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A personal loan is a financial product that you can access via traditional financial institutions such as banks or credit unions.
Choosing a personal loan depends on your current and upcoming needs. These financial products usually serve as funding for personal projects, from vacation planning to home remodeling. An increasing number of borrowers take personal loans to consolidate high-interest debt or finance large purchases.
Reasons to take a personal loan:
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Build credit
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Buy a car
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Moving expenses
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House renovation
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Pay off credit card debt
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Finance a wedding
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Combine debts
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Cover vacation costs
Types of personal loans: secured (with collateral) and unsecured (without collateral)
Depending on your reasons to apply for personal loans, it may be more convenient to get:
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A home equity loan to buy a house or
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An auto loan to purchase a car.
Compared to unsecured personal loans that rely solely on your eligibility, home equity, and auto loans are backed by collateral, i.e., the house or car you intend to buy.
Our company provides loans on rental property with fixed terms of up to 30 years at a rate of 4.9%, subject to loan amount and your creditworthiness.
Amounts: from $10,000 to $60,000, depending on the financial institution.
Interest rates: vary; the national average for borrowers with excellent scores is around 11%. Use our calculator to estimate payments.
Personal loan repayment terms range from two to five years on average.
Minimum credit scores: ~680 on FICO and higher, depending on the financial provider. Most traditional financial institutions require a fair score to qualify.
Application procedures vary by bank. After you apply, they pull your credit report from one of the three major credit reporting agencies: Equifax, Experian, or TransUnion. If you need to check on your credit score, you are entitled to get a free report once a year.
Besides banks and credit unions, you can also get a personal loan through a non-banking financial institution (NBFI) or a non-banking financial company (NBFC). These may include peer-to-peer (P2P) loans, payday lenders, and others. Additional loan options:
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Salary advances;
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Federal loans;
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401(K) loans;
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Lines of credit.
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