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Best Personal Loans for 2020

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Nathan J. Lee

When it comes to personal loans – also known as installment loans – be they small personal loans, personal loans online, or low-interest personal loans, I have had more than my fair share. Through the use of several personal loan providers over the years, I’ve become very experienced in the area: I’m now able to find the best personal loan from the best personal loans companies thanks to my high-level of understanding.

I know how confusing starting the process of getting an installment loan can be, as well as understanding all of the terms and processes involved with trying the find the best place to get a personal loan. This is why I have created this personal loan guide. Within this article, I help you to understand what a personal loan is, what you need to consider, when you should get a personal loan and a step-by-step guide to getting the best personal loans for you.

What is a personal loan?

A personal loan is, quite simply, another form of loan that you can acquire from a bank or lender. Otherwise known as unsecured loans, personal loans aren’t secured against your house, car, or any other asset that you own, often charge a lower and fixed interest rate compared to that of a credit card, and the best personal loans tend to allow you to borrow more than a credit card would allow.

Installment loans apply to almost anyone who wants to borrow money, within reason, and it’s even possible to find instances of personal loans with online approval available through certain lenders. There are a couple of other key factors that often make personal loans more appealing than other mainstream forms of money lending, such as being able to make over-payments without being slapped with a penalty or choosing the length of the loan.

Important considerations when choosing a lender

Before you decide if small personal loans or a larger personal loan is right for you, here are some important aspects to consider:

  • The Real Interest Rate: It is very common that an advertised interest rate, or annual percentage rate (APR), will not be the one eventually offered.
  • The Need for Good Credit: If you’re considering signature loans, which only use your promise to pay and signature as collateral, you’ll need to make sure that you have a decent credit history. That said, there are installment loans for bad credit as well.
  • Check a Personal Loan Calculator: If in doubt, there are plenty of calculators for personal loans online.
  • Find a Co-Signer: Finding someone with a better credit score than you who is willing to co-sign can help you to get the best personal loans.
  • Asking for a Quote: If you’re looking for a quote, request a soft search credit pull or a quotation search to protect your credit score.
  • Don’t just look at the banks: It’s a very good idea to shop around for large or small personal loans and to take into consideration the non-banking options when looking for the best personal loans.

Best Personal Loans Lenders for 2020

  • Co-Sign Option
  • Hardship Plan
  • Min. Credit Score 600
  • Best: Consolidate Debt
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  • Quick funding - 1 Day
  • Grace period fee: 5% Max $15
  • No prepayment penalty
  • Min credit score of 620
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  • Day of Grace: 10 days
  • Annual income of $20,000
  • Min credit score of 580
  • Administrative fee: 4.75%
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When to consider getting a personal loan

Personal loans can help you a great deal when facing a sudden expenditure and present themselves as a less expensive way to lend money. As long as you can repay the installment loan comfortably and the rates are preferable to that of other forms, such as credit cards, personal loans can help you cover costs in the short-term. Here some instances during which you may consider taking out a personal loan:

  • Wedding Loan: Weddings are notoriously expensive, but a personal loan can help spread out the costs of the big day.
  • Car Repair Loan: Car repair costs are often sudden and can be quite large, but if you get a car loan, you can cover the price to get you back on the road.
  • Vacation Loan: If you need to get away but lack the funds to get to your ideal location, small personal loans can help.
  • For Debt Consolidation: A very popular use of the best personal loans is to consolidate debt, particularly high-interest debt, by paying off the initial debt and then taking on the lower-rate and more agreeable payment structure of the personal loan.
  • Home Improvements Loan: Like car repair loans, home improvement costs can come out of the blue, or putting money in now may be able to save you money down the line – making the interest rates of the best personal loan companies worthwhile taking on.
  • Medical Loan: Generally speaking, personal loans work best for medical bills when you can’t get a better payment plan through a medical body.
  • Other Large Purchases: Basically, if you can handle the repayments comfortably but really need a sum upfront for a large purchase, low-interest personal loans can help.

A step-by-step guide to getting a personal loan

  • Check Your Numbers: The first and most important step to seeing if personal loans apply to you is checking the numbers, which includes looking at your monthly expenses and how much you can afford to repay each month as well as how much you need to borrow.
  • Check Your Credit Score: Your credit score will play a crucial part in the process of getting an installment loan, so be sure to know what your credit score is so that you know if you can aim for the best personal loans, low-interest personal loans, or signature loans.
  • Check Your Options: Thanks to the internet, you have access to an ocean of installment loan lenders. Personal loans online are often representative of what you can find in the building of the land-based lenders, but you’ll need to be sure to check all of the most reputable options to find the best place to get a personal loan for your needs.
  • Choose Your Loan Type: There are many different types of loans that can cover many different applications. If you’re of strong credit standing, you could consider a signature loan to take on less risk. What type of loan you seek can very much depend on why you’re getting the installment loan.
  • Check the Best Rates: When looking over your options, both land-based and personal loans with online approval options, you’ll need to keep a note of the best rates so that you can analyze which plan would be best for you. Rates can vary greatly between the best personal loan companies, regardless of if they’re small loans online or larger loans from a bank.
  • Choose a Lender and Apply: Using the information on BestInstallmentLoans.com, you should be able to find the best personal loan companies for your needs. So, once you’ve found the one with the best rates and terms for your installment loan, simply apply.
  • Provide the Necessary Documentation: It is very important in this stage that you provide all of the information requested by the lender as accurately as is possible, even if it means that they deem it necessary to increase the interest rate.
  • Accept the Loan and Start the Payments: Once you have been approved and offered a loan, all that you need to do is accept and commence the previously agreed structure of payments.

I hope that this guide to helping you find the best personal loans helps you to find the personal loan that you need.