Couple applying for low rate loan

How to get a low interest rate personal loan

Need a personal loan? A low interest rate can help you save a lot of money over time.

People across the US frequently seek personal loans for different reasons. While someone might want a loan to consolidate debt, others might seek one to go on a vacation. One of the key differentiating factors for personal loans is the interest they charge, since this aspect plays a crucial role in the cost of any loan.

Lenders normally offer low-interest personal loans to people with good and excellent credit rating. If you have poor or bad creditworthiness, your chances of getting a low interest personal loan remain slim unless you can provide some type of collateral. If you’re considering applying for a low-interest personal loan online or in-store, going through this guide will help you make an informed decision.

Prosper Personal Loan

Prosper Personal Loans

You could borrow up to $35,000 for a variety of purposes, with rates starting from 5.99%.

  • Recommended Credit Score: 640 or higher
  • Minimum Loan Amount: $2,000
  • Maximum Loan Amount: $35,000
  • Loan Term: 3 or 5 years
  • Turnaround Time: 1-3 business days
  • Simple online application process
  • No prepayment penalties

    How do low interest personal loans work?

    Individuals who have excellent credit history are ideal candidates for lenders that offer low interest personal loans. Depending on the lender you choose you can apply online or at a physical location. However, not all lenders operate across all American states.

    Applying for these loans requires that you meet some eligibility criteria. Once you apply the lender reviews your application. If you apply for an online personal loan and the lender approves your application the money is transferred into your bank account electronically. You have to make repayments towards the loan per a predetermined repayment plan until you repay it completely.

    5 tips to get a low interest rate on your personal loan

    Top personal loans you can apply for today

    Rates last updated August 24th, 2017

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    Unfortunately, none of the personal loan providers offer loans for that credit score. If you are in urgent need of a small loan, you might want to consider a short term loan.
    Name Product Product Description Min. Credit Score Max. Loan Amount APR Requirements
    Prosper Personal Loan
    Borrow only what you need for debt consolidation, home improvements, special occasions and more — with APRs based on your credit score.
    From 5.99% (fixed)
    Must be 18+ years old, an American citizen or US permanent resident and have a 640+ credit score.
    SoFi Personal Loan Fixed Rate (with Autopay)
    Borrow up to $100,000 with a competitive APR and no fees.
    Good to excellent credit
    From 5.49% (fixed)
    You must be a U.S. citizen or permanent resident, and 18 years or older.
    Lending Club Personal Loan
    Borrow up to $40,000 with rates from 5.99% to 35.89% APR based on your credit score.
    From 5.99% (fixed)
    You must be over 18 years of age, a permanent resident of the US or an American citizen and have a steady source of income.
    Check your rate — without affecting your credit score — before applying for this unsecured personal loan.
    From 9.95% (fixed)
    You must have good to excellent credit, provide proof of a steady income and be a US resident who is at least 18 years old (19 years old in Alabama).
    Payoff Personal Loans
    Pay down your debt with a fixed APR and one monthly payment.
    From 8 to 25% (fixed)
    You must have a FICO score of 660 or higher, at least 3 years of credit history and a debt-to-income ratio of no more than 50%. You must live in a state where Payoff offers loans; check availability.
    LendingPoint Personal Loans
    Get a personal loan with reasonable rates even if you have a fair credit score in the 600s.
    From 15.49% (fixed)
    Must have a fair credit score of 600 or better and verifiable income. Must live in a state where LendingPoint services.
    Laurel Road Personal Loans
    Get a personal loan with no application or origination fees and a rate discount for autopay.
    From 5.5% (fixed)
    Must be a US citizen or permanent resident with a valid I-551 card
    OneMain Financial Personal Loans
    Get a personal or auto loan with a quick and easy application and dedicated customer support.
    From 12.99% (fixed)
    Eligibility for a loan is determined by your financial history, credit history, income and expenses, and whether or not you have ever filed for bankruptcy.
    Even Financial Personal Loans
    Get matched to the best loan offer instantly from top online consumer lenders.
    From 4.99% (fixed)
    Must have a minimum credit score of 580+. Must be 18+ years old and be an American citizen or permanent resident.

    Compare up to 4 providers

    How to compare low interest personal loans

    When comparing low interest personal loans, paying attention to these aspects is important:

    • Interest. Low interest personal loans for excellent credit offer the most competitive annual percentage rates (APRs). If you’re borrowing a significant sum that you wish to repay over a prolonged period, this aspect can have a noticeable effect on the cost of the loan.
    • Secured or unsecured. If you cannot provide any collateral, your options limit to low interest unsecured personal loans. By providing some kind of security you can get a lower APR.
    • Loan amount. Different lenders offer low interest unsecured personal loans for amounts from $500 to $50,000. The maximum you can borrow depends on your creditworthiness, your existing financial situation and your ability to make repayments.
    • Loan term. Getting a loan term that matches your requirement may be easier than you think. You can normally find low interest personal loans with terms from two to seven years.
    • Processing time. If you need money in a hurry this aspect requires particular attention. Certain lenders can give you access to funds on the day you apply, or by the next business day. For others, you may have to wait for as long as seven to 10 business days.

    What types of low interest rates personal loans are available?

    In your search for low interest personal loans you’ll come across these options:

    What are the pros and cons of low interest personal loans?

    • Savings. If you take a low interest personal loan that you wish to repay in a few years, you can end up saving a tidy sum in interest.
    • Easy process. With widespread usage of the Internet, getting a personal loan has become considerably simpler. You can now apply using any Internet enabled device, and some lenders provide apps for mobile devices as well. Many lenders let you complete the identification process online.
    • Repayment flexibility. You can find lenders that let you make payments as per your pay schedule, be it weekly, fortnightly or monthly. Some let you repay your loan early without charging any extra fees or penalties.
    • Prepayment penalties. Find out if you may have to pay prepayment penalties because these can put a dent in your plans if you plan to repay your loan ahead of time.
    • Scams. The online world is not devoid of unscrupulous characters. Before you apply for a low interest personal loan online find out if the lender you choose is legitimate by contacting the Federal Trade Commission and the Better Business Bureau.
    • Bad credit is a problem. Finding low interest personal loans for bad credit is near impossible, unless you consider getting a secured loan.

    Frequently asked questions

    You’ll have to meet your state’s minimum age requirement. For most states that age is 18 years. You should also be an American citizen or a permanent resident of the US, and have a regular source of income.

    If you have all the required information close at hand the process should take around five to 10 minutes.

    You’ll have to provide personal information such as your full name, date of birth and contact details. Identification details can come from your driver’s license, passport, Social Security card or state ID. Lenders also require your employment and income related details.

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    US Personal Loans Offers

    Learn about our information service
    Prosper Personal Loan

    Borrow only what you need for debt consolidation, home improvements, special occasions and more — with APRs based on your credit score.

    Lending Club Personal Loan

    Borrow up to $40,000 with rates from 5.99% to 35.89% APR based on your credit score.

    SoFi Personal Loan Fixed Rate (with Autopay)

    Borrow up to $100,000 with a competitive APR and no fees.

    Upstart Personal Loans

    This newer service looks beyond your credit score to match you with accredited investors for low-rate personal loans.