The Best Personal Loans
The best reason to get a personal loan is to consolidate your existing debts, cover added expenses, or cover the existing loans. For example, if you face any trouble paying the monthly installments to cover your other loans like insurance loans, home loans, etc., you can cover it by taking a personal loan.
Some of the top reasons people get a personal loan are as follows:
- Home improvement loans for renovation.
- Need a personal loan to buy laptop or any other electronics purchase.
- Planning a wedding and need a personal loan for wedding expenses.
- A personal loan for students or college fees
- Personal loan to cover travers and holidays costs.
- Personal loan for startup business or testing business ideas.
- Personal loan for home repairs such as air conditioning repair loan
- Personal loan for Vehicle Financing such as normal truck loan or commercial truck loan
For finding the best personal loan, it is necessary to understand the reason for borrowing money. Whether it is the consolidation of debts, taking care of an unexpected expense, or home finance, you need to figure out an estimate of your requirements. This helps in narrowing down your search to specific lenders that can finance your needs. Thus, you can get a personal loan that is best suited for your requirements.
One of the things that are predicted to get more popular in the future is personal loan applications. Some expect it to be a way of creating more money for families after retirement, with an eye on the future. As more baby boomers get older, there will also be an increase in the demand for such loans. However, it would help if you were wary of the many offers for personal loans out there today. With that in mind, we have put together this guide to compare personal loan lenders so you can make an informed decision.
What type of personal loans are available?
Personal loans are not the same as traditional mortgages. Personal loans are more like a debt consolidation tool. They allow you to pay off existing debts at reduced or sometimes even zero interest rates. They are available on a wider scale than mortgages because personal loans require no appraisal, just your personal information.
There are two types of personal loans. One requires collateral, and the other does not require any collateral for personal loan. If you do not have anything to put up for consolidation, it’s best to choose a lender that requires collateral and one that does not. still, it’s wise to use financial calculators such as saving calculator, or loan calculator to determine your loan terms and repayments. If you have something to put up for the loan, you may find that personal loans are easier.
The process is still no different from personal credit cards, and most lenders may require a decent credit score to give you a personal loan.
Another option for personal consolidation is to use fast approval loans. These can be a better choice than conventional consolidation loans if you want fast payment and low-interest rates.
They are, however, a bit more complicated to qualify for, as there are certain criteria that the lender must consider before offering you any money. Most of these loans will require that you have a decent credit score to get approved. To be able to qualify for fast approval personal loan, you must have good to excellent credit.
There are different options for personal loans, and each has its own different set of requirements that lenders look for to qualify for the loans.
Can I get personal loan with no collateral?
Some lenders only want your house as collateral, and they will accept your home as collateral with a very little amount of money down. Lenders that want to see a larger amount of money down are not so accepting. These lenders want a larger amount of money down, preferably several thousand dollars, but they may take your car or maybe even some of your personal belongings in exchange for the larger loan amount. So it all depends on what your financial situation is like and what sort of collateral you can offer to different lenders.
There are many sites that you can use to compare the APR on various personal loan products. This allows you to look at the different rates and how they compare to others. You can also look for the different repayment periods offered by different lenders and compare the repayments. If you like to pay off your debt quickly, then you should consider the longer-term payment plan.
Consolidation is a great personal loan product to use. With consolidation, you can get all your debts into one monthly payment. This makes paying them off much easier and lowers the overall interest rate of your balance. When you consolidate your loan, you usually do not have to pay any additional origination fees or anything like that. All you have to do is pay one monthly payment, and the company that gave you the loan will pay the rest. They will usually charge you a fee for this service, but there are many lenders out there willing to give you a good deal when it comes to personal loans. Many personal loans can benefit borrowers. The key is to shop around for the best deal and make sure it is worth your while.
Look for offers with the longest repayment periods, lowest interest rates, and lower loan amounts. These are all good ways for personal loans to benefit borrowers, and when used properly, personal loans can make life easier. Remember to compare lenders and their terms before signing up for anything.
Top 10 Low Interest Rate Personal Loan
The best cheap personal loan options available are as follows:
LightStream offers low-interest personal loans along with flexible higher terms for people with a good credit history. The loan can finance any purpose except one of the best business loans or fund your higher education.
