You can obtain a personal loan from an internet lender, credit union, or bank. Your interest rate and loan conditions will be determined by where you receive the loan, as well as your financial and credit history.
Each sort of lender has its own advantages:
Online lenders provide a handy method to search and compare personal loans online.
Credit unions: Personal loans from credit unions may provide cheaper annual percentage rates and more flexible terms for members.
Banks: Some national banks provide personal loans with attractive interest rates and in-person service.
The best site to acquire a personal loan is determined by the best interest rate, loan period, and features that meet your needs.
Personal loans from internet lenders.
Online lenders often provide the quickest option to obtain a personal loan, with some loans authorized and funded within a day or two.
Most online lenders also allow you to pre-qualify to see your prospective rate and term before submitting a formal application. Lenders use a soft credit check to pre-qualify you, allowing you to compare offers from several lenders without affecting your credit.
Some internet lenders target good- or excellent-credit clients (those with credit scores of 690 or higher) by offering large loan amounts at low interest rates. Others cater to consumers with fair or weak credit (credit scores below 690). Bad-credit loans have higher interest rates, but a lender may consider variables other than your credit score, such as education or work.
Pros
Pre-qualify for loans before committing. Most internet lenders run a mild credit check, allowing consumers to view prices and terms before committing to a loan.
Convenient and quick application process: Borrowers who feel comfortable acquiring a loan online can pre-qualify and apply online, and cash may be available within a few days of approval.
Cons
Potentially higher APRs: An online lender may charge a high rate to consumers with bad or fair credit.
No in-person support: While most online lenders offer customer care agents you can phone, few have actual offices you can visit for assistance.
Personal loans from credit unions
Credit unions may provide easier restrictions and cheaper loan rates for borrowers with fair or terrible credit. To apply for a loan, you must first become a member, which usually involves a nominal cost.
Credit unions may also offer small personal loans of less than $2,500.
First Tech Federal and Alliant Credit Union are two credit unions that provide personal loans beginning at $500 and $1,000, respectively.
Pros
Low APRs for consumers with fair or low credit: APRs at federally authorized credit unions are limited to 18%, thus borrowers with poor credit may be able to get cheaper rates than elsewhere.
Softer eligibility requirements: During the loan application process, many credit unions take your membership history into account, which might increase your chances of being approved.
Cons
To qualify for a credit union loan, you must first complete the membership eligibility conditions.
Personal loans from banks.
To get a personal loan from a bank, you’ll most likely need decent credit. It also helps if you already have a bank account.
Existing clients may receive reduced rates, larger loan amounts, and the ability to apply online, whilst new customers may be required to visit a bank location.
Large banks such as PNC and Wells Fargo provide personal loans to consumers in all 50 states. However, not every bank provides personal loans.
Pros
Borrowers can receive individualized assistance from loan officers in-person at a branch location.
Low APRs: Among all lenders, banks usually provide the lowest personal loan rates.
Cons
A branch visit may be necessary. Some banks demand that you finish the application procedure in person.
You may need to be an existing customer: In order to apply for a personal loan or acquire the highest loan amount and lowest rates, you must already have an account with a bank lender.
How to select a loan.
When searching for a personal loan, think beyond the interest rate and monthly payment to the annual percentage rate. The APR combines the interest rate and any additional costs. It provides the most accurate cost comparison between two loans.
Consider the loan length, which affects your monthly payment. Typical periods range from two to seven years; a longer loan term results in cheaper monthly payments but higher total interest.
Finally, examine the consumer-friendly characteristics of various lenders. For example, some debt consolidation loans allow lenders to send money straight to creditors, avoiding the need for you to take that step. Other lenders may allow you to choose your payment due date or miss a payment.
