Images by Getty Images; Illustrations by Bankrate
Key takeout
- Choosing a short-term loan with a long-term loan can quickly earn you cash, but you can pay for its convenience at a higher interest rate and more fees.
- If you choose a personal loan that does not have an upfront penalty instead, you can borrow money at a lower interest rate and repay it in a fixed monthly installment.
- When purchasing a personal loan, compare interest rates, repayment terms, monthly payments, and loan fees.
Short term loan Like payday loans and title loans, they offer cash immediately, but they have a catch. Thanks to the high prices in the sky, you’ll end up paying a significant amount of interest on these loans, and you’ll end up paying more loan fees overall.
Alternatively, some people are heading for personal loans without advance penalty. These loans are paid in equal installments each month over a period of 2-7 years, and usually have the option of repaying the loan early to save interest.
To avoid prepayment penalties, you need to compare personal loan lenders who do not have such penalties. With multiple options to choose from, find a lender who offers competitive rates, lending terms that fit your budget, and limited rates.
What is a personal loan without a prepaid penalty?
A personal loan is an unsecured loan that allows the borrower to access the lump sum amount and repay it somewhere between two and seven years. The interest rates on these loans are fixed over the period, so monthly payments will remain the same until the loan is repaid.
A personal loan with no upfront penalty allows borrowers to repay what they owed early without a penalty to do so. This means you can borrow money for five years, but you can pay it back in three. This strategy can save a lot of money depending on how you pay your loan and how interest is calculated over the loan term.
Best Short-Term Personal Loans with No Advance Penalties
You can find both banks and online lenders who offer personal loans without prepaid penalties. This is a small sample, so do some additional research and compare multiple lenders. Make sure to check other fees when determining the best fit for your needs.
| Lender | Loan amount | Clauses | APR Range* |
|---|---|---|---|
| Happy money | $5,000% – $40,000 | 24-60 months | 8.95%-29.99% |
| Lightstream | $5,000% – $100,000 | 24-240 months | 6.49%-25.29% with Autopay |
| Sophie | $5,000% – $100,000 | 24-84 months | 8.99%-35.49% with Autopay |
| New | 1,000% – $50,000 | 36 or 60 months | 6.60%-35.99% |
| *A particular APR is determined by each applicant’s credit profile and education and work history. |
Bankrate’s view
Happy Money puts customers first with its innovative approach to lending. That personal loan is perfect for consumers looking to consolidate high-profit debts to save money, and borrowers also have exclusive access to tools that help them manage their finances more effectively.
Funding times are a little slower than those found at other online lenders, but their minimum credit score requirements are at the bottom.
Strong Points
- Competitive pricing and conditions
- There are no application fees or hidden fees
- There are no postponement fees
Cons
- We only provide credit card debt settlement
- Most minimum loans starting from $5,000
- Origination fee applies
Bankrate’s view
Lightstream offers the lowest interest rate on personal loans. To qualify, you need a good or good credit score and a long credit history, but you may be eligible for flexible loans that do not involve spending restrictions or fees.
Keep in mind that interest rates are usually lower when the terms of the loan are shorter. This means that reducing your repayment period will be in your best financial benefits. Lightstream personal loans also do not have fees if certain requirements are met, such as registering with Autopay.
Strong Points
- Same day funds are available
- There are no fees
- Rate beat programs .10% lower than competitors offer
Cons
- There is no option to get prequalified
- You need good credits
- A long credit history is required
Bankrate’s view
SOFI offers a seamless personal loan application experience with minimal fees to worry about. You can opt for an origination fee in exchange for a lower APR, and there are no advance penalties. This allows you to tailor your payments to your needs. SOFI also allows joint applications if they are unable to qualify for a personal loan themselves, but applicants must reside at the same address.
Doing business with SOFI gives you free access to financial advisors, career resources, and other virtual experiences and events.
Strong Points
- Available in advance
- 0.50% Autopay and Direct Deposit Discount
- Same day funds are available
Cons
- Highest maximum APR
- No Cosigner option
- Optional origination fee
Bankrate’s view
Upstart is worth considering whether the credits are at the bottom edge. There are no minimum credit requirements. It also provides a competitive start for APR. Additionally, Upstart will look beyond your credit score and look at your education and work history to determine if you’re a perfect fit for your personal loan.
If funds are approved, you will not pay an advance penalty if you pay the loan early. Upstarts may continue to charge a call fee, and if your credit score requires some work, interest rates could be high-end.
Strong Points
- A competitive minimum APR
- Low start amount of $1,000
- Fast funding
Cons
- Origination fees may apply
- Only two available loan terms
- Highest maximum APR
How to compare personal loans without advance penalty
When shopping for a personal loan with no upfront penalty, you want to know what your total cost is from start to finish. This means seeing the terms associated with each lender and how they stack up.
- Compare personal loan interest rates: Loan costs are primarily determined by the annual rate (APR) and the loan duration. Comparing lenders with their rates: Personal Loan Calculator Estimate the overall borrowing cost.
- Evaluate loan repayment terms: You need to make sure that your loan not only works comfortably within your monthly budget, but also provides terms that suit your financial situation and needs.
- Compare loan fees: Make sure to find a loan that doesn’t charge exorbitant deferral or sender fees. Also, check hidden fees such as application fees and annual fees.
By the end of the process, you will need to compare your personal loans based on the following factors:
Alternatives for personal loans with no advance penalties
Personal loans without prepaid penalties are not the only option to get the funds you need, but most alternatives are expensive, relatively dangerous, or both. Personal loan alternatives include:
- Credit Card Cash Advanced:If you have a credit card with available credit, it can be used to meet your short-term financial needs. Please note that prepaid fees are required to use your card for cash advances on your credit card. You will also lose your card grace period when you use your card to earn cash. This means you are interested in the balance from day one.
- Personal loans for bad credit: You can’t access the best interest rates, but many Bad credit lender Do not claim prepayment fines. These also have shorter conditions, from 24 to 36 months, but if you need longer to repay them, we offer conditions up to 72 months.
- Payday loan: Payday loans should be used only as a last resort, dealing with poor credit customers. Payday loans usually have a high APR, sometimes over 400%, as the repayment period is usually within two weeks. Most loans don’t exceed $500 and are paid on the next payday.
- Car title loan: With a title loan, if you fully own up to 50% of the car’s market value, you’ll expect to pay a large interest rate and use the car as collateral. This means that if you are late in making a payment you can lose it.
Conclusion
Personal loans can help you overcome short-term financial difficulties and cover unexpected costs. When investigating options, make sure that the lender does not claim advance penalty; Compare interest rates. Even if you get a longer repayment period at a higher interest rate, your payments will be more affordable. And you have the ability to pay your balance early to save interest.
If your personal loan is not appropriate, Personal loan alternatives Available. Be sure to consider the advantages and disadvantages of each to make an informed decision.