A personal loan can help you achieve financial goals, such as paying off high-interest debt or funding major home improvements. But it’s important to shop around to find the best rates and terms. A few tips to keep in mind:
You may want to consider a lender with a solid reputation and excellent customer service. It’s also worth looking for lenders that offer a wide range of services, such as credit-card rewards programs and one-on-one financial planning.
The best personal loans offer competitive interest rates and repayment terms, typically between three and five years. You should also pay attention to loan origination fees and prepayment penalties, which are extra charges that may be added when you make a late payment or refinance your loan.
For example, Marcus by Goldman Sachs charges no loan origination fees and lets you refinance your personal loan for a fee of up to 5% of the amount refinanced. But its APRs are a bit higher than those of other top lenders. And it has an F rating with the Better Business Bureau, due to its history of customer complaints and government actions related to auto loans and mortgages. Meanwhile, Discover’s personal loans have lower APRs than many other competitors and offer a longer repayment term (up to six years). It’s also worth checking with local credit unions, which often have competitive rates, especially for those with good or excellent credit scores. They can also be more flexible with their credit requirements than larger banks.