Borrowers often consider taking out an online personal loan when they need to borrow money. One of the benefits of this loan type is that you can use the money for different purposes. You can use it to consolidate multiple debts, pay for house renovations, finance a small business, or cover utility or medical bills.
Online personal loans have interest rates ranging from 6 to 36 percent. Your borrowing and payment history has a significant impact on what will be the interest rate of your loan. Your debt utilization ratio and credit score are also important factors that influence your personal loan rate.
When applying for an online personal loan, you should consider the interest rate because it will determine how much you have to pay during the loan’s lifespan. Check out these best personal loans rates with Match Financial if you want to get a personal loan.
Social Finance Inc. (SoFi)
Social Finance Inc. (SoFi) is among the go-to loan providers right now. The company can lend you a personal loan without breaking your finances. You can borrow a sum of cash up to $80,000, with an average annual percentage rate of 12.85 percent. This APR may vary based on how long the repayment period and your credit rating.
Fintech is indeed booming nowadays. With the rise of online banking, borrowers can now obtain a loan with less hassle. Upgrade is one of the companies at the forefront of the development of fintech.
The company is well-known for getting rid of unnecessary fees and providing personal loans with affordable APRs. You can get an online personal loan with an 8 percent interest rate from Upgrade.
Prosper is among the top loan providers based in the United States. People who need to borrow money prefer Prosper because of their low-cost personal loans. The personal loan amounts you can obtain from Prosper start from $5,000 to $50,000, with an average APR of around 14.20 percent.
Only Get an Online Personal Loan in Times of Need
Avoid taking out an online personal loan on a whim because having debt is a serious obligation. If ever you want to get this loan option, make sure that you use the money for a practical purpose or investment. For instance, it’s an excellent idea to obtain a personal loan if you use it to renovate your house because you can benefit from the increase in its value.
Another common use of personal loans is to consolidate high-interest debts. When you combine your debts into one payment, it will be easy for you to pay it off. Then, there’s also the possibility of reducing the interest rate you have to pay. It’s a smart move to use a personal loan for debt consolidation because it can build or improve your credit.
Moreover, you can go for this borrowing option if you’re short on money to cover essential expenses, such as hospital or utility bills. Make sure to create a monthly budget and save money to avoid taking out a personal loan to pay such expenses.
Considerations Before Applying for a Personal Loan
It’s frustrating to get rejected for a loan. That’s why you should know what to expect and prepare when you apply for one. Here are some tips to get your personal loan application approved.
- Don’t forget to search and inquire about different personal loan offerings on the internet. Make sure that you get the best deal by comparing interest rates, fees, loan amount ranges, and loan terms.
- Like any other loan providers, lenders of online personal loans also look at your credit score when applying for one. Make sure that your credit score is in the range of good to exceptional to avail of affordable APRs. Build or boost your credit score for that purpose.
- You should see to it that you can afford the loan amount you get. Don’t apply for a loan that doesn’t go well with your finances, and it’s a must to have a budget plan to make sure that you don’t miss payments.
Should You Get a Loan Prequalification?
It’s a smart move to go through a loan prequalification before you formally send your loan application. In this way, you’ll get an idea of how much you can borrow and your chances of getting the loan. Moreover, getting a loan prequalification won’t drag down your credit score.
Always consider the interest rate of the loan you’re taking because it’s the main factor that adds cost to the loan. You can check out online personal loans at Prosper, SoFi, and Upgrade if you want to borrow money at an advantageous annual percentage rate. Read this blog article to guide you on how to find the most affordable personal loans today.