If you are going through a difficult time as many Americans are today, applying for the right personal loan with a low interest rate can be frustrating. If you have been able to keep your credit score above 700 and have assets, such as owning your own home, finding a low interest personal loan through the bank which carries your mortgage is the best way to go. Since you already have a history with your bank, filing the paper work will be that much easier. Even if you have no assets, but you have a high enough credit score you may qualify with a bank for an unsecured low interest personal loan. These loans are very hard to get and are based on credit reports, income and debt to income ratio.
If banks are not an option, you may be able to borrow through your retirement plan. While one would not think of borrowing from their 401K, you may borrow up to a certain amount of your balance and it will come with a low interest rate. You may want to find out what you are able to borrow first to see if it is enough. The loan is usually repaid within a short period of time such as a year or two, but the benefit of doing this is that you cannot be turned down and the repayment goes back to you with interest – one of the best low interest personal loans that you can acquire.
If you are amongst the population that has acquired a blemish or two over the past couple of years obtaining a low interest personal loan may be more difficult. However, if you own your home and have maintained the monthly payments on time, even with a few late payments which may have lowered your credit score, you should still be able to acquire a relatively low interest personal loan through your bank.
The rate of interest may be a bit higher but still one of the best places to apply. Another option for someone who has a few late payments is to look for a low interest personal loan through your credit union. While the credit union does not usually lend large amounts on a personal loan, they will lend at a low interest rate, making the loan affordable.
If you are looking for a low interest personal loan, your best bet is to check your credit rating first because this will have the most bearing on the interest rate that is approved. Once you have established that you have good credit, you can explore the options above in securing your low interest personal loan.