Personal loans cover the needs of a borrower with cash. Generally, a personal loan is about $5,000 to $20,000. The amount of personal loan is usually determined by the borrower. Also, the available credit and credit score is what decides whether the borrower can get the loan or not.
A borrower can use a personal loan to finance his or her needs such as large purchases, home renovations, or consolidate high interest debt from credit cards. Although there are plenty of debt consolidation loans, most fall under personal loans. With that said, personal loans are much greater than just
On average, the personal loan interest rate is about 9.4%. However, this is only the average. Both the lender and the borrower’s credit score is going to have an effect on the interest rate. For the most part, the borrower’s debt to income ratio is going to have an impact on the interest rate along with the credit history. Since most banks are going to offer the same interest rate to you, their own base interest rate is where you can benefit from having a low-interest rate.
See the current interest rate of banks for personal loans.
|HSBC Personal Loan||6.99% to 21.90%|
|Marcus by Goldman Sachs||6.99 to 19.99%|
|LightStream||5.49% to 21.49%|
|Wells Fargo Personal Loan||5.49% to 23.49%|
|U.S. Bank Personal Loan||2.99% to 15.49%|
|Discover||6.99% to 24.99%|
|PNC Bank Personal Loan||7.49% to 21.49%|
|American Express||7.49% to 23.49%|
|Citizens Bank||6.99% to 20.88%|
|BB&T Bank Personal Loan||4.79% to 17.99%|
*Keep in mind the interest rates can be slightly different when you apply for a personal loan. For the most accurate information on the personal loan interest rates, contact the lender.
Needed Credit Score for Personal Loan
Without a doubt, the borrower’s credit score is what going to determine the likelihood of getting the loan. Most of the lenders above require a minimum of 600 while some do not have an initial requirement. We suggest making sure you have enough available credit for the personal loan amount you’re looking to get.
In addition to the available credit line, learn how you can check your credit score for free by reading the article below.