A personal loan can help you cover expenses such as home improvement projects, moving expenses, or debt consolidation. Now you have to find out where to get one.
Your three main options for a person loan are online lenders, credit unions , and banks. Here’s how borrowing from each institution will work.
1. Online lenders
Online lenders are known for their speed — most can get you your rates in as little as a few minutes, and some can even deposit your money the same day your loan is approved. Online lenders provide a digital-first experience, and many offer perks like the ability to manage your personal loan from a mobile app.
If you have excellent credit and want the best rates you can find on a personal loan, you won’t do better than with LightStream. The lender offers APRs as low as 2.49%. SoFi and Marcus by Goldman Sachs are also good options.
2. Credit unions
Personal loans at banks and online lenders can come with APRs upwards of 30% for borrowers with poor credit, but the maximum interest rate a credit union can charge on most loans is capped at 18% by the National Credit Union Administration. If your credit isn’t in the best shape, you may qualify for a lower rate with a credit union than with a bank or online lender.
Many credit unions also offer lower minimum loan amounts than banks or online lenders, which could be helpful if you only need a bit of money to tide you over. (more…)