In this personal loan comparator, you can find information on all loans and lines of credit for individual customers offered by banks and financial institutions in the United States, with frequently updated data.
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This way you can compare and choose the one that best suits you, without having to search for the conditions in each lender to be able to contrast.
What is a personal loan?
A loan is a contract between the lender, who offers the money, and the borrower, who receives it. Through this agreement, the first one lends an amount of money to the latter one, who undertakes to pay it back within a previously indicated period of time.
Most commonly, the term is extended over several months or years and the repayment is made gradually in what we call installments, which may be weekly, biweekly, monthly or quarterly.
In addition, the lender applies an interest rate on the principal, expressed as a percentage, which is charged along with the installments. There may also be other fees and expenses, which we will review below.
What is a line of credit?
Lines of credit are another type of personal financing offered by banks that works differently from loans. In this case, the lender offers a credit limit to the customer, and the customer can use the amount he/she wants whenever he/she wants, as long as the sum of drawdowns does not exceed the limit.
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As the user repays the money, it becomes available for reuse if needed.
Interest is also charged on lines of credit, expressed as a percentage rate, but only on the amount of money drawn down, not on the credit limit. There may also be other charges such as a drawdown fee or an annual fee for having the credit available.
What fees and charges apply to loans and lines of credit?
The contracting of a personal loan or a line of credit implies the payment of a series of expenses and fees that the bank will charge us for different reasons. Each entity can apply the ones it deems appropriate, but the most common are the following:
- Interest rate. This is the fee that the financial institution will charge for the capital that is still pending repayment. It is expressed as a percentage.
- Origination fee. This is applied at the time of signing the contract, as payment for the transactions carried out by the lender to complete the loan formalization process.
- Drawdown fee. Applies only to lines of credit and is an amount, which may be a fixed amount or a percentage of the amount drawn down, charged each time money is withdrawn from the line of credit balance.
- Prepayment penalty. This is a fee charged by the lender if the customer wants to repay all or part of the remaining amount. It is expressed as a percentage of the capital repaid out of installments.
How to apply for a personal loan online?
Not all banks and financial institutions allow you to apply for a loan online, but there are more and more that provide this option through their websites, and even complete the entire process without paperwork and without having to go to an office.
To apply for a loan online you just have to fill in your details on the form provided by the lender on their website and wait for a response from them, either by email or telephone.
The next steps will be indicated by the lender, but the most common is that you will have to submit documentation proving that you are who you say you are and that you have a stable income.
In many financial institutions you will be able to send these documents online, in others you will be able to send them by courier and there are others that will only allow you to hand them in physically at a branch, but there are fewer and fewer of them.
Once your information has been checked, if everything is correct, you will receive the money in your bank account and you will be able to use it for whatever you want. Remember to pay each installment of the loan on time to avoid problems.
How to choose the best personal loan?
Comparing different loans to find the best one is easy if we know how to do it. There are many variables to check and, depending on what you are interested ins. Here we summarize the most important ones:
The cost of the loan
Within this section we have the interests and fees that we have already commented previously. However, there is no uniformity when it comes to applying the charges that are made on a loan and each entity includes the ones they want.
A solution to this is the APR (Annual Percentage Rate), which brings together in a single indicator the annual interest rate and fees charged. With it, it is easy to compare two loans from different entities, the one with the lower APR will be cheaper.
The amount of money you need will determine the type of loan you can apply for. Personal loans usually range from $1,000 to $100,000 USD, but you also have quick loans for less than $1,000 and home equity loans that can go up to over a million dollars.
Personal loans usually have terms ranging from 1 to 10 years, and you can choose how long you want to pay it back, depending on the amount of the resulting monthly payment.
The most common requirements to obtain a personal loan are being of legal age, legally resident in the United States, have a stable income and a minimum credit score.
It is possible to contract immediate loans of small amounts that require less restrictive conditions. You can even find loans with bad credit or even with no credit, although they are more expensive than those offered by banks.
What can you use a personal loan for?
We could literally think of hundreds of reasons to make use of a little extra cash if we had it on hand. The great thing about having access to a personal loan online or offline is that you have no limitations on what the actual destination of the funds should be.
While the reasons can be personal or financial, we will review which ones are the most popular.
Common reasons for using a personal loan
In general, the most common reasons for applying for a personal loan tend to be:
- Debt consolidation. If you have a lot of credit card and other loans debt, you may want to consolidate those amounts into one loan and pay them back at a lower interest rate. It is a practical way to clean up your finances, eliminate several balances at higher interest rates, and simplify your fixed payments.
- Addressing emergencies. Lack of foresight is one of the driving forces behind many personal loan applications. That's because most Americans lack an emergency fund to take care of sudden repairs or unforeseen events.
- Making a big purchase. When our financial planning is less than ideal, we won't have enough funds to make major purchases. A loan can be a quick way to get the money to complete what's needed and give you enough time to pay it off comfortably.
- Paying for medical expenses. Health can be another of those unexpected or necessary expenses that appear in our lives and for which we must be prepared. If you do not have a good medical insurance, you should appeal for a personal credit at a reasonable interest rate and with a time that does not affect your personal economy so much.
- Take a dream vacation. Whether as a couple or with friends, having that magical adventure in another country is something that many of us have imagined.
- Finance a special event. Events such as weddings, anniversaries, honeymoons, graduations and more are situations in which you will have to invest a good amount of capital.
- Pay funeral expenses. The total cost of a funeral can add up quickly, reaching high figures because of the paperwork involved. For this, a personal loan will be of great help.
- Covering moving costs. Just like other circumstances in which several services must be contracted, moving can be expensive.
Unlike other types of financing, a personal loan can be used for anything you have in mind. In the United States, it is a very popular option due to its wide variety of amounts, low interest rates and terms that can last up to 5 years.
If you are looking for the best alternatives, be sure to visit the Busconómico comparator, where we work with the most serious companies in the market.
How this loan comparator is compiled
The criteria for sorting the list of personal loans available in the United States are multiple. To begin with, our financing experts prepare an analysis of each one, compiling the data provided by each bank.
Next, factors such as the interest rate charged, fees, terms and maximum limits available are taken into account. We also take into account the requirements requested by the financial institutions and the ease of contracting, whether online or in branches.
Another condition that we evaluate is the availability for its contracting, trying to show those loans available in a greater number of states, so that they reach the greatest possible number of users.
With all this, we try to make a sorting that favors the visitor as much as possible and allows him to compare between the best options in the market.
In addition, among the options shown there are also some lenders that offer us compensation for better visibility, which may affect their position, but always taking into account quality criteria and without losing sight of the end user.
Español: Comparar préstamos personales