#low interest loan
Need Extra Cash? Be Careful Where You Get Your Personal Loan
When it comes to finding the right personal loan, the bottom line for most people is going to be a favorable low interest rate. However, individual circumstances vary: Sometimes a person will need a loan sooner than a traditional lender can provide it, only need the loan for a brief period of time or they don t have the credit history necessary to qualify for the best personal loan interest rates .
As a result, different lending options have emerged that cater to different circumstances and each will offer different interest rates. Read on to get an idea of how these different personal loan lenders compare.
The Traditional, Bank-Issued Personal Loan
For most people, a bank will be the first place they turn to when in need of a personal loan. However, there s a major liquidity crunch going on and banks have cut way back on loans of all kinds. Credit card limits, for example, have been slashed even for people with the best credit and payment histories.
Not only are lenders approving drastically fewer loans, they re also charging higher personal loan interest rates. These rates vary by location, with the best rates in New York hovering around 16 percent. In Los Angeles the lowest is about 18 percent, but in Cheyenne, Wyoming a borrower could get a loan for as little as 9 percent.
On the plus side, banks are very often trusted names and operate under stringent federal regulations. That sense of security is a welcome one when it comes to money.
Cashcall offers people living in New Mexico, California, Idaho and Utah loans with an APR of 139.34%. Their standard loan of $2,600 costs $75. Thirty-six payments of $298.94 later, the loan is paid off.
Clearly, this is going to be the loan of last resort for most people, but if circumstances are dire and there aren t any other options, it s (arguably) better than nothing.
Check into Cash
Specializing in payday loans and payday advances (more or less the same thing), Check into Cash offers customers small loans (between $100 and $800) against their next paycheck.
On a $100 loan, for example, the fee is $15 and the whole amount must be repaid (not $85, as you might think). Loans of this type are for people in a real jam, but like the jaw-dropping Cashcall loan, if they prevent something worse from happening then they re ultimately worth it.
A booming new lending, loaning and investing vehicle, peer-to-peer loans are made by individuals to other individuals with no banks involved. Driven by the internet, peer-to-peer lending is still experiencing growing pains, but the fact that they re growing so quickly suggests a promising future.
They re more of a risk for investors because there s always the chance that a borrower can default. For borrowers, however, they offer some of the lowest interest rates available. Two of the best names in peer-to-peer lending are Prosper and Lending Club.
Although not available everywhere, Prosper.com is currently advertising personal loan rates of 7.5% APR for people with credit scores over 640.
Prosper s auction process among lenders can also send your initial rate down if you re a particularly appealing loan prospect. Additionally, Prosper lets you make early loan payments and pay the bill off before it s due.
Like Prosper, Lending Club brings investors together to offer borrowers personal loans at phenomenal prices. Currently, Lending Club offers potential borrowers with the best credit scores loans with 6.78% APR interest rates.
Finding the Best Low Interest Personal Loans
No matter where you turn for a personal loan lender, it s very important to research and compare your options before committing to the terms of any loan. Generally, the best low interest personal loans can be found online, but you won t know about other possibilities unless you look around. Always start with your local bank a positive and longstanding history with an institution can make lower rates available to you and then expand your search from there.