What Is a Personal Loan?

A personal loan is a flexible loan that you can use for a wide variety of purposes. Unlike loans designed for a specific thing, like a mortgage or auto loan, a personal loan can be used for nearly any legal purpose.

There are different types of personal loans. One of the most basic distinctions is between secured and unsecured personal loans.

Learn more: Dive into the latest personal loan statistics for 2024, including rates, debt levels, and borrower trends in our comprehensive overview.

Unsecured Personal Loan

Unsecured personal loans are one of the most common types of personal loans, and most personal loans you see advertised will fall into this category.

An unsecured personal loan doesn’t require any collateral. The lender offers the loan based purely on your credit history, financial situation, and a promise that you’ll repay the loan. This contrasts with secured loans, like mortgages, where an asset serves as collateral for the loan.

The obvious benefit of unsecured personal loans is that you don’t need to have anything of value to offer as collateral. You also don’t have to go through the process of letting the lender examine your collateral and make sure it’s worth enough to secure your loan, which can speed up the lending process.

However, because there’s no collateral, lenders are more choosey about offering these loans. You’ll need strong credit to qualify for these loans, and your interest rate will be higher than it would be with a secured loan.

Learn more: Find out exactly what documents and information you need to apply for a personal loan with our comprehensive guide.

Secured Personal Loan

Secured personal loans are the opposite of unsecured personal loans. When you apply for one of these loans, you need to offer a form of collateral.

Many lenders will accept a Certificate of Deposit (CD) or savings account balance as collateral for these loans. For example, if you have $5,000 in a CD at a bank, that bank may be willing to offer you a secured loan. The size of the loan that you can qualify for will depend on the value of your collateral and your credit score.

Learn more: Our detailed analysis answers the question: Is getting a personal loan a good idea for you? Find out now.

Because you’re offering collateral to secure the loan, secured personal loans are generally easier to qualify for. Many lenders will also offer lower interest rates on these loans because of the reduced risk that they face.

A major drawback of secured personal loans is the fact that you need to have something of worth to serve as collateral. If you’re in need of a loan, odds are good that you don’t have much savings available and might not have enough to serve as collateral.

Offering something as collateral also puts it at risk. If you’re not able to make payments on your loan, the lender could take possession of the collateral.

It may also take longer to get a secured loan because the lender has to assess your collateral and ensure it’s worth enough to secure the debt.

Learn more: Explore our expert picks for the best personal loans for excellent credit, tailored to maximize your financial options.

Branded Personal Loans

If you’re shopping for personal loans, you may find that some lenders offer specialized or branded personal loans. For example, you may see loans described as vacation loans, home renovation loans, or debt consolidation loans.

These loans are advertised as special types of personal loans for a specific purpose. Some of these loans may offer special features related to their branded purpose. For example, if you apply for a debt consolidation loan the lender may pay your other creditors directly, so you don’t need to handle the money at all.

Keep in mind that personal loans are highly flexible. You can use a personal loan for almost any purpose; the few that are disallowed by most lenders are things such as paying for education, gambling, or illegal activities.

Some branded personal loans may be a good deal. You might find a debt consolidation personal loan that can help you save a lot of money. However, just because a loan is described as being good for a specific purpose does not mean that it is the best loan available. Always shop around and consider generic personal loans before going for a branded one to make sure that you’re getting the best deal.

Bad Credit or No Credit Check Personal Loans

Another common thing to see when looking for personal loans is a loan advertised as a bad credit or no credit check personal loan. These may seem appealing, especially If you don’t have a great credit score or have struggled to get approved for loans in the past.

As with anything, you pay a price for these types of loans. Lenders who are willing to offer loans to people with poor credit or without checking people’s credit need to compensate for that risk somehow. Often, they compensate for that risk with highly unfavorable terms such as high interest rates or large origination fees.

If you need a personal loan, but don’t have good credit You should still avoid these loans due to their predatory terms. You’ll get a much better deal if you are able to qualify for a secured personal loan. If you don’t have enough assets to serve as collateral, you are likely to be better off if you spend some time working to improve your credit and apply for a traditional personal loan instead.

Learn more: Learn the step-by-step process of securing a personal loan with a co-signer in our comprehensive guide.

Payday Loans

A payday loan is a type of bad credit or no credit check loan. They share some characteristics with personal loans, but it is important to know that payday loans are highly predatory and should be avoided whenever possible.

Like bad credit or no credit check personal loans, payday lenders typically don’t look at your credit score when you apply for a payday loan. These loans have massive fees High interest rates and short repayment periods. For example, if you get a payday loan today, you might be expected to pay it off in 2 weeks. The idea is that you use the loan to make it the next payday and use your next paycheck to pay back the balance.

Payday loans typically come from specialized lenders, so if you look for loans from reputable Banks and online lenders, you are not likely to find them. Their high fees and interest rates can make it easy to get trapped in a cycle of debt, so try to avoid these loans except as a very last resort

Learn more: Unlock financial opportunities with our recommendations on the best personal loans for good credit and fair credit, designed to match your credit profile.

Other Types of Consumer Loans

Personal loans are a type of consumer loan, which is a wide category of loans that describes pretty much any type of loan that a regular person could apply for. Some examples include personal loans, mortgages, auto loans, and credit cards.

When looking to borrow money, it’s important to make sure that you’re applying for the right type of loan. Some types of purchases, such as a home or a car, have unique loan types designed specifically for those purchases. Trying to use a credit card or a personal loan will likely result in you paying more than if you used a specially designed loan.

Personal Lines of Credit

Personal lines of credit are similar to personal loans in many ways. Like personal loans, they’re highly flexible and can be used for many different purposes. They can also come in both secured and unsecured varieties.

What makes them different is that a line of credit is a pool of funds that you can draw from multiple times while a loan is a lump sum of cash that you can only access once.

That makes personal lines of credit more useful for people who have unpredictable financial needs. If you have a one-time expense and you know the size of that expense, you can apply for a personal loan for the correct amount. With a personal line of credit, you can take money out of the line of credit when the need arises and do so multiple times if you find that you need to draw money more than once.

For example, a personal loan might be a good fit if you have to pay an unexpected bill. A personal line of credit might be a better fit for someone working on a home improvement project who isn’t sure exactly how much it will cost.

Get acquainted with the types of #personal-loans and how each can impact your financial strategy. #PersonalFinance

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Common Uses for Personal Loans

Personal loans can be used for many different reasons.

One of the most common reasons is for debt consolidation. If you have multiple credit card balances and other small loans, you can use one personal loan to pay off those balances. That leaves you with a single monthly payment to make and may reduce the amount of interest you pay.

Home renovations and vehicle repairs are also common uses for personal loans.

You can also use a personal loan for unexpected expenses. Because they have lower interest rates and credit cards tend to, using a personal loan in this way may help you save money.

Many people use personal loans for weddings, vacations, and similar costs. Be careful: you’ll be paying off that loan long after the party or the trip is over!

Learn more: Learn how to protect yourself from personal loan scams by recognizing the warning signs in our latest guide.

Bottom Line

Personal loans are highly flexible loans that you can use for a variety of purposes. There are many types of personal loans, but they all offer money that can be used for a range of personal needs.

If you need money for something, applying for a personal loan can be one way to get that cash. Just keep in mind that you will be paying that loan back with interest. It’s best to use these loans for essentials, not luxuries, and to avoid borrowing if your credit isn’t up to par!

