The best rates for personal loans are going to be highly dependent upon whether you have excellent credit, good credit, fair credit or poor credit. But even if you know your credit score, you still have to know what the best rates are for your credit category and which loan companies can provide them. Do you know your credit score and what rate you should expect?
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When looking at some loan companies, you’ll see that they cater to people with bad credit all the way up to excellent credit. Some of these companies won’t have the best rates for people with excellent credit, but some of them will be able to match those rates, too.
Massively Varying Interest Rates
I was looking at one of the companies, and they had a rate anywhere from 9.9 percent all the way up to 36 percent. The cut off credit score for a loan is 580, and so you can imagine that the 36 percent is for the credit score of 580. You can also imagine that a loan for someone with a credit score that low could come with a much higher interest rates, especially when looking at instalment loan companies that serve up payday loans.
The nine percent interest rate might seem high for starters, but personal loans are going to have higher interest rates than car loans and mortgages. That’s just how it works, but that doesn’t mean you can’t get a great rate.
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Comparing More Than One Company
Looking at another personal loan company, however, the best rate starts at 5.9 percent. The only thing is that the company doesn’t offer loans to people with a credit score under 660. Another one that I looked at started with a rate of 6.5 percent. One thing you also have to look at is the loan amounts that these companies offer, as that can have everything to do with the rate as well.
For example, the first two I mentioned start off with 1,000 and offer up to 35,000 pounds. The third one starts at 3,500 and goes up to 25,000 pounds. Can you get an even lower rate? I saw one starting at 4.05 percent, but again the starting rate is for people with excellent credit.
There is one loan company whose best interest rate is over 16 percent! You also want to pay attention to how fast you can get your funds. Look at a list that compares the rates, amounts and other factors so that you can make an informed decision.
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