COMPACOM Reviews of the Top US Financial Lending Companies

Defining a Lender: What You Need to Know

When you need money to purchase a home, start a business, or simply pay bills, you may need to seek out a lender. But what exactly is a lender?

• In short, a lender is an entity that provides funds to an individual or organization with the expectation that the funds will be repaid with interest or fees. This can take the form of a loan, line of credit, or other financial product.
• Lenders can be individuals, groups (public or private), or financial institutions such as banks or credit unions. They may offer a range of loan options with varying interest rates, repayment terms, and eligibility requirements.
• Repayment of the loan will typically occur in increments, such as monthly mortgage payments or biweekly loan installments. Alternatively, some loans may require repayment in a lump sum at the end of the loan term.
• It's important to note that when borrowing from a lender, you will be responsible for repaying the full amount borrowed, including any interest or fees charged. One of the most significant loans consumers take out from lenders is a mortgage, but there are many other types of loans available from various lenders.

In summary, a lender is an essential part of the borrowing process, providing individuals and businesses with the funds they need to achieve their financial goals. However, it's crucial to understand the terms and conditions of any loan before accepting funds from a lender to avoid any negative consequences.

Main Types of Lending Companies

There are various types of lending companies that provide funds to individuals and businesses, including:

• Banks: Traditional brick-and-mortar banks are often the first place people turn to for loans. These banks offer a range of products, including personal loans, mortgages, and lines of credit.
• Credit Unions: Credit unions are not-for-profit organizations that offer loans and other financial products to their members. They often offer lower interest rates and fees than traditional banks.
• Direct Lenders and Brokers: These companies provide loans directly to borrowers, either through their own funding or by acting as a middleman between the borrower and lender. Brokers typically receive a commission for connecting borrowers with lenders.
• Online Lending Aggregators: These websites provide borrowers with a range of loan options from different lenders. Borrowers can compare rates and terms and apply for loans directly through the website.
• Tribal Lenders: Some lending companies offering tribal loans are owned and operated by Native American tribes and are not subject to state laws governing lending practices. These lenders may offer higher interest rates and fees than traditional lenders.
• Payday Lenders: These lenders offer short-term no credit check loans with high interest rates and fees. Borrowers typically repay the loan with their next paycheck.
• Alternative Lenders: These companies offer loans to borrowers with less-than-perfect credit or other unconventional circumstances. They may offer products such as guaranteed loans for bad credit, peer-to-peer loans, crowdfunding, or microfinance.

Each type of lending company has its own pros and cons, and borrowers should carefully consider their options before choosing a lender. It's important to compare interest rates, fees, and repayment terms to find the best loan for your needs and financial situation.

When Banks Are the Best Option

When borrowers choose banks for a loan, they are typically opting for a traditional and established lender with a long history of offering various financial products, including $5,000 - $35,000 loans. Banks often have a broad range of loan options, such as personal loans, auto loans, mortgages, and business loans, that are backed by a large pool of funds. This allows them to offer competitive interest rates and favorable repayment terms to their customers.

Additionally, many borrowers feel more comfortable working with a bank due to the perceived stability and reliability of these institutions. Banks are heavily regulated and have strict lending standards, which can provide borrowers with a sense of security that their loan terms will be fair and transparent.

However, working with a bank may also have its drawbacks. The loan application and approval process can be lengthy and may require significant documentation and verification of income and credit history. Banks may also have strict eligibility requirements and may not be willing to work with borrowers who have less-than-perfect credit.

Top USA Banks to Consider

Bank Name	Estimated Assets (in billions of USD)	Number of Branches	Number of ATMs	Number of Customers (in millions)
JPMorgan Chase	3,213	4,700	16,000	60.3
Bank of America	2,688	4,200	16,000	66
Wells Fargo	1,953	5,400	13,000	70
Citigroup	1,951	700	65,000	200
U.S. Bancorp	553	3,000	4,900	18.3
PNC Financial Services	459	2,300	9,000	9.6
Capital One	425	470	2,000	45
TD Bank	366	1,200	2,300	9
BB&T (Truist)	310	1,700	2,500	10.2
SunTrust (Truist)	250	1,400	2,200	6.3
Fifth Third Bank	207	1,100	2,400	6.6
HSBC Bank USA	200	200	240	1.5
Ally Financial	180	N/A	N/A	N/A
KeyBank	176	1,100	1,500	2.2
Regions Financial Corporation	141	1,400	2,100	5.5
Huntington Bancshares	120	1,100	1,800	2
M&T Bank	119	750	1,500	3.6
Discover Financial Services	117	N/A	415	5.6
BBVA USA	95	640	1,000	3.8
Comerica	84	400	600	1.1

