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A personal loan can potentially help in a number of ways including consolidating your debt from multiple lenders into one lower payment. You can quickly check your loan eligibility with this prequalification tool and explore loan options from multiple lenders in one place.
You’re clicks away from finding a custom loan fit to your needs. Answer a few questions and start comparing real offers from multiple lenders within minutes. This won’t impact your credit.
A personal loan is a lump sum lent to you by a credit union, bank, or online lender. Then, you pay back the loan -- plus interest fees -- in monthly installments over a predetermined period of time. Unlike other loans for a specific type of purchase, such as a home or car loan, personal loans can be used for almost any purpose.
For example, you can use a personal loan to:
A personal loan can improve your credit score -- if you make the loan payments on time.
This is especially true if the personal loan is used to consolidate credit card debt. For one thing, installment debt (loan debt) is generally considered more favorable than revolving debt (credit cards). Plus, the borrower's credit card utilization percentages will be much lower after the consolidation (you won't be very close to maxing out your credit cards). That can also provide a big boost to your score.
If you're in the process of looking for a personal loan, there are a few things you'll need to pay attention to.
Before you shop around for a personal loan, there are a few concepts you should be familiar with in order to make the best decision for your financial situation.
Read through each lender's minimum credit score requirements to make sure you qualify before applying. Some lenders also have income requirements.
If your credit score or income is low, look into secured vs. unsecured loans. Most personal loans don't require collateral -- these are known as "unsecured" loans. This means the lender can't take your car or home if you can't pay the loan. But if your credit is poor, you might not qualify for an unsecured loan. In that case, you may have to offer collateral (such as money in a savings account or CD) to qualify for a loan.
How much you want to borrow and how long you want to take to pay it off are two of the most important details you'll need to know before selecting a loan. Here are some things to keep in mind:
Bankrate Rates Disclosure and Repayment Example: Rates for personal loans provided by lenders on Bankrate feature rate quotes no greater than 35.99% APR with terms from 6-84 months. Accurate rate depends on credit history, loan term, loan amount and other factors from the lender. For example, if you receive a $10,000 loan with a 36 month term and a 17.98% APR (which includes 14.32% interest rate and 5% one-time origination fee) you would pay a $500 origination fee and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,859.88 including the origination fee. All loans are subject to credit review and approval. Review lender T&C's for more details.
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