Updated: December 28, 2023
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MoneyGeek reviewed over 30 personal loan lenders for key features to find the best low-income loan lenders in Vermont. These features include lenders’ APR ranges, repayment terms, late fees, prepayment fees and more.
Based on our analysis, Upgrade is the best low-income loan lender in Vermont, followed by LendingClub. Those with poor credit may consider Upstart for their funding needs, while borrowers with good credit may fare best with Prosper.
Since 2017, Upgrade has provided over $19 billion in credit to consumers. The lender’s low credit score requirement of 560 allows more borrowers to qualify for a loan.
Upgrade loans range from $1,000 to $50,000 and feature repayment terms between 36 and 60 months. In comparison to other lenders, Upgrade offers more repayment options and loan amounts. Borrowers can use their funds for debt consolidation, home improvements and emergency expenses, but they cannot use funds for postsecondary education or investments.
A few downsides of Upgrade include its high maximum APR of up to 35.47%, which most impacts those with low credit scores. The lender also charges origination fees of up to 8% of the loan amount, which could significantly increase the cost of your loan.
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Cons
LendingClub is a digital marketplace bank that offers financial products and services to over four million members. Since it was founded in 2007, the lender has funded over $75 billion in loans.
Due to its speedy loan disbursement and fair credit score requirement, MoneyGeek ranked LendingClub as the second-best low-income loan lender in Vermont. Funds, which range from $1,000 to $40,000, are typically disbursed within 24 hours of your application being approved. Those with a minimum credit score of 600 can qualify for a loan.
Having said that, the lender’s steep APR range of 7.04% to 35.89% is relatively higher than most low-income lenders. Those with excellent credit may find better rates with a different lender. The lender’s origination fees may also significantly increase the cost of your loan.
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Borrowers with bad credit can get the best low-income loan in Vermont from Upstart. Founded in 2012, Upstart is an artificial intelligence (AI) lending marketplace that uses a unique model for calculating and approving loans. The lender takes into account factors besides credit score when assessing loan eligibility.
To be eligible for an Upstart loan, you should have a credit score of at least 300. This is a relatively low credit score requirement compared to other low-income loan lenders. Borrowers can receive their funds within one business day of their application being approved, making it a good option for low-income borrowers that need funds quickly.
Unlike other lenders, funds borrowed from Upstart can be used for virtually all expenses, with the exception of illegal activities. The lender also has a high maximum APR, meaning those with poor credit may pay more interest. Origination fees can also significantly increase the overall cost of your loan.
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Prosper is the first peer-to-peer lending platform in the U.S. Since 2005, it has provided over $22 billion in loans to more than 1.3 million borrowers.
With this lender, you can conveniently manage your loan and make payments online. The APR on your loan is fixed, so while you may receive a potentially high APR of up to 35.99%, you won’t have to worry about it fluctuating with the market. Borrowers can also repay their loan early without receiving a penalty.
Several drawbacks of Prosper personal loans include potentially high APRs and fees. The lender’s loan products feature origination fees, late fees, insufficient funds fees and check payment fees. These can significantly increase the overall cost of your loan.
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A low-income personal loan in Vermont can help finance your dream. In Vermont, the average personal loan debt is $18,657, which seems to indicate that personal loans are relatively common in the state.
However, personal loans are a huge financial commitment and taking one out might do you more harm than good. To make the best decision regarding a low-income loan in Vermont, you should take the following steps.
Prior to researching lenders, evaluate your financial situation and consider the type of loan that would be best suited for you. We recommend asking yourself the following questions:
It’s important to research lenders before applying for a loan. That way, you can compare their annual percentage rates (APRs), repayment terms, loan amounts and eligibility requirements to find the best option for you. We compiled a list of the best lenders based on several factors, but we cannot guarantee that they will be perfect for everyone.
After you've considered your options, you may be eager to get the process started. However, it’s important that you don’t rush into applying for a low-income loan. A loan is a long-term commitment that can take between two and four years to repay, so it’s important that you’re confident in your lender choice. After you’ve selected your lender, wait a day or two before submitting your application.
While the basic information for your low-income loan may be available on the lender’s website, additional fees, like those for late payments, prepayments and loan origination, may be hidden. These details are typically disclosed in the fine print of your loan agreement. It’s important to understand these terms so that you can plan for any additional costs or choose a different lender.
Once you’ve read and understand the fine print of your loan agreement, it’s time to submit your application. To save time, gather all required documents in advance. Some documents that you'll need to have include proof of income, identification and address. While some leaders have physical locations where you can apply in person, others are online-only lenders that only permit online applications.
Lenders evaluate your loan eligibility based on a number of factors, including your credit score, income and employment history. An issue with any of these could cause your application to be denied.
After your application is rejected, you should contact your lender to find out why. Sometimes, simply modifying the terms of your loan agreement, like the loan amount or repayment term, can lead to it being approved. If your application was rejected due to a low credit score, you should work to improve this before submitting an application.
While a payday loan may be appealing, we strongly advise against them. These high-interest-rate loans feature short repayment terms that can cost borrowers more money in the long term.
Before you jump into a personal loan, consider your current finances. Your low-income loan will feature a monthly payment plus interest, so it’s important to know that you can cover these costs ahead of time. Use MoneyGeek’s personal loan calculator to approximate your monthly payment amount.
Although the best personal low-income loan in Vermont depends on your unique circumstances, our research can help steer you in the right direction. We answered some of the most frequently asked questions about low-income loans in Vermont to help you make the best decision.
Upgrade offers the best low-income loan in Vermont. The best lender for you may vary depending on your credit score. For instance, those with poor credit will get the best rates from Upstart, while those with good credit may fare best with Prosper.
Upstart offers the lowest possible APR to those with exceptional credit scores.
Some lenders don’t allow borrowers to use their funds for postsecondary education, investments or gambling. Prior to applying with a lender, you should ask them about any fund use restrictions.
Your lender choice and financial profile will dictate how much debt you can consolidate in Vermont. Typically, low-income loan lenders have a maximum loan amount of $40,000 to $50,000.
Some lenders deliver your funds the same day that your application is approved, while others may take several days to disburse funding.
Some lenders charge a fee for early loan repayment. To find out the terms and conditions of your lender, contact them directly.
We reviewed 30+ personal loan lenders for more than 35 data points across six key categories to help you find the best loan for your situation. These categories include affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency.
When choosing a personal loan lender, we highlighted several key data points that we felt had the greatest impact on a borrower’s choice of lender. These included APR ranges, loan amounts, credit score requirements, income requirements, application fees and disbursement time.
Because you, the consumer, are our top priority, we also took into account factors that impact the consumer’s overall experience, like customer service ratings, mobile application availability, prequalification and payment options.
Our recommendations were made after considerable deliberation with your best interests in mind. We aim to provide consumers with the knowledge and expert tips to make smart financial decisions.
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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