Personal loans offer many consumers a flexible way to finance small or big purchases, fund home improvement projects and even consolidate their debts. Like many, some consumers just need fast cash. However, it is also important to know the difference between a personal loan and a line of credit. Consumers who apply for personal loans usually take them out for a short period of time. This time frame can be any where between two and five years. This timeframe is a fixed length of time and does not fluctuate, unlike a line of credit. With a line of credit consumers can borrow funds and not have to worry about paying interest until they use their line of credit.
The best strategy when obtaining a personal loan is to do lender comparisons. Personal loans in 2019 can range from 3.34% APR on up. This is why it is highly recommended to do the necessary comparisons of different rates in order to get the right loan while saving time and money. The best interest rate to get when applying for a personal loan would be a fixed rate. Fixed rates are great for consumers who do not want their interest rate to fluctuate during the period of the loan. Finding low fixed rates is not hard at all. When you compare top lenders and their APR along with other fees you will soon find out that getting a low rate is within reach as it just requires some research.
The internet is a great online tool that can help you look over lender comparisons, read up on personal loan articles, and also get the necessary feedback from lenders reviews. Some online lenders provide a decision within minutes after completing an application. As more and more consumers are now doing more and more financial transactions online, obtaining a personal loan online is the fastest and most trusted way.
Below is a list of the top five lenders that offer the best personal loans currently on the market:
1. SoFi – Best lender for loans of up to $100,000
2. LendingClub - Best lender for consumers with fair credit
3. Upstart- Best lender when obtaining low loan amounts
4. LightStream- Best lender for consumers looking for a co-signer option
5. Prosper – Best lender for up to a 50% debt-to-income ratio
One of the main objectives when looking for the right personal loan is your annual percentage rate. This rate is critical and will set the tone for how much your are really paying back. The trick is to go with the lowest annual percentage rate for your loan which will make it the least expensive in the long run.
All in all, getting a personal loan should be done with confidence and can definitely help you reach your financial goals. Always be sure to read the fine print, shop around between traditional brick-and-mortar banks and reputable online-only lenders and most importantly do your research. When evaluating personal loan companies make sure to also check customer satisfaction ratings from the Better Business Bureau and online personal loan satisfaction studies. Choosing the right lender is beneficial for your financial success and in the long run will save you thousands of dollars.