Personal loans are meant to cover significant expenses such as home improvement, weddings, etc., but you might also need one for smaller expenses such as a minor car fix or a home repair. Expenses in such cases don’t run into thousands, and in most cases, a three-figure loan will be good enough.
Most of the personal loans on offer start at $5,000. So if your needs are less, you would be paying significantly more if you take such a huge loan both as interest and monthly payments. And money once borrowed goes towards frivolous expenses.
But there are personal loans on offer that start at as little as $1,000. Getting to choose the best ones can be a taxing job. You need to go through important factors such as fees, interest rates, term length, and the amount you need to borrow. There are other factors for a personal loan such as discounts offered, the quality of customer service, and the loan processing time.
For personal loans, you need to compare several offers for 2 of the most important factors, the interest rate, and payment terms.
Comparing Terms Of A Few Personal Loans Lenders
Lenders such as Upstart give borrowers up to $50,000 but the entry-level loans are as low as $1,000 if you do not need a higher amount. It requires a credit score starting at 600, but Upstart also takes in applications even if you have no credit history.
One important thing to note is that lower credit scores invite higher interest rates which are between 6.95% and 35.99%. there is an initial fee of 8% of the loan amount. The late fee comes to the higher of 5% of $15 of past dues. The repaying window is between 36 months to 60 months.
Other personal loan lenders such as PenFed offer personal loans for medical expenses, home improvement, etc. you need to sign up for a membership for loans start at $600. Interest rates are between 5.99% and 17.99%.
Upgrade is a good choice for a personal loan for those with a credit score less than ideal. The loans are easy to secure and the processing time is low. There is an $8 origination fee deducted from the loan amount. Upgrade charges a late fee of $10 if you miss a payment or pay after the due date. They have a repayment term for personal loans between 24 and 84 months.