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Personal loans are fixed money amounts that you can use for almost any purpose. They let you borrow small-to-medium amounts of cash quickly and without the need to provide collateral. They also have lower interest rates than credit cards.
Personal loans can help you cover unexpected expenses, consolidate your existing debts, or fund a project, such as a home improvement. Their flexibility makes them highly popular among borrowers, so there are lots of lenders that offer personal loans.
Below you’ll be able to compare Illinois personal loans offered both locally and online.
On this page:
- Online personal loans in Illinois
- Local Illinois personal loans
- Pros & cons of personal loans
- What can personal loans be used for?
- What you need to apply
Online personal loans in Illinois
Personal loans are popular, and there are a number of lenders that offer personal loans online. They make it easy to apply for your loan on the internet, and some can even get the money to you the same day you apply.
Whether you have good credit, fair credit, or bad credit, there are lenders that will be willing to work with you. These are three online lenders that offer personal loans to the residents of Illinois.
|Rates||3.49% – 19.99%||7.99% – 35.97%||10.68% – 35.89%|
|Loan Amounts||$5,000 – $100,000||$1,000 – $35,000||$1,000 – $40,000|
|Term Lengths||24 – 144 months||36 or 60 months||36 or 60 months|
|Visit Lender||Check Rates||Check Rates||Check Rates|
|More Options||Good Credit Loans||Fair Credit Loans||Bad Credit Loans|
Local personal loan lenders in Illinois
If you’re looking to get a personal loan, you can also look at local banks and credit unions. Because they’re local, they tend to be in tune with the needs of people in your area.
The downside of using a local lender is that you’re limiting your options. If there are only one or two banks in driving distance, you won’t be able to get many offers from which to compare. Some brick-and-mortar lenders can also be more conservative than online lenders, making it harder to qualify for a loan.
US Bank is the fifth-largest bank in the United States, serving customers throughout the Midwest and the Western United States.
US Bank offers two personal lending products. The first, Simple Loan, is available only to customers who hold a checking account. It’s designed to help customers borrow very small amounts of money for a short period of time, much like a payday loan, but with far lower costs than dealing with a payday lender.
The US Bank personal loan is a more standard personal loan, letting anyone who applies and qualifies borrow medium-sized amounts of money. You can choose from many repayment terms, making it easy to customize your monthly payment to fit your budget. However, you’ll need a good credit score and consistent income to get approved.
Visit US Bank’s website to learn more.
BMO Harris Bank
BMO Harris is a Chicago-based bank that serves customers in a few states scattered across the Midwest and Southern United States. The bank is a subsidiary of the Canadian Bank of Montreal.
BMO Harris excels at offering flexible repayment terms, extending the options a few years longer than many of its competitors. If you need to borrow a large amount or want to minimize your monthly payment, BMO Harris can help you do that. Just remember that loans with longer terms tend to be more expensive than short-term loans due to cumulative interest.
BMO Harris also keeps the fees low, letting you repay your loan early with no penalty. Their website offers useful calculators that you can use to estimate your monthly payment and the total cost of a loan before you apply.
Visit BMO Harris’s website to learn more.
Fifth Third Bank
Fifth Third Bank is headquartered in Cincinnati, Ohio, and is one of the largest consumer banks in the Midwest. It offers both secured and unsecured personal loans to borrowers in Illinois.
Fifth Third’s unsecured personal loans have reasonable interest rates and loan term options. The bank has higher loan maximums than many competitors, but you’ll need to apply in-person to borrow a large amount. One perk is the option to choose the due date of your first payment, which can happen up to 45 days from when you receive the loan.
The secured loan option requires collateral in the form of funds deposited at Fifth Third bank. In exchange for offering collateral, you’ll have a higher chance of approval than you would with an unsecured loan.
The secured loan also has a very high borrowing limit, as long as you have enough cash to serve as collateral. Depending on your credit score, you can borrow between 50% and 100% of your collateral.
Visit Fifth Third’s website to learn more.
First Midwest Bank
First Midwest Bank is a small bank based in Illinois that operates 67 branches across Illinois, Indiana, and Iowa.
The bank’s personal loans have a high minimum borrowing amount, so if you only need to borrow a small sum, you’ll want to use a different lender. For those that do need to borrow a moderate-to-large amount of cash, the bank offers reasonable interest rates and flexible terms that let you customize your monthly payment.
First Midwest Bank advertises its personal loans as a good choice for debt consolidation. That means that you may have a better chance of qualifying if you’re already in debt.
Visit First Midwest’s website to learn more.
Pros & cons of personal loans
- You can use the money for almost any reason
- Usually don’t require collateral
- Many lenders offer flexible repayment terms
- Lower rates than credit cards
- Quick application and approval
- Higher rates than secured loans
- Qualifying may be difficult
- Lower maximum loan amounts
What can personal loans be used for?
You can use personal loans for almost any purpose, as few lenders put restrictions on their personal loans. Some popular choices include:
- Financing a home improvement project
- Paying an unexpected expense
- Consolidating existing debt
- Paying for large events, like a vacation or wedding
Our guide to how you can use personal loans covers even more options.
What you need to apply
When you apply for a personal loan, you typically have to provide some identifying information and financial information. This includes things like:
- Your name
- Your address
- Your Social Security number
- Your annual income
- Your monthly housing payment
- Information about other debts or liabilities you have
Many lenders will ask for proof of the information you provide, so be ready to show them a copy of your lease or a recent pay stub to prove your income and housing payments. Most loan applications outline exactly what you need to provide before final approval, so make sure to gather all the required documentation to speed up the process.
Watch out for payday loans
One trap to watch out for is payday lending. Some lenders that advertise as personal lenders are actually offering payday loans.
Payday loans are incredibly expensive, short-term loans that have fees equivalent to interest rates as high as 200% or more. It’s very easy to get trapped in a cycle of debt by using a payday lender, so make sure you stick with a reputable local or online lender.
Payday loan restrictions in Illinois
Illinois has legislation limiting payday lenders to help protect consumers from predatory loans. This can help you avoid bad loans but won’t protect you completely.
Here are some things to keep in mind with payday lenders:
- They cannot make your monthly payment exceed 22.5% of your monthly income
- They cannot roll your loan into a new one if it will keep you in debt for longer than six months
- You are entitled to an interest-free repayment plan if you’ve been in debt with a lender for more than 35 days.
Shop around to find the best personal loan for you
As with any loan, it’s important that you take the time to shop around and find the best personal loan for your needs. You can use our guide to compare the best personal loans to help you find the loan that will cover your expenses and cost you the least money.
Author: TJ Porter
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