If you need immediate money, a personal loan can help you in no time, as long as you qualify for the loan. These loans are usually a good way of combining or eliminating credit card debt and they come in the form of debt consolidation loans. Do you think you might require taking out such a loan in order to bid goodbye to all your high interest debts? If so, you may want to take out personal loans and also know about the some truest facts on such loans. What are the different loans which will be the best for your investment portfolio? If you aren’t sure, there are some things to take into account.
When should you use a personal loan?
There might be some other options which you can explore initially before getting an unsecured personal loan, depending on the goals and on the situation you’re going through. If you don’t want to offer anything as collateral, personal loans are definitely a good idea or when you literally don’t have any collateral to show, you can definitely take out personal loans. It’s not so easy to get unsecured loans at the best rate, however; for instance, you can take out a home equity loan at a much better rate as the option is much less risky for the lender. You will find some lenders who have tailored loans for people with bad credit.
It’s a very bad idea to use personal loans for any kind of discretionary purchase as they carry high interest rates. If you are a small business owner, however, who requires covering his quarterly taxes until a major supplier pays the invoice, you can make use of such loans. You might even want to take out personal loans for consolidating high interest debt in order to manage a single payment.
The following are some of the best personal loan options which you might choose from in 2016.
Prosper: Prosper has a lenient lending criteria than some of the major competitors. You will need a minimum credit score of 640 but they will take into account some other factors in order to grant you a better interest rate. You can borrow from $2,000 to $35,000 at an APR of 5.99% to 35%.
Lending Club: Lending Club also offers loans up to $35,000 and although they are bit similar to the above mentioned lender, their requirements for credit scores are a bit more relaxed. In fact, even with minimum 600 credit score, you can grab a loan.
Wells Fargo: If your credit score is good and you want to keep your business with a reliable bank, this is a good option. The APRs ranging from 6.25% to 19.75%, and this brick and mortar lender would indeed be a good option for a borrower with excellent credit.
So, if you are in need to get online personal loans, you can contact the online lenders and in case you wish to work with the conventional companies, you may consider the above mentioned ones.