The post Types of Personal Loan: A Comprehensive Guide appeared first on FinMasters.

It is important to keep in mind that these low rates are not available to all borrowers. They often require great credit and may only be extended to existing customers/members. These advertised rates could also include discounts for account activity, automatic payments, military service, etc. 

Best Auto Loan Rates

Not all banks and financial institutions will offer you the same rate on an auto loan. Credit requirements, vehicle requirements, and loan terms vary greatly between lenders.

To help you get started on your auto loan search, we’ve gathered a list of the best auto loan rates currently being offered. All of these financial institutions and matching services currently advertise APRs below 7.5%.

1. Alliant

This open-to-anyone credit union offers various banking and lending services, including auto loans, refis, and special loans for Tesla vehicles. 

They also have a dedicated car buying program where you can earn up to a 0.50% discount on your APR and receive discounts when you purchase your vehicle from their network of dealerships. 

How Much Does it Cost?

Alliant does not charge application fees, origination fees, or early repayment penalties. 

APRs on Alliant’s car loans have different starting rates depending on loan type. 

1. Alliant’s car buying service: 6.50% on new cars and 7.37% on used (with automatic payments discount).
2. Standard: 6.50% on new and 7.37% on used (with automatic payments discount).
3. Auto loan refinance: 7.37% for refinancing an existing Alliant auto loan. 
4. Tesla auto loans: 6.99% new and 7.34% used. 

Your individual APR will depend on your creditworthiness. 

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2. Autopay

This auto loan marketplace offers matching services for a variety of auto loans and refi options, including 3rd party sales and lease buyouts. 

It is also worth noting that they are part of The Savings Group, which includes auto loan refi matching companies RateGenius and Tresl. 

How Much Does it Cost?

Autopay does not charge any application fees or prepayment penalties. Since they are a matching service, your loan offer could come with lender-specific fees like origination fees or credit union membership fees. 

The lowest APR that Autopay advertises on their loans is 4.67%. The APR you qualify for may be higher depending on the loan terms you are looking for and your overall creditworthiness. 

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3. Bank of America

One of the largest banks in the U.S., Bank of America offers a wide variety of banking and lending services, including auto loans, auto loan refis, and lease buyouts.  

Unfortunately, they do not offer a prequalification process, so your loan application will result in an immediate hard inquiry. 

See full details on Bank of America’s auto loan process.

How Much Does it Cost?

Bank of America does not charge loan origination fees, but they can pass along governmental fees (i.e., title fees). 

Their current advertised starting APRs are

• 5.89% new
• 6.29% used
• 7.09% lease buyout
• 7.09% refinance

If you are a preferred rewards member, you can earn a rate discount of 0.25% up to 0.50%, so the lowest possible rate for a new car would be 5.89%. 

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4. Lending Tree

This loan matching service offers a variety of loans, including auto loans and auto loan refinancing. When you fill out your loan application, they’ll match you with up to 5 lenders from their network of over 500 lenders. 

Read our full review of Lending Tree’s auto loan matching service. 

How Much Does it Cost?

Lending Tree will not charge you anything, but individual lenders may charge you origination fees or other fees. 

Lending Tree advertises the lowest possible APR as 4.50% from Southeast Financial Credit Union (SFCU). You’ll need a credit score of 750 and a loan term of 12 months to qualify for this rate. You’ll also need to become a member of the credit union. 

The 4.50% APR is available on new and used vehicles. The lowest APR available for refi loans is 4.50%.  

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5. My Auto Loan

This loan matching service specializes in auto loans and auto refi loans. You can compare up to 4 offers simultaneously. MyAutoLoan offers loans for new cars, used cars, private party sales, refis, and lease buyouts.

MyAutoLoan is not currently available to residents of Alaska or Hawaii.

How Much Does it Cost?

MyAutoLoan is a matching service, and filling out their application is 100% free.

The lowest APR MyAutoLoan offers is 4.93% for lease buyout. APRs for other types of loans start at

• 4.99% refinance
• 6.84% new
• 7.09% used
• 7.49% private party sale

The lowest available rate varies based on loan term length and creditworthiness.

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6. Navy Federal

One of the largest credit unions in the nation, Navy Federal offers a variety of lending and banking services, including auto loans and auto refi loans.

However, loans are only available to members, and membership at Navy Federal is limited to the military, their families, and government workers.

How Much Does it Cost?

Navy Federal does not charge an application fee.

The interest rates they offer depend on the loan type. Their starting APRs are

• 4.29% for new vehicles
• 4.29% for used vehicles only 1 or 2 years old
• 5.19% for used vehicles over 2 years old

If you are an active duty service member, you can receive a rate discount of 0.25% making your lowest potential APR 4.29%.

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7. PenFed

This national credit union with open membership (anyone can join), offers various banking and lending services, including auto and auto refi loans.

PenFed also offers a car buying program where you can score lower interest rates and cashback incentives from select manufacturers. You must be a PenFed member for at least 60 days before applying for an auto loan through their car-buying program.

How Much Does it Cost?

There are no application fees or origination fees.

PenFed offers its best interest rates through its car buying program. Starting APRs are as follows:

• 5.24% – New vehicles purchased through their car buying program
• 5.94% – New vehicles 
• 6.49% – Used vehicles purchased through their car buying program
• 6.79% – Used vehicles
• 5.94% – New vehicle refinance (2 years or newer)
• 6.79% – Used vehicle refinance

Your APR offer will depend on the specific terms of the loan and your creditworthiness.

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What Is a Good Interest Rate for a Car Loan?

Your credit score has a huge impact on the interest rate you’re offered. The higher your credit score, the lower the rates you will be offered. When you take this into consideration, a good interest rate for a car loan will be the one that allows you to finance a car with manageable monthly payments for your budget.

In the table below, you can see the most recent average interest rates for both new and used cars by credit score.

Average auto loan rates for Q3 (July – September) 2023

*Actual interest rates are based on many factors such as state, down payment, income, and others.

How to Get the Best Auto Loan Rates

The above banks, credit unions, and matching services are the lowest rates that we could find offered to the general public. But you can still find as good or better APR offers by doing a more personalized search.

Let’s take a look at some great ways you can land the best APR on your next car loan.

Use a Loan Broker

A loan matching service, or “loan broker,” lets you find the best rate and loan terms by working with a network of lenders. You fill out one application, and it is forwarded to all lenders. This often results in competitive offers, even for those with poor credit.

Plus, the matching process is usually a prequalification step, so there won’t be a hard credit pull.

Just remember the offers you receive through a loan broker are not guaranteed. Loan terms can change up until the final approval stage.

Finding financing options when you have bad credit can be difficult. That’s why we’ve compiled a separate list of the best auto loan lenders for bad credit. We carefully evaluated these companies to ensure we have presented you with credible, non-predatory options.

Check With Local Banks and Credit Unions

Another good resource for finding auto loans with great terms and rates is to check with your local bank or credit union, especially if you already have a relationship with that financial institution.

Big banks often offer great rates, especially to those with good credit, but they don’t publish these rates. For example, I received a 2.83% APR on my last used vehicle purchase through Capital One, but I only learned about this low rate once I applied.

Credit unions are also a good choice as they are known for offering low interest rates and longer repayment terms thanks to their not-for-profit model.

