Your Guide to Loans and the Best Loans List

The Best Loans List

There are many Americans who need loans, whether it is to get out of a small financial situation or deal with a lot of debt.

Whatever the reason may be, there are all sorts of loans out there and it is always best to learn about what are the best loans for yourself.

To help you get started, we have made a list of the best loans, facts about loans, and more to help you get the most out of it.

 

What Are the Basics of Getting a Loan?

You should know why you need the loan in the first place. If you want to buy a car, house, pay off repairs, etc., you should know what kind of loan to get.

There are lots of different kinds of loans, from personal loans to mortgage. For instance, if you want to have your car’s engine repaired immediately, taking out a small personal loan might be suitable for you.

However if you want to make a big purchase such as a brand new car, you would have to get auto financing. If you need money to help pay for college, you would have to look into student loans.

Another important thing to note is whether or not you can afford the loan that you want. Many people make the mistake of taking out a loan that may have not been necessary or way out of their budget.

For instance, instead of getting a reasonably priced car, they may have taken out a loan for a luxury car. This can easily put you in debt, give you a bad credit score, and more, which will make future lenders hesitant to deal with you.

If you only need a small amount of cash, try to see if you can borrow from your friends or relatives first. You should really know whether or not you can afford a loan in the long term to avoid getting yourself in trouble.

You should always find a lender who understands your situation and needs. Not all lenders will be the same, in both the way they work, their loan offers, and requirements.

One lender might offer you a loan with a higher interest rate while one might be more flexible with payments.

It’s important to always do your research on any lender to make sure that they are reputable and reliable. You don’t want to give your personal and bank information to a potential fraud.

Start by finding your credit score

Credit score plays a big part in most loans because it measures your credibility as a borrower, which is why most lenders will require to see your credit score.

Many lenders would also have a minimum credit score that the borrower should have before they are given a loan. You can know what your credit score is by checking out your credit history in your credit report.

You can get your credit report in a credit bureau or a lender would look at it for you, but having a credit check done could potentially lower your credit score.

Your credit score will determine your approval for a loan. Typically, a fair credit score would be 600 to 620, but it will vary on which state you are residing in.

However, it is very common for people to have subprime to bad credit scores. Some people even have no credit scores at all because of their lack of credibility.

It can make it difficult for many people to get loans because of this.

Your credit score could be low for a number of reasons. Most commonly, you would have a low credit score because of unpaid debt and a bad payment history.

If you have committed fraud in the past or have gone bankrupt, your credit score would also be low. Additionally, you could have no credit score at all because you have never previously taken out a loan before.

It could also be because you don’t have any credit cards, so you have no proof of being able to pay off things and manage your finances properly.

However, there are loans that can cater to people with bad credit. These loans usually are much easier to apply for and can be easily accessed, however many of them can have very high interest rates.

Thankfully, you can still find some that offer reasonable rates, but they might have a lot of requirements for them as well. Just make sure that the lender is always legit before taking out any form of loan.

If you are wondering what the best loans are, here are a list of the best loans and which ones are good for bad credit.

    The Best Loans for Fair to Good Credit Scores

Marcus by Goldman Sachs

A great place that not only offers great bank accounts and loans is Marcus by Goldman Sachs. They offer lots of personal loans that can range from anywhere from $3,000 to about $40,000.

For the most part regarding their loans, they usually offer loans to consolidate debt, credit card consolidation, loans for home improvement, etc. Marcus by Goldman Sachs is regarded as one of the best in their field.

The interest rates for their loans are rather fair, but it is also based on your credit score. The interest rate can be as low as 6.99% or as high as 24.99%.

However, even their highest rate for their loan is still considerably reasonable compared to many other lenders out there. However, their great interest rates isn’t the only thing that makes them great.

They also have no fees at all for application and prepayments. All you have to do is just pay for the interest rate.

 

SoFi

If you are need of some cash for student loans, SoFi is the right place for you. They specialize in loans for students and also offer loans for other things, such as home improvement and personal loans.

