Personal Loans Near Me? How to Find the Best Option (It May Be Online!)

Types of personal loans “near you”

Generally speaking, you’ll find a handful of different options to get a personal loan in your local area:

1. Payday loans
2. Pawn shop loans
3. Loans from family and friends
4. Bank loans
5. Credit union loans

Let’s break down how each of those loans works, as well as the pros and cons of each. Then, we’ll introduce you to a better option that offers speed and other benefits.

Best Personal Loans Near You

Check your rate

$1,500-20,000 Loan Amount

18-35.99% APR

2–5 years Terms

600 Minimum Credit Score

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Disclaimer

Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral) and your state of residence. If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Visit omf.com/loanfees for more information. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes

Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: $3,100. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600.

Borrowers in these states are subject to these maximum loan sizes: North Carolina: $9,000 for unsecured loans to all customers, $9,000 for secured loans to present customers. Maine: $7,000. Mississippi: $12,000. West Virginia: $14,000. Loans to purchase a motor vehicle or powersports equipment from select Maine, Mississippi, and North Carolina dealerships are not subject to these maximum loan sizes.

Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.

Time to Fund Loans: Funding within one hour after closing through SpeedFunds must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after loan closing.

Payday loans

Unless you live in a very small town, there’s probably a payday loan company near you. 

A payday loan is a quick advance of cash predicated on your ability to pay it back (with interest or fees) when you get your next paycheck. It relies on the idea that you don’t have the money now, but you will very soon.

The loans are for small amounts (“generally $250, $300, as high as $500,” says Elbeyli) and due within a month, along with a fee. Typical fees range from $10 to $30 for every $100 borrowed. Payday loans are intended for borrowers with bad credit.  

“If you need $250, and you need it today, and you’re paying $50 for it once, it’s not the end of the world,” Elbeyli tells us. “If your credit is really damaged, that might be your only option. But routinely taking that option may cost you significantly.”

Tip

On a $250 loan, borrowed once and paid off on time, a $50 fee amounts to 20% interest. But the problem comes into focus when you take that 20% and annualize it.

Annualizing the fee reveals its true cost

Let’s look at that $50 fee in terms of annual percentage rate (APR). 

Assuming it’s a two-week loan, $50 divided by 14 days is $3.57 per day. Still not a scary number.

But multiply it by 365 days, and it’s a total of $1,303.57 in fees. So you’re essentially paying an eye-popping APR of over 520% on the original loan amount of $250.

Obviously, this is theoretical, since you’re not taking a full year to pay off this loan. But considering that most personal loans, even for people with challenging credit scores, top out at around 36% APR, it gives you an idea of how much that $250 is costing you, and how damaging it would be to make a habit of these short-term, high-APR loans.

Nearly 25% of initial payday loans are re-borrowed nine times or more, with the lenders re-applying the fees each time and compounding the interest (charging interest on the interest you still owe). The financial damage quickly spirals out of control.

“The compounding effect,” Elbeyli says, “is where you become prey.”

Regulations can ease the pressure on borrowers 

Generally, your payday loan will be due in one lump sum—the amount you borrowed plus the fee. A handful of states have passed payday lending reforms that allow borrowers to pay back these loans in installments instead. This results in APRs that, while still in the hundreds, are lower, with less of a time crunch on the borrower.

No upside, but plenty of downside, for your credit score

More bad news: Since payday lenders are under no obligation to report your on-time payments to the three major national credit reporting companies, you probably won’t improve your credit score through good behavior. 

On the other hand, if you routinely pay late, the lender will likely send a collection agency after you. That can damage your credit score.

A variation of the payday loan: postdated check loan

In a “postdated check loan,” you write a check to the lender in the amount that you will owe, but you postdate the check to the due date, up to a month in the future. The lender doesn’t cash the check until that future date. If the funds are in your account, this is how the lender gets repaid. If not, you can be on the hook for late fees from the lender, overdraft fees from your bank, and damage to your credit score.