While credit unions have traditionally been restricted to specific areas or groups, there are now credit unions that anyone can join.

Explore Dealer Financing

Many dealers offer 0% APR offers on new vehicles and low APR loans (under 3%) for certified pre-owned vehicles. But you’ll likely need excellent credit to qualify for these offers.

Traditional car dealers offer financing packages from other lenders. But some dealers offer what is called buy here, pay here in-house financing as well. This type of financing is usually offered by dealers selling low-value vehicles and does not require a credit check.

Just be aware that these financing offers often disqualify you from receiving any manufacturer rebates or promotions.

Buy from Online Dealers

No haggling with a dealer and explore vehicles virtually and buy on your own time. Online-only dealers such as Carvana and Vroom have pioneered this buy-from-your-couch car-buying process.

In addition to helping you find a car, they can finance it for you. Carvana, for instance, has an in-house financing program. The lowest advertised rate is 6.85%, but many customers have reported getting much lower rates, sometimes under 4%.

Improve Your Credit

If your credit is poor, then the best way to score a good APR is to improve your credit. Even a boost of a few points can move you from fair credit to good credit and save you a decent chunk of change with a lower APR.

To improve your credit score quickly, check out resources like Experian Boost, rent reporting services, and other credit-building programs.

Refinance Your Loan

If you had to purchase a vehicle when your credit wasn’t the best or got duped by a bank or dealer that stuck you with a high APR, you could still save money by refinancing your car loan.

Many lenders offer low rates for refis. You can check out our review of the best auto refinance companies to get started.

Just make sure you refi early on in the loan, or you could end up overpaying in interest charges.

Before you consider refinancing, be sure that you understand the pros and cons and the factors that determine when you should refinance your car loan.

Bottom Line

When shopping around for an auto loan, finding the best rate possible can save you a significant chunk of change over the life of the loan. Unfortunately, loan rates change frequently, so the bank with the best rate today might not have the best rate tomorrow.

The good news is that most banks offer a prequalification process that doesn’t require a hard inquiry, so you can shop around to find the best auto loan rates and terms without damaging your credit.

Do yourself a favor and buy a car you can easily afford. If you’re not sure if you can afford the car you’re looking at, follow these steps to determine how much car you can afford to buy.

We hope you can use this list of the best auto loan rates to save money on your next vehicle purchase.

The post Best Auto Loan Rates of February 2024 (New, Used and Refi) appeared first on FinMasters.

A credit score between 300 and 579 is considered poor, making it tough to find a willing lender. While options like payday loans or title loans might seem tempting due to their lack of credit checks, they’re usually not advisable due to exorbitant interest rates, sometimes exceeding 300% annually, and hefty fees.

Don’t lose hope. Obtaining a personal loan with bad credit is possible. Some lenders don’t require a minimum credit score, though they might need proof of employment and sufficient income. The terms won’t be ideal, but they’re certainly more favorable than what payday lenders offer.

Best Personal Loans for Bad Credit

It’s not easy to get a personal loan with bad credit. You’ll have to try several lenders, and there’s no guarantee that any will approve your application.

Your Credit Union or Bank

Many borrowers overlook this possibility. If you’re a regular customer at a local credit union or bank you may be able to get a loan even with bad credit. They have your financial information and they are in a position to assess your cash flow. You can often have a face-to-face conversation with someone who can make a decision.

Some local banks and credit unions have loan products specifically designed to help customers avoid using payday loans. It’s always worth asking.

Online Lenders

Your credit score will close you out of most online lending options, but there are still a few possibilities.

Prequalify for a Personal Loan

Check your personal loan rates by answering a few questions. It only takes two minutes and has no impact on your credit score.

Get Started

OneMain Financial

OneMain Financial makes personal loans of $20,000 and below. Instead of a credit check, they use an “ability to pay evaluation” which considers income, employment history, and other factors.

Possible Finance

Possible Finance makes small loans, up to $500, without a credit check. They advertise these as an alternative to payday loans. Loan terms are longer than payday lenders offer and your payments are reported to credit bureaus, helping you improve your credit score.

It’s also worth checking your area for local and regional lenders who are willing to work with borrowers who have bad credit.

Loan Matching Services for Bad Credit

Loan matching services do not lend money. They are brokers that pass your details on to multiple lenders to see what offers you can get. There are a number of loan matching services that serve borrowers with bad credit.

Most of these companies have online complaints, ranging from reports of numerous calls and emails from lenders to customer service issues to claims that personal information was not properly secured. Check the service carefully and be alert for signs of trouble.

Some loan matching services to consider:

Bankrate

Bankrate can help you match with lenders whose rates are no greater than 35.99% APR* with terms from 6 to 84 months.

PersonalLoans.com

PersonalLoans.com is both a loan matching company and a peer-to-peer lending platform. There’s no stated minimum credit score.

Upstart

Upstart is a highly rated loan marketplace handling loans up to $50,000. The minimum credit score is 300. They consider education and other non-traditional data in lending decisions, so they are a great choice if you have a thin credit file.

AmOne

AmOne will lend as much as $50,000. Interest rates range from 3.99% to 35.99%*. AmOne says they will lend to borrowers with any credit score.

LendingClub

LendingClub used to be a peer-to-peer loan service. It is now a loan matching service. Interest rates may reach 35.99%*, with origination fees up to 6%. The maximum loan is $40,000. Their website does not list a minimum credit score.

Check rates via Credible.com

CashUSA

CashUSA does not have a minimum credit score. Borrowers must earn a minimum of $1000/month post-tax and have an active checking account. Loans are up to $10,000, rates are up to 35.99*%.

BadCreditLoans.com

BadCreditLoans.com handles loans up to to $10,000. Rates are up to 35.99%*. They do not list a minimum credit score but they require evidence of a steady income.

These services specialize in bad credit loans. They will still have other criteria, and you cannot be certain that they will approve your application. They are still a good place to start!

What to Expect

Looking for a personal loan with bad credit is not going to be a picnic, but you probably knew that already. Here’s what’s in store.

• Expect to be turned down. It is not easy to find a lender that makes personal loans to borrowers with bad credit. Some of your applications are likely to be rejected.
• Expect to pay. Personal loans are expensive for borrowers with bad credit. Interest rates range up to 35%, and you may also pay a substantial origination fee.
• You may deal with sketchy lenders. The bad credit loan marketplace attracts vultures who prey on desperate borrowers. Always look for independent reviews of a lender’s business record.

How to Prepare

Getting a personal loan with bad credit will be easier if you consider these factors.

• Why do you need the money? You’ll be paying a very high interest rate. Unless it’s essential, you might be better off not borrowing. Using a personal loan for debt consolidation is not worth it if the interest on your loan is higher than the interest on the debts you’re consolidating.
• What’s your credit score? Always check. Remember that your lender will use a FICO score and your free credit score provider will probably use VantageScore. They can be different.
• What’s in your credit report? Knowing where you stand is a good start. Get your credit reports and review them carefully. Check our guide to understanding your credit report.
• Are there errors on your credit report? Errors can harm credit scores. If entries on your credit report seem suspicious, use the dispute process to challenge the errors.
• Would credit repair help? The credit repair industry has earned a shaky reputation. There are still companies that are legit and may be able to help you boost your score. Start by understanding the credit repair process and look into legitimate credit repair companies.
• What do you have going for you? Do you have a steady job with a decent income? Any assets? Have you made your rent and utility payments on time? Some lenders will consider these items.
• What are your options? Make a list of lenders that might consider your application. The possibilities we list below will give you a start.
• Plan your applications. File all your applications within a 15-day period. Credit bureaus will see that you are shopping for a deal and will record only one hard inquiry. That will help you avoid hurting your score.

