Most personal loan and debt consolidation sites do offer a soft inquiry pre-qualification process of some sort and then after you have seen your loan amount and APR rate they will have you confirm and once you have fully accepted the loan (this could be before or after you provide POI and verification) they will hard pull your credit.
Now if you go through the pre-qualification process and they deny you, DO NOT agree to the suggested site they give you, which will do another pre-qual. Most people don’t know this, those are sub-prime providers, aka high interest rates and horrible terms. It’s not even worth it.
Personal loans are still a great way to pay off credit cards and get loan diversity on your credit profile. This usually causes a bump in your score. There are changes in Fico 10 that may change the impact of personal loans but 99% of institutions are still working off of Fico 9 or lower.
Keep in mind the information you will need if you do in fact get approved. Remember they will give you the total loan amount, APR and months to pay it off (terms) and if you decide to accept then they will hard pull your credit. A few of them even allow you to upload all your docs before they hard pull your credit.
Required documentation you should expect them to ask for is going to be
- Full Name
- Address (make sure it matches your public records, if you just moved in last 2 months or so it may cause issues with address verification)
- DOB
- Phone
- SSN
- Employment status
- Last 2-6 months of pay stubs
- W2 from at least 2020 if not 2019 as well
- Bank account for auto pay
- Credit cards you want to use for balance transfer (if you choose this)
- Upgrade requires selfie and front/back of drivers license/ID
I think total there is 29 soft pull personal loan options on this page.
Best Bad Credit Personal Loans
| Lender | Best For | Min. Credit Score | Bureau They Pull | Est. APR | Min Loan | Max Loan |
|---|---|---|---|---|---|---|
| Avant | Range of repayment options | 580 FICO 550 Vantage | Webbank-Experian | 9.95%-35.99% | $2,000 | $35,000 |
| Lending Club | Marketplace size | 600 | Transunion | 7.04%–35.89% | $1,000 | $40,000 |
| Onemain Financial | Secured Loans | 620+ | Experian | 18%–35.99% | $1,500 | $20,000 |
| Upgrade | Fast funding | 620+ | Transunion | 5.94%–35.97% (with autopay) | $1,000 | $50,000 |
| Upstart | Limited credit history | 600 | Transunion FICO 9 | 6.76%–35.99% | $1,000 | $50,000 |
Best Soft Inquiry Personal Loan Offer
Over the years by far the best experience I have personally had and clients have had is with Marcus by Goldman Sachs. From a smooth pre-qual process all the way to getting funded and ease of payments, the only thing I wish they did was better track how/when you pay off your loans and offer you something special to get another one.
Great Interest Rates
Marcus By Goldman Sachs
Marcus from my understanding is one of the oldest running personal loans with such great rates. They don’t hike then drop, they tend to stay more consistent. You can get favorable terms with low 700s credit score. The amount of documentation they require is lower than most.
Loans up to
$40,000
APR
Fixed
6.99% to 19.99%
Fees
No late fees
No addtnl fees
Discounts
0.25% reduction
with AutoPay
- AutoPay Discount: Receive a .25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.
- Rates range from 6.99% to 19.99% APR, and loan terms range from 36 to 72 months. Only the most creditworthy applicants qualify for the lowest rates and longest loan terms. Rates will generally be higher for longer-term loans.
- Payment deferral: After making 12 or more consecutive monthly payments, you can defer one payment as long as you have made all of your prior payments in full and on time. We will waive any interest incurred during the deferral, and extend your loan by one month (you will pay interest during this extra month). Your payments resume as usual the month after the deferral. You must request a deferral at least 16 days before the payment you want to defer is due.
- Pulls Transunion
Popular Soft Inquiry Personal Loan Offers (Full Breakdowns)
DISCOVER
Flexible Repayment Terms
Discover Personal Loan
Discover has been offering personal loans for a long time, and lent out to almost 2 million people, they offer flexible repayment terms and don’t have fees that a lot of others do.
Loans up to
$35,000
APR
Fixed
6.99% to 24.99%
Loan Terms
36-84 months
Adtnl Fees
0
- No origination fees.
- Repayment terms of 36,48,72 & 84 months
- Repay loan with 30 days, pay 0 interest
- Access to free FICO score
- Loan approval is subject to confirmation that your income, debt-to-income ratio, credit history and application information meet all requirements. Loans are unsecured. Loans are fully amortizing personal loans as long as you pay on time
- You must have a minimum household income of $25,000 to be considered for a Discover personal loan. It cannot be used to pay for post-secondary education, to pay off a secured loan, or to directly pay off a Discover credit card.
- They may charge a late fee if payment is late
- Pulls Experian and/or Transunion
Accepts A Range Of Scores
Lending Club
They have been around since 2007 and helped 3 million people secure over $60B in funding which is crazy, considering Prosper who many think is the biggest, has only funded 1 million people $16B.
Loans up to
$40,000
APR
8.05% to 35.89%
Loan Terms
36-60 months
Adtnl Fees
Origination fee
3% to 6%
- On average, personal loans from LendingClub Bank are offered at an APR of 15.95% with an origination fee of 5.00% and a principal amount of $15,800 for loans with term lengths of 36 months, based on current credit criteria and an analysis of historical borrower data from 1/1/21 to 4/12/21. For credit card purchases made in March 2021, the average APR was 20.29%, according to publicly available information published by TheBalance.com. If you pay off a credit card balance of $15,010 with an APR of 15.95% over 36 equal monthly payments, you will pay $5,152 in total finance charges. If you obtain a loan with a term of 36 months and an amount financed of $15,010 (principal amount of $15,800 with an origination fee of $790) at 15.95% APR, you will pay $3,975 in total finance charges over the term of the loan, a savings of $1,177 as compared to the average credit card.
