The best banks to take out a loan in 2022

As you know the loan is becoming very popular nowadays since it is used to help people with financial emergencies, major expenses, and to build up your credit history.

It is common not having money to do certain things so borrowing money from banks might be an option.

In the United States finance market, many banks offer this kind of service, but it’s important to know how loans work before you borrow them, so you will be able to understand better and make a good decision, since you will have to consider all the rates.

There are many types of loans, that is, it comes in many different forms including commercial, secured, unsecured, and personal loans.Look what you’ll see in this post:

What is a bank loan?
Which are the best loan lenders?
Conclusion

What is a bank loan?

A bank loan is a form of contract between the customer and the financial institution or (lender, corporation, or government) whereby the customer receives an amount that must be returned to the bank within a specified period, plus the agreed interest.

It is important to say that by requesting money, the borrower agrees to a certain set of terms including any finance charges, interest, repayment date, and other conditions.

In some cases, the lender may require collateral to secure the loan and the repayment.

Which are the best loan lenders?

LightStream

LightStream is a customer leans specialized in online lending that offers auto, home improvement, with simple loans at a fixed interest rate.

One of the best advantages this company is the fee waiver. Check out the pros and cons below:

Loan amounts: $5,000 to $100,000.
APR range: 4.99% to 19.99%.
Minimum credit score: 660.
Loan terms: 2 to 7 years.
Fees: non-applicable.
PROS

No fees;
Fast approval and funding;
Wide range of loan amounts.
CONS

No prequalification;
Stringent credit requirements;
Limitations on use of loan proceeds.

Wells Fargo

Wells Fargo has thousands of branches and offers personal loans at competitive rates and benefits.

The loans have minimal fees, but they also come in a wide variety of amounts and repayment terms, so borrowers can customize the loan to meet their needs.

In addition, Wells Fargo is known for offering online banking and same-day financing.

Loan amounts: $5,000 to $100,000
APR range: 5.74 – 20.99%.
Minimum credit score: 660.
Loan terms: 12 to 84 months.
Fees: $10 monthly service fee (The fee can range from 1% to 10% of the loan amount).
PROS

No origination or prepayment fee;
Repayment terms up to 84 months;
Rate discount for autopay.
CONS

No pre-qualification option;
Some feature avaliable only to existing customers;
New clients must apply in person at a branch.

American Express

American Express is well known for its credit cards and now also offers personal loans that are only available to Amex cardmembers as they can offer some unique benefits.

Amex loans don’t come with origination or prepayment fees, and most loans are financed within two days of signing the loan agreement.

Loan amounts: $3,500 to $40,000.D
APR range: 5.99%–19,97%.
Minimum credit score: None.
Loan terms: 12 to 72 months.
Fees: No origination fee or prepayment fees.
PROS

Potential for low fixed rates;
No hard credit check;
Low APR available for borrowers with excellent credit.
CONS

Exclusive to preapproved cardholders;
A hefty late fee;
Terms are shorter than many competitors.

Discover Personal Loans

Discover Bank was responsible for offering advantages, innovations, and benefits that changed the concept of credit cards and personal loans in the United States.

The bank offers checking and savings accounts, credit cards, personal, home, and student loans. Its main mission is to help people spend smarter, manage debt better, and save more to achieve a better financial future.

Loan amounts: $2,500 to $35,000.
APR range: 5.99%–24.99%.
Minimum credit score: 660.
Loan terms: 36 to 84 months.
Fees: No origination fee or prepayment penalties.
PROS

No origination fees;
Offers mobile app to manage loan;
Option to send funds to creditors directly.
CONS

No rate discount for autopay;
Charges late fees;
No joint applications.

Marcus by Goldman Sachs

Marcus by Goldman Sachs is a multinational investment bank specializing in no-fee debt consolidation loans, with low APR, fast financing, and no major fees, this institution has earned a good reputation in the market.

Some services offered by this bank are personal loans, savings accounts, certificates of deposit, etc. This bank is one of the best that offers loans with flexible payments.

Loan amounts: $3,500 to $40,000.
APR range: 6.99%–24.99%.
Minimum credit score: 730
Loan terms: 36 to 72 months.
Fees: Non-applicable.
PROS

Rate discount for autopay;
No fees;
Wide variety of repayment term options.
CONS

Stringent credit requirements;
No pre-qualification option;
No co-signed, joint, or secured loan options.

Conclusion

In conclusion, bank loans have become very popular nowadays as people are looking for an option to get money to pay their bills or even fulfill a dream.

So, banks, or any other type of institution that offers this service, have been innovating to offer their customers the best possible service.

Thus, we can conclude that there are different types of loans in the financial market, which offer different services and benefits to its customers.

However, the most important thing people need to know before applying for a bank loan is that they need to be careful because when taking out a loan, many people get into debt because they don’t know how to manage the money properly.

Gabriela R. 3 de outubro de 2023