What to Do Next

Hopefully, that list will help you solve your immediate problem and find a personal loan for bad credit. Once you’re past that hurdle you’ll probably want to consider another challenge: improving your credit so you have more options next time you need to borrow.

That may sound like an insurmountable problem, but part of the solution is right in front of you. Start by making the payments on your new personal loan on time, every time. That will move your score in the right direction.

That’s step one. For other practical ways to improve your credit, check out our guide on how to rebuild credit.

Personal loans for bad credit are not easy to get. It will take effort, it will be expensive, and you may deal with lenders you’d rather avoid. Those are the penalties we pay for having bad credit, and there’s no way to get around them. You may still be able to get the loan you need, and the experience can motivate you to change your credit for the better!

The post The Best Personal Loans for Bad Credit of February 2024 appeared first on FinMasters.

What to Expect

Very good to excellent credit means two things in your search for a personal loan.

• Easy approval. Lenders will roll out the red carpet and compete for the privilege of lending to you.
• Low interest rates. You’ll get the lowest rates available.

How much lower are interest rates for borrowers with excellent credit? Let’s take a look.

That chart shows us two things.

• Interest rates on personal loans are falling.
• Borrowers with credit scores of 760 and above are getting the best rates.

If you’re one of those borrowers, that’s good news!

Prequalify for a Personal Loan

Check your personal loan rates by answering a few questions. It only takes two minutes and has no impact on your credit score.

Get Started

Best Personal Loans for Excellent Credit

If you’re looking for a personal loan with excellent credit you’ll have lots of options. You’ll still want to choose the best one! Choosing the best options is probably part of why you have such good credit in the first place.

There are three keys to getting the best deal on a personal loan (or any loan).

• Look in more than one place. Borrowers who solicit multiple offers get better deals.
• Compare offers and read the fine print.
• Clarify your goals and pick the deal that best fits your personal needs.

Remember that the best deal for one person is not always the best deal for another!

Here are some places to start looking.

1. Your Own Bank or Credit Union

It’s still always worth looking close to home. You can do that by asking your own bank or credit union for a quote. They know you, they know your finances, and you can often talk directly to decision-makers. You’ll get better and more personal service than you would from an online loan factory.

It may not be the best quote you get, but it’s worth considering.

2. Online Lenders

Good to excellent credit will get you the best rates from the most selective online lenders. If you prefer to deal directly with a lender, try these options:

Sofi

SoFi is a popular student lender that has expanded to handle other loan types. They handle personal loans up to $100,000 with APRs down to 8.99%*.

Check rates via Credible.com

LightStream

Lightstream makes loans from $5000 to $100,000. They have a broad range of loan products with fast approval and fund release. The lowest APR is 7.49%*.

Check rates via Credible.com

Happy Money

Happy Money loans are designed for consolidating credit card debt and can only be used for that purpose. Loans are up to $40,000 and the lowest APR is 11.72%*.

All of these lenders will be happy to deal with borrowers who have very good to excellent credit. Apply to several and see what deals come your way!

Remember to make your applications within a 15-day window to avoid registering multiple hard inquiries. You don’t want to dent that score!

3. Loan Matching Services

Many borrowers choose to work through loan matching services. These are not lenders, but brokers who pass your details on to their own network of lenders. It’s a way to get multiple quotes from a single application, which makes comparison shopping easy.

Some matching services, especially those serving borrowers with poor credit, have bad reputations. With excellent credit, you’ll be dealing with the top-tier companies, and you shouldn’t have those issues. It still pays to run some searches on any company you’re considering using.

Here are some top loan matching services for borrowers with excellent credit.

Credible

Credible is a well-reviewed broker handling loans up to $200,000. The lowest advertised interest rate starts at 6.4% fixed APR* (with autopay), and they guarantee that they’ll find you the best available rate.

*See Terms

Bankrate

Bankrate can help you match with lenders whose rates are no greater than 35.99% APR* with terms from 6 months to 84 months. Close with a better rate than you prequalify for on Credible and get a $200 gift card.

LendingTree

LendingTree is one of the largest and best-known loan matching services. They represent lenders making loans up to $200,000 with rates as low as 6.99%*.

LendingClub

LendingClub lenders handle loans up to $40,000. the lowest advertised APR is 9.57%*.

Check rates via Credible.com

The lowest APRs from these lenders are reserved for the borrowers with the very best credit. If your credit is excellent it makes sense to work with services with the lowest advertised rates. Lenders may also consider other factors, like your income, employment history, and debt-to-income ratio.

What to Do Next

Personal loans for excellent credit are easy to get. You’ll be approved with no problems, and you’ll be offered excellent terms. If you’re at the lower end of this range, you may not get the very best terms, but you’ll still be well above those with lower scores.

Of course, you’ll want to keep that score where it is. That means making every payment on that personal loan on time! Keep an eye on your credit report, watch for errors and signs of identity theft, and enjoy the privileges you’ve earned!

The post The Best Personal Loans of February 2024 appeared first on FinMasters.

Average Auto Loan Rates by Credit Score

Here are the most recent average auto loan rates for each credit score bracket.

Average rates for Q3 (July – September) 2023

Actual interest rates are based on many factors such as state, down payment, income, and others.
Source: Experian: State of the Automotive Finance Market Q3 2023

Calculator

Use our auto loan calculator below to see just how much your credit score can affect your monthly payment and the total amount of interest you end up paying for your loan.

How Your Credit Score Impacts Auto Loan Rates

Your credit score has a huge impact on the interest rate you’re offered and on the cost of your loan. In the table below, you can see the average interest rates for both new and used cars by credit score to see just how much of an effect it has.

Average auto loan rates by credit score (Q3 2023)

Actual interest rates are based on many factors such as state, down payment, income, and others. Source: Experian: State of the Automotive Finance Market Q3 2023

Finding financing options when you have bad credit can be difficult. But luckily, there are lenders and loan marketplaces that will work with you. Discover the best auto loans for bad credit.

How Your Credit Score Affects the Monthly Payment

Here’s an example to illustrate the difference your credit score makes in determining your monthly payment.

As you can see, your credit score plays a major role in determining the interest rate you’re offered and the cost of your loan.

Average Rates for a New Car

Most dealerships will advertise plenty of incentives for buying a new vehicle, such as cash rebates, low interest rates, or special lease offers. Buying a new car generally comes with much better interest rates than buying a used vehicle.

Here’s what you can realistically expect to get based on national averages.

Average Rates for a Used Car

We see incredible offers online and on TV for new car loan rates, but we rarely see used auto rates advertised. Borrowers will usually pay a higher interest rate for a used car loan.

Rates are higher for used cars because their value is lower. If the lender has to repossess your car, it may be difficult for them to sell it for enough to cover your balance. That means more risk to the lender. Lenders charge higher rates when their risk rises.

Here’s the rate you can expect to get based on national averages.

