Best Personal Loans For Great Credit: Exploring Financing Options For High Credit Scores – Our reviews and opinions are not influenced by our advertising relationship, but we may earn commissions from affiliate links. This content is independently created by our editorial team. Learn more.
The Federal Reserve has been busy this past year. During the Fed’s May meeting, held the week of May 2, they decided to raise interest rates by 25 basis points. This is the tenth consecutive rate hike since last year. At its June meeting, held the week of June 13, the Fed stalled and refused to raise its benchmark interest rate any further. However, at its July 25 meeting, the agency reimposed a 25 basis point hike, leaving the federal funds rate now at 5.5%. The Fed declined to raise interest rates at its November 1 meeting, holding off for the second time in 2023. The Fed may decide to raise interest rates at its next meeting, which is scheduled for December 12 and 13, 2023. 2023, but that is considered unlikely after Fed Chairman J. Rom Powell said at a Dec. 1 event at Spelman College in Atlanta, “We’re getting what we want out of the economy.
Best Personal Loans For Great Credit: Exploring Financing Options For High Credit Scores
These interest rate increases make it more expensive to borrow money, whether it’s car loans, student loans, mortgages or personal loans. That’s why it’s important to compare lenders to determine the best personal loan rates.
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Personal loans such as car loans or even student loans can come from many financial institutions or companies.
Online lenders tend (but may not) offer attractive interest rates and may include companies like LendingClub or Avant. Then there are traditional banks that may offer personal loans, this list will include most of the major banks that you may be familiar with, along with companies like Discover that are often associated with cards.
Finally, you can also check credit unions for personal loans. Credit unions tend to be smaller and more regionally focused, but there’s probably at least one or two near you no matter where you live in the United States.
LendingPoint is an Atlanta-based online lender that offers personal loans in every state in the US except Nevada and West Virginia. Note that with LendingPoint, upfront fees can be high and the maximum interest rate applied can be quite high.
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Our take: Potential borrowers should be aware of the high interest rates (if their credit scores aren’t great) and the aforementioned origination fee, which can be as high as 8%. This could be a potential downside to using LendingPoint, but for those with better credit, a range The lower APR can be an advantage.
Personal upgrade loans are available to residents of every state except Iowa, Vermont and West Virginia. There are also initial fees to consider, which range from 1.85% to 8.99%. The minimum credit score is 600 and like the other lenders discussed, origination fees can reach up to 12%.
Our view: Potentially high fees and APRs should be a red flag for some borrowers considering an upgrade. However, if you have bad credit, one of several bad credit loan options may be available to you. So if you have bad credit, it might be worth considering, even if the fees are quite high.
Appstart is unique in that it uses artificial intelligence to drive the lending market, which also helps reduce costs. It also allows you to move faster and approve borrowers faster than other financial institutions. The minimum credit score is 600 and like the other financial institutions discussed, origination fees can reach up to 8%.
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Our assumption: Relatively low credit scores can get loan offers with Upstart, and the AI-based backend of the platform can speed up the qualification of potential borrowers. But again: be aware of potential high fees up front.
You may know Discover for its myriad credit card offers. Now you know that she also offers personal loans. Since it is a large, reputable and relatively stable company, some potential borrowers may be inclined to investigate its services. There are no initial fees or upfront fees and the funds are available quickly, which is another advantage.
Our take: You can’t ignore the fact that Discover doesn’t charge any opening fees or origination fees, and it also offers a 30-day grace period where borrowers can return the money or change their mind. They intend to cancel the loan without a financial penalty.
Best Egg is another financial institution from Delaware founded in 2014. It tends to offer relatively high interest loans, but the terms are not readily available on the company’s website. Potential borrowers need a minimum credit score of 550 to 600 to qualify.
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Our take: Best Egg has been around for a while and has a pretty good reputation in the industry. This means that you have to factor in upfront fees and you will have to go through the application process before the terms of the loan are clear. All things considered, if your credit is fair to good, Best Egg is worth a try.
Happy Money’s APR runs over 11%, significantly higher than many other financial institutions. The minimum required credit score is also slightly higher, at 640. The company has made a name for itself by targeting borrowers looking to pay off or consolidate high-interest credit cards, and has lent more than $5.2 billion to date. .
Our take: If eliminating credit card debt is your main goal when taking out a personal loan, Happy Money can be a good choice, especially if the minimum interest rate is relatively high and the set-up fee is offset by paying a high interest credit card.
Avant is a financial institution from Chicago founded in 2012. Borrowers can live in most states except Hawaii, Iowa, New York, Vermont, West Virginia and Maine. A minimum credit score of 580 is required to qualify. There are also fees to consider, as there is a 4.75% upfront administration fee and a late fee.
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Our View: Avant is another totally viable option if you don’t have good credit. However, fees and interest are something that should not be overlooked. Also of note: Avant eventually settled with the Federal Trade Commission (FTC) for $3.85 million in 2019 for charging customers fees and interest they didn’t owe.
One thing that stands out about Penfed is that it offers low interest rates for relatively small loan amounts. Applicable APRs start at 7.99%, among the lowest of the financial institutions analyzed, and borrowers can withdraw as little as $1,000 but up to $50,000. PenFed is also a credit union with a long history: it was founded in 1935.
Our opinion: With friendly interest rates and the ability to borrow relatively small amounts, Penfed can be a good choice for many potential borrowers. However, there are origination fees and borrowers will need to join a credit union to borrow money.
LightStream is part of a much larger financial operation developed as an offshoot of consumer lending company Truist, which was created after the merger of SunTrust Bank and BB&T a few years ago. LightStream’s interest rates are also attractive, but a minimum score of 660 is required to qualify.
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Our take: LightStream is part of a fairly large financial institution and has good interest rates for the current environment. If you have a good credit score, this may be a financial institution that is worth your money. Another advantage: no initiation fee.
Lending Club charges origination fees from 2% to 6%, and the applicable APR ranges tend to be high among the financial institutions analyzed. However, the company’s loans are available to residents of all 50 states and D.C. And you can even submit a general application.
Our benefit: Although loans are available nationwide and Lending Club will allow borrowers to request a co-signer or co-borrower, loan fees can make borrowing from other financial institutions more expensive. It’s not a bad option, but potential customers should keep the cost in mind. The loan club charges an origination fee of 3% to 8%.
Lenders use many sources to determine loan interest rates, but it often comes down to a few key factors: your credit score, your credit history, current economic conditions and how those conditions work. This affects the interest rates set by the Federal Reserve. . Borrowers can’t do anything about the Fed or the economy, but they can do everything they can to shape their credit history and score. Your credit score can also be the biggest deciding factor when lenders determine the interest rate to charge you.
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In general, you can make certain assumptions based on your credit score range to determine an estimated APR. The table below is a rough estimate, but based on current average interest rates, it may be helpful to provide some guidance:
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