Originally published: MarketWatch, 02 February 2022
Roughly 19.4 million Americans have a personal loan now, according to LendingTree — and if you’re looking to take one out too, you’ll need to familiarize yourself with the process. So we asked experts to share their insights on what you need to know about personal loans and how to get a personal loan.
What is a personal loan?
It’s a loan offered by online lenders, banks and credit unions — usually in an amount ranging from $1,000 to $100,000 — that you’ll repay at regular intervals, typically monthly over a period of one to seven years. Most borrowers take out a personal loan to repay debt, according to a survey conducted by Finder and Pureprofile in 2021, but these loans can be used for a variety of purposes, such as medical expenses, home improvements and more. The rate you’ll pay on a personal loan depends on your financial situation, including your income and credit score, so it’s important to shop around to get the best rate, and consider other, potentially lower cost options, like a home equity loan or HELOC.
