How to get a good interest rate for a personal loan

Interest rates are rising as the Federal Reserve tries to fight record inflation. The central bank does this so that loans become more expensive and can try to slow the economy, hopefully without sending it into a recession.

However, rising interest rates mean that loans are becoming more expensive and less desirable than the record demand since the start of the pandemic.

But can you still get a reasonable interest rate on a personal loan?

Select investigates how to get the best possible rate on any loan in the new future and how to improve current loan rates.

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How to get a low interest rate on a personal loan

Upstart personal loans

  • Annual percentage rate (APR)

  • Purpose of the loan

    Debt Consolidation, Credit Card Refinancing, Marriage, Moving or Medical

  • Loan amounts

  • Terms

  • Credit needed

    FICO or Vantage score of 600 (but will accept applicants whose credit history is so poor that they don’t have a credit score)

  • Tax of origin

    0% to 8% of the target amount

  • Advance payment penalty

  • Late fare

    The greater of 5% of the overdue monthly amount or $ 15

OneMain Financial Personal Loans

  • Annual percentage rate (APR)

  • Purpose of the loan

    Debt consolidation, large expenses, emergency expenses

  • Loan amounts

  • Terms

  • Credit needed

  • Tax of origin

    Flat rate starting from $ 25 to $ 1 million or percentage between 1% and 10% (depends on your state)

  • Advance payment penalty

  • Late fare

    Up to $ 30 for late payment or up to 15% (depends on your state)

If you’re not sure what your credit score is, you might want to consider signing up for a credit monitoring service like Capital One’s Chase Credit Journey or CreditWise┬«.

2. Your work history

The second part is the history of the occupation. The lender will likely ask for an employment history to prove that you have the means to pay off the debt. To prove this, you will likely need to get a letter from your manager or HR department. Although it is more challenging, it is still possible to get approval for a personal loan if you are unemployed.

3. Verifiable income

Finally, you will need some kind of verifiable income. Similar to work history, the lender will want to see your current income to make sure you can make monthly loan payments. This is especially useful if you are still working on improving your credit score. Again, it might be slightly more challenging, but you can still get approved for a personal loan if you’re self-employed and have inconsistent income.

Compare offers to find the best interest rate

LightStream Personal Loans

  • Annual percentage rate (APR)

    3.99% to 19.99% * when you sign up for automatic payment

  • Purpose of the loan

    Debt Consolidation, DIY, Auto Financing, Medical Bills, Marriage and more

  • Loan amounts

  • Terms

  • Credit needed

  • Tax of origin

  • Advance payment penalty

  • Late fare

Goldman Sachs Marcus Personal Loans

  • Annual percentage rate (APR)

    From 6.99% to 24.99% in April when you sign up for automatic payment

  • Purpose of the loan

    Debt Consolidation, Home Improvement, Marriage, Relocation and Relocation or Vacation

  • Loan amounts

  • Terms

  • Credit needed

  • Tax of origin

  • Advance payment penalty

  • Late fare

SoFi personal loans

  • Annual percentage rate (APR)

    From 7.99% to 23.43% when you sign up for automatic payment

  • Purpose of the loan

    Debt consolidation / refinancing, home improvement, moving assistance or medical expenses

  • Loan amounts

  • Terms

  • Credit needed

  • Tax of origin

  • Advance payment penalty

  • Late fare

Select also has a comparison tool and loan marketplace that allow you to easily review different loan offers. You will have to answer a handful of questions and Even Financial will determine the best deals for you. The service is free, secure, and doesn’t affect your credit score.

This tool is provided and powered by Even Financial, a search and comparison engine that matches you with third party lenders. Any information provided is provided directly to Even Financial and may use this information in accordance with its own privacy policies And Terms of Service. By submitting your information, you agree to receive emails from Even. Select does not control and is not responsible for the policies or practices of any third party, nor does Select have access to any data provided by you. Select can receive an affiliate commission from partner offers in the Even Financial tool. The commission does not influence the selection in order of offers.

Bottom line

Editorial note: Opinions, analyzes, reviews or recommendations expressed in this article are those of Select’s editors only and have not been reviewed, endorsed or otherwise endorsed by any third party.

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