[Maria]

I have a question about personal loans. I have two offers currently.

One is for 10,00 with an interest of 7,000 plus. Another for the same amount with an interest of 5,000.

My question is…

Is this the lowest interest I can get. I don’t want to keep applying in fear that it will affect my credit score.

Please advise

[Heather]

You need to clarify the numbers.
How much are you borrowing? $1000 or $10,000?

Are the 5,000 and 7,000 the interest amounts, or interest rates (in which case they should be written 5.00% and 7.00%)

The answer will depend on the answers to these questions

[Julie]

The interest is based on you credit score and repayment terms. There’s no way of us knowing if you can get something better without that information.

Note… your score will drop if anyone does a credit check.

[Anne]

Are you needing a loan to pay off higher interest bearing debt or to purchase somrthing?

[Michele]

A credit card charges every month, line of credit or regular bank loans is usually less.

But it keeps growing first few payments are all interest.

Try to save up if you can.

Only borrow if you really need to . Paying it back quickly will help.

[Karen]

Get the credit karma app. You’ll see your credit rating without hard inquiries, and they’ll send you offers based on your credit.

[Sloan]

Are these like payday loans because 50 percent or more interest is insane

[Nancy]

Do you mean 7% and 5%? If so, those aren’t terrible rates. It all depends on your credit and what you might need…

you should also check for extra fees, and you’re right in thinking that applying repeatedly will effect your credit.

[Brenda]

The total interest paid is a combination of your rate and length of repayment. Those are the figures you should be looking at.

Also do either of them have a prepayment penalty?

[Jeri]

Rates depend on your credit rating. Are both offers for the same number of months? Look at the bottom line (this should be provided to you on the loan offer paperwork).

What is the cost of the loan (total interest to be paid).

Why do you need the loan?

Personal loans are typically higher interest rate than a car loan.

[Annette]

To clarify, you want to borrow 10 thousand dollars and one offer is at 7% interest and the other is at 5% interest.

The lower interest rate of 5% is the better deal BUT the length of the loan and fees comes into play.

One need do ALL the math to make the best choice.

[Celestine]

Do all of your applications in the same month your score will go down but in a couple months it’ll go back up.

[Lauren]

Don’t understand what you’re asking based on the commas in your numbers, nor the thousands of percent interest rate.

[Janet]

If you have anything to use as collateral it might help interest rate.

[Jenny]

Check the interest rate after the length of the love an. Sometimes after the back off day

The rate will increased to a much high rate and any pen ding charges

[Author]

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