Where Can I Find the Lowest Interest Rate for a Personal loan?
Published: July 16, 2018
Sometimes life hits us with unexpected expenses. Other times we’re presented with an opportunity that’s too good to pass up — but we don’t have the necessary funds to follow through. Or perhaps we have several credit cards or bills we’d like to consolidate into a single account.
If you find yourself in any of these common scenarios, a personal loan is often the best course of action. Yet just like with a mortgage or an auto loan, it’s critically important to ensure that you secure the most competitive interest rate possible.
With that in mind, let’s take a closer look at how to locate the lowest rate for your personal loan.
Why a personal loan makes sense
Cost is one reason why it’s often smarter to take out a personal loan rather than use a credit card. Typically, the rates offered by credit cards are significantly higher than those offered through a personal loan. According to Federal Reserve Bank data, the average interest rate on a personal loan is roughly five percent lower than the average credit card interest rate.
Over the course of months or years, paying that high interest can really add up.
Once you’ve made the decision to pursue a personal loan, you’ll need to consider the best loan provider option. Banks are one popular choice, and you can also explore alternatives such as online lenders and peer-to-peer lending programs.
A credit union, however, represents that best possible choice for those seeking the most competitive personal loan rate. Because credit unions are not-for-profit organizations, they usually offer much lower fees than commercial banks. Interest rates on all loan types (including personal loans) are usually lower with credit unions.
Despite the money you’ll save on fees, you can also rest assured that credit unions like SCCFCU will offer the same level of security and service as you’d find with major banks.
How to get a lower rate
You can sometimes receive a better rate by opting for a shorter loan term. Improving your credit score is another smart tactic for getting more competitive personal loan rates.
For many people the need for a personal loan can strike at any time. By partnering with the right credit union, you can be certain you’ll have access to the money you need at a rate that works for you. To get the best personal loan rate contact us today for a quote. Visit our website for more information.