March 2, 2019
When you need to get a personal loan, it can feel like an isolating and stressful experience. But the truth is that you are not alone, as personal loans in 2018 amounted to over $120 billion dollars in the United States.
No matter what you need your personal loan for, there is a personal loan for everybody, regardless of your credit or your reasoning behind the loan. Dive into this personal guide to find the best place to get a personal loan.
Best Place to Get a Personal Loan
There are a number of personal loans on the market, with enough out there to cover any need or credit rating. You will find that if your credit score needs some work, you can still get a personal loan.
Sometimes even just looking into small personal loans will help improve your credit score. But if you need a little help with your credit score, learn more about understanding your credit score and how to improve credit ratings before you apply.
Personal loans online are divided into a number of categories, and this is usually dependent on your credit score. You will find that personal loans come with lower interest rates when you have good credit, and with poor credit, the lender takes a higher risk and generally offers a higher interest rate.
Some of the most common personal loans online are from Prosper, Wells Fargo, and Lending Club. These lenders are more useful to those with better than average credit scores.
Types of Personal Loans
For excellent credit, places like Freedom Plus and Earnest offer personal loans as well. Peerform and Avant help those with average credit.
And websites such as OneMain and BadCreditLoans.com are there for those that need help with their credit scores.
Discover the best type of loan for those with poor credit.
The most common reason for getting a loan is to consolidate your high-interest debt, but they can be taken out for anything. Adoption fees, medical bills, house repairs, wedding, car issues, or any sudden need for cash can be your reasoning.
A general rule of thumb is that you are likely to get a higher personal loan when you have good credit. But even average or poor credit can get you a personal loan if you shop in the right place.
Best Personal Loans for Good Credit
The best personal loans if you have good credit are from places such as Lending Club and Wells Fargo. Here you will find lower interest rates and a higher potential for the amount of a personal loan.
Interest rates for those with good credit can be as low as 6.95 percent, but even those with good credit might see a high-interest rate at 35.89 percent. Read the fine print on the applications, as you may pay a fee just for applying.
Even so, with good credit, you could get a loan as high as $40,000 and a term as long as five years to pay it back. Wells Fargo may offer even higher personal loans up to $100,000 if your credit is very good.
Best Personal Loans for Average Credit
If your credit isn’t in the best shape, you will find that you don’t have many options when it comes to personal loans. Or at least, your options are slimmer.
You may not have the option of shopping around for interest rates and may get a smaller loan as a result.
Even so, there are many lenders today willing to help out. They will earn your business through a higher interest rate, making it a win-win for everybody.
Personal loans for average credit can still offer interest rates around 5.99 percent but can go as high as 35 percent.
Places such as Peerform and Avant are known to be extremely helpful in offering personal loans. These personal loans can go as high as $35,000 depending on your exact credit situation and need for a loan.
You are likely to find that there is a small processing fee for the application.
Best Personal Loans for Bad Credit
If you have a credit rating under the 600 mark, you may be considered a risk by lenders. But credit scores are evolving, and the more you work to improve your credit score, the faster it will improve.
Don’t sweat it if you need a personal loan and have bad credit. Websites such as BedCreditLoans.com and One Main can help you.
You won’t necessarily be stuck with a high-interest rate either. Some loans offer interest rates as low as 5.99 percent.
You may not get a high personal loan amount, but it could be a start in the right direction if you are rebuilding your credit.
At One Main, higher personal loan amounts are available for those with bad credit. These can go as high as $30,000, but you may be paying interest as high as 35.99 percent as well.
Before you apply for personal loans online, check your credit rating, and see if there are any errors. Clean that up before you apply.
If your credit score is lower than 600, you may be better off applying for a personal loan.
Do Your Research
Personal loans are a significant component of the economy, comprising 1.5 percent of consumer debt. Personal loans can be used for anything from credit card consolidation to home repairs or even a vacation.
It is estimated that 60 percent of personal loan applicants using the funds for credit card debt. Do your research to prepare yourself for approval before you apply.
There are 19.5 million outstanding personal loans in the United States, totaling billions of dollars. When you are looking for the best place to find a personal loan, know that you are not alone.
There is a personal loan out there for everybody, regardless of need or credit score. Don’t let one denial stop you.
As many as 24 percent of American applicants will receive at least one denial on their quest for the best personal loan. Before you search for the best place to get a personal loan, empower yourself with these 4 tips on reaching your financial goals and dreams.