Do you need money for a mortgage, college class or car? You are not the only one.
Currently, 44 mln Americans took out loans to pay for college. Yet, we borrow not only for educational purposes. According to the New York End, in 2017, the total indebtedness for U.S. households amounted to $13 trillion.
Borrowing is in DNA of each of us. The majority of us can’t afford to buy a home or a car outright. Americans can’t afford 70% of colleges.
Yet, the process of borrowing can be risky and lengthy. You should be really attentive not to borrow more than you are able to repay.
Knowing the best place to get a personal loan will help to make smart financial decisions. If you would like to borrow money to improve your financial situation and life in general, you should read about the top 9 personal loan places.
1. National banks
Wells Fargo, US Bank, Capital One – you have already heard these names many times. Personal loan programs of such banks are on everyone’s lips. Maybe some of you are the customers with one of these banks. Then it is even better to borrow from a bank you can trust.
You should not forget about other banks as well. Some of them propose nationwide service and access to multiple loan products.
Why Borrow: The important-sounding banks are ready to offer multiple loan options. From a range of rates, fees, and more, you will likely to find a loan that fits your needs. Also, such banks propose convenient online features, like online bill pay and customer service available 24/7.
Why skip: If you take out a loan from big banks, it can be hard to reach its employees on the phone. If you reach someone, it will probably be a live agent without experience. Such banks are also not the best place to get a personal loan with bad credit.
According to New York End, in 2017, the total indebtedness for U.S. households amounted to $13 trillion.
2. Credit unions
These institutions are becoming more and more popular. They are often headquartered within the served community. Thanks to this, they often help local businesses.
Why borrow: The rates of credit unions are often lower than the banks’ rates. Location is one of the biggest pros. You don’t have to call somewhere. You can visit the office and talk to an expert face-to-face.
Why skip: Not all credit unions offer online payments or checking the payoff progress. Smaller credit unions can offer fewer products and services. Ensure that your local credit union provides all the options you need.
3. Online fast-money lenders
This is the best place to get a loan for people who want to take out a loan without leaving their home. You can get money on the next business day. Yet, be cautious when taking out such loans.
Why borrow: It is easy and fast. Just send an application and wait for a decision. Online lenders are often eager to cooperate with bad credit borrowers.
Why skip: Some of such lenders charge crazy interest rates, up to 400% APR. If you are in this cycle, it is hard to escape from it.
4. Peer-to-peer (P2P) loans
P2P lenders make a name for themselves. The individuals fund your loan or a part of it. You pay the balance and the interest back to them.
Why borrow: P2Ps are the best place for personal loans if you are looking for reasonable rates. The term usually ranges between 3 and 4 years. It is good for people who want to repay a loan quickly.
Why skip: P2Ps also have a credit underwriting system that can result in a high interest rate. Your application can also get not enough people eager to help you and you won’t get anything.
Borrowing is in DNA of each of us.
5. Retirement plans
If your retirement plan is sponsored by an employee, it’s possible to take a loan out of your retirement savings. The IRS has limits on the amount borrowed, but everything will be fine if you are really careful.
Why borrow: technically you borrow your own money and repay interest to yourself.
Why skip: this money is your retirement. When you remove a certain sum from it, you don’t benefit from the compound growth. It can make you more remote from your retirement goal.
6. Cash advances
If you have an emergency and need cash ASAP, you can put your credit card into the ATM, request a cash advance and get real money in seconds.
Why borrow: You get instant cash.
Why skip: the interest rate can exceed the purchase rate. You may also have to pay an extra fee. Yet, it’s cheaper than taking out the online fast-money loan.
7. Private businesses
If you need some item and don’t want to apply for a loan to get it, private businesses are the best place for a personal loan. These are car dealerships, furniture stores, and big-box stores.
Why Borrow: It is a real purchase so it’s easy to get the instant credit card on site. Such sellers may also propose price discounts.
Why skip: It can be cheaper to shop around for loans. You don’t know what are the rates and terms of the competitors. Your lender is probably not an expert but a usual salesperson.
8. Payday lenders
If your credit history is limited, you have not that many options. Payday lenders can help you if you are in a desperate position.
Why borrow: The are only two reasons to consider payday loans: serious emergencies and limited options. Think twice anyway.
Why skip: Payday loans have outrageous fees and interest. The term of an average payday loan is 2 weeks with over 400% APR.
Each of us has had unpaid bills and has been in need of instant cash. Fortunately, there are multiple options, and you can compare the best places to get a loan that meets your needs.
When shopping for a loan, stand poised and look for the traps, like high interest rates, large borrowing fees, and the lender’s inflexibility. By investigating the best place to get a personal loan when you need extra cash, you can decrease the overall sum you should pay.