Updated: November 21, 2024
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Many factors are essential when analyzing low-income loan lenders in Ohio. MoneyGeek gathered information about these lenders’ APR ranges, income requirements, credit score requirements, loan terms and other factors.
Our analysis shows Upgrade provides the best low-income loans in Ohio, while LendingClub is the runner-up. You may benefit the most from Upstart if you have a bad credit history, while Prosper might suit you best if you have good credit.
MoneyGeek picked Upgrade as the ideal option for low-income loans in Ohio. Besides personal loans, the lender offers many other financial products, including rewards checking accounts, credit cards and more.
With Upgrade, borrowers can check their rates online without affecting their credit scores, as the lender performs a soft credit inquiry first. Once it approves your loan, you can receive the funds on the same day. Since the lender doesn’t charge prepayment fees, you can easily repay your loan early.
Although Upgrade doesn’t allow co-signers, it permits joint applications for its loans, making it easier for borrowers with a low income to qualify for a loan.
However, the lender won’t be a good option if you have just started building your credit history because it requires borrowers to have at least a 560 credit score.
Pros
Cons
The runner-up for low-income loans in Ohio is LendingClub, a digital lending platform offering personal loans, business loans, auto refinancing and other financial products. For personal loans, the lender charges an APR ranging from 7.04% to 35.89%, depending on your credit score and various other factors.
LendingClub permits using loan funds for many purposes, like debt consolidation, home improvement, credit card consolidation and balance transfers. If you opt for this lender to consolidate high-interest debt, it will disburse the funds directly to creditors. Since it offers joint loans, it’s a suitable option for low-income borrowers.
However, LendingClub restricts how you can use loan funds and doesn’t offer an autopay discount. If these factors are important to you, it would be best to look elsewhere for a loan.
Pros
Cons
Upstart is a California-based AI lending platform, and it’s the best option for an Ohio low-income loan if you have a bad credit history. The lender doesn’t have a strict credit score requirement and considers factors like your education and employment details when evaluating your application.
When you apply for a loan with Upstart, it performs a soft credit inquiry first that doesn’t hurt your credit score. The lender doesn’t charge a penalty on the early payment of your loan. It offers next-day funding, making it a good option for borrowers with an immediate need for funds. Although it has a low minimum APR, you might not qualify for it with a weak credit history.
It’s important to know that Upstart doesn’t provide an autopay discount and charges an origination fee of up to 10% of the loan amount, which is higher than many competitors.
Pros
Cons
Prosper, the first peer-to-peer lending platform, was launched in 2005. It offers personal loans, credit cards and other financial products to borrowers through traditional investors. Since its founding, the lender has facilitated more than $22 billion in loans.
You can get a loan from this lender for various purposes, including home improvement, debt consolidation, health care financing, vehicle purchase and other funding needs. Its loan amount range from $2,000 to $40,000. Prosper disburses the funds on the same day of approval and lets the borrowers repay their loan in three to five years.
However, it charges various fees, including those for origination and late payments. You can explore other lenders offering personal loans if you want to avoid paying these fees.
Pros
Cons
Based on MoneyGeek’s research, the average personal loan debt in Ohio is $24,808. Although a personal loan can help you finance expensive purchases and meet emergency needs, you should consider evaluating your current financial situation before applying for one.
Lenders assess loan applications based on various factors, including credit score, DTI ratio, income level and other details. If you want to find the ideal lender for your needs, MoneyGeek recommends following these steps.
To ensure you can repay the loan easily, you should start by asking important questions about your financial situation and funding needs. You must consider if you meet the lender’s requirements, as each lender may have different criteria for evaluating your application. It’s also important to consider your existing debts and ascertain if you can afford to make another loan payment every month. Before looking for a suitable lender, consider asking the following questions:
Your personal loan options might be limited if you earn a low income in Ohio. It’s best to research lenders that do not have strict minimum income requirements and offer loans with low interest rates. The best way to do so is by shopping around and comparing rates from different lenders in the state.
