24 Million People Will Need Loans in 2016

Saturday, February 20th, 2016

As 2016 picks up steam and rolls into February and then March, it can no longer really be called a new year. Still, it’s early in the year, and there are surely many surprises lurking on the horizon. One thing seems certain, though: plenty of people will be looking to take out loans this year.

A recent survey predicted that 24 million Americans will take out a personal loan in 2016, and some experts say the number will be even higher. “A lot of people don’t plan for a personal loan until their roof leaks or their car breaks down,” said Todd Albery, CEO of Quizzle.com. “Since three in 10 Americans have no emergency savings whatsoever, they’re just one unplanned expense away from needing cash in a hurry.”

Personal loans are just one option for folks who need some wiggle room in their budget, or cash to cover an unexpected expense. Another option is to apply for a low-interest credit card. Credit cards with a low APR are a good way to bridge the gap when budgets and reality collide. If people pay them off quickly, they don’t end up paying much more in interest. The average credit card rate for someone with average or good credit is 15.7%.

Consolidating credit card debt saves on interest

If folks do apply for a personal loan, the interest rate can be as low as 5.5% for someone with excellent credit. The average rate is closer to 11%, which is still lower than the average credit card rate.

Another option for consolidating credit card debt is to get a balance transfer credit card with a zero-percent APR promotional period. These offers can last up to a year, and are often the best way to pay off credit card debt quickly.

Other loan options

Home equity loans and lines of credit are another option for people looking to borrow money, as long as they own their own home. These loans charge less interest but require folks to put their homes up as collateral if they default on the loan. That can be too risky a proposition for some.

Peer-to-peer lending is also big right now, with new online loan options popping up all the time. The low unemployment rate and the Federal Reserve’s low interest rate are contributing to people’s willingness to loan money, and making it easier for those who need loans to get them.

Latest Low APR Credit Card News

Wednesday, October 25th, 2017
Online retailer Zulily is now offering customers a co-branded credit card that allows them to pay for purchases in three monthly payments. The card, issued in conjunction with ...
Wednesday, May 24th, 2017
A new survey indicates that Americans are getting more comfortable with the idea of instant financing when they’re shopping online. Seventy-five percent of folks said they would ...
Tuesday, December 20th, 2016
When your credit card is lost, stolen, or compromised in some way, one of the most annoying things is having to wait for your replacement card to arrive. While you’re waiting, you ...
Tuesday, July 19th, 2016
The prize for Army Credit Union of the Year goes to PenFed Credit Union this year, as the PenFed branch in Fort Hood, Texas is recognized for distinguished service at the Defense ...
Tuesday, January 20th, 2015
Understanding how credit card interest is calculated is important if you want to be more educated and use your credit card more effectively. Here we’ll explain how most credit ...
Best Credit Offer
Discover it® - Cashback Match™
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 5 / 5
Horizon Card Services Horizon Gold Credit Card
Copyright © 2001-2018 BestCreditOffers.com All Rights Reserved.

* The BestCreditOffers.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. BestCreditOffers.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the BestCreditOffers.com website are property of their respective owners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions.

BestCreditOffers.com makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that BestCreditOffers.com may be compensated by the credit card issuers when the readers apply for a credit card through this site.

BestCreditOffers.com is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. BestCreditOffers.com does not review or list all available financial or credit offers.

Disclosure: Not an access card.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.