Updated
Sometimes you need to borrow money quickly. That's especially true if you're coping with an emergency situation or an unexpected expense.
Easy online loans could be the answer. You can get a quick loan online with either an online or traditional lender. Your lender will enable you to complete your application process digitally without going to a bank or working with a loan officer. In some cases, it's possible to get an emergency loan same-day, all without leaving the comfort of your home.
What are online loans?
Online loans are simply personal loans you can get without visiting a bank or a credit union. Easy loans online usually won't even require you to talk to a loan officer.
You can do all of the following online:
- Compare rates, loan amounts, and terms
- Submit an application
- Get pre-approved for a loan
- Arrange to have money deposited directly into your bank account
Loans with an all-digital application process are routinely offered by online-only lenders that don't have physical bank branches. But a growing number of traditional banks and credit unions also offer fast loan options that don't require in-person or phone contact. These lenders want to compete for your business and they know many people prefer to complete financial tasks on the internet.
What can online loans be used for?
Online loans are no different from any other personal loan in terms of how the money can be used. You can generally use the funds for anything you want. This could include paying for home repairs, financing big purchases, or consolidating your debt.
Compare the best personal loans
Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.
| Lender | APR Range | Loan Amount | Min. Credit Score | Next Steps |
|---|---|---|---|---|
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Fixed: 8.99%-29.99% APR (with all discounts)
|
$5,000 - $100,000
|
680
|
|
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
5.20% - 35.99%
|
$1,000 - $50,000
|
None
|
|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
10.49% to 19.49%
|
$2,000 - $30,000
|
720
|
How does the online personal loans process work?
If you're looking for an unsecured loan (one that doesn't have collateral a lender can take if you don't pay), an online lender offers a fairly easy process.
Here's how it works:
- You fill out an online loan application. Include basic information like your name, Social Security number, employment status, and income. (If you're unemployed, take a look at our guide to getting a loan while unemployed for more information on what to list as income.)
- The lender may ask what you plan to do with the loan. For example, the lender wants to know if you need the funds to remodel your home, for debt consolidation, or to pay off high-interest obligations like a title loan or credit card debt.
- The lender checks your credit history. It will run a "soft" credit check that has no impact on your credit score.
- The lender either approves or denies your application based on the credit check. If it's denied, the lender is required to let you know why.
- Once you're approved, the lender gives you a loan offer. It includes interest rate, loan term options, and any add-on charges, like an origination fee or prepayment penalty.
- You should compare several loan offers. Then you can let a lender know if you're ready to proceed.
- The lender will do a "hard" credit pull when you give the go-ahead. This will verify that your financial information is still accurate. The hard credit check will lower your credit score slightly, but your score will rebound with regular monthly payments.
- The lender may ask for additional documentation. For example, it may ask for photo ID, income verification, or tax records. You can simplify the process by having documents (like pay stubs and tax returns) ready when you apply.
- You sign a contract and wait for funding. Loan proceeds are deposited into your bank account in one to 14 days, depending on the lender.
Can I get a loan online with bad credit?
Yes -- there are a number of online lenders that specifically cater to bad credit borrowers. They make it possible to get a personal loan with bad credit.
You'll typically need at least a fair to good credit score for a personal loan -- even from an online lender. If your credit score isn't perfect, make sure to shop around with multiple loans for fair credit (rather than simply applying to the first loan you find) to increase your chances of getting approved.
Here are three steps to finding a loan regardless of your credit score:
- Shop around with multiple lenders. There's a lot of variation in interest rates from one to the next. The more quotes you get, the better the chance you'll find a competitive loan offer.
- Apply with a cosigner. Lenders will consider your cosigner's credentials as well as your own. As such, you might get approved with a better interest rate.
- Look into getting a secured loan. You'd have to offer something you own as collateral -- a guarantee you'll pay back your loan, which could be risky. However, secured loans can also help you build credit.
Just be sure to read the fine print carefully when you shop for a bad credit loan. Some personal loans for bad credit have poor terms, such as high fees. Make sure you compare interest rates and check the lender's Better Business Bureau rating or other customer reviews to ensure you're dealing with a reputable lender.
Pros and cons of online loans
Because there is no one-size-fits-all financial decision, it's important to weigh the pros and cons. Here are some of the great and not-so-great things about an online personal loan.