Pros of payday loans:

• Quick cash
• Probably have a loan provider near you

Cons of payday loans:

• Short repayment deadlines
• Very high APR
• No improvement to credit score
• Possible damage to credit score

Pawn shop loans

There are pawn shops almost everywhere, so this is probably another option as you look for a personal loan in your area.

You might think of pawn shops simply as places where you can sell a possession for quick cash, and then the shop turns around and sells it to customers.

But there is also the multi-billion-dollar global industry of pawn shop loans. You give the shop your item, and the shop loans you money, holding your item as collateral. 

Pawn America describes how pawn shops calculate your loan: “Most pawn shops try to maintain a 38-50 percent profit margin, which means they want to earn that much compared to what they offer you. So, they’ll assess your item’s market value, then reduce it by their profit margin.”

Important

In other words, your loan amount will be a fraction of a fraction of what you originally paid for your item. That doesn’t take into account the emotional value. Think of some of the common items you might pawn: jewelry, antiques, musical instruments, coin collections. There’s a good chance they’re meaningful to you in ways that go deeper than money.

Know the terms and risks of pawn shop loans

Like payday loans, pawn shop loans are not inherently bad if you can pay them off in time, but it’s important to know the risks going in.

If you can pay back the money, plus interest, in the agreed-upon time frame (the average loan is $150, and the average length is 30 days), you get your item back. If not, the pawn shop owns it and can sell it.

Because the shop has the item you gave them as collateral, no credit check is required, and failing to pay back your loan will not result in late fees or damage to your credit score. The shop simply keeps your item, and your loan is closed.

Pros of pawn shop loans:

• Quick cash
• No credit check
• No damage to credit score
• Probably have a loan provider near you

Cons of pawn shop loans:

• Short repayment deadlines
• Possibility of losing a valued item
• No improvement to credit score

Predatory loans like payday and pawn shop loans thrive on borrowers’ lack of financial literacy. The high fees and quick turnarounds are how these lenders make money, and by taking out these loans (and defaulting on them and extending them), “you are effectively subsidizing their bad behavior,” as Elbeyli puts it.

Fortunately, there are healthier “personal loan near me” options to consider.

Borrowing from family or friends

It can be a humbling experience, and it can make your relationships a little thorny, but turning to your friends or family is an option worth looking into. This is particularly true if you have a prohibitively low credit score and need a small amount of money. (A few hundred bucks between loved ones is pretty manageable.) Plus, someone who knows and cares about you is likely to have more empathy and flexibility for you than a financial organization would.

Although you may have a casual relationship with the person loaning you the money, it’s a good idea to treat the loan seriously. Write down the terms ahead of time and be responsible and timely about paying it back.

Pros of borrowing from loved ones:

• Personal bond with lender
• No credit check or score damage
• Possibility of flexible payment terms

Cons of borrowing from loved ones:

• Potential damage to relationship

Bank installment loans

Some large banks offer small installment loans to their checking account customers. These have longer repayment schedules and significantly lower prices than payday loans. Many of these loans are available to people with low credit scores, so a bank can be a more reliable and affordable source of small, emergency cash amounts.

Word of warning: A bank will be interested in your credit score and may perform what Elbeyli calls a “hard pull” on your credit. That’s when the bank investigates your credit score to determine your fitness for the loan. This could affect your score even if you don’t end up taking a loan.

Also, if you limit your search to a single bank, you will also limit your loan options. Elbeyli says you could be “boxed in” to a single offering. You focus entirely on “Lender A,” while “Lender B might be a better lender.”

Pros of borrowing from a bank:

• More affordable terms
• Longer repayment schedule
• Probably have a loan provider near you

Cons of borrowing from a bank:

• Must have an account with the bank
• Potential hard pull on credit
• Fewer options
• Typically not speedy

Credit union installment loans

A credit union is a member-owned, “not-for-profit financial institution that accepts deposits, makes loans, and provides a wide array of other financial services and products.” Since it is not for profit, a credit union tends to focus on the well-being of its members.

You have to be a member to get a personal loan from a credit union; that’s one hurdle. “But it’s not a big hurdle,” Elbeyli tells us. Becoming a member can be as simple as living in a delineated area or being related to a current member. You can usually become a member as you apply.

