|Company||APR Range||Minimum Credit Score||Terms||Loan Amounts||Online Application|
|LightStream Best Overall and Best Loan Range||3.49% to 19.99% (with 0.50% autopay discount)||680||24 to 240 months||$5,000 to $100,000||Yes|
|Discover Personal Loans Best for Debt Consolidation||5.99% to 24.99% (no autopay discount)||Not disclosed||36 to 84 months||$2,500 to $35,000||Yes|
|Rocket Loans Best for Quick Funding||5.97% to 29.99% (lowest APR includes autopay discount)||580||36 or 60 months||$2,000 to $45,000||Yes|
|Navy Federal Credit Union Best Credit Union and Best for Military Members||7.49% to 18.00% (no autopay discount)||No minimum||36 to 180 months||$250 to $50,000||Yes|
Loan amounts, APR, and repayment period may vary by loan purpose or type.
Guide for Choosing the Best personal Loans for Good Credit
Do You Need a Personal Loan for Excellent Credit ?
even people with excellent citation may face a situation where a personal loanword can be helpful. For example, you may need funding to make home improvements, consolidate variable-rate credit rating batting order debt into a lower fixed-rate payment, or pay for unexpected aesculapian bills. The dear news is that those with excellent credit can qualify for funding from more lenders and may receive the lowest possible interest rates on their loans .
You ’ ll be able to qualify for a personal lend with many lenders if you have excellent credit, angstrom long as you besides meet their other adopt requirements. Since you can probably qualify with most lenders, you ’ ll motivation to decide the most significant features to you when searching for a loan. For model, you may need to consider the rush of fund, the size of the loanword you can get, and available repayment terms .
How to Compare Personal Loan Lenders for Excellent Credit
People with excellent credit and income sufficient to repay their debt should be able to qualify for a personal loan with most lenders. So, some of the most significant factors to consider are :
- APR range and fees: You’ll usually get the best rates if you have excellent credit. So, one of the biggest factors to consider is the rate you can get and if you’ll be required to pay any fees. Remember that the APR includes fees, so compare APRs instead of interest rates when shopping around.
- Funding speed: Some lenders can get you approved and funded as quickly as the day you apply. Others may take a few days to get you approved and funded. Choose a lender that can get you your money as fast as you need it.
- Repayment terms: One of the ways to get the smallest possible payment (besides getting a low-interest rate) is to choose a longer repayment term. However, you’ll end up paying more interest over the life of the loan than with a shorter term. You’ll need to decide if you want to pay less interest or have a smaller payment before you apply for a loan.
- Loan size: The amount of money you need to borrow is likely one of the biggest factors to consider. If you only need to borrow a few hundred dollars, make sure the lender offers loans that small (loans of at least $2,500 are common). Also, many lenders only offer personal loans up to $50,000—options above this amount are more limited.
How to Apply for a Personal Loan with Excellent Credit
Applying for a personal loanword if you have excellent credit is basically the same summons as it is for anyone else. The main dispute is you might not need to provide the lender with angstrom a lot software documentation as a borrower with a lower credit sexual conquest. For exercise, some lenders might not require that you provide information like tax returns or pay stubs since your excellent credit score shows you have a history of repaying your loans on schedule .
Regardless of your credit score, you ’ ll normally start the personal loan application work by submitting an application on-line. You ’ ll need to provide the lender with basic information like details about your income, your sociable Security or tax recognition number, why you need the lend, and how much you need to borrow .
If the lender offers a pre-qualification option, you ’ ll review the lend offers, accept the offer you like, and create an score on-line to manage your loanword. then, you may be asked to provide some other software documentation, like proof of income. once this is done, you ’ ll receive your fund and manage your report online through a portal site or a mobile app .
frequently Asked Questions
What Is Considered an Excellent Credit Score?
