Your bank is not the only place where you can apply for a loan, especially when it comes to personal loans. Several types of financial organizations offer low interest personal loans for individuals who check all their boxes.
In addition to looking at banks when searching for the best loan rates, make sure you also consider credit unions, payday lenders and online lenders. Read on to learn about some of the pros and cons of each of these lenders.
· Credit unions. These not-for-profit lenders work like banks. The key differences are that credit unions often have better rates and lower borrower requirements.
When you join a credit union, you are more than a customer. You are a member. Credit unions serve their communities and often provide loans to people who do not qualify at a bank.
· Payday lenders. If you need cash fast to hold you over until your next paycheck, you might consider a local payday lender. These lenders offer small short-term loans that you can get on the same day you apply. You can also reborrow your initial loan amount if you need an extension on the due date.
· Online lenders. The internet has thousands of non-brick-and-mortar lenders. Online businesses offer low rates since there is so much competition. Comparing lenders and applying for a personal loan online is super easy.
Each lender has different pros and cons to choosing them. Payday lenders do not look at your credit score or report, so they can be an easy option if you have poor credit, but their loans come with super high interest rates.
While credit unions will look at your credit, they often give loans even if you do not have great credit.
Another thing to keep in mind is choosing the right loan. Although cash is cash, loans have different terms and some are perfect for individuals like you.