Best Personal Loans

A personal loan is a type of debt that has a set repayment term and monthly payment. Depending on the lender, you can borrow between a couple hundred to tens of thousands of dollars.

Personal loans are issued by banks, credit unions, and various other financial institutions. There are personal loan options for people with all types of credit, including bad credit.

Common Questions

See some common questions and answers below
How to borrow to get out of debt?
Don’t fall into a cycle of taking out small loans to pay for everyday living expenses. Although debt consolidation loans can be helpful, they are worthless without a realistic budget. If you are spending more than you earn, a debt consolidation loan only prolongs the inevitable. Find ways to increase your income, if you can’t afford to pay your debts. If that is not an option, you may need to consider other debt-relief options besides debt consolidation loans, such as debt settlement programs.
How do you qualify for a personal loan?
Most personal loan companies will pull your credit history and ask you for your income and debt before offering you a loan. Your credit history and ability to repay the loan will determine how much you can borrow and the rates lenders offer you. Most lenders require you to be 18 or older, a legal U.S. resident, have a checking account, and not currently in bankruptcy.
Are personal loans a good idea?
Personal loans can be a great way to make a big purchase or consolidate your debts into a single fixed monthly payment at a lower rate. Unlike mortgages and auto loans, unsecured personal loans don’t require an asset as collateral, such as a car or a house. If you don’t make payments, the lender can’t immediately seize your property. Although defaulting on your loan payments will damage your credit score. On the other hand, transferring credit card debt to an installment loan can improve your credit score because it lowers your credit utilization ratio and diversifies the types of credit on your credit report.

However, the terms of a personal loan can vary greatly between companies and depending on your credit score, income level, loan amount, and other factors.

Do personal loans affect your credit score?
They certainly do. Personal loans can both hurt or help your credit scores depending on how you manage them but paying your bills on time is critical to help it.

Depending on your credit profile, a personal loan may help your credit and your credit scores. Why? Personal loans add variety to your credit profile, lowers your credit utilization ratio, and helps you establish a solid payment history. All of which are key ingredients for a solid credit score.

Personal loans are particularly good for your credit if you use tem to pay down higher-interest rate debt. A personal loan can also help you reduce your monthly payments, which will make it easier to follow the golden rule of credit—paying your bills on time every month.