Credit Unions - What They Are, How They Work, and Pros and Cons

Credit unions are not-for-profit financial institutions owned by their members who share a common bond, such as living in the same community or working in the same industry. Unlike banks, credit unions are member-owned and operated, and profits are returned to members in the form of lower fees, higher interest rates, and better services.

How Do Credit Unions Work?

To join a credit union, you must meet certain eligibility requirements, such as working for a specific employer or belonging to a particular organization. Once you become a member, you are eligible to use the credit union's services, including savings accounts, checking accounts, loans, and credit cards.

Credit unions are often smaller than banks, which can make them more community-oriented and focused on providing personalized services to their members. However, this may also mean they have fewer branches and ATMs than traditional banks.

Pros of Credit Unions

• Lower fees: Because credit unions are not-for-profit, they may charge lower fees for services such as overdrafts, ATM usage, and account maintenance than traditional banks.
• Higher interest rates: Credit unions may offer higher interest rates on savings accounts, checking accounts, and loans than traditional banks, which can help members earn more money and save on interest payments.
• Personalized services: Credit unions are often more community-oriented and may provide personalized services to their members, such as financial education, budgeting assistance, and one-on-one consultations.
• Member ownership: Because credit unions are owned by their members, they are accountable to their members rather than shareholders, which can result in better customer service and more focus on the needs of individual members.

Cons of Credit Unions

• Limited accessibility: Credit unions may have fewer branches and ATMs than traditional banks, which can make it more difficult to access services and withdraw cash.
• Eligibility requirements: To become a member of a credit union, you must meet certain eligibility requirements, which may limit your options if you don't meet the criteria.
• Limited product offerings: Credit unions may offer a more limited range of financial products and services than traditional banks, which may not meet all of your financial needs.

In summary, credit unions are member-owned financial institutions that offer a range of services to their members, often with lower fees and higher interest rates than traditional banks. However, they may have limited accessibility and eligibility requirements, and may offer a more limited range of financial products and services than traditional banks.

Top Credit Unions of the USA

Credit Union Name	Membership Eligibility	Number of Members	Estimated Assets (in billions of USD)	Number of Branches	Number of ATMs
Navy Federal Credit Union	Active duty or retired military, civilian employees of the military and DOD, family members	10.4 million	138.8	335	30,000+
State Employees' Credit Union	Employees of the state of North Carolina and their family members	2.6 million	49.7	265	1,100+
PenFed Credit Union	Military members, veterans, government employees, and their family members	2.2 million	27.8	55	80,000+
SchoolsFirst Federal Credit Union	Employees of K-12 public schools and their family members	1.2 million	24.2	53	46,000+
Golden 1 Credit Union	Individuals who live or work in California or are members of select organizations	1.1 million	16.2	73	100,000+
BECU	Residents of Washington state and select counties in Oregon and Idaho, employees of select companies	1.2 million	22.7	60	300+
America First Credit Union	Residents of Utah, Nevada, Arizona, and Idaho, members of select organizations	1.2 million	16.9	131	35,000+
Alliant Credit Union	Employees or members of select organizations, individuals who donate to select charities	500,000+	13.4	N/A	80,000+
Digital Federal Credit Union	Employees of select organizations, members of select communities and associations	900,000+	11.2	23	900+
First Tech Federal Credit Union	Employees of select technology companies and their family members	700,000+	14.6	40	30,000+

Direct Lenders and Brokers - Definitions, How They Work, How They Differ, Pros, and Cons

Direct Lenders:

Direct lenders are financial institutions that provide loans directly to borrowers. These lenders use their own funds to provide loans, which means they have more control over the loan terms and can often provide more flexibility in terms of repayment options and interest rates. Direct lenders can be banks, credit unions, online lenders, or other types of financial institutions.

