Best Personal Loans for 2020
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.