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    Personal Loans Compared: 5kfunds vs. Best Egg

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    If you need a short term loan, you’re likely considering taking a personal loan to get the cash you need quickly. The world of personal loans, at first glance, is complicated and crowded. Understanding the best personal loan providers will help you identify the right lender according to your specific needs. 

    Two popular lenders, 5kfunds and Best Egg, both provide personal loan services to borrowers. Each company has different offers with competitive rates and options. Learn more about how 5kfunds and Best Egg compare in their personal loan offerings and which might better be suited to your financial needs.

    5kfunds vs Best Egg

    At a glance, personal loan providers might look the same to you. However, many aspects may differ, like prepayment fees, APR (annual percentage rate), loan amount, and the repayment period. Take a look at how 5kfunds and Best Egg compare:

    Company

    APR

    Loan Amount

    Must have a bank account?

    Repayment period

    5kfunds

    Access APRs starting from 5.99%

    $1,000 to $35,000.

    Yes

    2-72 months

    Best Egg

    5.99% – 29.99%

    $2,000 to $35,000

    Yes

    0-36 months

    Introducing 5kfunds

    5kfunds has a few attractive advantages that set it apart from the competition. It should be noted, 5Kfunds is a service designed to assist borrowers, with all types of credit score, in accessing personal loans quickly. It’s not necessarily a lender or an agent. Some advantages of using 5kfunds include: 

    • APRs starting from 5.99%
    • Loan amounts available from $1,000 to $35,000
    • Enjoy no fees or obligations
    • No credit score required 

    Introducing Best Egg

    Best Egg differs from 5kfunds in a few ways. Most notably, this company tends to lean toward borrowers with better credit. If you’re truly pressed for time and need access to your loan as soon as possible, Best Egg might be right for you. 

    Best Egg has slightly more strict requirements, however, 50% of its loans are given within one business day. Whether it’s an emergency or a pressing need, you’ll likely get access to funds very quickly. Other benefits of Best Egg include: 

    • Receiving your loan amount as quickly as one business day
    • Enjoy low starting minimums
    • No hard credit check is needed to pre-qualify
    • No prepayment fees

    Pros And Cons Of Personal Loans

    Like many things in life, there are always pros and cons to consider, and personal loans are no exception.

    If you need access to money quickly, you’re likely drawn to a personal loan and the amount offered as well as the repayment period. Personal loan funds are typically delivered quickly and paid back over a short period of time.

    That said, it’s important to keep the following in mind:

    Pros

    • Personal loans don’t take collateral like payday loans, so your important assets, like your car, can remain secure
    • Fixed monthly payments
    • Set interest rate
    • Relatively quick dispersal of funds
    • Borrow the amount you need
    • Beneficial for debt consolidation

    Cons

    • Monthly payments put you at risk for becoming stuck in a debt cycle
    • May be subject to fees like origination fees and prepayment penalties
    • Likely to have higher interest rates than some loans
    • If you have poor credit, you’re likely to pay higher interest rates

    Bottom Line

    Carefully review your current financial situation and determine the loan amount you need, as well as the amount you can realistically afford to pay back.

    Consider crucial factors like interest rate, prepayment fees, and penalties. 

    There are many personal loan services out there. It’s always a good idea to research and check reviews in order to identify reputable lenders.

    When deciding between loan providers like 5kfunds and Best Egg, think critically about the loan offered and if those terms are in line with your goals. If so, you’ll be on your way to securing a personal loan in no time. 

    Best Personal Loans For 2020

    • Admin. fee: 0.99% - 5.99%
    • Annual income of $80,000
    • Min credit score of 640
    • Failed payment fee: $15
    • Day of Grace: 3 days
    • Grace period fee: $25
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    • Amin. fee: 1.5% - 6%.
    • Annual income of $30,000
    • Min credit score of 600
    • Accept Co-signers
    • Hardship plans
    • Credit health tool
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    • No fees
    • Low interest rate
    • Fixed Rates
    • Min credit score of 680
    • Unemployment protection
    • SoFi member benefits
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