Even with the best of intentions, sometimes you need more cash than you have on hand. No matter the reason, a personal loan is a viable solution to make up the difference. Benzinga’s list of the best personal loans in Texas will help you find the perfect personal loan.
The Best Personal Loans in Texas
- Best for Customizable Robo Investing: M1 Finance
- Best for Excellent Credit Scores: Marcus
- Best for Fair Credit Scores: LendingPoint
- Best for Loan Comparison: Credible
- Best for Debt Consolidation: SoFi
It's easier than ever to handle your finances online. Applying for and managing a loan is no exception. These online lenders are all trusted sources for personal loans. There are several places Texas residents can look for a simple personal loan, but you should review each one to determine how it fits into your overall financial plan.
Best for Customizable Robo Investing: M1 Finance
- Best For:Customizable Auto InvestingVIEW PROS & CONS:securely through M1 Finance's website
M1 Finance is an investment platform that allows you to borrow against the balance in your account. You’ve been saving for the future, guiding your investments and trying to use the markets to your advantage. This might be the perfect time to dip into those funds to manage medical debt, debt consolidation, unexpected expenses, emergencies, educational costs, etc.
M1 Finance offers:
- Competitive rates
- A massive range of loan values and terms
- An online loan calculator that helps you understand how the loans work
- Liquidity that doesn’t require you to sell your assets
Don’t cash out your portfolio when you can borrow against your M1 Finance account to get into the next phase of your life, deal with anything that comes your way, and much more. Texas residents will also find that this is a great place to invest so that you can plan for the future and maximize the money in your pocket.
Pros
- A loan calculator is often the best thing you can use while planning for your financial future
- This platform also makes it possible to invest and manage your money
Cons
- This platform may be too advanced for financial novices
Best for Excellent Credit Scores: Marcus
Marcus is the personal banking arm of Goldman Sachs, and it offers you the opportunity to obtain a personal loan for everyone in Texas, irrespective of the situation, with terms and values that suit most situations. You can even get an APR discount just for setting up autopay.
Marcus also offers:
- No fee, unsecured loans
- A soft credit check to pre-qualify
- Customer support availability every day of the week
Origination fees are competitive, but it can take a little time to get your loan funded. There are several repayment plans to choose from, no collateral is needed and you can even defer a payment after making your first year’s worth of payments on-time. Think of this as a simpler way to get the loan you need when you don’t want to go to the bank or don’t have many options in your community.
Pros
- Wide customer service availability is good for working Americans
- Because the platform is tied to Goldman Sachs, you have the option to try even more financial tools
Cons
- You cannot guarantee that you will get all the little perks that are available, like payment deferment
Best for Fair Credit Scores: LendingPoint
LendingPoint is an excellent option for Texas residents because the firm is based in Georgia and offers several benefits, like:
- Expedited funding
- Flexible payment options
- Solid mobile app
- No prepayment penalties
- Competitive rates
- Affordable late fees
You can apply online to get a look at the rates that are available, and you can complete the application whenever you’re ready. Reach out to the customer service team for more information, and remember that you will likely pay an origination fee—but you can review that information with the platform before closing on the loan.
You can get a loan with terms from 2 to 5 years, and the loan can exceed $30,000 in some cases. This is especially helpful if you live in more rural parts of the state that aren’t flush with banks on every corner. You can still get a loan, get funded and stop worrying about paper applications or meetings at the bank.
Pros
- You can borrow a moderate amount of money to handle a wide range of issues, expenses and consolidated debts
- You can check out the rates you will get at any time without impacting your credit sore
Cons
- There’s quite a limit on loan terms
Best for Loan Comparison: Credible
Credible ranks highly in functionality and transparency. Borrowers like the easy-to-use platform and the ability to compare all of your personal loans offers in 1 place. Prequalifying only takes 2 minutes, so you can see your potential loans without hurting your credit score.
How it works: You’ll answer a short set of questions about you and the size of loan you’ll like. Credible then presents you with all your potential loan offers. Once you select the loan with the best terms and rate, you’ll finalize the loan with a lender.
In addition to personal loans, Credible can connect you with lenders for student loans and mortgages. You can also refinance either type of loan using this service.
You’ll find personal loan options from 6.99% to 35.99% APR with terms ranging from 1 to 7 years. Loan amounts range from $600 to $100,000. With such a wide range of loan amounts, you can fund expenses small and large using Credible.
***Disclosure: Requesting prequalified rates on Credible is free and doesn't affect your credit score. However, applying for or closing a loan will involve a hard credit pull that impacts your credit score and closing a loan will result in costs to you.
***Credible Operations, Inc. NMLS# 1681276, “Credible.” Not available in all states. www.nmlsconsumeraccess.org
Pros
- Borrowing small amounts of money can serve you well when you don’t quite have enough left in savings
- You can get competitive rates with a good credit score and qualifications
Cons
- Yes, you can borrow a lot of money from this platform, but you need to determine if that is a good idea for you
- You could end up paying very, very high rates
Best for Debt Consolidation: SoFi
- Best For:No origination feesVIEW PROS & CONS:securely through SoFi Personal Loans's website
SoFi is an online lender offering several types of loans, including personal loans. You can use a personal loan from SoFi for home renovations, relocation assistance and medical procedures. You can also reconsolidate your debt using a loan from SoFi.
Taking out a loan to help with debt may seem counterintuitive. But consolidating your debt into 1 monthly payment can make debt more manageable. Also, personal loans tend to have lower interest rates than other lines of credit. Compounding interest is a common factor in blooming, hard-to-control debt.
Applying for a loan from SoFi is easy online. Prequalify to see your potential loans without affecting your credit. You can borrow anywhere from $5,000 to $100,000 with flexible terms and a fixed rate.
SoFi is a fee-less lender. There are no origination fees, no prepayments fees and no late fees. This is a huge benefit, especially for consolidating debt. Without fees, you can focus on paying the loan and interest back without worrying about extra costs.
Pros
- You can prequalify so you know what your basic options are
- Fee-less loans help reduce the overall amount you will pay if you make every scheduled payment
Cons
- SoFi is one of the more complex platforms out there
Personal Loan Considerations
If you need a chunk of cash quickly, a personal loan may be your best option. Use industry-trusted sources to find lenders and make sure you understand what you’re signing up for before you agree to anything. This will protect you from predatory lenders.
Personal Loans vs. Credit Cards
Is a personal loan or credit card the better option for your credit needs? A personal loan is 1 lump sum of cash. This is best for funding large purchases. Use a credit card if you need consistent access to credit for smaller purchases.
Other differences: Personal loans have fixed rates and terms. This means you’ll know exactly how much interest you’ll pay. Credit cards usually have variable rates, so the amount of interest you pay on purchases may be unpredictable.
Is a Personal Loan Right for You?
If you find yourself short on cash when you need it, a personal loan may be the right choice for you. If you have a solid credit history, personal loans often offer lower rates than other lines of credit. Flexible, long-term installment repayment plans make repaying the loan manageable.
Frequently Asked Questions
What happens if I can’t repay my personal loan on time?
You could face consequences, such as collateral seizure if the loan is secured. You may also face late fees or even prepayment penalties if you pay the loan off too early.
Can a personal loan help my credit?
It can! First, it raises your overall credit limit. This will positively affect your credit utilization score. Second, consolidating debt into 1 monthly payment simplifies the process of credit repair. Make sure to stay on top of your loan payments — missing even 1 can hurt your credit.