Are you in need of a personal loan but want to avoid paying any origination fees? You’re in luck! In this article, we will discuss the best personal loans that come with no origination fees. We’ll cover the pros and cons of each loan, eligibility criteria, and other essential details that will help you make an informed decision.
Personal loans are a great way to finance various expenses, such as home improvement projects, debt consolidation, or unexpected medical bills. However, many lenders charge origination fees, which can range from 1% to 8% of the loan amount. These fees can add up quickly, making your loan more expensive than you initially thought. Fortunately, there are personal loans available that do not come with any origination fees.
What are Origination Fees?
Origination fees are upfront fees charged by lenders to process a loan application. They are typically a percentage of the loan amount and can vary from lender to lender. Origination fees can cover various expenses, such as credit checks, underwriting, and processing of the loan. While origination fees can help lenders cover their costs, they can add up to a significant amount, making your loan more expensive in the long run.
Benefits of Personal Loans with No Origination Fees
Personal loans with no origination fees can save you money and make your loan more affordable. By avoiding origination fees, you can reduce the overall cost of your loan, making it easier to pay off. Additionally, personal loans with no origination fees can offer other benefits, such as flexible repayment terms, low-interest rates, and fast approval processes.
Best Personal Loans with No Origination Fees
Here are five personal loans that come with no origination fees:
LightStream
LightStream offers personal loans with no origination fees, no prepayment penalties, and competitive interest rates. Loan amounts range from $5,000 to $100,000, with repayment terms from 24 to 144 months. LightStream offers a Rate Beat Program, where they will beat any competitor’s interest rate by 0.10% if you meet certain conditions. However, LightStream requires a good credit score to qualify for their loans.
SoFi
SoFi offers personal loans with no origination fees, no prepayment penalties, and low-interest rates. Loan amounts range from $5,000 to $100,000, with repayment terms from 24 to 84 months. SoFi also offers unemployment protection, which allows you to temporarily pause your loan payments if you lose your job. SoFi has flexible eligibility criteria, but they require a good credit score and a high income.
Marcus by Goldman Sachs
Marcus by Goldman Sachs offers personal loans with no origination fees, no prepayment penalties, and competitive interest rates. Loan amounts range from $3,500 to $40,000, with repayment terms from 36 to 72 months. Marcus offers a savings feature, where you can defer one monthly payment after making on-time payments for 12 consecutive months. Marcus has flexible eligibility criteria, but they require a
minimum credit score of 660 to qualify for their loans.
Discover Personal Loans
Discover Personal Loans offers personal loans with no origination fees, no prepayment penalties, and competitive interest rates. Loan amounts range from $2,500 to $35,000, with repayment terms from 36 to 84 months. Discover offers a 30-day money-back guarantee, where you can return the loan amount without any interest or fees if you’re not satisfied with their services. Discover has flexible eligibility criteria, but they require a minimum credit score of 660 to qualify for their loans.
Upstart
Upstart offers personal loans with no origination fees, no prepayment penalties, and competitive interest rates. Loan amounts range from $1,000 to $50,000, with repayment terms from 36 to 60 months. Upstart uses artificial intelligence and machine learning to evaluate borrowers’ creditworthiness, making it easier for people with little credit history to qualify for their loans. Upstart has flexible eligibility criteria, but they require a minimum credit score of 600 to qualify for their loans.
Comparison of Best Personal Loans with No Origination Fees
To help you choose the best personal loan with no origination fees, here’s a comparison table of the loans we’ve discussed:
| Lender | Loan Amounts | Repayment Terms | Minimum Credit Score |
|---|---|---|---|
| LightStream | $5,000-$100,000 | 24-144 months | Good |
| SoFi | $5,000-$100,000 | 24-84 months | Good |
| Marcus by Goldman Sachs | $3,500-$40,000 | 36-72 months | 660 |
| Discover Personal Loans | $2,500-$35,000 | 36-84 months | 660 |
| Upstart | $1,000-$50,000 | 36-60 months | 600 |
Eligibility Criteria for Personal Loans with No Origination Fees
Each lender has its own eligibility criteria for personal loans with no origination fees. Generally, lenders look at factors such as credit score, income, employment status, and debt-to-income ratio. To qualify for a personal loan with no origination fees, you’ll need to meet the lender’s eligibility criteria. It’s a good idea to check your credit score before applying for a loan to see which lenders you’re eligible for.
How to Apply for a Personal Loan with No Origination Fees
To apply for a personal loan with no origination fees, you’ll need to follow these steps:
- Research lenders that offer personal loans with no origination fees
- Check the lender’s eligibility criteria
- Gather the necessary documents, such as proof of income and identification
- Fill out the loan application
- Wait for the lender to approve your loan and disburse the funds
Frequently Asked Questions (FAQs)
- What is an origination fee?
- How much can I save by avoiding origination fees?
- Do personal loans with no origination fees have higher interest rates?
- Can I get a personal loan with no origination fees if I have bad credit?
- Are personal loans with no origination fees the best option for me?
Conclusion
If you’re looking for a personal loan with no origination fees, you have plenty of options to choose from. By avoiding origination fees, you can save money and make your loan more affordable. Before applying for a loan, make sure you understand the lender’s eligibility criteria and compare different loans to find the best one for your needs.