The impact of COVID-19 has left millions of Americans without a reliable source of income, and many may be seeking personal loans to cover emergency expenses. Interest rates on personal loans for great credit start at around 6% APR, but if you can qualify for a credit card with 0% interest and pay off the balance within the promotional period, you may be better off with the credit card. Monthly income after paying other debts and living expenses should be enough to cover payments on the new personal loan. When it comes to getting a personal loan, there are not too many differences between how to get one from a bank and how to get one from other types of lenders. For example, if you make on-time payments over the life of your loan or you can diversify your credit mix by adding a personal loan, you could see an increase in your rating.
Keep in mind that just having a credit score of 660 isn't enough to qualify for a Discover personal loan. The first time I got a top-notch personal loan that I used to pay OFF ALL my high-interest credit cards. As with other major lenders, LightStream prohibits the use of your personal loans for post-secondary education expenses, business purposes and illegal activities. This list of the best personal loans for getting fair credit includes lenders serving people with scores around 600. And even people with bad credit can get a small unsecured personal loan from a credit union. Personal loans can offer an alternative to credit cards by offering you a fixed and predictable payment plan.
Ultimately, the benefits of a personal loan to your credit could far outweigh any initial negative effects. Personal loans are generally unsecured, meaning they aren't backed by collateral such as a car, house, or other assets. Below, you can meet the main players and see where most consumers have obtained their personal loans. But the best way to get a personal loan starts with checking your credit score and checking the prequalification of lenders. Let's take a look at some popular personal loans that can be used for debt consolidation, along with their rates.