How They Work:

Direct lenders evaluate a borrower's creditworthiness and financial situation to determine the amount and terms of the loan. Borrowers typically apply for loans directly through the lender's website or in-person, and the lender will review their application, credit history, and other financial factors to make a decision.

Once approved, borrowers will receive the loan funds directly from the lender and will be responsible for repaying the loan according to the agreed-upon terms.

Pros

• More control over loan terms: Because direct lenders use their own funds to provide loans, they can often offer more flexibility in terms of repayment options and interest rates than brokers.
• Direct communication: Borrowers have direct communication with the lender, which can help streamline the loan application and approval process.

Cons

• Limited options: Direct lenders typically offer a limited range of loan products compared to brokers, which can limit a borrower's options.
• May have stricter eligibility requirements: Direct lenders may have stricter eligibility requirements and higher credit score requirements, which can make it more difficult for some borrowers to qualify for loans.

Brokers:

Brokers act as intermediaries between borrowers and lenders, connecting borrowers with potential lenders and helping them navigate the loan application and approval process. Brokers do not use their own funds to provide loans but rather work with a network of lenders to find the best loan options for their clients.

How They Work:

Borrowers typically submit a loan application to a broker, who then shares their information with a network of lenders to find the best loan options. Once a lender is identified, the broker will facilitate the loan application and approval process, communicating with the lender and borrower to ensure a smooth transaction.

Pros

• More options: Brokers have access to a network of lenders, which can provide borrowers with a wider range of loan options and potentially better rates.
• Easier qualification: Brokers may have more flexible eligibility requirements than direct lenders, which can make it easier for some borrowers to qualify for loans.

Cons

• May charge fees: Brokers may charge fees for their services, which can add to the overall cost of the loan.
• May not have direct communication with the lender: Because brokers act as intermediaries, they may not have direct communication with the lender, which can slow down the loan application and approval process.

Overall, direct lenders and brokers offer different advantages and disadvantages to borrowers. Direct lenders provide more control over loan terms and direct communication with the lender, while brokers offer more options and potentially easier qualification. Borrowers should carefully consider their options and compare interest rates, fees, and loan terms before choosing a lender.

Top Direct Lenders USA

Direct Lender	Type of Lender	Loan Types Offered	Loan Amounts Offered	APR Range	Minimum Credit Score	Time to Funding
LightStream	Online Lender	Personal Loans	$5,000 - $100,000	2.49% - 19.99%	660	As soon as same day
SoFi	Online Lender	Personal Loans, Student Loan Refinancing, Mortgages	$5,000 - $100,000+	5.99% - 18.85%	680	As soon as same day
Marcus by Goldman Sachs	Online Lender	Personal Loans	$3,500 - $40,000	6.99% - 19.99%	660	As soon as 1-4 business days
Discover	Online Lender	Personal Loans	$2,500 - $35,000	6.99% - 24.99%	660	As soon as same day
Rocket Loans	Online Lender	Personal Loans	$2,000 - $45,000	5.97% - 29.99%	640	As soon as same day
Upstart	Online Lender	Personal Loans	$1,000 - $50,000	6.27% - 35.99%	620	As soon as 1 business day
LendingClub	Online Lender	Personal Loans, Business Loans	$1,000 - $40,000	6.95% - 35.89%	600	As soon as 4 business days
Best Egg	Online Lender	Personal Loans	$2,000 - $50,000	4.99% - 29.99%	640	As soon as same day
Avant	Online Lender	Personal Loans	$2,000 - $35,000	9.95% - 35.99%	600	As soon as next business day
OneMain Financial	Traditional Lender	Personal Loans	$1,500 - $20,000	18.00% - 35.99%	None	As soon as same day
Upgrade	Online Lender	Personal Loans, Personal Lines of Credit	$1,000 - $50,000	5.94% - 35.97%	600	As soon as 1-4 business days
Earnest	Online Lender	Personal Loans, Student Loan Refinancing	$1,000 - $100,000	2.50% - 18.24%	680	As soon as 1-2 business days
FreedomPlus	Online Lender	Personal Loans	$7,500 - $50,000	7.99% - 29.99%	620	As soon as 2-3 business days
Upgrade	Online Lender	Personal Loans, Personal Lines of Credit	$1,000 - $50,000	5.94% - 35.97%	600	As soon as 1-4 business days
LoanMe	Online Lender	Personal Loans	$600 - $100,000	9.90% - 184.36%	None	As soon as same day
CashUSA	Online Lender	Personal Loans	$500 - $10,000	5.99% - 35.99%	None	As soon as same day

