What Is an Excellent Credit Loan?
An excellent credit loan is a type of personal loan that is only offered to borrowers who fall in the ‘excellent credit’ range. This usually means they have a credit score of 800 or higher. These are the least risky borrowers for the lenders to work with because their credit history is strong and they’re most likely not going to default on the loan. These loans can be used for a variety of reasons and are offered by online lenders, credit unions, and banks.
What Are the Excellent Credit Loan Rates?
The interest rate for excellent credit varies between lenders, types of loans, loan amount, and the borrower’s other qualifications such as income, debt-to-income ratio, employment history, and payment history. Competitive rates generally start around 5.99% for excellent credit, start around 8.99% for good credit, and exceed 12% for fair credit. If your credit score is bad, your rate could easily be over 15%.
How Does Excellent Credit Affect Your Personal Loan?
Having excellent credit has so many advantages when it comes to getting a personal loan. Firstly, you will be considered for loans offered by companies that only work with credit-worthy borrowers. You will also have access to the most flexible terms, the most competitive rates, and you may even be able to choose a repayment schedule. Additionally, you may qualify for a higher loan amount than someone who has less than excellent credit. Having excellent credit will save you money with a lower rate and you will be able to choose to work with whichever lender has the best loan products.
How to Get a Loan with Excellent Credit
The following are the basic steps needed to get a loan with excellent credit:
- Know your credit score: Check your credit score upfront, there are many free sites to check it and monitor it, use one of those so you know what you’re working with. There are three credit bureaus: Experian, Equifax, and Transunion and you should know what each of your scores are.
- Loan purpose: What do you need the loan for? Really think about if a personal loan is the ebay option and how quickly you need the loan. Also, know approximately how much you need to borrow. This will save you time when researching companies that might not be able to fund the loan quickly enough or may not offer the loan amount you need.
- Research and compare lenders: Start with the financial institution you do business with and see what they offer, check out the lenders on our list, and see which company seems like the best fit. Compare the rates, terms, qualifications, and application processes of each lender.
- Apply: Most applications can be done online. Go through the application process and have your identification and documents ready. You may need tax returns and bank statements from the past couple of years.
- Approval or Denial: If you’re approved, the lender will give you the next steps to follow which will most likely include submitting any additional paperwork, signing the loan documents, and setting up the repayment schedule.
- Funding: This is the best part! You get your money. Typically, the lender will tell you how long funding will take and will then send a wire to your account, give you a check, or make a direct deposit into your bank account.
Pros and Cons of a Personal Loan for Excellent Credit
As is the case with any loan, there are both pros and cons when it comes to personal loans for excellent credit.
- Rates: Typically lower than credit cards
- Fast funding: Sometimes as soon as the next day
- Ease of stress: Get the money and stress less
- Qualification: Easier to qualify with excellent credit
- Another Bill: More debt
- Debt to Income Ratio: Now increased with this new loan
- Credit: Another credit inquiry and trade line on your credit report
- Payment: Need to remember to pay unless it’s automated
The best personal loans for excellent credit are offered by reputable lenders that provide loan transparency, available customer service representatives, competitive interest rates, an easy application process, and flexible terms. These 720 credit score personal loans (sometimes what personal loans for great and excellent credit are referred to) can be found through online lenders, banks, credit unions, and other financial institutions. These loans are used for varying reasons including paying off debt, consolidating debt, paying for emergencies, home repairs, starting a small business, and even paying for a wedding or a dream vacation.