You can see the impact of the higher rates. The difference, of course, is that the average sale price of a new car in the US is $48,808, while the average price of a used car is $27,000. That’s a big difference!

Even with higher interest rates, used cars can be a good deal simply because the sticker price is often much lower than the price of a used car.

Be Careful!
Buying a used car has its risks. That’s why you always want to check the vehicle’s history. You can run a vehicle history report on sites like Carfax using the Vehicle Identification Number (VIN). If the dealer or seller will not give you the VIN, consider this a major red flag and move on to another vehicle.

Average Auto Refinance Rates

Refinance rates are usually the same as rates for a loan taken at the time of sale, so the figures quoted above will apply.

Refinancing can help you get a better deal on your car loan, but to get the best deal, you’ll need to get the best refinancing loan! We’ve put together a list of the best auto refinance companies.

FAQs

The post Average Car Loan Interest Rates by Credit Score (February 2024) appeared first on FinMasters.

Prequalify for a Personal Loan

Check your personal loan rates by answering a few questions. It only takes two minutes and has no impact on your credit score.

Get Started

Who Is BadCreditLoans.com?

BadCreditLoans.com started in 1998 by bringing together traditional lenders, peer-to-peer lending networks and tribal loans (from Native American Indian Funds). 

Today, they have grown to offer personal and installment loans across the United States to all credit types.  

They are not an actual lender but provide the platform for borrowers with bad credit or good to find the best rates by receiving multiple offers from different banks or lenders.

They offer traditional personal loans, personal installment loans, and peer-to-peer loans which may be funded by individuals or companies.

What Makes Them Different?

BadCreditLoans is unique in that it offers a robust platform for peer-to-peer borrowing and access to tribal loans. 

Tribal loans offer the opportunity for people who are self-employed or have a varied credit history to qualify for personal loans that they may not qualify for with a traditional lender.

Keep in mind that tribal loans are funded from sovereign native American lands and do not always have to meet state APR maximums.

They have relationships with a wide variety of banks and lenders which allows them to offer personal loans to people with bad credit, no credit, or limited credit.

Even if you have bankruptcies, repossessions, and judgments, BadCreditLoans may have a lender willing to lend money.

They also offer you the ability to apply and complete the entire loan process from your mobile phone on their BadCreditLoans app. 

How Does BadCreditLoans Work?

BadCreditLoans have one of the easiest platforms to use and it only takes about 30 seconds to find your best rate. Here’s how it works:

1. Find Your Rate

The first thing you do is go to their website and fill out the short form on their home page. It takes about 1 – 2 minutes to enter your information.

You need to provide basic information and financial income, as well as the amount of the personal loan you are looking to apply for.

BadCreditLoans.com doesn’t check your credit score to get lender offers, they only do a soft credit check. This means you get to see what rates you can qualify for without the worry of it affecting your credit. 

2. Compare Your Options

Once you put your information in and submit the form you will be taken to a dashboard.

This dashboard will have multiple pre-approval offers from different lenders.

Keep in mind, these are Pre-Approvals and your actual approval is not guaranteed; however, you will get to see your actual pre-qualified rates. The rates you see are usually very accurate as long as you can verify your information and nothing changes on your credit report. 

3. Apply For Your Personal Loan

Once you pick a lender, it’s time for you to apply. During the application process, you’ll get asked more in-depth questions about your use of the loan, your financial history, and the lender will run a credit check.

Once this step is done the lender will work with you directly to finalize all of the loan details.

Note: This all happens on the BadCreditLoans.com website. 

What Can You Use BadCreditLoans For?

There are several reasons you may need a personal loan for. Here are some of the things you can use BadCreditLoans for:

• Debt consolidation
• Major purchases
• Home improvements
• Medical expenses
• Moving/relocation
• Vacating
• Starting a business
• Education

Eligibility

In order to be eligible for BadCreditLoans you must meet the below personal loan requirements:

• Be a U.S. Citizen or Permanent Resident
• You are at least 18 years old
• Have a regular income, either from full-time employment, self-employment, or disability or Social Security benefits
• Have a checking account in your name
• Provide work and home telephone numbers
• Provide a valid email address

Before filling out the online form make sure you have the below information ready:

• Date of birth
• How much do you want to borrow?
• What do you plan to use the money for?

Loan Terms

Since BadCreditLoans.com lets you see offers from multiple lenders, we wanted to show you the absolute minimum and maximum you can be offered. Actual rates and terms will change by lender.

• Loan Amount Range: $500 – $10,000
• APR Range: Varies by Lender (5.99% to 35.99% APR* Estimation)
• Fees: Origination, Late Payment, and NSF fees all vary by lender
• Prepayment Penalties: Varies by lender
• Loan Terms: 3 to 72 months
• Payments Directly To Creditors: Varies by lender

Keep in mind that if you have a lower credit score you will be charged higher APR interest rates because, statistically, you are a higher risk to default.

 Need more options? Check out our reviews of other online lenders.

BadCreditLoans Customer Reviews

BadCreditLoans has a D- rating on BBB, but they only have two complaints in the past three years. 

BadCreditLoans has an average rating of 2.7 on Trustpilot. Reviews from their customers predominantly praise the platform’s ease of use and their excellent customer service team for their friendliness and ability to resolve problems. 

Customers also appreciate that BadCreditLoans are available to people with horrible credit, no credit, limited credit, bad credit and fair credit.

Many customers praised the speed at which they received larger loans for home projects and emergency needs.

On the negative side, most customers are very concerned about giving out their personal information to a company that will then share their information with multiple lenders.

This is a valid concern and something you should take into account whenever you choose to use a loan matching service.

What to Do After You Get a Loan

It feels great getting approved for something, no matter what it is, you feel like you have just won something. But, now that you have been approved, there are some things you should be doing with your accounts.

Make On-Time Payments

I am sure you are tired of seeing everyone saying “on-time payments”. But it is super important and is one of the largest factors in helping grow your credit score.

Of course, you probably didn’t obtain this loan for building your credit.

However, you still need to be mindful that this product can harm your credit if you don’t manage it correctly.

No matter what, avoid late payments.

Pay Back The Loan ASAP

Along with making on-time payments, you should definitely pay this loan off as soon as possible.

Large personal loans tend to linger when you only pay the minimum. While this does keep more cash in your pocket in the initial phase, eventually you end up spending thousands of more dollars in interest payments.

Getting your credit utilization ratio below 30% will also be great for helping your credit score grow.

The post BadCreditLoans.com Review 2024: Are They Legit? appeared first on FinMasters.

What Is a Credit Builder Loan?

A credit builder loan is a special type of loan that helps you build credit. It’s not used like a traditional loan, where you can use the loan proceeds to pay for something, then pay it back over time.

With a credit builder loan, you don’t actually get any money from the lender to start with. Instead, when you get the loan, Self will place the money into a savings account on your behalf. You’ll get loan bills like normal and have to make a payment each month.

Each payment you make will show up on your credit report and improve your credit score. However, just like any other loan, late payments or missed payments can damage your credit. It’s important to make sure you can make the monthly payments. If you don’t, your credit builder loan could wind up damaging your credit score.

How Does Self Work?

To get started with Self, you’ll first have to apply for a credit builder loan. You can customize your loan, choosing your desired monthly payment. Options start as low as $25 and go as high as $150. Your payment will affect the term of your loan, which ranges from one to two years.