Since their target market tends to be younger because they usually cater to student loans, they also offer wealth management products along with life insurance and are also expecting to open bank accounts soon.

They are the ace in their field in finances for young professionals.

SoFi stands for Social Finance and they offer their clients tons of tools to help them repay their loan. For automatic repayments, their interest rates as of now can be from a low 6.99% up to a very reasonable 14.99%.

SoFi offers loans as high as $100,000 (great for students in long courses such as medicine), and it can be paid in terms of 3,4,5, etc.

Another great benefit of SoFi is like the one that Marcus by Goldman Sachs is that they charge no fees, they only require you to pay for interest.

Another advantage SoFi has over the rest of the market is that they have a feature for unemployment just in case you need a plan if ever you lose your job.

 

Best Egg

If you just need a straightforward personal loan, Best Egg might be your best bet. Don’t be fooled by their adorable name, they are now a respected and reputable online lender.

They offer personal loans to consolidate debt and improve homes, along with any other expenses that you may have to pay for.

Their loan offers can be as high as $35,000 and have a very good interest rate. Their highest interest rate is 29.99% and their lowest interest rate is 5.99%.

They will also ask you to pay for an origination fee of about 0.99-5.99% and the repayment terms can be either three to five years.

However, Best Egg would prefer to lend to people who have a stable job and salary with a decent credit score. They typically require their borrowers to have a 685 credit score and earn at least $60,000 annually.

 

Earnest

If you want something that has flexible payments, then Earnest is the way to go for you. They offer a variety of loans, from student loan refinancing to personal loans, so they will probably have the kind of loan that you need.

When you start with Earnest, you can adjust the settings to be able to set the preferable payment that you want to give every month for your loan.

This is great for people who have a strict monthly budget and want to know exactly how much they will spend on their monthly loan.

They don’t ask you for any origination fees with fair interest rates that are based on your credit score and how long the loan will be.

You can expect about 6.99-18.24% for the interest rates with Earnest. You can also choose to pay off the loan within three or five years and can borrow as much as $75,000.

Another good benefit is that they have a mobile application to help you pay off your loan conveniently.

 

Payoff

If you are struggling with the debt on your credit cards and want credit card consolidation, Payoff is the perfect choice for you.

Their main niche is that they offer loans to pay off and also consolidate debt from credit cards. The loan interest rates are reasonable and they range from 5.65%-22.59% and also ask you for an origination fee of 5% or less.

However, they don’t charge you a fee for early payment. The application and approval process is fast and easy.

You need to have a credit score of at least 640 to be able to get approved. Your debt to income ratio should also be lower than 50%.

 

Earnin

If you have ever heard of a cash advance or a payday loan, you will know that they are super fast short-term loans that are easy to acquire.

They are usually small loan amounts that need to be paid back within a month or so. They have a bad rep for requiring the borrowers to pay back the lenders within a month at up to 500% interest rate.

Earnin offers a great alternative to help people avoid spending that much. In fact, Earnin doesn’t charge you an interest rate at all.

No, there’s nothing sneaky about Earnin, in fact they are quite reliable as lenders. Basically, they have a policy where they want you to pay them as much as you would think is fair other than paying the loan back itself.

Earnin allows you to borrow $100-$500 a day, which is a fair amount if you need some extra cash until your next salary comes along.

This is good because you get to avoid ridiculous interest rates while getting the cash easily without any worries. Just pay back Earnin by your salary day.

 

CarsDirect

While they are more known for their services for buying cars, CarsDirect also helps people get great auto loans.

They offer tons of information that many of their customers can easily read and understand. They also want to help their customers by offering loads of helpful tools such as a loan calculator, a calculator for trade in value, and more.

CarsDirect cares about their borrowers and wants to make sure that they get the best deal that they can get.

Another great bonus from CarsDirect’s auto loan is that they don’t have a minimum or maximum amount required to get a loan.

