The cheapest consumer loans that you can get are probably personal advances. You can get them with low interest rates and low fees. You also can get them without any collateral which makes it easier to get one. If your credit score is above 700, you shouldn’t have any issues getting a personal loan.
Cheap Consumer Loans
There are other loans that you can get with lower interest fees. The billigst loans still might be the personal loan. This might be the type that you might want to try to get.
This article will help you find some of the cheapest loans. It will give you ideas about other advances that aren’t that expensive. You can also do research to get more information on this subject.
Ways to Find the Cheapest Loans
- Banks – This is the traditional space to find advances and you might be able to get a cheap one here. If you have a great relationship with your personal bank, you can get lower interest fees. You can get a variety of products here including mortgages, personal loans, and student loans.
You need to be careful about using banks as lenders because they might have higher fees than other lenders. They can also resell your loan to other lenders which can change all the fees that you agreed to. When you apply for a bank loan, ask if it might be sold to another lender.
- Credit Unions – Credit unions are similar to banks, but they are owned by the members. They offer most of the same products that a bank can. They can also offer lower interest rates if you have a good relationship with them.
Credit unions are mostly non-profit so they can offer you lower fees for their products. Certain fees such as origination fees and application fees might even be waived for certain members. This will help them to keep their fees lower for you.
- Peer-to-Peer Lending – This is also called crowdlending and social lending. This is when you borrow directly from other individuals directly. There are individual investors that allow you to borrow from them with an interest fee that you mutually agreed upon.
With peer-to-peer lending, you might not get the entire amount of money that you want to borrow. This is because you are relying on individual lenders, and they can tell you what they can give you. The lender gets their income from the interest that you pay on your loan.
- 401(k) Plans – If you have a 401(k) plan with your employer, you might be able to borrow from that. You would need to make sure that you paid it back in monthly installments, just like any other loan. There are also ways to take money from your 401(k) and not have to pay it back. You would lose out on some of your retirement plan this way.
With a 401(k) loan you can get up to fifty percent of what is in your retirement plan. There is a limit of $50,000, but you can borrow up to that. You need to make sure that you pay on time, or the government can say that you are in default.
- Credit Cards – Credit cards are another way to borrow money, but they will have higher interest rates. You might be able to find credit cards with low interest or no interest if you have a high enough credit score. Otherwise, you might have interest rates beginning at 18.99%.
If you do a cash advance from a card that you already have, you will not have any loan fees that go along with it other than the interest fees that you are already paying. You might not get as much from a cash advance as you need, but you can get a small amount. You won’t be able to fund large purchases with a cash advance.
- Margin Accounts – These will allow you to borrow money so that you can invest in securities. You must have a brokerage account that you can use as collateral. The interest fees related to this are usually lower or the same as other loans.
A loan is easy to initiate if you have enough equity in the account. These are usually used to make new investments and not for other purchases. These wouldn’t be good for your large purchases such as major appliances or furniture.
- Public Agencies – You could also get money from public agencies for some purchases. The Fannie Mae lenders are one source that you could investigate. The interest rates will be lower, and you can have a longer period to pay the money back.
There is a large amount of paperwork that must be completed for this type of advance. Not everyone qualifies for them. There is often an income level that you must meet to qualify.
- Finance Companies – These companies are private entities that lend money to people. They usually give loans for vehicles, furniture, or major appliances. They usually specialize in short-term loans.
These are usually done for short-term loans from auto companies. They do usually have competitive rates depending on your credit history. There is usually a quick approval process for most people.
There are many ways that you can get inexpensive loans for your purchases. Some of these loans are for all people, while others are for a specific group of people. All of them have reasonable fees for the loans.
Your interest rate can depend on what you are borrowing money for. Home and car loans have fees that are less expensive because they have collateral to fall back on. Personal, unsecured loans may be the most expensive because there is no collateral. All loans depend on your credit history and credit scores.
You can get your credit history from any of the top three credit bureaus. There are ways to get them for no cost. Your credit history is the history of all your debts, both the ones that have been paid and those that have not been paid.