Once you select the loan you’d like, Self will decide whether to approve your application. There’s no hard pull on your credit and you’re almost guaranteed to get approved since Self is holding your money and taking on almost no risk.

Each month, you’ll make your loan payment, which includes both principal and interest. Over time, your monthly payment will show up on your credit report and increase your credit score. Your payments will also reduce your loan balance.

Once you’ve fully repaid the loan, Self will release the proceeds of your loan to you. This makes a credit builder loan into a sort of forced saving plan that also helps you build your credit.

Keep in mind that your loan payments include interest, so you’ll wind up paying more than you receive at the end of the loan. For example, at the time of writing, Self states that if you choose a $35 monthly payment for a term of 24 months, you’ll get $724 at the end of the loan. However, 24 monthly payments of $35, plus the $9 startup fee total $849.

That means you’ve paid $125 for the service.

Features

There are a few important features of Self that are worth covering.

Reports to All Three Bureaus

There are three major credit bureaus in the United States: Equifax, Experian, and TransUnion.

Different lenders work with different bureaus to check customers’ credit scores. Different lenders also report account details to different bureaus.

Self reports your loan details to all three credit bureaus, which lets you improve your credit score with all three bureaus. That means that future lenders should see your improved score regardless of where they check it.

Close Your Account Early

A Self credit builder loan is a 12 or 24-month commitment. Like any other loan, if you miss payments or make late payments, that will hurt your credit score.

To help people avoid hurting their credit with a credit builder loan, Self offers the option to close your account early if you can’t keep up with the payments or no longer want the service. You can either pay the remaining balance of the loan or simply ask Self to close the account. This will incur a fee of $5 or less depending on your loan.

If you do this, Self will report the account as paid off early to the credit bureaus, which means you don’t have to worry about damaged credit due to a delinquent account.

Self Visa Credit Card

Once you’ve made three monthly payments toward your credit builder loan and have built up $100 or more in savings progress, Self will give you the option to apply for a secured credit card.

You can set the card’s credit limit, up to the total savings progress on your credit builder loan. Once you get the card, you use it like any other credit card, making purchases and paying them off each month.

This card gives you some access to the savings you’ve built through your loan, by letting you borrow against that balance. It also gives you another account to use to build your payment history.

The secured credit card provides a revolving credit line, which in combination with your credit builder loan will improve your credit mix and may help your credit. As with any credit card, you will need to make on-time payments and keep your credit utilization low to build credit.

Read our full review of the Self Visa Credit Card for more information about how this card works.

Pricing

A credit builder loan from Self isn’t free. Even though you get some of your money back at the end of the loan, some of your payments go toward fees and interest, which means you’ll pay more than you receive in the end.

The cost of a credit builder loan depends on the interest rate and fees of the loan. Rates can change regularly, but at the time of writing, the price breakdown looks like this.

If you want the cheapest option, the $48 monthly payment will cost just a bit more than half as much as the next cheapest credit builder loan. However, you should also consider the affordability of the monthly payment.

A longer term will help you build credit, You will accumulate credit history and the account will remain active longer.

Customer Reviews

Customer reviews for Self are mixed. Some customers have had great experiences while others have had significant issues. Many reviews say the service works, but costs too much.

One positive review from Google Play discusses the positive results.

This negative review from Trustpilot mentions that you might see a drop in your credit score. It also claims that the company has added inaccurate data to its credit report.

A middle-of-the-road review mentions that the product works, but is overly expensive.

Self Alternatives

Self is just one of many services available for people who want to improve their credit score. If you’re in the market for a credit builder loan, consider these alternatives.

Is a Self Credit Builder Loan Worth It?

A Self credit builder loan may be worth it to some people.

If your only goal is to build your credit, there are many other ways to do that without having to pay. For example, a student credit card is a good option for younger people. There are many ways to build credit for free.

Even people with damaged credit or who may not qualify for a student card can apply for a secured credit card. With a deposit of a few hundred dollars, you can get a fee-free secured card that you can use to build credit.

However, if you like the idea of having something that forces you to save money while you build credit, a Self credit builder loan may appeal to you. You’ll have to decide whether you’re willing to pay the fees. If you are, then Self can help you build a small amount of savings and improve your credit.

Verdict

A Self credit builder loan is one way that you can build your credit and set some money aside at the same time. While there are free alternatives that will help you build credit, the overall cost is low enough that you might be willing to pay it for the service.

All Credit Builder Accounts made by Lead Bank, Member FDIC, Equal Housing Lender, Sunrise Banks, N.A. Member FDIC, Equal Housing Lender or Atlantic Capital Bank, N.A. Member FDIC, Equal Housing Lender. Subject to ID Verification. Individual borrowers must be a U.S. Citizen or permanent resident and at least 18 years old. Valid bank account and Social Security Number are required. All loans are subject to ID verification and consumer report review and approval. Results are not guaranteed. Improvement in your credit score is dependent on your specific situation and financial behavior. Failure to make monthly minimum payments by the payment due date each month may result in delinquent payment reporting to credit bureaus which may negatively impact your credit score. This product will not remove negative credit history from your credit report. All loans subject to approval. All Certificates of Deposit (CD) are deposited in Lead Banks, Member FDIC, Sunrise Banks, N.A., Member FDIC or Atlantic Capital Bank, N.A., Member FDIC.
The Self Visa® Credit Card is issued by Lead Bank, Member FDIC, Equal Housing Lender.

The post Self Credit Builder Loan Review 2024: No Credit Check appeared first on FinMasters.

Who Is The Bank of America (BofA)? 

The Bank of America Corporation can trace its roots back to when Amadeo Giannini founded the Bank of Italy in 1904, headquartered in San Francisco. 

Through many mergers and acquisitions, BofA has become one of the largest financial institutions. 

Today BofA is the 13th largest company in the world and has over 4,600 branches, 15,900 ATMs, and 205,000 employees. 

They offer new, used, and refinancing for automobiles under ten years old with immensely customer-friendly car loan terms of 48 to 72 months. 

What Makes Them Different?

Bank of America auto loan rates are extremely competitive if you select a car through their online vehicle services program. 

If you bank with BofA or are a member of their subsidiary, MerrillLynch, you may be eligible for a lower car loan rate through their Preferred Rewards members program. 

How Do Bank Of America Auto Loans Work?

Auto loans from Bank of America work the same as with most other banks today. You will have the option of speaking with your local bank’s loan officer, or you can get approved for car financing online.

They offer a quick three-step process and claim that they can give you a decision on your next auto loan in 60 seconds.

Meet The Guidelines

First, you need to meet the general guidelines before you can apply, and those are: 

• You must be 18 years old or otherwise have the ability to contract for automotive financing in your state of residence legally
• You must be either a U.S. citizen or resident alien (permanent or non-permanent)

Are You Buying New or Used

You need to figure out what type of financing you will need, are you buying a new car or a used car? Will you be refinancing, or are you looking for a lease buyout?

Once you know which option you are going for, then you can go to the next step. 

Get Your Paperwork Together

Things The BofA Corporation will need are: 

• Banking History
• Proof Of Income
• Proof Of Identity
• Proof Of Insurance
• Proof Of Residency
• Information On Vehicle You Plan To Purchase
• Current Vehicle Registration (If you plan to do a trade in)

Keep in mind this is just a general list. BofA could need more or less information, just have at least the things above ready.

