Even if interest rates rise, can you get a good interest rate on a personal loan?

Interest rates are rising as the Federal Reserve tries to argue record inflationCentral banks do this because lending will become more expensive and hopefully they will try to slow the economy without going into recession.

But higher interest rates mean loans are more expensive and less desirable compared to record demand since the outbreak of the pandemic.

But can you still get a reasonable interest rate on a personal loan?

select Investigate how to get the best possible interest rates on new future loans and how to improve interest rates on current outstanding loans.

Subscribe to our Select newsletter!

Our best selection for your inbox. Get weekly shopping recommendations to help you upgrade your life. SIGN UP HERE.

How to get a low interest personal loan

According to the latest data, the average 24-month personal loan interest rate is 8.73%. Federal Reserve DataHowever, this average rate is down from 2018 when it was 10.32%. It’s also important to remember that these are average rates. He currently has a personal loan with an APR of less than 4%.

The three main factors for getting the best possible interest rate are:

Check if your personal loan application is pre-approved.

1. Good credit score

It’s no secret that you get the best interest rates on personal loans. The higher your credit score, the more likely you are to get higher interest rates. generally, very good Also good credit score Eligible for (740+) Minimum chargeAdditionally, higher scores may provide other benefits such as longer repayment terms and larger loans.

However, don’t let a less-than-perfect credit score get in the way of your application. Even if you don’t have a great credit score, there are ways to get personal loans with favorable interest rates. There are other factors that are considered with lenders to determine eligibility to qualify. This includes work history and educational background. In fact, there are also personal loans for such people. bad credit scoreinclude:

new personal loan

  • Annual rate (APR)

  • Purpose of the loan

    Debt consolidation, credit card refinancing, marriage, moving, healthcare

  • loan amount

  • Clause

  • need credit

    FICO or Vantage score of 600 (but applicants with poor credit history and no credit score will be accepted)

  • Outgoing fee

    0% to 8% of the target amount

  • Early Payoff Penalty

  • late fee

    5% of monthly delinquency amount or $15, whichever is greater

OneMain Financial personal loan

  • Annual rate (APR)

  • Purpose of the loan

    Debt Consolidation, Major Expenses, Emergency Expenses

  • loan amount

  • Clause

  • need credit

  • Outgoing fee

    A flat rate of $25 to $onem00 or a percentage ranging from 1% to 10% (depending on state)

  • Early Payoff Penalty

  • late fee

    Up to $30 or up to 15% for each late payment (varies by state)

If you’re unsure of your credit score, consider signing up. Credit monitoring service favorite Chase Credit Journey Also Capital One’s CreditWise┬«.

2. Work experience

The second half is my work history. Lenders may ask for your work history to prove that you have the means to pay off your debts.More difficult, but still possible to get approved Personal loan if unemployed.

3. Verifiable Income

Finally, you will need some kind of verifiable income. As with your employment history, lenders will need to verify your current income to ensure that you can make monthly payments on your loan. This is especially useful if you are still working. improve credit scoreAgain, it may be a little more difficult, but you can still get approved for a personal loan if you are self-employed and your income is not stable.

Compare offers to find the best interest rates

Like anything else, getting the best deals and loan terms requires a lot of research. So if you’re looking to take out a personal loan to pay off your credit card debt, start a home renovation It’s best to start shopping according to your needs.

Even if you don’t need the money for a few months, it’s beneficial to know what interest rates look like and what your monthly payments will be to pay off your debt.

If you plan to take out a personal loan in the future, consider our recommended lenders.

lightstream personal loan

  • Annual rate (APR)

    4.99% to 19.99%* when you sign up for automatic payments

  • Purpose of the loan

    Debt consolidation, renovation, car loan, medical expenses, marriage, etc.

  • loan amount

  • Clause

  • need credit

  • Outgoing fee

  • Early Payoff Penalty

  • late fee

Marcus by Goldman Sachs Personal Loan

  • Annual Rate (APR)

    6.99% to 24.99% annual interest when you sign up for automatic payments

  • Purpose of the loan

    Debt consolidation, renovation, wedding, moving, moving, vacation

  • loan amount

  • Clause

  • need credit

  • Outgoing fee

  • Early Payoff Penalty

  • late fee

SoFi Personal Loan

  • Annual Rate (APR)

    7.99% to 23.43% when you sign up for automatic payments

  • Purpose of the loan

    Debt consolidation/refinancing, renovation, moving support, medical expenses

  • loan amount

  • Clause

  • need credit

  • Outgoing fee

  • Early Payoff Penalty

  • late fee

Select also has a comparison tool, loan market This makes it easy for you to check the various loan offers. You have to answer a few questions and Even Financial will determine the best offer. This service is free and secure. credit score.

This tool is powered and powered by Even Financial, a search and comparison engine that matches third-party lenders. The information you provide is provided directly to Even Financial, and Even Financial may use this information according to its own rules. privacy policy When terms of serviceBy submitting your information, you consent to receive emails from Even. Select does not control and is not responsible for the policies or practices of third parties. Select also has no access to the data you provide. Select may receive affiliate commissions from partner offers on the Even Financial Tools. Fees do not affect selection in order of offers.

Conclusion

Personal loans are a powerful option for consumers to pay off lingering debts or to maintain their livelihoods. unexpected unemployment.

However, before applying, carefully review the terms of the loan, including the interest rate, if it is a fixed or variable APR, and how long the loan must be repaid in full.

Catch up on Select’s in-depth coverage personal loan, technology and tools, wellness more and follow us Facebook, Instagram When twitter to keep you up to date.

Editor’s note: The opinions, analyses, reviews or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, approved or otherwise endorsed by any third party.

Leave a Comment