Personal loans for good credit: the best of August 2021
What is a credit loan with good credit?
Good credit may result in lower annual percent rates and more favorable terms for fast instant personal loans applications. These loans are not secured, meaning you don’t need collateral like your car and savings. Instead, lenders evaluate the ability of applicants to repay by taking into consideration factors like credit, income, and debt.
How to choose an individual loan
These are some of the things to keep in mind when selecting an online lender.
Compare rates between lenders. It’s worth shopping around if you have good credit. You can check rates online by pre-qualifying.
Purpose of loan: The advantage to personal loans is that the money can be used however you wish, such as to pay off high rate credit cards or to repay high interest credit card debts. You can use the loan to pay for home renovations. The rates will vary depending on how the loan is used.
Term of loan: Personal loans generally have terms of between two to seven years. However some lenders offer extended terms for special purposes such as home improvement. A shorter loan term means lower total interest. But, a longer loan term could mean that your monthly payments will be lower and perhaps more affordable.
Characteristics of loan: You may be able to track your loan through mobile apps. This is useful if the lender offers it. Others offer flexible payment arrangements or options to defer payment if you have financial difficulties. A consolidation loan will enable you to send your loan proceeds directly your creditors. This can be a great way to save money and help you get rid of the debt.
Additional benefits include free credit score monitoring, financial educational resources, and career guidance offered by your lender.
What’s the average cost of a credit loan?
Your credit score plays a major role in the APR you will receive on a personal mortgage. Your credit score determines how low your rate will be and how much interest you will pay. A survey of NerdWallet creditors found that the average APR among borrowers with great credit is 18%.
Your total monthly payment as well as the term length also have an effect on the interest rates. Calculate your monthly payments using our personal loan calculator based on credit scores.
Here are the average personal-loan interest rates.
|28.7% (lower scores less likely to be qualified).|
Source: Average rates were calculated using anonymized, aggregated supply data collected from NerdWallet customers who prequalified for NerdWallet lenders between January 1, 2020 to December 31, 2020. The rates are estimates and are not specific for any lender.
Banks will lend you loans with good credit
If your credit rating is good or excellent, traditional banks might be another option. They offer interest rates comparable to online lenders. You may also find a simpler application process and lower rates if an account already exists with the bank.
American Express allows cardholders with AmEx cards to pre-approve them and can be used to consolidate their credit card debt. It offers low rates, no fees, and the possibility to pay upto four cards directly.
PNC offers its customers a discount of 0.25 % on personal loans if they pay through their existing accounts.
TD Bank offers loans to clients primarily along the east coast. These loans come with competitive rates and fast approvals.
Wells Fargo allows existing customers to apply online. The loan amount is relatively large, making it an attractive option for financing home renovations.
Next steps: Personal loan pre-qualification
The best way to find out the rate or duration of a personal mortgage is by pre-qualifying. NerdWallet can help you compare the offers offered by several lenders. Prequalification will have no impact on your credit score.