How do you find the best personal loan rates for you specific needs? Personal loans can be very useful when you need quick cash without putting up any collateral. While many lenders require some form of security to get a personal loan, you should have a full understanding of what a personal loan is and find the best possible personal loan rates to meet your needs.
How Can a Personal Loan Be Used?
Personal loans are those loans which are typically obtained through a bank for non-specific purposes. For example, most people do not pay for a car or home with a personal loan although they may use the proceeds from a personal loan to pay for unexpected car repairs or small home improvement jobs. Some of the common ways a personal loan is used include:
- Consolidation of debt — for someone with credit card debt, student loans, or other credit, a personal loan may give them the option of paying off several credit lines and making one payment on a monthly basis. For most borrowers, this means a lower interest rate and a shorter loan term which means saving money.
- Home remodeling projects — homeowners often do not wish to take the major step of taking out a home equity line of credit or remortgaging their home when they are considering making upgrades. However, some projects are not within reach of their current budget or savings making a personal loan the ideal solution.
- Other expenses — whether you have a dream vacation in mind, are facing unexpected medical bills, or you are changing jobs and need a new wardrobe, you may find it helpful to take out a personal loan to avoid draining your savings account or putting a strain on your current budget. A personal loan can be used in any manner you wish.
Find the Right Personal Loan
When you have a great credit score, and a solid income, finding the right loan can be simple. However, for those who are rebuilding credit due to past credit issues, finding a personal loan with favorable terms can be challenging. We understand those challenges and we also know you may still need access to a loan to help you restore your financial footing. This is one reason we have identified some of the best lenders for those borrowers who may have less than perfect credit. Some of the best personal loans for those who have less than perfect credit include:
- OneMain Financial — this company takes a broad look at your income, expenses, current debt, credit history and whether you have collateral to put up for a loan. Depending on the results, you could be approved for a loan of between $1,500 and $20,000 with an interest rate of as low as 18.00 percent. Terms for these personal loans vary between 24 and 60 months. At the time of your approval, you will be advised whether you will be required to put up collateral as a condition of your approval.
- Lending Point — currently accepting applications in nearly every state in the United States, this company focuses on those who have credit scores between 585 and 850. Their goal is to offer funds to those who may have faced struggles in the past at an affordable rate. They offer various repayment options and loans may be offered up to $20,000. The primary considerations include credit score. Borrowers must have annual income of at least $20,000 which can be shown via tax documents, bank deposits, or W-2 forms. You will have to supply specific documents to be approved for these loans, but the process is fast, and you can have funds in your account in as little as 48 hours.
- Payoff — this company offers debt consolidation loans between $5,000 and $35,000 to help you pay off credit card debt. The primary purpose is to help you increase your credit score. They may charge an origination fee depending on the information you provide in your application. The benefit of these loans is simple: you pay off higher interest rate credit cards, decrease your credit utilization rate, and help you gain control of your credit. It is worth noting that you cannot be approved if you have delinquencies within the last 90 days prior to application.
- Upgrade — is unique in that they offer loan amounts up to $50,000 with low fixed-rates, good repayment terms and no prepayment fees. Loans may be used for debt consolidation, home improvements or a host of other items including major purchases. The company prides itself on fast approvals and reasonable terms for eligible borrowers. The application process is simple, and you will know within hours if you are qualified for a personal loan.
When searching for the best personal loan to meet your needs, it is important to weigh numerous factors including your current credit score, income, and your ability to repay new debt. Borrowers need to compare personal loan programs and should review all terms carefully before determining which program offers the best personal loan rates in their credit range as well as the terms which are being offered.