Top Brokers Companies in the USA

Broker Company	Loan Types Offered	Loan Amounts Offered	APR Range	Minimum Credit Score	Time to Funding
LendingTree	Mortgage, Personal, Business, Auto Loans	Varies by loan type	Varies by lender	Varies by lender	Varies by lender
Credible	Personal Loans, Student Loan Refinancing, Mortgage Refinancing	$1,000 - $100,000+	2.49% - 35.99%	620	As soon as same day
Even Financial	Personal Loans, Debt Consolidation Loans, Home Improvement Loans	$1,000 - $100,000	3.84% - 35.99%	550	As soon as 1 business day
Fundera	Small Business Loans, Business Credit Cards, Equipment Financing	$5,000 - $5,000,000+	4.99% - 36%	600	Varies by lender
Lendio	Small Business Loans, Business Lines of Credit, Equipment Financing	$500 - $5,000,000+	6% - 30%	550	As soon as same day
SuperMoney	Personal Loans, Business Loans, Auto Loans, Student Loan Refinancing	Varies by loan type	Varies by lender	Varies by lender	Varies by lender
Credit Karma	Personal Loans, Credit Cards, Mortgage Loans	$500 - $100,000+	6.95% - 35.99%	600	Varies by lender
NerdWallet	Personal Loans, Student Loan Refinancing, Mortgage Loans	Varies by loan type	Varies by lender	Varies by lender	Varies by lender
Quicken Loans	Mortgage Loans, Home Refinancing	Varies by loan type	Varies by lender	620	As soon as same day
Rocket Mortgage	Mortgage Loans, Home Refinancing	Varies by loan type	Varies by lender	620	As soon as same day

Note: The data provided in this table is based on estimates and may vary depending on the source. Additionally, the loan amounts offered, APR range, minimum credit score, and time to funding may vary depending on the lender and the specific loan product. Interested individuals should consult the broker's website for more detailed information.

Online Lending Aggregators - Definition, How They Work, Pros, and Cons

Online lending aggregators are websites or platforms that connect borrowers with multiple lenders, allowing borrowers to compare loan options and rates from different lenders in one place. These platforms typically offer a wide range of loan products, including personal loans, student loan refinancing, mortgages, and business loans.

How They Work:

Borrowers typically submit a loan application to the online lending aggregator, which then shares their information with a network of lenders to find the best loan options. Once lenders are identified, the borrower can compare loan options and choose the best one for their needs.

Online lending aggregators may also offer tools to help borrowers estimate their monthly payments, compare interest rates, and calculate the total cost of the loan.

Pros

• More options: Online lending aggregators offer borrowers access to a wide range of loan options and lenders, which can help borrowers find the best loan for their needs.
• Convenient: Borrowers can compare loan options and rates from multiple lenders in one place, saving time and effort.
• Potentially better rates: By comparing loan options and rates from multiple lenders, borrowers may be able to find a loan with a lower interest rate or better terms.

Cons

• May charge fees: Online lending aggregators may charge fees for their services, which can add to the overall cost of the loan.
• May share personal information: Borrowers may need to share personal information with the online lending aggregator, which could potentially be shared with multiple lenders.
• Potential for spam: After submitting a loan application, borrowers may receive multiple loan offers and promotional emails from lenders, which could lead to spam or unwanted emails.

