Find the Best Personal Loan Companies in Boston, MA

How to get a personal loan in Boston

When beginning a personal loan application process, you’ll provide personal information like your name, date of birth, address and social security number. Typically, companies will also ask for employment history, proof of income and proof of address. If you’re asking someone to cosign on the loan, they will need to provide their information, too. Most banks and personal loan companies have online applications that can speed up the approval process. Additionally, there are varying APR interest rates and repayment terms. Longer repayment terms typically mean you will pay more interest.

Once you’re ready to choose a personal loan company, there are important considerations. An important factor is the monthly payment amount. Be sure you have a payment that fits your budget so you don’t have late or missed payments. Some banks — similarly to credit unions — only allow members to receive personal loans. Additionally, there are loan minimums and maximums, so you’ll need to ensure your lender will fund the amount you need. Lenders tend to have minimum credit requirements. If you have a low credit score or no credit history, you’ll need a lender that works with this type of credit profile — or you can get credit repair help first.

Beyond checking into their specific services and features, it’s important to do your due diligence on the companies you’re considering. Check reviews online, ask family and friends for recommendations and always read the fine print. Unfortunately, personal loans scams are floating around. Red flags to look for include no credit check required, non-disclosure of fees, guaranteed loan approval, high-pressure tactics, paying fees upfront and the lender asking for a prepaid credit card as payment. The Consumer Financial Protection Bureau provides resources to help protect you from scams and ensure you’re treated fairly by lenders.

Types of personal loans in Boston

The average debt in Massachusetts is around $67,010, which includes auto loans, credit cards, mortgages and student loans. If you are looking to combine debt and lower monthly payments or interest rates, personal loans may be a good fit. There are a variety of personal loan types you may qualify for. These include:

• Secured: A secured loan uses an asset as collateral to protect the lender against non-payment. Collateral examples are a vehicle, house, boat or savings account. If you don’t pay back the loan, the lender can seize that asset.
• Unsecured: An unsecured loan doesn’t require collateral. Typically, borrowers with good or excellent credit can qualify for unsecured loans, but there is a chance you will pay more in interest.
• Co-signed and joint: Some lenders allow co-signers on personal loans if you aren’t able to qualify on your own. The co-signer doesn’t typically have access to the loan money; however, they do take on responsibility for payments if you default on the loan.
• Fixed-rate: Fixed-rate personal loans mean the interest rate doesn’t change over time. You make the same monthly payment for the life of the loan.
• Variable-rate: Variable-rate loans have a fluctuating interest rate. As the benchmark changes, the interest rates will too. This means your payment amounts will fluctuate and go up or down. Variable-rate loans are best for borrowing for a short time.

Personal loans can be borrowed through a bank, online lender or credit union, and will have a variety of interest rates and repayment terms. One benefit of personal loans is that the funds can be used for a variety of reasons.

“A personal loan can be utilized in a variety of ways, even though consumers can currently choose from a large number of specialized loans,” said Matthew Dailly, managing director at Tiger Financial. “It can be a wonderful alternative for consolidating debt, covering unexpected medical bills and other costs, launching a business, funding investment and making a significant purchase. In this sense, using a personal loan, whichever best suits your needs, is pretty flexible.”

There are other reasons you may be looking for a Boston personal loan. These include:

• Home improvements and remodeling
• Credit card refinancing
• Moving expenses
• Student loans
• Travel
• Adoptions and childbirth
• Special occasions
• Payday loan alternative

What are personal loan rates in Boston?

Interest rates in Boston depend on your personal situation; expect to pay between 3.99 and 35.99 percent APR on personal loans.

“After deciding on the loan amount, you must consider the interest rate, which is the single most important aspect in determining the entire cost of your loan,” said Chris Muller, vice-president for brand at Money Under 30. “The interest rate is determined by a number of variables, including your income, creditworthiness, place of employment, etc. Therefore, you should evaluate your cash flow, expenses and debt before applying for a personal loan.”

In addition to loan rates, it’s important to consider minimum and maximum loan requirements. For example, some companies require borrowers in Massachusetts to borrow at least $6,500. If you’re working with a credit union, there may be other stipulations for new versus established members. Be sure to research your lender requirements fully before accepting a personal loan offer.