Online lenders, banks, and credit unions all offer personal loans. That means you have plenty of lending options, depending on your needs.
Finding the right lender for you will depend on your unique financial situation and loan preferences. It’s important to determine where you can get the lowest annual percentage rate (APR), which is your interest rate plus any fees.
But APR isn’t the only factor that matters. Be sure to compare a few different lenders to find the best terms for you.
Online lenders are typically financial companies that offer an alternative to traditional banks. These lenders often use a similar approval process to banks and credit unions, but you handle the entire process, from application to funding, online.
Because online lenders have no brick-and-mortar branches, though, they can usually save on overhead costs — which may translate to lower rates or fees for borrowers.
Some online lending marketplaces connect you with several online lenders so you can compare personal loan options side by side. Plus, you can often prequalify for a loan online with a soft credit check. This allows you to see the rates and terms you may qualify for before you apply, without affecting your credit.
The amount you can borrow with an online loan varies by lender, but it can be as low as a few hundred dollars, or as much as $100,000.
Related: Learn more about getting a personal loan on Credible.com
While many banks offer online personal loan options, these financial institutions also generally give you the option to stop by your local branch and ask questions or apply. On the downside, personal loans can be more difficult to qualify for at traditional banks — many online lenders specialize in bad credit loans, but this isn’t usually true of banks. It may also take longer to get approved and funded by a bank.
Credit unions are member-owned, not-for-profit financial institutions. Because of this, they often pass savings down to their members in the form of lower rates or cheaper fees. Many credit unions offer a more personal feel with physical branch locations. However, you can often apply for a personal loan from a credit union online.
It’s best to shop around and compare rates from various lenders so you can ensure you’re getting the best loan terms for your needs. It’s important to compare several factors when deciding on a lender, such as:
Lender reputation: Look into customer reviews and feedback about each lender. Consider checking if any complaints have been filed with the Better Business Bureau, and if they were resolved. You may also want to look at review sites like Trustpilot to see what other customers have to say about their experience.
Related: Learn more about getting a personal loan on Credible.com