12/20/2022
The commandments for getting the best possible conditions when looking for a personal loan start with comparing different options and include a good dose of voluntary research.
As much as you hear it and ignore it, we have to insist on the best recommendations on this subject.
May interest you: U.S. Bank personal loans reviews
Where to start comparing loans?
This time we will address the options for those who have a residence permit or legal stay.
The first thing to understand is that the credit culture in the United States has well-defined rules of the game. Since personal financing is unsecured, lenders rely on requirements such as credit score, history, income, collateral and other factors.
- Amount: between $ 7,500 and $ 100,000
- Term: between 4 years and 6 years
- Interest: 6.39%
- APR: 6.39%
- Amount: between $ 3,000 and $ 100,000
- Term: between 1 year and 7 years
- Interest: Ask
- APR: 5.74%
- Amount: between $ 7,000 and $ 50,000
- Term: between 3 years and 5 years
- Interest: 8.42%
- APR: 8.42%
- Amount: between $ 3,500 and $ 100,000
- Term: between 2 years and 5 years
- Interest: 8.19%
- APR: 8.19%
- Amount: between $ 2,500 and $ 40,000
- Term: between 3 years and 7 years
- Interest: 7.99%
- APR: 7.99%
In this country there are many options to get money through a traditional bank, a fintech or online startup. In fact, if you opt for the neo banks, you can get from $1,000 to $100,000 in a matter of hours. The trick is to have a plan to invest and pay back the money.
Tips for comparing personal loans in the USA
When we talk about installment financing, we can apply a parallelism to consumption: it is easier to spend than to save, or it is easier to get into debt than to comply. To protect your personal finances and avoid this situation, we advise you:
Avoid credit inquiries
Unlike other countries, Americans are very picky about whether you are a good payer or not. Every time you apply for a personal loan, you may be subjected to this procedure, the frequency of which hurts your score and remains on your record for 3 years.
The alternative: look for online or offline options with soft inquiry. This means trying to get pre-approved by finding out your score and terms by providing the lender with basic information.
Get offers from 3 or more lenders
There are an incredible number of personal loans that you can access with little or a lot of requirements. The basic facts to know what is best for you include: commissions, maximum/minimum time to pay back the money, minimum and maximum amount, interest rates, APR and other conditions.
Don't be afraid to shop around at your favorite bank, national or local lenders, online quotes and credit unions. This gives you a better perspective on which financing offers the best prospects.
Check the fine print in the contract
Primarily with agreements for applications and products, many of us have sinned by not carefully reading what we're getting into. While these examples might be harmless, with a personal loan it's almost a mortal sin.
Why? Because you can end up paying much more than you think you will and, perhaps, getting into debt. Be aware of the possible adjustments, risks and penalties so you can make an informed decision for the benefit of your personal finances.
Carefully analyze the total cost
The essence of personal credit comparison and research is to keep your borrowing costs as low as possible. With this in mind, it is much more important to keep in mind the APR (Average Percentage Rate) than the interest rate you are being offered.
May interest you: Wells Fargo personal loans reviews
As we have referred to in the post on this topic, this value indicates the possible expenses related to a loan. The lender should also provide you with information about the total interest you end up paying, so you have objective data to compare between different options.
Be sure to compare similar loans
This recommendation is relevant because we often get carried away by details that make a difference. This happens when a bank or financial company offers you a lower interest rate with a longer term, which means that you will end up paying more in the end.
It also tends to happen with the prospects of a fixed and adjustable rate. The latter always looks lower at the beginning, but can increase or decrease depending on market conditions. The key is to compare offers with the same structure, term and interest rates.
Take advantage of comparators and other resources
An easy way to simplify your research is to go online to find out the basic information you need.
Comparators such as Busconómico are a great help because they save you time, save you visits to institutions and provide you with accurate data in a practical and easy-to-use platform. There are also other pages and sites that compile product reviews that serve as reference guides.
Ultimately, it is essential to dedicate the necessary time to evaluate the offers that you deem most attractive to your personal finances. The least sensible thing to do is to rush, decide based on hunches and let subjectivity take control.
We remind you that at Busconómico we offer you a wide variety of banking products so that you can learn about the most interesting current alternatives. If you have any doubts, don't hesitate to interact with our financial experts.
Español: Cómo comparar entre varios préstamos personales