3 ways you can get the best personal loan rate.
Like a credit card, you can use a personal loan to cover almost any purchase. Whether you’re looking to upgrade your kitchen appliances, repair your home, or cover moving expenses, a personal loan can help. Unlike credit cards that come with variable interest rates, personal loan borrowers benefit from a fixed personal loan rate. Borrowers know how much they’ll owe for the entirety of the loan term.
While personal loans typically come with competitive interest rates, there are factors that you can control to secure the best personal loan rate possible.
1. Work on your credit score.
If you haven’t checked your credit score in a while, do so before you start applying for personal loan funding. You can use sites like creditkarma.com or get your score from your credit card company. If you have excellent credit, you’re probably going to secure the best personal loan rate. If you have a score below that, there are probably things you can do to before you apply.
2. Select a shorter repayment term.
Some lenders offer varying personal loan terms. While you may have the option to extend your repayment period, that could impact your credit score. Choosing to pay off your loan in a shorter period of time could help you earn a lower interest rate.
3. Compare different lenders.
Personal loans are available from a variety of financial institutions from traditional banks to credit unions to online lenders. Some lenders, like Uprova, allow you to check your rate without impacting your FICO credit score. By comparing personal loan lenders, you can ensure you’re securing the best rate for the loan amount you want to borrow. Just be sure to check terms in addition to interest rates. If a lender charges a lot of fees, that lower interest rate might not be enough to make it worth it.
Personal loans are flexible and come with fixed interest rates. To get the best personal loan rate, you’ll want to work on your credit score, go for shorter repayment terms if possible, and compare different lenders.
If you need flexible funding, Uprova.com can help with personal loans up to $5,000 if approved. You can check your rate online for free without impacting your FICO credit score. Find out how much you can borrow now.