. It assesses your education profile, savings habit, and income earnings to determine your personal loan eligibility. Earnest can lend any amount from $5,000 to $75,000. You can repay the loan in 3 or 5 years.

The lender does not charge application or origination fees. Prepayment penalties or fees on late payments are not charged. This lender avails your personal loan within two working days. For returned payment, the lender charges a small fee of $8. Earnest is best known for alternative underwriting.

SoFi

SoFi is one of the best personal loan providers with significant extra features. Taking a personal loan from this lender comes with some loyalty membership whereby you become a SoFi, community member. Once you are a member, you can enjoy several perk benefits. For instance, you get 0.125% discount on all future loans given by this lender. You are also exposed to career training and community networking fora. If you decide o invest with SoFi wealth, your fees are waived, and much more benefits accrue when you decide to deal with this lender.

SoFi advances personal loans from $ 5, 000 to $100,000, with a repayment period of 36 to a maximum of 84 months. SoFi does not charge an origination fee, prepayment penalties or application fees. You can also not be fined for late payment.

FreedomPlus

FreedomPlus charges up to 5% of the original fees on personal loans. You can as well get a loan without this particular fee. This lender offers $10,000 to $35,000. You can repay your loan within 24 or 60 months. This lender does not charge loan prepayment penalty. You can, however, be charged 5% of the due personal loan amount or $15 for late payments. FreedomPlus avails your funds in two days’ time. People can get cosigner discount when using this lender.

Threats

Most of the warnings about personal loans are usually myths that deter people from borrowing them. Below are the common myth threats to personal loans.

1. The Interest Rates Charged Are Unfair

While this might seem to hold some truth ideally, it is a myth. The personal loans have an average interest charge of 12 to 14 percentage. When you compare it to the credit cards, it is cheaper. People may avoid personal loans for this reason, but it is not entirely true.

2. All Lenders Have the Same Charges for Personal Loans

Individuals evaluate personal loans lenders by their interest charges and not the total loan charges. The hidden fees that add to the overall cost of the investment are never considered.

Therefore, people lack a complete picture of the difference in loan charges among different lenders. The originality and the prepayment fees can add up to 1% to 5% difference in total loan costs among personal loan lenders.

3. A Personal Loan is Only Granted to People With Salaries

People in private businesses or those receiving rental income can also get this type of loan. The common belief that just salaried people have access to personal loans is half a myth. This is because self-employed people will get it at higher interest charges than salaried people. Otherwise, nonsalaried people are not rejected from personal loan services.

4. People With Poor Credit Ratings Cannot get Personal Loans

This assertion is merely a myth because the allotment of the personal loans is not solely dependent on the credit ratings. It can, however, affect the rate of the interest that is charged on a personal loan due to the consideration of defaulting. New programs have even emerged to cater
to individuals with bad credit score.

5. Personal Loans Are Used for Individual Use Only

People interpret personal loan to mean that it should solely be used for personal reasons.
As long as the timely loan repayment installments are made, people are at discretion to use their personal loans. You can even use it to finance your startup or improve your business.

No fee personal loans are a reality. With a more informed approach to the way personal loans are issued and the best lenders for the same, people can benefit more from these types of loans.

Hidden Dangers

When taking up a personal loan, you should be carefulnot to fall for the hidden dangers. For instance, people consider interest rates as the only consideration for signing up for a personal loan. Rarely do people take time to find the upfront fees and the penalties charged on late repayment. Rarely do borrowers get to follow on the originality fee that a lender will likely charge?

Loan cost factors apart from the interest rates are usually hidden, and people may make serious mistakes when going for personal loans without first evaluating the hidden costs. The hidden costs run the danger of luring people to underestimate the real value of borrowing a personal loan.

The amount to be borrowed should also be taken as a severe metric to weigh the lending options available. Personal loans do not fit all situations and should, therefore, be selected using these facts in mind.

No fee personal loans is a reality. There are myths that act as a threat that deters people from seeking personal loans as a means of meeting their financial needs; However, with the information given in this article, people can make informed personal decisions when considering personal borrowing loans.

References

1. Legal Raasta (2017). Mythsa about Personal Loans. YourStory.com. Available at https://yourstory.com/mystory/3b83549c3f-myths-about-personal-loan

2. Ben Luthi (2018). Top 5 Personal Loans With No Origination Fee. StudentLoanHero.com. Available at https://studentloanhero.com/featured/origination-fee-top-personal-loans/

3. Santander Bank (2018). 4 Myths You Shouldn’t Believe About Personal Loans. SantanderBank.com. Available at https://thehub.santanderbank.com/4-myths-shouldnt-believe-personal-loans/L

4. (2017). 7 Popular Personal Loan Myths Busted! TataCapital. Available at https://www.tatacapital.com/blog/personal-loan/7-popular-personal-loan-myths-busted

5. Anna Serio (2018). No Fee Personal Loans. Finder.com. Available at https://www.finder.com/no-fee-personal-loans