Best Personal Loans for 2020

Many people find the need for a personal loan at some time or another. 

Whether they want to consolidate multiple high interest debts into one lower interest loan, make a home improvement, start a hobby/business, or simply make a variety of purchases to set projects in motion, there are many different reasons to take out a personal loan.

Whatever your reason, you want to make sure you get the best possible terms to ensure you get the best personal loans for your situation.

For some people, the best loan might be a longer payback time to keep cash flow open, for others it is the lowest interest rate possible, and for many this will be a combination of these two factors.

There are several options out there when it comes to finding the best personal loan, and by understanding your options you’ll have a much better chance of finding the best possible deal out there for you and your current situation.

Compare Personal Loans on the Net

Naturally, one of the best places to search for personal loans is on the internet. You can find what you’re looking for faster. And you can also find out if you qualify without ever having to meet with a lender or company representative.

The whole process is simplified but you give up the personal touch you would get from actually talking to someone.

Shop Multiple Banks for Your Personal Loan

There aren’t nearly as many big banks as there used to be, but you still want to check with all the local big name branches just to see what’s available. You might be amazed at how different the offered terms for a personal loan are between two big banks.

By mentioning you are looking around at options you might end up with a better offer on personal loans – slightly better payback terms, a slightly lower interest rate, etc. Don’t commit right away but do find out what type of terms you can expect.

Look at Local Lenders for the Best Personal Loans

Many times, smaller local banks will be more willing to give friendly terms. They aren’t pushed by heavy investments the way many of the larger banks are, allowing them to concentrate more on local lending and interest rates.

Local banks are often overlooked for personal loans as more and more people turn towards big brands, but the ones that do well tend to do so because they build personal relationships with their customers.

That means they are often very receptive to finding ways to get good terms for borrowers to keep them happy and in good shape to re-pay those loans.

While this won’t always be an option, most people are surprised to see how many local banks there are relatively close to them.

A simple Google search could reveal several options for a personal loan that you didn’t know about – but as always – do your research on the reputation of each one to only work with the most reliable.

Get the Best Personal Loans from a Credit Union

If you need personal loans for large sums of money, a credit union might be a great option. Many times this is especially true if you are looking for a relatively small loan or are in that gray area of credit scores where you’re not terrible, but not very good.

If you’re struggling to find someone willing to grant you a small personal loan for something like a computer, a home appliance, or something in that range then a credit union is often a very good option.

Since they’re set up in a way where they can’t pull in the massive profit of big banks they are often happy to take chances with lower loan amounts or less than perfect credit.

Look at Non-Conventional Lending Options

There are many different online lending options for a personal loan that weren’t there even a few years ago, and they are worth a look.

In many cases it’s easier to find high interest personal loans if you have mediocre or poor credit from peer to peer (p2p) lending sites, but there are sometimes very good options. Borrowers with great credit or good cash flow, or both, might find a gem of a deal from one of these p2p lending platforms.

These are generally the biggest factors in deciding interest rates and amounts available to borrow, so someone in good shape should look at popular choices like Upstart, Prosper Marketplace, or other similar sites just to see what’s possible.

In Conclusion

There are a lot of different options out there for personal loans that are a good fit for you. While some tend to be consistently better when it comes to borrowing terms than others, it’s important to understand all the potential funding sources so you can always check out the specific options and terms available.

Some personal loan options are clearly going to be superior to others. 

Each situation is different and the only way to rest easy knowing you received the best possible terms is to know what all your options are.