When you need cash for something large, personal loans can be a convenient financial solution. Personal loans often offer lower interest rates than credit cards, and you can usually get the money within a day or two. However, it’s important to understand the pros and cons of a personal loan before you decide whether it’s a good option for your needs.
To find the best personal loan for your situation, evaluate and compare lenders’ interest rates, fees, services and terms. Look for a lender that accepts your preferred method of application and has a reputation for customer service. Some lenders also allow you to prequalify for a personal loan without affecting your credit score. If your credit score is low, consider adding a cosigner with an excellent credit history to increase your chances of qualifying for a personal loan with a good rate.
Credit unions can provide an alternative to bank and online lenders, and they typically have more flexibility when it comes to approving borrowers and loan amounts. They may also be faster at disbursing funds, especially if you have an existing relationship with the credit union. For example, Navy Federal Credit Union offers personal loans to members with fair or better credit scores. Another option is American Express, which provides flexible personal loans with competitive rates and 0% origination fees for a period of three to seven years. The company also has a variety of other financial products, including credit cards.