Best Personal Loans of 2018

A personal loan is a type of installment loans that involves borrowing a set amount of money and paying it off with interest according to a schedule. This type of loans is usually unsecured, meaning you do not need to put up collateral to get the loan. Instead, lenders will check your credit reports and ask to provide some other personal information (like income) to determine your eligibility.

Personal loans can be used for different purposes and in some cases, they are a better option than, for example, a credit card. Loans interest rates are lower than credit card's APRs. Plus, you can shop around looking for the best option for you. Searching and comparing for the best personal loans will most likely not affect your credit score. Credit scoring models usually treat multiple hard inquiries for the same type of credit product as a single event, provided you submit applications within a few weeks.

The situations where a personal loan can help are debt consolidation, credit card payoff, medical expenses, home improvement, education, big purchase. To choose the right personal loan for you, consider the following:

• Interest rate. While the interest rate can be low, find out if it is fixed or variable. Fixed rates are preferable as they won't change over time.
• Fees. Some lenders charge loan origination fees and some other charges. You may not want to pay those fees so look for the offers without upfront fees.
• Early pay off. Many lenders allow to pay off a personal loan earlier and if you are planning to do so, make sure the option is available and there are no charges.
• Co-applicant. If your credit is bad, you may want to apply for a loan with a co-applicant to increase your chances to qualify or to qualify for a lower interest rate.

When applying for a personal loan online, make sure you are dealing with a reputable lender. You won't want to share your personal information with an unreliable lender.