Financial Affairs

How to find the best personal loan for your needs

Make smart choices when choosing the right personal loan to save money. (iStock)

Personal loans can have many financial benefits if you find the right loan with the right lender. The right personal loan can help you pay off an expensive loan or even reduce high interest credit card debt. When used correctly, a personal loan can be a powerful personal finance tool.

But to take full advantage of a personal loan, you’re going to want to find the best loan rates and terms for the loan amount you want. Credible Online Marketplace Makes Fast Funding Simple – All It Needs To Be enter your loan amount and instantly find rates from 4.99% APR.

Tips for finding your best personal loan

In addition to shopping around, there are other ways to make sure you find the best personal loans available. Here is how you can find the best personal loan for your needs.

  1. Identify the purpose of the personal loan
  2. Pre-qualify for a personal loan
  3. Fill out a request
  4. Compare rates and fees

1. Identify the purpose of the personal loan

If you are looking for a personal loanThe first thing that you need to consider is the reason why you are getting the loan. Once you have identified how you will be using the money, you can refine your search. Here are some of the main reasons for taking out a personal loan:

  • Debt consolidation
  • Home renovations
  • For medical or other purposes

Debt Consolidation: For example, if you consolidate debt and have a credit rating, consider talking to your credit union. If you’ve been a customer of the credit union for some time, they may be more willing to give you a loan to help free up money than another lender.

The Credible Multi-Lender Marketplace can show you a variety of debt consolidation loans, offering loans ranging from $ 600 to $ 100,000. Only enter the desired amount and find your rate instantly (without impact on your credit score).


Keep in mind that if you take out a personal loan to consolidate debts, they may require that you close credit card accounts or let them make payments on your behalf to ensure that you are using the funds as requested. Make sure your credit union offers competitive rates to free up as much money as possible to pay off your debt.

Likewise, debt consolidation loans also offer lower APRs than credit cards and other personal loan options. Take a few minutes to research your options online. Spending an hour or so reviewing your choices could save you thousands of dollars in interest charges over the life of your loan.

Home renovations: If you want to use a personal loan for home renovations, be sure to look for companies that offer higher loan amounts with lower interest rates. You might even find companies that specifically offer personal loans for renovations or repairs.

If you have bad credit, you may be more limited in your personal loan options. While there are still options available, you may need to pay higher interest rates or settle for a smaller loan.

If you need quick cash to fund a home improvement project, you can use Credible to compare rates and find a lender with APR ranges, loan terms and loan amounts that match your needs.


For medical or other purposes: If you have a specific goal for your loan, you have more options for saving money. For example, several companies offer medical loans. These loans usually offer a much lower rate APR.

2. Pre-qualify for a personal loan

Applying for a personal loan is easy. If you choose to work with an online lender, you may be able to “pre-qualify” for a loan. Prequalification does not guarantee that you will be approved, but lets the lender know that you are a potential borrower.

The prequalification process includes soft pull credit. A gentle pulling way allows the lender to examine your credit score and credit report, but it will not appear as a survey.

If you want to research a loan, prequalification can save your score by limiting the number of serious applications that appear. Credible can walk you through the prequalification process, allowing you to see personalized prequalified rates..


3. Complete an application

Many lenders (even local credit unions) have an online application available. Once you’ve completed the form and submitted your application, you can expect a response within hours. The lender may request additional information and conduct a short interview. If the lender approves your Personal loanYou will need to complete additional loan acceptance forms and payment terms.

Personal loan applications will require the following information:

  • Name and address
  • Date of Birth
  • Social Security number
  • Employment status
  • Proof of income
  • Rent / mortgage statements
  • Access to credit report
  • Debt statements (if you plan to consolidate)


4. Compare rates and fees

One of the most important considerations when choosing a personal loan is the interest rate. Your credit score, where you live, your choice of lender, the loan amount, and the purpose of your loan can all affect the interest rate you pay. If you have a high credit score, you can probably get loans at the best rates.

Credible can help you find a lender online. Only enter your desired loan amount and your estimated credit score in this free tool to view personal loan interest rates.


The main reasons for applying for a personal loan

While you can take out a personal loan to finance your education or to buy a car, it might not be the most affordable way. Student loans and auto loans often have lower interest rates.

Personal loans offer flexibility. Unlike auto loans, mortgages, and student loans, you can use the funds you receive from a personal loan to cover a multitude of expenses. The flexibility makes personal loans an attractive option for people who need to access funds in a short period of time.

There are many reasons people look for personal loans. Some of the most common uses of a personal loan include:

  • Debt consolidation
  • Home renovations
  • Medical fees
  • Wedding expenses
  • Vacation
  • Moving expenses
  • Big purchases
  • Funeral expenses
  • Financing a small business
  • Investment

Taking out a personal loan can be an easy way to free up money to pay off debt, expand your business, take a vacation, or deal with a family emergency. However, a personal loan is only beneficial if it is the most affordable way to access additional cash. Ask questions, review your finances, and make a plan before you take out a loan so you can reap the benefits of personal loans while reducing your financial risk.

Don’t worry about having to go through personal loan options yourself. Credible Can Help Compare Personal Loan Companies (and hopefully get you the lowest rates).