Personal loans are one of the most flexible ways to borrow money. You can use the money to pay for unexpected costs, to make big purchases, or even to buy a car. Even if you have bad credit, find a lender who will work with you even if their requirements differ.
When applying for personal loans, the goal isn’t always getting the lowest rate possible. You should find personal loan providers who can solve your unique financial situation. But the last thing you want is to apply for a personal loan with the highest interest rate. Discover personal loans, minimum credit score requirements, and more here at MoneyZap!
What Is a Personal Loan?
A personal loan can be a secured loan or an unsecured loan with a fixed annual percentage rate (APR). This loan type has APRs between 6% to 36%. The personal loan with the lowest rate is the least expensive and is usually the best choice. The minimum loan amounts from online personal loan lenders range from $2,000 to $50,000.
Some personal loans stand out. They may not charge fees, only do soft checks, or let you make direct payments to eliminate a lot of debt. Personal loans are often used as an alternative to home improvement loans, debt consolidation loans, and other medium-term to long-term loans.
Where Is the Best Place to Get a Personal Loan?
You can get a personal loan from a traditional bank, credit union, or direct lender. The place will depend on where you can get your money’s best rate, terms, and extras. For example, if you want to get a loan quickly and easily, you might want to look for an unsecured personal loan. On the other hand, a bank or credit union loan could be better if you wish to lower rates.
How to Choose the Best Personal Loan?
Here are some things to consider as you browse personal loans and compare them.
Credit Check Difficulty
Personal loan lenders can do a hard or soft credit check as part of the pre-qualification process. Your loan will appear on your credit report with a hard check. But with this credit check type, average interest rates are lower. And if there is a minimum credit score requirement and you don’t meet it, you will hurt your credit. See related article, Average Credit Score by ZIP Code.
You exchange higher rates for loan approval speed and security with a soft check. You may have to pay more, but you can also rest assured that you can get your loan proceeds ASAP and safely.
Depending on how much personal loan funds you need, one lender might be better than another. Some lenders offer loans between $2,000 and $40,000, while others provide loans up to $100,000. You can compare and choose if you know how much you need ahead of time.
Because APRs include interest rates + fees, they let you compare the loan costs. Use a personal loan calculator to know how much you’ll pay and at what rate.
When you have a lot of different repayment terms to choose from, you can get a shorter period and pay less interest. You can also get a more extended period and pay less in the monthly payment. One may be a better choice than the other, depending on your capabilities.
Ease of Application
Many lenders have online applications that only take a few minutes to fill out. So they can let you know if you are prequalified without hurting your credit. The process can be more complicated, tiring, and slow with other lenders.
If you need cash fast, look for one that cashes the next day (see article: How to Get Payday Loans With No Credit Check). But remember that funding times are not guaranteed and depend partly on your lender. With payday loans, you can ensure things are fast. With others, not so much.
Ensure that the lender you pick has an excellent name to back their services up. Check consumer review sites and government sites. Use the Consumer Financial Protection Bureau’s Consumer Complaint Database. Do your research, and you’ll be able to choose a great lender.
You might enjoy lower rates for Autopay, protection from unemployment, or financial coaching. Check to see if a lender has any perks that could help you reach your financial goals.
In Conclusion: Which Personal Loan Is Easiest to Get?
The best personal loan for you is one that fits your situation. Your choice will differ depending on whether you need secured loans or unsecured loans. If you need money as fast as possible, you may not mind higher than average interest rates and APRs. If you’re all about keeping costs as low as possible, a slower funding speed may not be an issue.
The key is knowing what you need precisely. Use the checklist below to understand your criteria for a personal loan.
- credit difficulty tolerance
- loan amount
- interest rate
- repayment terms
- ease of application
- funding speed
- lender’s reputation
- other essential loan features
With MoneyZap, you can check your criteria boxes with ease. Find secured and unsecured personal loans alike that suit your taste and needs. You can also look into alternatives to personal loans like auto loans on our website. Either way, you can do your loan comparing and contrasting in one place and anytime you like online.