Personal recognition score ranges are typically 300 to 850, with higher scores considered better. In the bare terms, your citation score indicates how hazardous it is for a party to lend you money or provide other services ( for example, lease you an apartment ). Higher credit scores indicate that you ’ ve efficaciously managed your credit and paid your loans on time, so you are considered lower risk. excellent credit is typically a FICO credit score of 800 to 850. According to research by Experian, the average FICO score in the United States in 2021 was 714, which is considered dear credit. FICO score ranges are typically defined as follows :
- Excellent credit (or exceptional credit): 800 to 850
- Very good credit: 740 to 799
- Good credit: 670 to 739
- Fair credit: 580 to 669
- Poor credit: 300 to 579
Understanding where you stand in terms of your accredit score is significant. It can mean the difference between a loanword with an sake rate in the double digits ( if you have a less-than-good mark, under 660 or so ) or one merely a few share points above prime ( if you are in the excellent-score category ). other benefits to having a higher credit score include the ability to borrow higher loanword amounts and longer repayment terms.
Will Getting a Personal Loan Hurt My Credit Score?
many lenders let you pre-qualify for a loanword by performing a soft credit check, which wo n’t impact your credit sexual conquest. If you decide to formally apply for a lend, the lender will complete a hard rend on your credit. A hard pull can cause your accredit score to drop slightly. If you ‘re approved, the personal loan will besides show up on your citation report, which could besides impact your citation score.
If you have excellent credit, the hard inquiry and the personal lend may not affect your score identical a lot or for very farseeing. Plus, if you apply for multiple personal loans within a unretentive time ensnare, the recognition agency may view them as one inquiry. Credit chest of drawers are aware that borrowers like to compare offers before making a decision and wo n’t necessarily ding you for due diligence.
Make sure you understand if your lender uses a easy credit check or hard credit hindrance to pre-qualify you. Some lenders lone use a hard citation crack, which will show up on your credit composition and could impact your accredit score .
What Can I Use My Personal Loan For?
broadly, you can use a personal lend to fund about any personal expense. however, you normally can ’ thymine practice a personal loan to pay for college or fund business expenses. Some of the most common uses for personal loans are :
- Debt consolidation
- Home improvement or repairs
- Medical procedures
- Weddings or special vacations
- Other unexpected or emergency expenses
nineteen percentage of american couples surveyed in the Weddings & Money 2021 : A Brides and Investopedia sketch said they plan to take out a personal lend to pay for their marry .
What Are the Pros and Cons of a Personal Loan for Excellent Credit?
Before taking out a personal loanword, consider the pros and cons.
- Higher loan amounts than credit cards: With a personal loan, you’ll usually be able to borrow more money than you can with a credit card. For example, some lenders will allow you to borrow as much as $50,000 to $100,000 at a time.
- Lower interest rates than credit cards: Personal loans carry fixed interest rates, which are usually lower than the variable interest rates you’ll pay on a credit card.
- No collateral and quick funding: Most personal loans aren’t secured by collateral. This means the funding speed is usually much faster than a comparable secured loan since the lender doesn’t have to take time to evaluate your collateral or get an appraisal.
- Smaller loan amounts than on secured debt: Although you can borrow more money with a personal loan than you can with a credit card, it’s often less than what you might be able to get with a collateral-secured loan. For example, with a home equity loan, you might be able to borrow up to 80% or more of your home’s value (less any other debt you owe on the home).
- Higher interest rates than on secured debt: Personal loans are riskier to lenders because they are not secured by collateral. Lenders compensate for this risk by charging higher interest rates on unsecured debt, including personal loans.
- Shorter repayment terms than on secured debt: You’ll usually need to repay your personal loan in two to seven years. This is much shorter than the 15 to 30-year repayment terms commonly offered on mortgages and home equity loans.
Where Can I Get a Personal Loan?
As person with excellent credit, you ’ ll be able to find a personal lend in many places. many borrowers tend to think the only places are through banks and credit unions, but many alternate lenders offer fairly competitive rates–especially if they ‘re on-line. In fact, such lenders have some of the lowest rates since they ’ re not submit to the overhead costs that brick and mortar institutions are.
How We Chose the Best personal Loans for Excellent Credit
Our team evaluated 38 lenders and collected 1,520 data points before selecting our crown choices. We weighed more than 20 criteria and gave a higher weight to those with a more significant impact on likely borrowers .
The clear picks were selected based on factors like membership requirements ( leaden 15 % ), average fixed APR ( weighted 15 % ), and average initiation fees ( weighted 10 % ) .
We besides took into report the flexibility of refund terms, helpful features like prequalification, and whether a co-signer or joint applications are permitted to ensure borrowers get the best possible feel. For far information about our choice criteria and procedure, our complete methodology is available .
Category : News