What is the easiest bank to get a personal loan from?

The major bank with the lowest interest rate for a personal loan is Barclays, at 5.74%. Other notable banks with low personal loan rates include HSBC (5.99%) and PNC (5.99%). Some smaller banks across the country may also offer personal loans with similarly low rates.

Banks with the Lowest Interest Rates for Personal Loans… read full answer

• Barclays: 5.74%+ APR
• HSBC: 5.99%+ APR
• PNC: 5.99%+ APR
• American Express: 6.90%+ APR
• Discover: 6.99%+ APR
• Fifth Third Bank: 6.99%+ APR
• Santander Bank: 6.99%+ APR
• TD Bank: 6.99%+ APR

But just because a lender advertises an interest rate below 6% or 7% on personal loans, as many do, does not mean you are guaranteed that minimum rate. In fact, you’ll likely need excellent credit (a score of 750+) to qualify for a lender’s lowest rate. Personal loan providers usually display their APRs as a range. For example, Barclays has a minimum APR of 5.74%, but their maximum is 20.99%. The exact rate you receive will depend on such things as your income, credit score and current debts.

Of the largest banks in the country that offer personal loans, those listed above have the lowest interest rates. A few other banks with personal loans have slightly higher minimum rates. For example, Wells Fargo’s APRs start at 7.24%. Others have minimum APRs that are significantly higher; USAA’s personal loan APRs start at 9.49%.

If you use WalletHub’s free pre-qualification tool, you can see which major lenders are likely to approve you and what rates you might qualify for.

It’s also good to note that banks aren’t the only place to get personal loans. Credit unions and online lenders are options, too. Each type of lender has its own advantages and disadvantages.

Yes, you can get a personal loan with a credit score of 550. You could consider getting a secured personal loan, applying for an unsecured personal loan with a co-signer, borrowing from family and friends, and checking with local credit unions which usually have a lower requirement over credit score.

It’s very difficult to get an unsecured personal loan with a credit score under 550 on your own, without the help of a co-signer whose credit score is higher. Even the loans with the most lenient approval standards require a credit score of 580. The personal loans with the lowest minimum credit score requirements are from LendingPoint (580+ score required) and Avant (600+).

So pursuing one of these alternative methods can help increase your chances of getting the funding you need.

How to Get Personal Loans for a Credit Score Under 550

Get a secured personal loan

A secured personal loan requires collateral. So you’ll have to put something of value on the line – money in an account or certificate of deposit, for example – that the lender can keep if you default. But your odds of approval will be high, since there’s little risk to the lender.

Apply for an unsecured personal loan with a co-signer

Applying for an unsecured personal loan with a co-signer lets you use someone else’s high credit score to boost your approval chances. The co-signer promises to pay the loan back if you can’t. Only some personal loan providers offer a co-signer option. Some examples are Citizens Bank, PNC and SoFi.

Borrow from family/friends

These people will likely be more sympathetic to your situation and will not care as much what your credit score is. They also won’t be able to do a hard pull of your credit and damage your score further. Depending on the person from whom you borrow, you might get much better terms than you would from a traditional lender.

See if local credit unions will consider you

According to the credit bureau Experian, some credit unions will offer unsecured personal loans even to people with bad credit. That’s due to credit unions having a more personal connection with their customers and being not-for-profit organizations.

One non-loan way to finance purchases with bad credit is through a credit card. However, credit cards for bad credit are not ideal. Secured credit cards require a security deposit that becomes your credit limit, so that essentially means you’re not borrowing (or at least you’re borrowing from yourself). And unsecured cards for bad credit have high rates and fees.

You can see your odds of getting approved for a personal loan without hurting your credit score by using WalletHub’s free pre-qualification tool. But if your expense isn’t especially urgent, it may be worth waiting a few months to improve your credit score.