The process of application and approval is fast. One might receive funds on the same day of approval. A maximum amount of $100,000 can be borrowed through LightStream. They also provide an APR discount when an applicant signs up for autopay.
- LightStream does not charge any origination fees, late fees, or other types of fees.
- LightStream Personal Loan plants a tree for every loan you take from them.
- Qualified borrowers or lenders can receive their funds quickly.
- LightStream offers a lower rate of interest, which is very competitive when compared with other lenders.
- The minimum loan amount one needs to borrow is around $5000, which is a little high.
- LightStream may require several years of credit history.
- Their website does not have an option for pre-approval of a personal loan.
- LightStream is not available for business loans or student loans.
SoFi stands for Social Finance Inc, which is an American online personal finance company. It was established in August 2011, and its headquarters is located in San Francisco, California.
SoFi offers a simple sign-up application process along with a user-friendly application to manage your payments easily. A unique aspect of SoFi is that you can choose between a variable or fixed APR. By setting up auto payments, you can earn a 0.25% discount on your APR.
SoFi can offer personal loans up to $100,000 depending on the creditworthiness of the applicant.
- SoFi charges no origination fees or late fees.
- It is a great option to fund a variety of purchases.
- One can have more than one SoFi loan at a time.
- SoFi offers a very low APR Range of 5.99% to 18.64%.
- SoFi requires a minimum credit score of 680 for personal loan approval.
- SoFi may not be a good choice for advanced investors.
- There is no secured loan option, and no co-signers are allowed. However, co-applicants may apply.
Marcus by Goldman Sachs Personal Loan is a good choice if you are looking for a no-fee personal loan for making large purchases on investment. Marcus also gives personal loans for home renovation, wedding expenses, holidays, or moving from one place to another. Borrowers may qualify to take up a fixed interest loan to $40,000 based on credit history.
- Marcus does not charge any early payoff fees or late fees.
- It is a reliable option as it is authorized by the Financial Conduct Authority (FCA).
- Customers can easily open a Savings Account without any deposits.
- Marcus has competitive rates among online lenders and a wide variety of repayment term options.
- A Marcus Personal Loan does not have any Bank branches. However, they have a mobile banking application available on the App Store and the Google Play Store.
- There are no ATM networks available for Marcus Accounts.
- Funding can take up to five days.
- There are no co-sign joint or secured loan options.
- Marcus has slightly strict loan approval requirements.
First Tech Credit Union
First Tech Credit Union has its headquarters in San Jose, California. It offers loans to applicants with a fair credit score with sounder rates and minimum fees.
A First Tech Personal Loan is a good option for paying credit card debts and the best installment loans. Membership requirements at First Tech Credit union are not strict, and by opening a savings account with five US dollars, one can painlessly become a member. It is easier to get approval for a personal loan through a credit union. The credit union proposes one of the most competing charges for unsecured personal loans, commencing at 6.70%.
- One can easily apply online in a couple of minutes. It is a quick and easy loan application.
- There will be no monthly account maintenance fees. Moreover, there are no origination fees and application fees.
- First Tech Credit Union approves applications by co-borrowers.
- First Tech Credit Union offers the maximum loan amounts.
- One should be a member of First Tech Federal Credit Union to qualify.
- No pre-qualification option is handy during the checking of initial rates.
- They charge late fees and returned payment fees.
Rocket Loans give online personal loans to lenders or borrowers with fair credit and a minimum of two years of credit history. Rocket Loans offers fast funding and competitive Annual Percentage Rate (APRs). The term range is between 3 to 5 years. However, to fit for the most economical rate, you must have superior credit, satisfy several requirements, and select autopay.
- Rocket Loans offers quick and easy online applications.
- Offer APR discount when applicant selects autopay.
- Rocket Loans offers very competitive Interest rates.
- Rocket Loans are fast-approved. You may get your funds on the same day.
- They offer loans as small as $2,000
- Rocket Loans charge an origination fee.
- They do not offer direct payment to creditors with debt consolidation loans.
- They do not have to co-sign, joint, or secure loan options.