Best Option to Get a Personal Loan Without an Origination Fee

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Best Option to Get a Personal Loan Without an Origination Fee

Personal loans are available to help pay for many expenses, such as renovations and medical bills. Personal loans may be subject to fees from lenders

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Personal loans are available to help pay for many expenses, such as renovations and medical bills. Personal loans may be subject to fees from lenders, which can increase the total cost of your payments.

Personal loans are subject to an origination fee, which is the most frequent fee. This fee is deducted from the loan amount before funds are received. But some lenders don’t charge origination fees. There are many personal loans available today, and they don’t charge fees. These loans were created to assist people with their short-term financial requirements.

They are accessible to all, making them extremely popular. Personal loans are free of fees, no matter if you’re a student, working individual, or retired person.

If you require a larger loan, personal loans can be obtained with lower interest rates. No matter how large your loan amount, the perfect personal loan is available.

What is an origination fee?

The lender will charge a loan origination fee to approve the loan. This fee can include processing fees for your loan application, funding, and underwriting.

Personal loans may have an origination fee of 1% to 8%, depending on which lender. You would get $4,750 if you take out a $5,000 loan with a 5% origination fee. The lender will subtract $250.

Lenders who do not charge origination fees are possible if you have good credit and steady income. If your credit score falls below the average, you may have to pay origination fees.

Five best personal loans without origination fees

Before you apply for a personal loan, it is important to compare the rates of as many lenders as possible. You can find the best loan for you by choosing a loan that does not charge an origination fee. Below are the no fee personal loan that Creditible’s lenders offer.

Discover

Best for: Longer repayment terms

If you’re looking for a personal loan with a longer repayment term, Discover is the best option. The terms of the loan range from 3 to 7 years and can be borrowed from $2,500 up to $35,000 You will pay more interest for a longer term.

Pros

  • Maximum 7-year repayment terms
  • Accepts fair credit scores
  • Get quick loan funding

Cons

  • Charges late fees
  • Offers no discounts
  • Maximum loan amount is $35,000

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LightStream

Great for large loans

LightStream loans can be up to $100,000. This is an excellent option for large loans. Most LightStream loans have terms between two to seven years. It could take as long as twelve years to repay a loan if it is used for home improvement projects.

Pros

  • Up to $100,000 can be borrowed
  • Get quick loan funding
  • Accepts fair credit scores

Cons

  • You need to borrow at least $5,000
  • Doesn’t disclose minimum income requirements
  • It is not available in Rhode Island or Vermont

Marcus

The best: Affordable payment options

Marcus lets you borrow as much as $3,500 to $40,000 with terms that range from three to six months. Marcus can help you lower your monthly payments by offering customized payment options.

Marcus will let you defer one monthly installment interest-free if you have paid at least 12 consecutive on time payments.

Pros

  • Accepts fair credit scores
  • Flexible monthly payment options
  • You can defer one monthly installment interest free after 12 consecutive on-time payments

Cons

  • Funding could take longer than with other lenders.
  • $30,000 minimum income requirement
  • Only $40,000 can be borrowed

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PenFed

This is a great option for smaller loan amounts

If you have a very small amount to borrow, PenFed can be a great choice. The terms of the loan can be as long as five years and range from $600 to $50,000.

To apply for a loan, you don’t need to be a member of PenFed. If you are approved for the loan, you will need to join the credit cooperative.

Pros

  • You can borrow as low as $600
  • Accepts fair credit scores
  • Cosigners are allowed for personal loans

Cons

  • You must join the credit union if you are approved for the loan
  • Doesn’t disclose minimum income requirements
  • Loans may take longer to be funded than loans from other lenders.

SoFi
Best for: Borrower perks

SoFi offers large loans. The terms of the loans are two to seven year and can be borrowed between $5,000 and $100,000. SoFi borrowers have many perks, including unemployment protection and career coaching. They also receive investment advice.

Pros

  • Up to $100,000 can be borrowed
  • Cosigners are allowed for personal loans
  • Borrower benefits such as investment advice or unemployment protection

Cons

  • Doesn’t disclose minimum credit requirements
  • Doesn’t disclose minimum income requirements
  • Mississippi: Not available

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Conclusion

There are many options for personal loans with no fees. A loan from your bank, credit union, or other financial institution might be an option. These loans have lower interest rates and are free of fees. Online lenders may also be of interest. Online lenders don’t charge any fees for loans. This will help you to save money on your total loan costs.

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