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Personal Loans in US 2020-Looking for Loan Details? Here is the Guide for you

Personal loans are the least expensive form of credit, & help you to meet your expenses

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Personal loans are the least expensive form of credit, and help you to meet your expenses without worrying you to about existing budget. Although, if same loan is taken for a vacation, then it would be an expensive loan. A personal loan is granted for a fixed time, which is usually short period, like within two to seven years.

Personal loans are unsecured, which means that you will not be required to back up it with a collateral for example you assets, rather the lending institute will evaluate you reliability to pay back with other factors like your income, or existing credit rating. Therefore, what matters to get an ideal lender on board, is your personal need and what financial profile do you have. Also every financial institution has own personal loan plans depending on its business,  that will determine how much and for how long they can lend you.

Personal loans are the least expensive form of credit, and help you to meet your expenses!

Personal loans are the least expensive form of credit, and help you to meet your expenses

There could be a number of reasons for taking out a personal loan. For example:

Debt consolidation –  to finance another debt or payment. You can use personal loan, to consolidate your debt or finance your expensive purchases.

Home Improvements – to do your home repairs or renovation and require finances. A home improvement loan is a form of personal loan which will help finance these expenses.

Good Credit –  if you have a good credit rating, you will get personal loan on very less interest rate and flexible payment options.

Read Also: 4 Types of Insurance Everyone Needs

How to pick a personal loan?

Consider these factors when choosing an online lender so you get a loan you can afford:

Compare rates –  if you have a good credit rating, this will surely help you find reasonably low rate loans

Loan purpose –  this is important as the purpose will identify what rate will be applicable on you. Like we have mentioned before if personal loan is taken for home repairs, it will cost you less but if same loan is taken for a foreign vacation, you will be charged high rates.

Credit features – like flexible payment schedule will allow you to pay more when you have access funds available or defer your payment in case you have another financial emergency emerged. Few financial institutions give you option to directly transfer your loan proceeds to another creditor where you have to make a payment.

Complementary benefits – for example free credit rating and monitoring.

Qualifying for a personal loan

Mostly the big lending companies’ websites will let you assess you eligibility, called pre-qualification assessment and allows you to compare rates as well as other conditions, if any.

Once you are satisfied with any lender which fits your financial needs, and you too qualify for it, then you are good to apply for the loan formally.

Best personal loans in US 2020

Our best picks are based on the purpose you are looking for personal loan and who better suites your individual needs.

LightStream

An online lending facility owned by SunTrust Bank, renamed as Truist. LightStream is offering customized loans to meet individual needs for almost any purpose. Although, their specialty is lending for home improvement purpose.

Key features:

  • Loan amount ranges between $5000 to $100,000
  • No fees
  • Convenient payment terms up to 144 months
  • APR ranges between 4.99% to 16.99%
  • No option to check your qualification before you actually apply for the loan
  • Comparatively strict credit rating check required

Marcus:

Marcus by Goldman Sachs, which is an online consumer facility, specializes in debt consolidation loans with reasonable credit terms. If you are highly indebted to pay off your credit card bills or other liabilities, you surely need such kind of loan facility offered under the umbrella of personal loan by Marcus (and many others).

Key features:

  • Loan amount ranges between $3,500 to $ 40,000
  • No fees initially and or for late payments
  • Flexible payment terms
  • APR ranges between 6.99% to 19.99%
  • No option to check your qualification before you actually apply for the loan
  • Comparatively strict credit rating check required
  • No help allowed as cosigner, if you have weak credit rating

SoFi

SoFi is in personal loans business since 2011.

Key features:

  • Loan amount ranges between $5,000 to $ 100,000
  • No fees initially
  • Payment terms up to maximum 7 years
  • APR ranges between 7.99% to 15.53%
  • You can do your pre-qualification assessment online
  • Allows Cosigner, if you have weak credit rating
  • Comparatively strict credit rating check required

American Express

American Express has the personal loan facility for its credit card holders, which is given based on creditworthiness of the applicant. It is just like cash advance limit on your credit card which is basically your credit limit.

Key features:

  • Loan amount ranges between $3,500 to $ 40,000
  • APR ranges between 5.91% to maximum 19.98%
  • You can check your qualification for the loan prior to apply
  • You need American Express credit card to qualify for this loan
  • High payments/ installments
  • Credit requirements are not specific and varies case to case
  • No help allowed as cosigner, if you have weak credit rating

TD Bank

It is a lending facility for borrowers with an unclear credit history  or low credit rating. TD bank will accept your application in case too, if you have a cosigner available, who will secure the loan payments, in case the primary borrower defaults. This facility is used for credit card consolidation.

Key features:

  • Loan amount ranges between $2,000 to $ 50,000
  • No hidden fees
  • APR ranges between 6.99% to maximum 18.99%
  • Quick processing of your application and granting loan
  • Individual credit rating if weak, will not disqualify you
  • Cosigner allowed
  • Personal visit required to the bank in application process
  • Bank has less number of branches

Your best picks will depend solely on your individual requirements. It is advised to follow the steps mentioned and do your market research accordingly.

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Asma Khan

Asma Khan writes articles on various niches to help businesses grow and rank on Google. She is passionate to write on finance and economy, education, health, and immigration sectors. Asma loves to do research and come up with authentic content for different websites. You can reach her our @ aasma.jabeen84@gmail.com

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