The real hurdle is more subtle. 

“Credit unions generally limit their APRs to 18%,” Elbeyli explains. “If you are not a profitable loan for them at that rate, you would be declined.”

Here’s the thinking: For a short-term loan of up to $1,000, a credit union is legally allowed to charge up to a 28% APR. However, credit unions tend to “proudly put the financial needs of their members high above short-term shareholder profit,” so they are less likely to take on a risk that would necessitate an APR that high.

They would rather charge closer to 18%, which is the maximum they are allowed to charge for a traditional loan of more than $1,000. A credit union’s desire to keep its APRs low can effectively exclude the type of borrower who needs a small amount of cash fast.

“That limits the credit unions’ reach to a very small population,” Elbeyli says. In fact, credit union loans account for less than 2% of the $38.5 billion U.S. payday lending market.

Pros of borrowing from a credit union:

• More affordable terms
• Longer terms
• Probably have a loan provider near you

Cons of borrowing from a credit union:

• Must be a member
• Lower cap on APR could make you less likely to qualify 
• Potential hard pull on credit
• Fewer options
• Typically not speedy

Personal loans through Acorn Finance

While a physical location may box you out, Acorn Finance helps you think outside the box. “You may be able to get loans that you didn’t even consider,” Elbeyli says.

He points out that, as an online marketplace, Acorn Finance will “shop around, per your request” to suit your cash needs, presenting you with “multiple lenders at once.” 

Enter your specific needs, and you’ll discover an instant range of loans and their terms, ranked by minimum payment. “We do not elevate a lender because they pay us more,” Elbeyli says. 

An Acorn Finance search is a soft pull on your credit, which will not affect your credit score. You’re prequalified for the loans you see. This isn’t a guarantee you will get the loan, but Elbeyli estimates that it’s 80-90% likely a prequalification would result in approval if you apply.

Online personal loans are fast

Many borrowers looking for a personal loan near them need the money sooner rather than later. That’s where an online loan shines.

“Online lenders generally focus on low paperwork and quicker funding through automation, so same-day or next-day funding is potentially possible,” Elbeyli says. “Because they are online, they don’t have a great deal of manual work, so they automate a great deal of these things that actually happen [in the application process].”

In other words, when your application is analyzed instantly in an automated online process instead of being passed in front of a series of human eyes, you can get pre-qualified same-day and, if approved, get the money in your bank account within a couple days.

When you apply for a personal loan from a credit union near you–or a bank, for that matter–you might have to wait longer than you want to get the money you’re borrowing.

“The time for them to make the decision generally is longer,” Elbeyli says, “because automation doesn’t exist, or the steps of automation don’t exist. They might be taking advantage of certain [automations], but they may not be.” 

Pre-qualify online with Acorn Finance, complete your loan at a nearby OneMain branch

If you’re still more comfortable with face-to-face interactions in physical locations, Acorn Finance has options. 

“We have a primary lender, OneMain, which has retail branches,” Elbeyli says. Upon prequalifying for an offer through Acorn Finance’s website, you could conceivably go to a local OneMain branch to complete an application. OneMain currently has branches in 44 states, so there’s probably one near you.

Elbeyli adds that there are payday and other high-interest loans available through an Acorn Finance search, as well. 

If they are a viable option after you identify them from a marketplace search, at least you know what to expect, he tells us. At least you know you shopped around and that that is a good option.

Ozer Elbeyli
VP of Decision Science at Acorn Finance

Pros of borrowing through Acorn Finance:

• Choose from multiple lenders and loan options at once
• Soft pull on your credit to get pre-qualified
• Same-day or next-day funding is possible
• One lender, OneMain, has branches across the country for walk-in applications

Be an informed borrower

A final word of advice: The above loans, from payday shops to credit unions, are covered under the Truth in Lending Act (TILA), which requires lenders to be transparent. 

“Be aware how much you are paying,” Elbeyli advises. “Each lender should clearly state how much you are borrowing and, per the schedule, how much you will be paying.”

Stay financially literate, and you can keep your wits about you when you need cash fast.