Researching and evaluating rates is also essential because a loan is a long-term commitment, and missing any detail can cost you a lot of money in the long run. Although you can benefit from MoneyGeek’s resources, you should do your own research too.
You should wait a few days after evaluating different lenders and finalizing your options. Waiting is essential as it allows you to think about your decision and assess if the lender you chose is the ideal option based on your funding needs and situation. Meanwhile, you can explore other options to meet your financial requirements or research the lender’s service quality.
The fine print of the lender’s loan agreement is an essential resource, as it gives you valuable information about the lender’s fees, prepayment penalties and other important details. It would be best to review the fine print and note if the lender charges late payment, origination or other fees.
After you have reviewed all the essential details about the lender’s terms and fees, you can apply for a loan. At this stage, the lender will ask for various documents to verify your personal and financial details. Many online-only lenders are available; however, many also allow you to visit their offices to apply if you prefer.
The lender might reject your loan application even after you have applied with sufficient information and documents. Lenders can deny you a loan for various reasons, including a weak credit history, unstable employment, high debt-to-income ratio and incomplete application.
The best action in this situation would be to call the lender and ask about the factors contributing to loan refusal. Once you know those factors, you can improve them and apply again.
For instance, if you can't get a loan due to a weak credit history, you can improve your credit score by getting a credit-building card and submitting your application again in a few months. It's essential to understand that you are less likely to get the loan without improving the factor which caused the refusal.
Some borrowers may want to get payday loans to meet their financial needs. However, MoneyGeek strongly advises against it, as these loans charge a high interest rate and have extremely short repayment terms that can land you in a much worse financial situation.
Before applying for a loan, know that you must pay it back in monthly payments that also include interest. It is essential to estimate your monthly payment first, which you can do using MoneyGeek’s personal loan calculator. It can give you an idea of your loan payments based on your current financial situation and loan details.
Choosing the best personal loan lender in Ohio depends on your current financial situation, funding needs and other important factors. You can review the following frequently asked questions to understand how these loans work in the state.
MoneyGeek found that Upgrade provides the best low-income loans in Ohio, while LendingClub is the runner-up for such loans. You can benefit the most from Upstart if you have a bad credit history. On the other hand, Prosper will suit you best with a strong credit history.
Upstart provides the lowest minimum APR to low-income borrowers in Ohio.
Although restrictions on the usage of loan funds vary based on the lender, you can generally not use your loan funds for paying off college tuition, business expenses or illegal activities.
The maximum loan amount is different for every lender. However, some lenders provide borrowers with up to $50,000.
Once the lender approves your application, you might receive the loan funds as soon as the next business day. However, the funding disbursement time varies based on the lender.
Yes, you can pay off your loan early in Ohio. However, some lenders may charge you a prepayment penalty. Check with your lender to see if they charge these fees.
MoneyGeek analyzed several personal loan lenders using various data points across these categories: loan affordability and accessibility, consumer friendliness, customer service, lender flexibility and transparency.
Within each ranking category, we assessed many individual data points that matter the most when choosing a personal loan lender. These factors include APR ranges, loan amounts, minimum credit score and income requirements, fees and disbursement times.
Since MoneyGeek values you, the consumer, we also considered each lender's customer support, ratings and additional features that could make your experience convenient and more accessible — like prequalification, payment options and mobile apps.
After a thorough analysis and calculation, we chose the ideal lenders with your best interests in mind. Our purpose is to make recommendations that help you make informed financial decisions when choosing a lender that meets your needs.
About Christopher Boston
Christopher (Croix) Boston was the Head of Loans content at MoneyGeek, with over five years of experience researching higher education, mortgage and personal loans.
Boston has a bachelor's degree from the Seattle Pacific University. They pride themselves in using their skills and experience to create quality content that helps people save and spend efficiently.
The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.
Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about
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