Looking for the best personal loans for seniors? Check out offers from trusted lending companies such as SoFi and Credible Personal Loans.
Whether you're faced with an unexpected medical expense, a home renovation or the need to consolidate debt, personal loans can help you get the funds you need. Seniors face unique loan challenges. Although you can use Social Security or a pension to demonstrate income, you'll want to work with a lender that is used to help seniors access the funds they need. Read on for the best personal loans for seniors.
Quick Look: Best Personal Loans for Seniors
- Best for Borrowers with Low Credit: Universal Credit
- Best for Low Origination Fees: LendingPoint
- Best for Borrowers with Good Credit: SoFi
- Best for Larger Loans: Axos Bank
- Best for Flexible Loan Solutions: Credible Personal Loan
Best Personal Loan Options for Seniors
Here is an overview of the best loans for senior citizens options for seniors this year.
1. Best for Borrowers with Low Credit: Universal Credit
Instead of lending directly, Universal Credit lets you find online personal loans between $1,000 and $50,000 through its lending partners. Choose repayment terms 36 to 84 months, giving you the flexibility to find a term that meets your needs.
Universal Credit makes it easier for people with damaged credit to find a personal loan. However, you'll need to pay a 5.25% to 9.99% origination fee on all personal loans, plus potentially higher APRs.
Pros
- Compare many lenders' offers
- Easy to use
- Designed for borrowers with low or no credit
- Option for high loan amounts
- Possibility for loans of up to eight years
Cons
- Higher origination fees
- Possibly higher APRs
2. Best for Low Origination Fees: LendingPoint
LendingPoint is an Atlanta-based online lender that offers personal loans from $2,000 to $36,500 in 48 states and Washington, D.C. You can apply online and benefit from quick funding, often within days. Choose from repayment terms of 24 to 60 months.
LendingPoint has maximum APRs and origination fees higher than some competitors. You can secure a lower APR by maintaining a high credit score, but LendingPoint's origination fees are state-based, so you might still face a high origination fee.
Pros
- Easy to apply online and access cash within days
- Origination fees as low as 0% (but up to 7%)
- Qualify for a lower APR with good credit
- Available in 48 states plus Washington D.C.
Cons
- Low origination fees are only available in certain states
- Does not offer loans in Nevada and West Virginia
- Can only get a loan up to $3,500 in Georgia
3. Best for Good Credit: SoFi
- Best For:No origination feesVIEW PROS & CONS:securely through SoFi Personal Loans's website
SoFi is a highly-reputed online lending platform that offers personal loans in all 50 states. Get loans between $5,000 and $100,000 with terms from two to seven years.
While the minimum credit score requirement is 650, applicants with good to excellent credit scores can (potentially) qualify for a larger loan amount. SoFi also offers good interest rates for borrowers with good to excellent credit scores.
Pros
- Receive funds within a few days of approval
- Prequalification with soft credit check
- Options for high loan amounts and lengthy terms
Cons
- Can be more difficult to qualify than other options
- Can't use a cosigner
4. Best for Larger Loans: Axos Bank
Axos Bank is an online bank with many banking products, including good personal loan choices. While it has fewer personal loan options than some competitors, it makes it easy to keep all your banking with a single bank. Loan amounts range from $5,000 to $50,000, with an annual percentage rate (APR) starting around 8%.
Pros
- Quick funding
- Available in all 50 states
- Easy to consolidate if you already have an account with Axos
Cons
- Minimum credit score requirement of 700
- Higher minimum borrowing amount than other options
5. Best for Flexible Loan Solutions: Credible Personal Loan
Credible is a personal loan marketplace where you can simultaneously see rates from multiple lenders. You can see rates without a hard credit check or having to pay any fees. Loan amounts are flexible, offering personal loans from $600 to $100,000. APRs vary widely, from 4.60% to 35.99% so you'll want to carefully check rates before choosing a loan.
Pros
- Wide range of options
- Get a loan from $600 to $100,000
- With a good to excellent credit score, you could get some of the lowest APR available on personal loans.
Cons
- Check loan terms before accepting because APRs can be high
- Third-party lender
Why Do Seniors Need Personal Loans?
Seniors need personal loans for many of the same reasons as people of any age: life can throw unexpected expenses your way. For seniors with a fixed income or limited budget, that can include a medical emergency not covered by insurance, car repairs or home renovations. YOu might need a personal loan to get you through a few months or maybe you plan to consolidate debt.
Since personal loans can be used for nearly anything, they can be useful for covering big expenses or spreading them out over time. You can choose short-term loans or 12-month loans or spread the expense over several years.
What to Look for When Choosing the Best Personal Loan for Seniors
When selecting a personal loan, it's important to carefully compare annual percentage rate (APR), origination fees and early repayment fees. Here is what to consider when you choose the best personal loans:
- How much money do you need?
- What is the APR? Are there lenders with a lower APR?
- How much is the origination fee?
- Are there early repayment fees?
- Are there any other fees you'll be required to pay?
- How fast can you get the funds?
Alternatives to Personal Loans
You can choose alternatives to personal loans for seniors. Here are a few options to consider:
- Credit cards: If you only need extra cash for a few weeks, putting the purchase on a credit card and paying it off before it's due is a simple solution.
- Peer-to-peer (P2P) loan: Many peer-to-peer lenders are available online, and they can offer smaller, short-term loans. Some offer bigger loan options but may come with higher interest rates.
- Borrowing from friends: You can ask family or friends for a loan. Be sure to formalize loan terms and stick to them to avoid straining the relationship.
- Early wage access: If you need extra funds before your next Social Security check comes in, you may qualify for an EWA program.
- Tap into savings: As a retiree, you can tap into your retirement savings, although that comes with risks if you need to do it regularly. Find more to build retirement savings, how to plan for retirement or the best investments for retirees.
- Get a side hustle: If you want to earn extra cash, find the best side hustles for seniors.
You can also consider personal loans for specific purposes, like the best personal loans for debt consolidation or same-day loans online.
Should You Take Out a Personal Loan?
Taking out a personal loan can be a smart way to spread out a big expense or make ends meet when you have a large unexpected expense. Compare rates and terms to choose a lender that meets your needs and can help you save more on interest. Need more ideas to plan for retirement? Find a retirement income calculator, discern the difference between SSI and SSD, or compare Social Security vs. retirement benefits or get the best bad credit loans.
Frequently Asked Questions
Can you get a personal loan on Social Security?
Yes, Social Security benefits can be one source of income that can help you qualify for a personal loan.
Can a 75-year-old get a personal loan?
Yes, you can get a personal loan as a 75-year-old. Factors like your credit score, proof of income or savings and the amount of money you need affect loan approval.
Do banks give loans to senior citizens?
Yes, banks will give loans to senior citizens as long as they meet lending requirements. However, some banks have a maximum age limit.
About Alison Plaut
Alison Plaut is a personal finance writer with a sustainable MBA, passionate about helping people learn more about financial basics for wealth building and financial freedom. She has more than 17 years of writing experience, focused on real estate and mortgage, business, personal finance, and investing. Her work has been published in The Motley Fool, MoneyLion, and she is a regular contributor for Benzinga.