Time To Apply (Hard Inquiry)

Now that you know you meet the general requirements, you have all your documents together, and you know that the dealer is in the BofA network, it’s time to apply.

It makes a lot of sense to get a Bank of America Pre Approval letter before going to the dealership to buy your car.

Many studies have conclusively shown that obtaining financing from the dealership is much more costly than having it in place before your purchase.

Review & Accept Your Offer

Be sure to review the offer from Bank of America before you purchase.

You need to look at their requirements and car loan rates and if they will require a down payment or a co-signer.

Make sure you understand what you are paying for and keep referring to the original offer to make sure nothing changed from the time you accepted it to the time your loan was funded.

Once you accept the offer, your loan can be funded by either bank deposit, ACH, check, or certificate.

Be sure to speak with your Bank of America Auto Finance loan officer about the date the funds are estimated to be available. 

Bank of America Auto Online customer reviews indicate this estimated date may not be met. 

Bank of America Auto Loan Reviews

Bank of America auto loan reviews are mostly very negative.

Customers regularly complain of poor customer service and disorganization in the Bank of America auto finance department. 

Below are some of the Bank of America auto loan reviews:

As part of the process of this review, we read countless reviews, and while it is not uncommon for a large company to have negative reviews, these were especially troubling. 

Looking closely, it doesn’t take long to realize that BofA’s customer service consistently shows a callousness to problems they have created and will make the minimal amount of effort necessary to correct a problem. 

One example would be the number of complaints from people attempting to clarify auto loan fees that were not in the contract but were forced to pay anyhow. 

If you are one of the lucky people who never have to contact Bank of America customer service, then you will probably have a fine experience.

Below we have gathered the most trusted customer Bank of America Car Loan reviews from sites such as Yelp, Google and BBB for the Bank of America Auto Finance Division.

BofA Auto Loan BBB – Better Business Bureau

Bank of America has had a file at the Better Business Bureau since 1949.

Bank of America has an A+ BBB rating, but they do have a staggering 7,440 complaints in the past three years.

Bank of America BBB complaints tend to be financially related, with claims of fees being charged outside of the contract or loan payments continued to be debited from customers’ accounts after being paid off. 

The Bank of America BBB Reviews generally point to a company that wants your business so long as it is all of the online and of the automated variety. 

BofA BBB reviews and customer complaints are taken seriously by the company as most receive a response which is why they have an A+ BBB rating.

Conclusion

For a big bank, Bank of America offers very favorable loan terms and interest rates. You can get prequalified for an auto loan in less than five minutes, and if you are a member of their Preferred Rewards program, you may qualify for even lower interest rates.

That said, there have been numerous customer complaints about the bank overcharging auto loan fees. The customer service is not great, to say the least.

The post Bank Of America Auto Loan Review (2024): Is It a Good Option? appeared first on FinMasters.

Who Is Chase?

Chase National Bank was founded in 1877 by John Thompson and eventually grew into Chase Manhattan, one of the largest banks in the country. In 2000 Chase Manhattan completed the acquisition of J.P Morgan & Co, another financial industry giant, with the combined entity becoming J.P. Morgan Chase.

JP Morgan Chase is the largest bank in the U.S., with over 5,100 branches, 16,000 ATMs, and 250,000 employees. It’s also the largest credit card issuer in the US after its acquisition of Bank One in 2004.

The Chase Bank Auto Loan division offers new, used, and lease buyout loans for automobiles under ten years old with terms between 48 and 72 months. They offer several educational resources and financial calculators to help you choose an auto loan that you can afford.

What Makes Them Different?

The Chase Car Loans website offers a comprehensive financial education library that can help you understand the process of purchasing and financing a car.

The materials cover the entire auto purchase process, and there are multiple articles and worksheets that will help you determine whether you should purchase a new or used automobile. You can jump around from section to section or go through the entire process to prepare yourself for making your car purchase and obtaining financing. 

Chase’s car loan education resources are much more comprehensive than other lenders’ websites we have reviewed. Of course, these resources are available to anyone, whether you obtain a loan from Chase Auto Financing or not.

You can also shop online for cars offered by Chase Auto Preferred dealers. You can pick out a car online and save time by applying for financing right away. You can also schedule a visit with the selected dealer and apply with them directly.

Another nice feature Chase offers is a free credit score through Chase Credit Journey, whether you are a customer or not. 

How Do Chase Car Loans Work?

The Chase Car loan process is straightforward if everything goes smoothly.

• Choose a loan type. Are you buying a new car or a used car? Are you looking for a lease buyout?
• Prequalify. You can prequalify in minutes with no impact on your credit score. You’ll know how much you can afford to spend.
• Shop. You’ll have to use a dealer in the Chase network. Choose a car that fits your needs and your prequalification budget.
• Apply. You’ll have to supply your car and dealer details to get a financing decision. Expect a hard credit check at this stage.
• Review and compare. Review the loan offer and compare it with an offer from at least one other lender. Borrowers who shop get the best deals!
• Close a deal. Chase will deal directly with the dealer, saving you time.

Note: You can only use a Chase auto loan at a dealer that is a member of the Chase network. The dealer will be the borrower of record. 

Requirements

You will need to meet a few general requirements before applying for a Chase auto loan:

• Proof of identity. A government-issued ID with a photo and signature will be expected.
• Proof of insurance. You may have to arrange insurance before a loan is approved. Lenders will expect comprehensive coverage.
• A Social Security number will be required.
• Registration papers for your current vehicle if you are trading it in.
• Proof of employment. You will be expected to provide pay stubs, W-2 forms, or other proof of your employment and income.
• A credit score. Chase doesn’t publish their minimum credit score. Some online reviews suggest a 650 minimum. Minimum credit scores may vary based on other factors, like income.

Most of these will be required by any auto lender, so get them ready if you plan to shop for a car loan.

Chase Auto Loan Customer Reviews

Chase car loan reviews are mostly very negative.

‘If you like being treated like crap, CHASE is the bank for you!!!’ (no emphasis added or needed)

Being the largest isn’t always the best, as customer reviews reveal a lender that has lost sight of their customers’ needs and regularly takes actions that would indicate that they also do not care. 

Below are some of the Chase Auto Loan reviews:

As part of the process of this review, we read countless reviews, and while it is not uncommon for a large company to have negative reviews, these were especially troubling.

Looking closely, it doesn’t take long to realize that Chase Auto customer service consistently shows a callousness to problems they have created and will make the minimal amount of effort necessary to correct a problem.

One example would be the number of complaints from people checking on their Chase Auto Loan Status and finding out that it keeps getting extended.

The estimated Chase Car Loan Status seems to be just that, an estimate, we’ve read customer reviews complaining of months of running around before funding.

Below we have gathered the most trusted customer Chase Bank Car Loan reviews from sites such as Yelp, Google, and BBB for the Chase Auto Finance Division.

Chase Auto Finance BBB

Chase Auto Finance BBB has had a file at the Better Business Bureau since 1923.

Unfortunately, they have an A rating with a staggering 4221 complaints in the past three years and 1598 complaints in the past 12 months.

These complaints tend to be financially related, with claims of fees being charged outside of the contract or loan payments continuing to be debited from customers’ accounts after being paid off. 

BBB Reviews of Chase Auto Financing generally point to a company that wants your business so long as it is all of the online and automated variety. 

