The Results Are In: 10 Most Reputable Personal Loan Companies of 2019
Life is fast moving and unpredictable. Even the best of plans fold under the weight of our fast-moving society. This can mean that situations will arise that deplete your monthly budget. If you find yourself short on cash there can be negative effects on everything from your health to your social life. While the unpredictability of life cannot be avoided, the tolls that it takes can be mitigated. The use of personal loans has become a common practice for the average person and takes advantage of loans that are faster than those that originate at a normal banking institution.
Here is a list of 10 of the most reputable personal loan companies of 2019
- King Of Kash
- Best Egg
- Lending Club
- Light Stream
- Marcus By Goldman Sachs
- Prosper
- Freedomplus
- Payoff
- Upgrade
- Avant
Each of these companies provides services that cater to those who find themselves in tight financial positions. What a given person needs can vary and not every company that made our list is a perfect match for a given client. Cary Silverman’s King of Kash, for instance, has developed a reputation for defending their clients against predatory lending practices and scams while helping navigate the sometimes tenuous road of personal debt. The following ideas are worth considering as you look into a reputable institution for a personal loan.
How Does It Work?
There are many ways to obtain money through a system of credit. Many people are familiar with credit cards, but these are not a good option for scrounging up funds in a hurry or in an emergency. Credit cards allow you access to money on the condition that you will pay it back plus a level of interest. That level of interest can, and often does, increase from the time that you borrowed the money to the time that you pay it back. This means that you are spending significantly more money than just the cost of the borrowed sum. Personal loans do not suffer from this problem of rising interest rates. They operate on the principle of a fixed rate which means that you pay back the loan month to month with each month’s bill being the exact same amount. This allows you to stay in control of your money after the need for the loan has passed.
Whether or not a particular loaning institution is reputable depends on their transparency through the process of obtaining a loan from them. A good lender will make you aware of all the constraints that are on your loan. They will help you understand how much you are being loaned and what the interest rate is going to be on that amount. They will also help you understand how long you are going to have before you need to have the loan and interest paid back. If a lender doesn’t seem eager or even able to answer questions concerning these things it is not a good sign that they are acting in your best interest.
Where Do I Go If I Have Good Credit?
All loans work on the principle of credit; the idea that you are responsible to a certain degree. The amount of money and the interest rate attached to it are functions of how you have proven yourself relative to borrowing. If you want to build a solid reputation as someone who pays off their loans you can look at your official credit score. This score takes into account several financial factors to provide a numerical representation of your perceived level of responsibility.
If you are looking to improve your credit score one way to do it is to take out small, very manageable loans. Doing so gives you an opportunity to build the reputation that financial institutions are looking for. Some personal loan companies specialize in working with people who have already have or are looking to get good credit. These companies should be upfront with you about why they work with people who have good credit. They should also help you understand the benefits of getting a loan with them, or what they can offer you because of your high credit score. When you start looking for a personal loan, ask the lenders what they can do for you because of your good credit situation and way the benefits against each other.
Where Do I Go If I Have Bad Credit?
While people with good or mediocre credit scores can be oblivious to that fact, those with poor credit often are aware of it and know how the bad score came about. Bad credit comes from not paying bills. Billing companies report to the organizations that work to produce someone’s credit score and defaults on payment or late payments can seriously damage a person’s ability to draw a line of credit.
If you know you have bad credit then you also know that everyone in a position to financially advise you will urge you to stay away from any kind of loan. These pleas are usually in good faith as they want you to stay away from the thing that got you in trouble in the first place. Their goodwill does not displace the ups and downs, twists and turns of life, however. There is always a chance that something will come up that needs to be taken care of. The broken front porch or a leaking car don’t care what your credit score is and both require money to fix, in amounts that not many people can afford out of pocket.
Finding yourself in this situation you don’t need to panic as there are personal loan companies that will work with you no matter how poor your experience with loans has been. Caution must be taken however as the risks will be high on the loans they will offer. Reputable companies won’t try to sugarcoat the risks and should be helpful in the process of deciding if more debt will be useful to your particular situation.
What Is Debt Consolidation?
One way they can be helpful is to offer debt consolidation services. These services allow you to merge different sources of debt into a single payment that is often at a lower rate than the individual payments that you were previously stuck with. One way to do this is to take a personal loan that covers all of the debt that you currently have. Doing so allows you to pay off all of the various sources of debt and transfer all responsibility to a single company. Instead of paying multiple bills on different days for different amounts at different interest rates, this kind of financial action makes it simple to begin paying off your loans.
Reputable personal loan companies are going to be very familiar with everything involved with taking out a loan for the purposes of debt consolidation. They should advise you that this is a good idea only if your debt doesn’t cost you more than 50 percent of your income per month and if your cash flow is consistent. A good debt consolidation plan should never increase the amount that you are going to pay and should be helpful to your plan to get out of debt.
How Much Can I Get With A Personal Loan?
In considering where and why to get a personal loan it is important to know the total amount of money that you will need and what you will be able to secure. Different reasons exist for personal loans and each of those reasons requires different amounts of money. In just the example of needing to repair a vehicle, the cost could be just a hundred dollars to thousands of dollars.
How much you can borrow should be clearly communicated on a case by case basis by quality loaning companies. On average the most that someone could borrow is around $ 40,000. Over a seven-year term, this would translate to $ 661.02 per month with the total interest amount being close to $10,000 dollars. Seeing the numbers can put the seriousness of this type of loan into perspective. It is not a good idea to obtain a personal loan unless it is more or less necessary. Another sign that a personal loan company is reputable is whether or not they take into consideration what a loan is going to be used for. While they most probably will not decline to loan money to someone who plans on using it in a spurious manner, it is proper for them to inform the soon to be a debtor of the ramifications involved.
Summary
The 10 most reputable personal loan companies of 2019 are all examples of integrity and knowledgeable service. They are dedicated to providing the right amount of money at a speed that helps otherwise troublesome circumstances seem more manageable. Take the time to check out each of the listed companies to see if they would be right for you. Even if you are not in need of the cash required for a car repair, home improvement, or debt consolidation plan, it can be a wise investment of time to know who you can turn to when the need does arise.
