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.

What loans could you qualify for?

Answer two quick questions to get recommendations on which lenders may approve your loan application.

Question 1 of 2

What’s your credit score range?

Very good740 or higher
Good670 – 739
Fair581 – 669
Poor580 or lower
I don’t know

Question 2 of 2

How much do you want to borrow?

$1,000or less
$1,001 – $5,000Between
$5,001 – $35,000Between
$35,000 or more

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Prosper Personal Loan - Quiz

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
    SoFi Personal Loan Fixed Rate (with Autopay) - Quiz

    SoFi Personal Loan Offer

    SoFi offer you the chance to borrow up to $100,000 with the choice between a fixed or variable interest rate.

    • Recommended Credit Range: Good to excellent
    • Min. Loan Amount: $5,000
    • Max. Loan Amount: $100,000
    • Loan Term: 3, 5, or 7 years
    • Unemployment protection
    • Confidential and secure online application
      OppLoans Installment Loans - Quiz

      OppLoans Installment Loans

      Get fast funding up to $5,000 at reasonable interest rates.

      • Min. Loan Amount: $1,000
      • Loan Term: 9 to 24 months
      • Turnaround Time: 1 business day
      • Must be 18+ years old
      • No security deposit needed
      • Confidential and secure
        LendUp Payday Loans - Quiz

        LendUp Payday Loans

        Apply for a payday loan conveniently online and borrow between $100 and $250.

        • Minimum loan amount: $100
        • Maximum loan amount: $250
        • Turnaround time: 1 business day
        • Loan term: 7–30 days
        • Good credit not required
        • Confidential and secure
          Lending Club Personal Loan - Quiz

          Lending Club Personal Loan

          Lending Club offers loans of up to $40,000 as alternative to bank loans. Rates from 5.99% to 35.89% APR based on your credit score.

          • Recommended Credit Score: 660 or higher
          • Min. Loan Amount: $1,000
          • Max. Loan Amount: $40,000
          • Loan Term: Flexible Terms
          • Turnaround Time: Varies
          • Total Costs: Depends on your credit score
          • Consolidate loans or pay off high interest debt
          • Confidential and secure online application
            NetCredit Personal Loan - Quiz

            NetCredit Personal Loan Offer

            You could borrow up to $10,000 and get an interest rate personalized to your credit score.

            • Recommended Credit Range: Fair or better
            • Min. Loan Amount: $1,000
            • Max. Loan Amount: $10,000
            • Loan Term: Varies upon State
            • Turnaround Time: 1 business day
            • Total Costs: Depends on your credit score.
            • Unemployment protection
            • Confidential and secure online application
              CashNetUSA Loan - Quiz

              CashNetUSA Loans

              You could borrow up to $2,250,depending on your state of residency, with a payday loan from CashNetUSA.

              • Min. Loan Amount: $300
              • Loan Term: Varies by state
              • Turnaround Time: Same day - conditions apply
              • Must be 18+
              • No security needed
              • Confidential and secure
                Upstart Personal Loans - Quiz

                Upstart Personal Loan Offer

                Consolidate your debt to pay it off faster. Apply to borrow up to $50,000 from Upstart Personal Loans.

                • Recommended Credit Score: 620 or higher
                • Min. Loan Amount: $1,000
                • Max. Loan Amount: $50,000
                • Loan Term: 3 or 5 years
                • Turnaround Time: 1-2 business days
                • Total Costs: Depends on your credit score.
                • No prepayment penalty
                • Confidential and secure online application

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                  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

                    Compare personal loan options here

                    Rates last updated June 25th, 2017
                    Unfortunately, none of the personal loan providers have a loan for that credit score. It you are urgent need of a small loan, you might want to check out a short term loan.
                    Table Image Minimum Credit Score Max. Loan Amount APR Requirements
                    Prosper Personal Loan Prosper Personal Loan 640 $35,000 From 5.99% (fixed) Must be 18+ years old, an American citizen or US permanent resident and have a 640+ credit score. Go to site More
                    Lending Club Personal Loan Lending Club Personal Loan 660 $40,000 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. Go to site More
                    SoFi Personal Loan Fixed Rate (with Autopay) SoFi Personal Loan Fixed Rate (with Autopay) Good to excellent credit $100,000 From 5.49% (fixed) You must be a U.S. citizen or permanent resident 18 years or older. Go to site More
                    Laurel Road Personal Loans Laurel Road Personal Loans Good to excellent credit $45,000 From 5.75% (fixed) Must be a US citizen or permanent resident with a valid I-551 card Go to site More
                    Upstart Personal Loans Upstart Personal Loans 620 $50,000 From 7.16% (fixed) Must be 18+ and a US citizen or permanent resident. Must have good to excellent credit. Go to site More
                    NetCredit Personal Loan NetCredit Personal Loan 550 $10,000 From 34% to 155% depending on your state of residence% (variable) Varies depending on your state of residence. Go to site More
                    OneMain Financial Personal Loans OneMain Financial Personal Loans 600 $25,000 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. More

                    Have we missed anything in the comparison table? Tell us

                    • If the provider quotes a different rate to the one above please let us know

                    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.

                    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
                    Lending Club Personal Loan

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

                    Prosper Personal Loan

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

                    Upstart Personal Loans

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

                    PersonalLoans.com

                    Get matched with providers from a large network of banks, peer-to-peer marketplaces and direct lenders.

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