A lot of other auto loan lenders will require you to buy a car that costs at least more than $5,000, but CarsDirect doesn’t limit you in that manner.

The only thing that could be annoying from them is that when you apply online and chose a car and loan, you still might receive emails and calls with more offers.

 

    Best Loans for Bad Credit Scores

Bad Credit Loans

Bad Credit Debt Consolidation Loans

If your credit score falls below the minimum score of other loans for bad credit (580 for instance), you might think you’re stuck in a rut.

Thankfully, Bad Credit Loans is the option that people with the lowest of credit scores can get. They aren’t the lenders themselves, but rather they connect borrowers to lenders who are willing to deal with people with extremely low credit scores.

They have pretty basic requirements too, such as your personal information, a valid checking account, you have to be of legal age, a resident of the country, etc.

Keep in mind that not all of the lenders may be interested in you, but since they have a large network, there is bound to be a few willing lenders.

They allow you to borrow anywhere from $500-$5,000 and have interest rates of 5.99%-35.99%. The good thing about Bad Credit Loans is that they have repayment periods of anywhere from 3 to 72 months.

While they may not have the lowest interest rates around, they are still much more reasonable if you compare them to other lenders who specialize in bad credit payday loans.

 

OneMain

If you want a bad credit loan that either secured or unsecured, OneMain might be the one for you. If your credit score is rather bad, you might be limited to borrowing a certain amount or choose a secured loan.

A secured loan means that you might have to put down collateral that has value equal to the amount you want to borrow.

If you don’t pay off the loan, the lender has the right to take the collateral. Collateral can be taken in the form of a house, vehicle, jewelry, etc.

Their regular loans can be as high as $30,000. People with poor credit scores can borrow up to $10,000. They have loan term lengths that can be as long as 60 months and their interest rates can be as low as 16.0% but can be as high as 35.99%.

A good benefit is that you can apply for their loan in one of their 1,600 branches but they also have a simple application process online.

 

Avant

If you don’t own any collateral to get a secured bad credit loan, you can go to Avant for one of their unsecured loans.

While they don’t go for clients with very bad credit scores, they will accept people for loans who have a credit score of 600-700.

A great advantage that Avant has to offer is that they can give you your loan money within the next business day.

This is great if you need to deal with something ASAP, because other loans can take several days or even potentially weeks to hear about your loan approval.

You can borrow as much as $35,000 with reasonable interest rates of 9.95%-35.99%. They usually expect for the loan to be fully repaid within two years to five years.

However, keep in mind that you could get charged an administration fee that can be as high as 4.75%. Be aware that Avant doesn’t offer any secured loans.

They’re great for unsecured ones, but you will have no option for secured ones.

 

LendingPoint

If you want to get a loan and start rebuilding your credit score, LendingPoint is here for you. People with poor or fair credit scores can apply for their loans, which can range from a credit score of 580-720.

They easily approve most of the applicants for their loans as long as their credit score falls within that range.

Keep in mind though that LendingPoint is only available in 34 states, while that may be a lot it may not be available in the state that you are residing in.

You should also be aware that LendingPoint is still a bad credit lender, which means that they have a higher interest rate for their loans.

Their interest rates can still be better compared to other bad credit lenders and they give you the option of adding the origination fee to your interest rate to avoid paying any fee up front.

If you still can’t get a personal loan from LendingPoint, they will probably offer you one of their credit rebuilder loans.

Compared to some of the other lenders, LendingPoint only allows you to borrow a maximum of $25,000.

You cannot also avail of any other discounts, which means the interest rate you initially get for the loan will not change throughout the life of the loan.

You should have a debt-to-income ratio of 35% or less to be able to get approved for their loan and they do not allow co-signers. You should also have at least two years worth of credit history to be able to apply.

Whether you have a good credit score or a bad credit score, there is always a loan out there for you. You just have to do your research and compare lenders to find the best one.

Take your time and check out dedebt.com to read more articles about loans today.

 

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