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Personal loans can be of great help when it comes to obtaining funds for major expenses, especially in times of need. And while there are lenders out there who cater to a variety of circumstances – having a bad credit rating or needing a debt consolidation loan, for example – it’s always a good idea to see if you’re ready. -approved before submitting your application.
Getting pre-approved can help you get a better idea of the interest rate you might be charged and what your monthly payments might look like so you can determine if they’re within your current budget. Taking out a loan with a much higher monthly payment than you can afford is never a good idea because it means you run the risk of not paying and lowering your credit score.
All you have to do is select your credit score range: Excellent (720+), Good (660–719), Fair (620–659), or Poor (below 620). The tool does not conduct any in-depth investigation, so your credit score will not be affected by your checking to see what you are pre-approved for.
Next, fill in your zip code and select the reason for your personal loan request, which allows you to be matched with a lender who offers loans for this purpose. You will be able to choose from debt consolidation, credit card refinancing, student loan refinancing, home renovation, medical and dental care, and more.
Finally, enter the amount of money you wish to borrow – different lenders have different minimum and maximum loan amounts, so the tool ensures that you are matched with a lender who can accept the requested amount.
Click here to view Select’s Personal Loan Marketplace
The personal loan marketplace then populates a list of lenders that best match your needs. You’ll also find the length of term offered, as well as the interest rate you’re likely to receive based on your credit score range and your estimated monthly payment.
You can also use the tool to estimate your monthly payments based on small changes – for example, raising your credit score to the next highest score range before you apply or asking for a little less or a little more money . This way, you can feel as prepared as possible to start making payments comfortably once you’ve been approved and funded.
If you’re thinking of borrowing money for that home improvement or to float expenses for an upcoming wedding, among other reasons, try the personal loan market to get started.
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Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff alone and have not been reviewed, endorsed or otherwise endorsed by any third party.