Conclusion

Chase might be a good choice if you are looking for financing from a big-name bank. Remember that Chase only offers to finance new and used vehicles available at one of the dealers in their network. If you are looking for refinancing or private party financing, you’ll have to look elsewhere.

If you are one of the lucky people who never have to contact Chase Financial Auto, then you will probably have a fine experience, but if there are any problems along the way.

The post Chase Auto Finance Review (2024): Should You Look Elsewhere? appeared first on FinMasters.

That’s where LendingTree auto loans shine. Get the best rates from lenders who are competing for your business with one simple request form.

The LendingTree created the multiple lender loan offers online business model. For over 20 years, Lending Tree has been providing customers with loan offers from their network of banks and lenders.

While Lending Tree does not actually provide you with the loan, they can pull offers from their vast network and offer loans to people regardless of your credit score.

They have a reputation for introducing customers to the absolute lowest interest rate auto loan offers that fund lightning quickly. There are many advantages and a few disadvantages to Lending Tree auto loan offers, which we will review in this article. 

Who Is LendingTree? 

LendingTree, LLC was founded by Douglas ‘Doug’ Lebda in 1997, and the company went national in 1998.

Their primary focus is to match customers who are looking for loans with banks and lenders.

Doug realized in the 1990s that shopping for the best interest rates took a tremendous amount of time.  Back in the olden days, a person would have to fill out a loan application (normally in person, limited internet back then) for each bank or lender. A few days or weeks later, you would receive a loan offer, but there was no standard way this offer had to be given. It was next to impossible to compare one loan offer to another.

The Lending Tree LLC fixed this problem by allowing people to fill out one application and receive multiple loan offers that are all organized in the same manner so you can easily compare each of the lending tree loan rates and associated costs.

What Makes Them Different?

LendingTree Auto Loans offer a network of over 300 banks and lenders competing for your business. When banks compete, you win! 

Lending Tree also offers you the ability to apply and complete the entire loan process from your mobile phone on their app. 

How Do LendingTree Auto Loans Work?

Unlike a traditional bank or lender, LendingTree is more like a personal agent or broker. You must go through the below process to apply with them.

1. Are You Buying New or Used

You need to figure out what type of financing you will need, are you buying a new car or a used car? Will you be refinancing or are you looking for a lease buyout?

Once you know which option you are going for then you can go to the next step. 

2. Get Your Paperwork Together

Since you don’t know which lender or dealership you will be going to, it’s best to be prepared.

Things the lenders might need are: 

• Banking History
• Proof Of Income
• Proof Of Identity
• Proof Of Insurance
• Proof Of Residency
• Information On Vehicle You Plan To Purchase
• Current Vehicle Registration (If you plan to do a trade in)

Keep in mind this is just a general list, the lenders could need more or less information, just have at least the things above ready.

3. Fill in the Application Form and Start Receiving Offers

The first step is to fill in the application form on the LendingTree website. It takes 3 minutes or less to knock out the quick form to match you with an auto dealer or lender.

Once you complete the application form, you should start getting offers from lenders in the LendingTree network in a matter of minutes.

At this time you will probably see a hard credit inquiry hit your credit report.

Quick Tip: FICO will give you a 30-day grace period to shop for as many Lending Tree loan rates as you want, and only show one hard inquiry will be recorded on your record.

4. Review Your Offers

Be sure to review the offers before you purchase.

You will be given up to 30 days to select one of the offers presented to you.

Once you narrow down the best auto loan offers, you can speak with the lenders’ loan officers to haggle for the best price. 

You need to look at their requirements as well as the interest rates and if they will require a down payment or a co-signer.

Look at everything: Remember that each lender will have their own specifics and requirements so be sure to look at each offer with as much detail as possible.

5. Pick The Best Offer

Once you choose an offer, your loan can be funded by either a bank deposit, ACH, check, or certificate.

You can have your funds as early as the next business day.

Tip: Make sure you understand what you are paying for and keep referring to the original offer to make sure nothing changed from the time you accepted it to the time your loan was funded.

LendingTree Auto Loan Customer Reviews

LendingTree auto loan reviews are mixed amongst many of the most trusted customer review websites across the internet.

Below are some of the Lending Tree reviews:

LendingTree reviews tend to fall into one of two categories. They are either extremely positive about the great rates and speed of the service. Or, they are negative, with the biggest complaint being that once you apply for a loan, your phone doesn’t stop ringing for 48 hours. 

Understand that to get the best Lending Tree rates, you must have multiple banks and lenders compete, and the loan officers know that you have multiple competitive rate options. 

By getting you on the telephone, they can discuss your needs and also sweeten their offer.  So the multiple lenders you deal with are a necessary evil to the end goal of incredible savings, which is the great advantage you’ll have with LendingTree.

Below we have gathered the most trusted customer Lending Tree reviews from sites such as Yelp, Google, and BBB for Lending Tree auto loans.

LendingTree Auto Loan BBB Reviews

LendingTree has been a BBB accredited business for over 20 years. They have an A+ rating, but they do have 255 complaints.  

Almost all of the LendingTree complaints revolve around the number of phone calls their customers get after filling out a loan application. 

The LendingTree BBB reviews are mixed but generally point to a company that takes care of its customers. 

While there are a lot of complaints, Lending Tree seems to take most of them seriously and responds to them, which is why they still have an A+ rating. 

Who Should Apply For Lending Tree Auto Loans? 

The best thing about Lending Tree auto loans is that they deal with multiple banks and lenders who are versatile in the type of people they can get approved for a loan.

Below are some people who should feel free to apply:

1. People Who Have Had Repossessions

The worst thing about having a car repossessed is that it usually happens at the most inconvenient time. 

If you have had this happen to you, then you know it also leaves a negative mark on your credit report and can hurt your credit score.

By dealing with Lending Tree, LLC, you can find a bank that may be willing to work with you, even if you had a car repossessed before. 

2. People With Bankruptcies

Someone with bankruptcy is probably used to hearing the words “No” or “Declined.”  

However, it doesn’t mean that you can’t purchase a car because of one.

The good thing about the Lending Tree LLC network is that they will be able to partner you with a lender that will be best for your needs.

3. Someone With No Credit History

If you don’t have any credit, it doesn’t mean you have bad credit. It just means you haven’t had a chance to establish any for the moment.

It is hard for lenders to make a good decision because you haven’t shown if you will treat your credit good or not.

The LendingTree car financing has plenty of banks and lenders that will work with you.

4. People with Little Credit History

If you don’t have a ton of credit history, you can still get covered for an auto loan.

Your score might be in the mid to high 500s or low 600s, but that doesn’t mean you have bad credit.

It just means you haven’t had a chance or taken the time to build your credit.

Lending Tree, LLC has plenty of lenders that will assist you in getting an auto loan.

5. People With Bad Credit

If you have bad credit, don’t worry, The Lending Tree works with a nationwide set of lenders who will be matched with you based on your credit profile.

You can rest assured that they work with lenders who can get you covered with as little as a 500 credit score.

6. People With Good Credit

If you have good credit then you will find the best rates the Lending Tree LLC’s bank and lenders have to offer. 

Conclusion

LendingTree is your best choice if you’re looking to get the lowest rate possible on your next car loan. Their lender network is one of the biggest in the US, and they can match people with all credit profiles with lenders willing to work with them.

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