Low Interest Rate Personal Loan
A personal loan is a loan you can access from banks, online lenders, and credit union with the intention of paying back in fix monthly installments. The annual percentage rate varies from one institution to another, however, the rate ranges from 6% to 36%. In most cases, personal loans are unsecured. That is, they are not backed by houses, cars, or other properties. This makes it risky for the lender since it will be difficult for him to get the money if you refuse to pay.
With secured loans, the lender can get his or her funds back by selling of the property you used to secure the loan. Since most personal loans are riskier the interest rate tends to be high. They check other factors to know whether you can pay the loan or not. Most of the information can be found on your credit report. They will like to know your payment history, credit score, account balance, and your credit utilization ratio.
When you need a loan, your greatest wish is to get a personal loan with a low interest rate. Many financial institutions offer personal loans but the rate depends on your creditworthiness. As mentioned earlier, the lender wants to be sure you can repay the loan. Your creditworthiness talks about how well you responded in terms of payment to your previous loans. Let us check out some financial institutions that offer low interest rates.
If you want a personal loan with the lowest credit, this loan package is right for you. SoFi offers an APR of 7.08% to 15.37%. However, the minimum credit score for accessing this loan is 680 and the repayment period is from 3 to 7 years. The good news about SoFi loans is that you will not pay an origination fee. There is also no prepayment penalty. You can access a loan between $5000 and $100,000.
- Best Egg
Best Egg is also another institution that is worth mentioning. If you want a financial institution that offers quick funding, Best Egg is a good option. Their loans terms are simple and the process is fast. They also offer loans at a low interest rate, 5.99% to 29.99%. The minimum credit score requirement for this loan is 660. The repayment term varies from 3 years to 5 years. Best Egg grants loans up to $35,000. If you have good credit, Best Egg is one of the great loan options out there. However, you will need to pay an origination fee when you apply for a loan. The origination fee is 0.99% to 5.99% of the loan amount.
- Marcus by Goldman Sachs
People who prefer traditional lenders should consider this bank. Even though there is no minimum credit score requirement, they often grant loans to people with prime credit score. That means you need to have good credit to access a loan from them. The minimum FICO credit score that is considered a good credit score is 660. Marcus by Goldman Sachs offers competitive rates that fall within 6.99% and 24.99%. they also offer flexible payment terms; you have between 3 to 6 years to repay the loan. You will decide the payment term with your lender. This bank is trusted because it has a long operating history. Marcus by Goldman Sachs has been in business for 148 years. The good news about dealing with this bank is that there is no origination fee when you want a loan. They offer up to $40,000 in loans if you meet their requirement. This personal loan is a good option for loan consolidation.
Lightstream is a part of SunTrust Bank and they are doing a great job when it comes to the granting of personal loans. Lightstream’s loan rates are based on the purpose of the loan. If you are going in for a loan to purchase a new car, you can get a loan at a low interest rate of 3.09%. Lightstream does not claim ownership of the car at all. They do not put their name on the car title. They only leave the cash in your account and then you can shop around, get the car you want, then you withdraw the funds and pay for the car in cash. when you want a loan to improve your home too, Lightstream will grant you a loan at a rate of 4.99%. There are also loans where you will pay an APR of 14.24%. The minimum credit score requirement for accessing a loan is 660. The payment terms range from 2 to 12 years. They will even give you better deals if you have cash in your 401K or you have equity in your home. Lightstream also approves loans at a fast rate. You will have the cash in your account in no time. This loan facility is available in all states. The loan amount available is from $5,000 to $100,000.
Upstart is another lender to consider if you have good credit. The minimum credit score requirement for Upstart is 640. The APR for loans ranges from 7.80% to 29.99%. The repayment period ranges from 3 to 5 years. You can borrow up to $50,000. The school you attended and your performance in school can help you get a lower rate from Upstart. This loan is available in all states, however, the loan amount will depend on your monthly income. Your monthly payments must not be more than 55% of your income.
