How To Get a Low Interest Rate Personal Loan That Doesn’t Suck
In 2005, anyone with a decent credit score (640+) could get a personal loan from the major banks with little ease.
Fast forward to today, and personal loans are about as common as Kanye West NOT making a complete fool of himself every time he’s on stage. Credit is tight, and just having a good credit score isn’t enough to land a low interest rate personal loan anymore.
3 places you can still get a personal loan
1. Lending Club – This one is a no brainer if you have a high credit score, and a clean credit file. And a job. You need to be cream of the crop to get a great interest rate at Lending Club, but if you are, you can get a rate as low as 7.89% for up to $25,000. A 660+ FICO score is the bare minimum.
2. CitiFinancial – Again, you’ll need stellar credit, and probably be a homeowner to get approved at CitiFinancial. The rate isn’t going to be great, but if you own and home and have good credit, you may be able to get approved at CitiFinancial. The max loan amount is $15,000.
3. Virgin Money ala The Bank of Mom & Dad – Getting a personal loan from your parents may get you a great rate (0% potentially!), but at what cost? Mixing family and money can be a disaster for many relationships. Be very careful when getting a loan from your family. Get everything in writing. I would suggest using Virgin Money to manage the paperwork and payment processing.
Personal loans can be used for anything
The nice thing about personal loans is that you can use the proceeds for just about anything. The most common use is paying off debt, but you could use a personal loan to start or expand a business.
One note: Be absolutely sure you are getting a loan for the right reasons. If you are going to payoff your debt, then cut up your credit cards after you receive your loan money. I’ve heard too many stories of people vowing to consolidate their debt, only to rack up more with their newfound credit lines.