Overall, online lending aggregators offer borrowers a convenient way to compare loan options and rates from multiple lenders. However, borrowers should carefully consider the fees and potential for sharing personal information before choosing to work with an online lending aggregator.

Tribal Lenders – When They Are Worth Considering

Tribal lenders are financial institutions that are owned and operated by Native American tribes. They offer loans to consumers, typically in the form of short-term, high-interest loans. Tribal lending companies operate under tribal sovereignty, which means they are not subject to state or federal regulations that apply to traditional lending companies.

One of the biggest differences between tribal lenders and traditional lending companies is the interest rates they charge. Tribal lenders may charge much higher interest rates than traditional lenders due to their exemption from state and federal lending regulations.

It is generally not recommended to apply for a loan from a tribal lender unless it is an emergency and all other options have been exhausted. This is because the high-interest rates charged by tribal lenders can make it difficult for borrowers to repay the loan, which can lead to a cycle of debt.

However, in some cases, tribal lenders may be a good option for borrowers who are unable to obtain a loan from a traditional lender due to poor credit or other factors. Tribal lenders may be more lenient in their lending criteria and may be willing to lend to borrowers with less-than-perfect credit.

Ultimately, borrowers should carefully consider the terms and conditions of any loan offer from a tribal lender and compare it to offers from traditional lenders before making a decision. They should also ensure that the tribal lender is reputable and has a track record of providing fair and transparent lending practices.

Online Payday Loan Direct Lenders - Definition, How They Work, Pros, and Cons

Online payday loan direct lenders are financial institutions that offer short-term loans to borrowers, typically with high-interest rates and fees. Borrowers apply for loans directly through the lender's website, without the use of a broker or middleman.

How They Work:

Borrowers typically submit a loan application through the lender's website, providing information about their income, employment, and banking information. If approved, the loan is typically deposited directly into the borrower's bank account within a few business days.

Payday loans are typically due on the borrower's next payday, with the lender withdrawing the full loan amount plus fees and interest from the borrower's bank account. Borrowers may also have the option to extend the loan by paying additional fees and interest.

Pros

• Easy to access: Payday loans from online direct lenders are easy to apply for and typically have lenient eligibility requirements.
• Quick funding: If approved, funds are typically deposited directly into the borrower's bank account within a few business days.
• No middlemen: Borrowers deal directly with the lender, which can reduce the overall cost of the loan.

Cons

• High fees and interest rates: Payday loans typically have high fees and interest rates, which can make them difficult to repay and can lead to a cycle of debt.
• Short repayment term: Payday loans are typically due on the borrower's next payday, which can make it difficult to repay the loan in full.
• Can lead to financial hardship: If borrowers are unable to repay the loan on time, they may incur additional fees and interest, which can lead to financial hardship.

Overall, payday loans from online direct lenders can be a quick and easy way to access cash in an emergency. However, borrowers should carefully consider the fees and interest rates associated with the loan and ensure that they are able to repay the loan on time to avoid additional fees and financial hardship.

What are Alternative Lenders?

Alternative lenders in the USA are financial institutions that offer loans to borrowers who may not qualify for traditional loans from banks or credit unions. These lenders often use different underwriting criteria and may offer more flexible terms and repayment options than traditional lenders.

Alternative lenders in the USA may include:

• Online lenders - these are lenders that operate exclusively online and offer a wide range of loan products, including personal loans, business loans, and student loan refinancing.
• Peer-to-peer lenders - these are platforms that connect borrowers with individual investors who are willing to fund their loan. Borrowers typically apply for a loan on the platform, and investors can choose to fund all or part of the loan.
• Invoice financing companies - these are lenders that provide short-term financing to businesses based on their outstanding invoices.
• Merchant cash advance providers - these are lenders that provide cash advances to businesses in exchange for a percentage of their future credit card sales.
• Crowdfunding platforms - these are platforms that allow individuals to raise money for a specific project or cause by soliciting small donations from a large number of people.

Alternative lenders in the USA can be a good option for borrowers who may not qualify for traditional loans or who need quick access to cash. However, borrowers should carefully consider the terms and conditions of any loan offer and ensure that they are able to repay the loan on time to avoid additional fees and financial hardship.