Avant also offers loans for a wide variety of borrowers. Even if you have bad credit, you can stand a chance of getting a loan with quite low interest rate. The loan rate ranges from 9.95% to 35.99%. The 35.99% is on the extremely high side, and it is only for people with really bad credit scores. If you have a somewhat minimal credit score, you can access the loan at an appreciable credit score. If they are only willing to grant you credit at an APR of 35.99%, you should reconsider your decision. APR as high has that can keep you in a debt cycle for long. The fees for loan processing varies but you can pay up to $4.75% as fees. The typical repayment period for Avant personal loan ranges from 2 to 5 years. Avant can help you access a loan for emergency purposes, the loan will be available as soon as the next business day.
PenFed is another lender that offers low-interest rates. Unlike other lenders, PenFed has fixed APR and even fixed repayment periods. The APR is 6.49% and the repayment period is 5 years. The minimum credit score required is rather on the high side. You will need a credit score of at least 700 to access this loan. The good thing is that there is no origination fee. However, there are some conditions for accessing a PenFed personal loan. You should be a member of the PenFed Credit Union to be eligible for a loan. This is not too much of a problem since you can complete an online registration in minutes. This loan package is available in all states.
- OneMain Financial
OneMain Financial just like online institutions offers credit to borrowers in a convenient way. You do not need to visit their branch to begin the application process, you will begin the process online. You will only visit the branch if your loan gets approved. The acceptable credit score is not stated and anyone can apply to see if they are eligible. The APR on their loans varies from 16.05% to 35.99%. The fees for loan processes also vary and they do not state the range as well. The APR ranges from 16.05% to 35.99%. you will have up to five years to repay the loan, and you can qualify for a loan amount ranging from $1500 to $30,000.
- Wells Fargo Bank
The Wells Fargo Bank is a good option for people who want to deal with banks with physical locations. This bank has over 5800 branches and it does not come as a surprise since the bank is the fourth largest bank in the United States. The Wells Fargo bank can boast of over 13,000 ATMs that are placed at vantage points throughout the country. This bank also has reliable customer support and their online services are available 24/7. The amount you can get from Wells Fargo ranges from $3,000 to $100,000. You will neither pay application nor prepayment fees when you take a loan from this bank. However, there is a fee of $39 for borrowers who do not pay their loans on the due date. The good news is that you will not be charged that late fee immediately after you miss the due date. You will be given a grace period of up to 10 days to make payments. If you are not able to pay within that 10 days, the late fee will be imposed on you. Once your loan is approved, Wells Fargo will disburse the cash to your account as soon as the next business. The bank also offers some form of incentive for people who set up automatic payments on their account. The bank deducts 0.25% of the total APR on the loan. The repayment period ranges from 1 to 5 years. The minimum credit score requirement varies as well.
Although personal loans are easily accessible to citizens of the United States. However, there are certain things that make people ineligible for such loans. One of the major restrictions is obviously the credit score. If you have a bad credit score, it will be very difficult to access personal loans. Even the ones available have a high APR. People with a credit score lower than 630 are unlikely to qualify for personal loans. However, that may change if you have a steady income and low debt levels.
If you want to access loans with low interest rate, you will need to work on your credit. If you have a poor or average credit score, you should consider repairing your credit score. Some people seek the services of credit repair companies to repair their credit score. You can also do it yourself but you will need to be very determined to attain maximum results.
Even before you think of fixing your credit, you should check your credit report and score. This will tell you how much effort you need to put into repairing your credit. You will also need to scan your credit report for errors such as wrong account entries. If you made payments on time and it is reported as late or missed payments, that also counts as errors.
If you spot these errors or inaccurate information on your report, you should file a dispute to correct that information. Data such as bankruptcy information should be removed from your account after seven years. If the data remains on your report after seven years, you should request for it to be removed. After such corrections, your credit score will improve.
You should also clear debts on your report. This is difficult but when you focus on making payments every month, you can clear them. You should also adjust your lifestyle to reduce your spending. Some people also consolidate their loans when they are overwhelmed by debts. This helps to reduce the interest rates on the loan and makes it easy to pay the loan. You can also ask someone with good credit to add you as an authorized user to their card. You will benefit from their high balance. However, you will be affected if they miss payments.
Apart from your credit score, your age also counts when you apply for loans. You should be at least 18 years old and should also have an active bank account. You should also check if the loan package you want is available in your state. Since there are many lenders with varied loan packages, it is essential to compare loan packages to know the best.