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Personal Loans 101: Who Is the Best Lender for You?

Life often leads people to a winding road filled with bumps ahead, so when plans go astray, and you find yourself stuck in a financial rut, then it’s important to know you have options to cover your needs quickly.

The Potential of Personal Loans

This option is where personal loans shine through, a type of loan that allows borrowers like you to get a fixed amount of money to pay for medical emergencies, unexpected home repairs, or even to fund milestone-worthy celebrations like weddings.

While getting good rates highly depends on your credit score, income, loan repayment terms, and the amount you’re borrowing, the type of lender you choose will also impact your fees and overall experience when getting personal loans.

This begs the question: which lender should you approach to get the best offer?

Different Lenders for Prequalifying for a Personal Loan

1. Online Lenders

They are digital lenders like Central Loan & Finance Atlanta that allow you to easily search and compare offers online, making it the most convenient way to get a personal loan. Aside from the ease of shopping for rates within a few clicks of a button, online lenders offer a prequalification process, which is unique to this medium only.

The process involves coming up with tailored rates and terms that suit your financial capabilities based on the “soft” credit check online lenders conduct. Aside from getting a customized offer, you also don’t have to worry about having a negative impact on your credit score.

Online lenders offer lower fees, though they also come with higher interest rates. They’re the best choice for tech-savvy borrowers who want to skip the draining process involved with a live banker.

2. Banks

One of the most established lenders in the industry, banks offer higher loan amounts but can only lower interest rates to high-credit borrowers. You need to have at least a credit score of 661 to qualify for a personal loan with banks, though there is a chance to get a discount if you have existing relationships with them, such as being a longtime customer.

3. Credit Unions

If you’re uncomfortable going online but cannot handle the strict underwriting requirements involved with banks, credit unions offer the best of both worlds since they always strive to act in the best interest of their members. That includes you, which means you have higher chances of qualifying for a personal loan even if you have a credit score of 660 or lower.

Credit unions can only offer smaller loan amounts due to the higher risk involved, which is its most critical drawback. Nonetheless, going to the credit union is an excellent move for members of the credit union who need some small financial aid.

The Bottom Line: Choosing the Right Lender for Your Personal Loans

A personal loan is a credit option that allows people with little-to-no room in their bank accounts to make big purchases, plus it offers a relatively lower interest rate compared to bigger loan options available.

Are You Looking for the Best Lender to Give You a Personal Loan?

If you’re strapped for cash, qualifying for a personal loan can help cover your financial needs whenever you’re in a bind. But finding the best loan with the best rates that you can afford can be complicated, but our lenders at Central Loan & Finance Atlanta strive to simplify the process in meaningful ways.

By offering various personal loan sizes to clients with different needs, you can get good rates even with less-than-ideal credits. Located in the heart of downtown Atlanta, we prioritize making loan applications an easier experience for you, so get in touch with us at 404-522-9024 to apply today!

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