- Checking your loan rate generates a soft credit inquiry on your credit report, which is visible only to you. A hard credit inquiry, which is visible to you and others, and which may affect your credit score, only appears on your credit report if and when a loan is issued to you. Your loan APR will depend upon your credit score and other key financing characteristics, including but not limited to the amount financed, loan term length, and your credit usage and history.
- Uses Plaid for income verification
- Pulls Transunion Fico 8
Accepts A Range Of Scores
Upgrade Personal Loans
They seem to follow a process that is similar to Paypal loan builder where you do a pre-qual, they tell you rate and terms, you accept and then get your login. From there you upload any verification (they require a selfie photo, front/back of state id and they might ask for POI), after that you get your loan and finally get the hard hit on your credit.
Loans Size
$1,00-$50,000
APR
5.94%-35.97%
Loan Terms
24 to 84 months
Adtnl Fees
2.9% to 8%
origination fee
- Personal loans made through Upgrade feature APRs of 5.94%-35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early.
- Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds sent directly to you should be available within one (1) business day. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor.
- Pulls Transunion
- Minimum Credit Score Is 560, Average credit score is 678
- Max DTI ratio accepted is 75%
- No minimum annual income requirements, average annual income is $78,000
Accepts A Range Of Scores
Prosper Personal Loans
I got datapoints going back to 2016 on Prosper, they seem to be more flexible with credit scores, I know people who have had as low as 630s on Experian get approved with enough documentation, they don’t seem as personal and customer driven anymore (more volume based). After getting 2 personal loans from them, they didn’t have any previous data saved and treated the customer like they were brand new.
Loans up to
$40,000
APR
7.95% to 35.99%
Loan Terms
up to 60
months
Adtnl Fees
Origination fee
2.41%-5%
- Underwritten by Webbank
- Your loan could be subject to the following 4 fees. 1. Origination Fee 2. Check Payment Fee 3. Late Fee 4. Insufficient Funds Fee
- You may receive your funds one business day following your acceptance of the loan offer, completion of all necessary verification steps and final approval. One business day funding is also dependent on your bank’s ability to quickly process the transaction.
- Eligibility for personal loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility for personal loans is not guaranteed and requires that enough investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All personal loans made by WebBank, Member FDIC.
- Pulls Experian or Transunion
Great offer for existing members
American Express Personal Loans
This offer will show up as a popup once you login if you are pre-approved (with up to loan amount and APR), or you can visit the personal loan page and check for an offer.
Loans up to
$40,000
APR
7.95% to 21.96%
Loan Terms
up to 60
months
Adtnl Fees
none
- Softpull Experian
- No orgination fee, no prepayment penalty
- Fixed APR
- American Express Personal Loans can be used to consolidate credit cards only at eligible U.S. banks (American Express Cards are excluded).
- You must be an eligible Card Member to apply for a Personal Loan. Your offer is based on your creditworthiness and other eligibility factors at the time you check for an offer. Offer availability is subject to change. Not all customers will be eligible for the lowest APR, the highest loan amount, or the same repayment period options. The APR may change based on the selected repayment period. American Express Personal Loans can be used to pay down or consolidate credit card balances on cards issued only by eligible U.S. banks; they cannot be used to pay down or consolidate balances on American Express-issued cards. You must submit an application to apply for a loan.
- There are no pre-payment penalties with a Personal Loan. Additionally, you can make as many payments as you wish with no associated penalties.
Works With Those Rebuilding Credit
One Main Financial
This company seems closer to a subprime solution, they want a lot of documentation and 1st position leans on assets like a car. They have higher fees and more fees where they can get away with it. They have an origination fee, late fees, NSF fees and governmental fees
Loans up to
$20,000
APR
18% to 35.99%
Loan Terms
24-60 months
Adtnl Fees
Origination fee
1% to 10%
- Not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Loan approval and actual loan terms depend on your state of residence and your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. Active duty military, their spouse or dependents covered by the Military Lending Act may not pledge any vehicle as collateral.
- OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university, or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal activities.
- Pulls Transunion (for FL residents)
Other Personal Loan Options
| Lender | Best For | Bureau They Pull | Est. APR | Min Loan | Max Loan |
|---|---|---|---|---|---|
| Bestegg | Fast Funding | Cross River Bank Experian and/or Transunion | 5.99%–35.99% | $2,000 | $50,000 |
| Freedom Plus | Same day loan decision | Cross River Bank Experian and/or Transunion | 7.99%-29.99% | $7,500 | $50,000 |
| Payoff Loans aka Happy Money | Paying off credit cards | *Transunion | 5.99%-24.99% | $5,000 | $40,000 |
| Peerform | Subprime option | 5.99%-29.99% | $4,000 | $25,000 | |
*Payoff aka Happy Money shops you out to vendors similar to a matching tool, here is full list but they work with Alliant, BFCU, Cross River, FTFCU, GSCU, TFCU, Techcu, US Alliance, VCU
