Personal loans are a great way to finance large expenses, such as home improvement projects, weddings, vacations, and even buying land. They are available from traditional banks, credit unions, and online lending platforms, and can be approved in a few business days. The best personal loans offer low interest rates for well-qualified borrowers, flexible loan amounts, and limited repayment terms and fees. SoFi is a great option for those with good credit, offering low rates, no fees, and flexible payments.
LightStream is aimed at borrowers with strong credit with no fees and with low rates that vary depending on the purpose of the loan. Marcus does not disclose its interest rates but offers a 0.25% discount for those enrolled in autopay. Universal Credit makes searching for a personal loan accessible even for those with damaged credit. An average credit score of 630 to 689 means that your personal loan is likely to have an interest rate of 17.8% to 19.9%.
Those with fair to bad credit (FICO scores below 690) may have to work a little harder and pay a higher rate for a personal loan. When applying for a personal loan, you may need additional personal information, including employment status and academic history. It is important to make sure that you have enough income to pay off existing debts and the new loan. Prospective borrowers apply for a loan online or in person and then wait for approval or rejection of the decision. It is also important to note that many lenders do not offer direct payment to the borrower's other creditors. This means that the loan funds will be deposited into your bank account and you will have to pay your other lenders individually.
Additionally, some lenders do not allow co-signers or joint applications. Finally, it is important to contact your lender if you are having trouble making payments on your personal loan. Many lenders offer benefits and discounts, including unemployment protection and the ability to change the due date of their payment once a year.