There are many personal loans at your disposal, but they’re not all created equal. That’s why it’s important to do your research and compare options from multiple lenders.
Here’s a closer look at where to get a personal loan.
Each lender has its own requirements. To find the best deal for your unique situation, you’ll need to shop around and read the fine print. Keep in mind that the higher your credit score, the better your chances of getting approved for a loan with lower interest rates.
Related: Learn more about getting a personal loan
Many online lenders offer personal loans with low interest rates and a variety of repayment terms. Certain lenders allow cosigners, so if your credit score is on the lower end you may be able to boost your approval chances by applying with one. Some also provide other perks, like no origination fees or free credit-score monitoring.
Compared to banks and credit unions, online lenders are often much faster. This is great news if you’re looking for an easy application process and fast access to funds.
Not all banks offer personal loans. But if you’re a customer at a traditional bank, it’s a good idea to ask if they do. As a customer with a current account, you might qualify for a personal loan and could even score a discount.
Even though you may lock in a good rate if you have great credit, you might find a better rate or term at a different financial institution. What’s more, banks often require a longer application process with more paperwork. It may take weeks or even months to get approved and receive your funds.
Credit unions are another place to consider for a personal loan. These not-for-profit organizations can offer lower rates and fees on personal loans than other lenders. In addition, you may be able to get approved even if you have bad credit.
The caveat is that you must become a credit union member before you can take out a loan. While membership requirements vary, you usually have to be part of a specific community, profession, or organization. Be sure to check out your local credit union loan offers before you sign up.
As you shop around for personal loans, consider the following:
If you think you won’t qualify for the rates you want based on your credit, consider enlisting a cosigner to help you out. However, your cosigner will be on the hook for your debt if you default on the loan.
Related: Learn more about getting a personal loan