Personal loans that require at least a good credit score usually have an interest rate of around 14-15%. Those with excellent credit score can easily get an interest rate of around 10% on the loans. If you are hoping to get a low interest rate on loans, you should maintain a track record of a good income for the past 3 – 6 months. Besides, you should not have a lot of outstanding debts.
You can first obtain an estimate interest rate quote by submitting the loan request form at the lender site. If you like the interest rate quote, you can submit more documents and ask the lender to proceed in performing a hard inquiry on your credit profile. Your credit score is only one of the many factors that influence the interest rates. It is important to apply a loan with more than one lenders so that you can compare the rates.
Nowadays, it is easy to do research on good credit personal loans by using the online loan comparison tool. You just have to enter the loan amount, and your credit score and it will show a list of lenders that offer loans you are likely to qualify. You can click the sign up button to fill in the online form and get estimate quotes for the interest rates instantly.
Many online personal loans have a loan term that last up to a period of 3 – 5 years. If you can pay back the loan faster in a period of 1 – 2 years, it will be wiser to get a zero percent interest credit card that features an intro period that is this long.
If you still have some outstanding credit card debts, you should consider paying them off first prior to applying for the loan. By doing so, you will be able to reduce the debt to income ratio which is one of the factors that lender use to decide on the interest rate for the loan.
You can get a secured personal loan instead if your credit score is low and not fit for applying a good credit personal loan. If you are committed in making on time repayment, you will see that your credit score slowly rising up to an acceptable level. You can then apply for the good credit personal loan with a much lower interest rate.
An alternative for those with bad credit or lack credit history is to use a cosigner with a good credit score. The cosigner’s good credit profile can help you to get a lower interest rate on the loan. You can get anyone to be your cosigner including your friends and relatives, just as long as the person is not your spouse.