Sometimes we fall behind on our credit card payments, and those high APRs can start to take a real toll on our debt to credit ratio.
Other times, we need to make a major purchase in cash, but don’t have money on hand and refuse to utilize a credit card.
In both of these situations, a low-interest loan can be a true financial hero.
With so many loan companies out there all vying for your attention, it can be hard to tell which ones actually offer the best rates.
LendGenius works with a network of lenders, which allows customers to connect with a lender quickly so they can get the process started.
These are some of the low-interest lenders we work with:
LendingClub might be best utilized by consumers with good credit looking to make a major purchase without a credit card.
Their APR range is 5.99% to 35.89%, so borrowers with bad credit might fare better on APR with a credit card.
LendingClub has no income requirements, but you need a credit score of 600 or higher to qualify for their loans.
They can fund loans of up to $40,000.
SoFi offers some of the lowest interest rates in this list, with an APR range from 5.29% to 14.24%.
They’re also pretty forgiving to borrowers, with no origination fees or early repayment penalties.
And the max loan amount is even $100,000.
However, all these generous terms require an annual income of at least $50,000 in order to be approved for one of their loans.
Upstart is an ideal lender for borrowers who need fast access to cash but have poor credit (620 is the minimum FICO score they will approve).
However, if your credit is in good shape, you can benefit from APRs as low as 7.39%.
Loans can be approved of up to $50,000, but keep in mind there is a one to eight percent origination fee.
Citizens Bank is a traditional brick n’ mortar institution, but somehow they’ve found a way to compete with the low-interest rates of online lenders, with APRs ranging from 5.99% to 16.24%.
There’s not even any origination fees or early payment penalties.
However, Citizens Bank does require borrowers to have a FICO of at least 680.
Earnest offers low-interest loans with incredibly short terms, making them the perfect lender for quick cash you plan to pay back like a credit card.
The longest term loan Earnest offers is three years, but you can borrow up to $50,000.
There are no minimum income requirements to qualify for one of their loans, but you do need a FICO of at least 660.
Qualifying for Low-Interest Loans
One of the most important factors to look for in a personal loan is the interest rate.
Here are the aspects of your credit to take care of in order to qualify for loans and get a good deal:
Your credit score
Also known as your FICO, in the world of lending, your credit score is king.
With a range of 300 to 850, this number helps lenders determine the level of risk they face when they loan money to you.
A low credit score indicates high risk, so lenders will be more aggressive in recouping their investment.
That translates to higher interest rates on your loan, so they’re paid as much as possible in case you suddenly default on the loan.
Your credit score is affected by a number of factors, like:
- length of your credit history
- the amount of debt compared to your amount of available credit
- & your payment history.
Your debt-to-income ratio
Most lenders will ask borrowers about their income.
As they review your credit history, they are aware of how much debt you have and what your monthly payments are.
They can look at your income to assess how easy it will be for you to pay back your loan.
Obviously, having a high amount of debt with payments taking up a large amount of your income would indicate you are a high-risk borrower—
And that will result in higher interest rates, if you get approved at all.
The term of the loan
The best deals on interest rates are extended to borrowers who opt for short term loans.
From the lender’s perspective, the faster a loan is paid off, the more money they will have to lend to other borrowers.
Short term loans always have higher monthly payments however, so be aware of how much you can handle in your budget.
Do you know what kind of rates are available for you?
Regardless of your personal credit score and your income, each of these lenders will offer you different rates and terms.
So how you do know how to get a loan with low interest, unless you know what each lender can offer you?
LendGenius allows you to connect with a lender quickly and efficiently, so you can make a more informed decision.
Ready to get started?