Pros
- Simplifies the personal loan process
- State-of-the-art technology makes application easy
- Often faster to get approved than a traditional loan
- Some of the lowest APRs in the personal loan business
- Easier to get a debt consolidation loan to get rid of high-interest debts like payday loans
- You can build credit by making regular monthly payments
Cons
- Some lenders offer high minimum loan amounts, making it difficult to get a small loan for emergencies
- If you need a bad-credit loan, you will likely be hit by a high interest rate
- You may need to work with a brick-and-mortar lender If you want a secured loan (one where you put up collateral to protect the lender's investment)
How to apply for an online loan
It's simpler than ever to get easy loans online. You just need to follow a few key steps, including:
- Get your documents together. In most cases, you can submit an application for a loan with very little financial paperwork. However, you should collect a few key documents, including pay stubs, tax returns, and a recent bank statement. That way you won't hold up your loan approval while you hunt down a document.
- Compare rates and fees. Unfortunately, some online lenders offering quick loans charge high origination fees or high interest rates. Compare total loan costs carefully to find a loan that's affordable.
- Complete and submit your application. Most online lenders have streamlined the loan application process so you can complete it entirely online in just a few minutes. You should even be able to upload any requested financial documents.
- Provide bank details for the funds transfer. The quickest way to get your hands on the cash is usually to have your money directly deposited. So make sure you provide the details necessary to complete the transaction.
As you can see, it's pretty straightforward to get a fast loan online. Once you've found the right lender with an affordable loan offer, just submit your application and provide your bank information. If you qualify based on the lender's requirements, you should be able to get funding ASAP and can use it for pressing financial expenses.
The Ascent's best personal loans
Looking for a personal loan but don’t know where to start? Our favorites offer quick approval and rock-bottom interest rates. Check out our list to find the best loan for you.
Alternatives to online loans
If you look around and decide now is not the right time for you to take out an online personal loan, you have options. Here are two.
0% promotional rate credit card
If you have a good credit score, you may qualify for a credit card with a 0% promotional APR. The best 0% intro APR credit cards typically offer the cardholder 12-18 months to repay the debt without paying interest. Be sure to pay the card off before the promotional period ends and the interest rate reverts back to normal.
Credit union
If you're a member of a credit union, you're considered an owner (or shareholder). As an owner, you have access to low interest rates for loans and excellent terms.
Although online loans are a relatively new phenomenon, millions of people have borrowed money from the comfort of their homes. If you're in the market for a loan, it pays to check what online lenders have to offer.
Our Loans Expert
Christy Bieber is a full-time personal finance and legal writer with more than a decade of experience. She has a JD from UCLA as well as a degree in English, Media and Communications with a Certificate in Business Management from the University of Rochester. In addition to writing for The Ascent and The Motley Fool, her work has also been featured regularly on MSN Money, CNBC, and USA Today. She also ghost writes textbooks, serves as a subject matter expert for online course design, and is a former college instructor.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
The Motley Fool has a disclosure policy.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
The Motley Fool has a disclosure policy.
*Upstart Loan Disclaimer
The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.
*SoFi Personal Loan Disclaimer
Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.
Loan amounts range from $5,000–$100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
Impact to credit score: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Citi Personal Loan disclaimer:
**Rates as of 10-06-2023 . Your APR may be as low as 10.49% or as high as 19.49% for the term of your loan. The lowest rate quoted assumes excellent credit, and a loan term of 36 months or shorter. Otherwise, a higher rate will apply. For example, if you borrow $10,000 for 36 months at 15.99% APR, to repay your loan you will have to make 36 monthly payments of approximately $351.52.
There is a 0.5% APR discount if you enroll in automatic payments at loan origination. Additionally, existing Citigold and Citi Priority customers will receive a 0.25% discount to the interest rate. If you are in default, your APR may increase by 2.00%. No down payment is required. Rates subject to change without notice.
You must be at least 18 years of age (21 years of age in Puerto Rico). Co-applicants are not permitted. Loan proceeds cannot be used for post-secondary educational or business purposes.
If you apply online, you must agree to receive the loan note and all other account disclosures provided at loan origination in an electronic format and provide your signature electronically.
Credit cards issued by Citibank, N.A. or its affiliates, as well as Checking Plus and Ready Credit accounts, are not eligible for debt consolidation, and Citibank will not issue payoff checks for these accounts. If you are unsure of the issuer on the account, please visit https://www.citi.com/affiliatesproducts for a list of Citi products and affiliates.