Learn how to get a low APR personal loan

low apr personal loan

Lenders want to offer you the best possible APR on your next personal loan. After all, it’s their product and they’re always looking for ways to get more of your business. It’s really up to you to make sure you get the lowest APR possible. If you ever need some help finding out how to get a low APR personal loan, check out this list of top five low APR personal loans from some of the top lenders in the U.S.

What is a Low APR Personal Loan?

A personal loans are a part of an unsecured loan. You can borrow up to $35,000 with no collateral and a variable rate depending on your credit score. A low APR personal loan may be available for people with good credit scores. Personal Loan Rates & Terms. Low rates and terms with competitive rates and terms. A personal loans can be used to:

Home equity loans and lines of credit. a personal loan from another bank or lender, or even a credit card. You might have to pay a lower interest rate if you get a loan at the same bank.Low rate personal loans are often defined as personal loans where the interest rate is fixed, and the interest rate is lower than comparable personal loans. Open-ended credit lines and overdraft loans may have variable interest rates that depend on the creditworthiness of the borrower and other factors.

A personal loan is a short-term unsecured loan, where a person borrows money from the lender for a specific time period and a specific purpose. It is similar to a mortgage loan, which is used for home purchase or construction, or a car loan , which is used for buying a car or truck. Personal loans are usually a short-term solution for people who need money for a short time period . The lender makes money by charging a higher interest rate than the bank would on a credit card or loan.Personal loans are made for different time periods . Typically, short-term loans are needed for an emergency or a short-term need. For example, a person might want to borrow money to put toward a vacation, or they might need money to fix their car.

Lower APR LoansThe Top 5 Low APR Personal Loans

If you are in the market for a low APR personal loan, this list is for you. The first one is the Lending Club Low APR Personal Loan. Out of all the low APR personal loans, it has the lowest annual percentage rate (APR). Next up is the Square Loan which offers an interest-only payment plan. If you want to use your future income as collateral, then check out Capital One Low Rate Credit Cards because they offer flexible terms and no collateral. Finally, there’s New Yorkers Mutual where there are no credit checks or employment verification necessary. What is a low interest rate credit card? A credit card with a low interest rate offers consumers the opportunity to pay off high order items without having to worry about paying high interest rates. These are usually carried by individuals that have already established a great credit history, however, there are some low interest credit cards available to individuals that have a bad or limited credit history. In addition, you should always go for the low interest rates if you are a student or have limited income because you will have plenty of time to pay off the order. Even though you are young you should consider getting a credit card to start building your credit history.

The next thing you should consider is the annual fee on the card. It is not necessary for a credit card to have an annual fee. They are usually charged because of the benefits that the card provides to you or the additional services it offers.

Advantages and Disadvantages of a Lower APR Personal Loan

A personal loan with a low APR can save you money in the long term. For example, if you have to take out a $10,000 personal loan for 12 months at 12% APR, your monthly payments will be $273.74, or $3,925.48 total after 12 months. With a personal loan with a 6% APR, your monthly payments would only be $195.71, or $2,412.36 total after 12 months. That’s a difference of $1,413.12. If you were to take out a personal loan of $10,000 with a low APR and pay it off in 3 years, you would save even more!

Disadvantages of a Low-Rate Personal Loan. The biggest drawback of a low APR personal loan is that you will pay higher interest on the entire loan over time. For example, if you take out a loan for $10,000 at 6% APR and pay it off over 10 years, you will pay $11,241.20 in interest, as opposed to $7,822.00 in interest if you were to take out a 10-year loan at 4% APR ( see calculations below). Of course, it makes sense to charge more for interest when you offer a better product. If you had taken out a loan for $10,000 at 10% APR and paid it off over 3 years, you would have saved even more! You get what you pay for.

low apr personal loanHow to Get a Lower APR Personal Loan?

A low APR personal loan is one of the most practical ways to lessen your monthly loan payments because it will save you piles of money in interest. You can get a low APR personal loan by shopping around for lenders who are advertising rates. You should also be aware that not all lenders offer low APR loans, so you’ll have to do some research before signing any papers. Also detailed information can be found in personal loans article.

Conclusion

You can find a low APR personal loan for as low as 3.5%. In contrast, the national average is over 10% and getting higher every year. Find out how to take out a loan with an APR below 5%. The first step is to get pre-approved so you know how much money you can borrow and what your monthly payments will be. Then, use a “low down payment” lender that doesn’t require a 20% down payment. And finally, shop around for the best interest rate offered by other competing lenders.

As an extra, you can check current loan rates from BankRate.

 

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