Last Updated on November 29, 2020
Which is the best bank to take personal loans in Iowa – If you live in Iowa and need a personal loan, here are some of the best banks and lenders that you can use to get the best personal loans in Iowa. But before we go any further, let’s fully understand the concept of “personal loan” and the motives for obtaining personal loans.
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What Is a Personal Loan?
A personal loan is money you borrow from a bank, credit union, or online lender that you pay back in fixed monthly payments or in installments, usually over two to seven years. Lender rates can vary from 6% to 36% APR (Annual Percentage Rate).
With a personal loan, you can borrow money to cover the cost of home improvements, pay off medical bills or consolidate high-interest debt. In many cases, it’s possible to get a personal loan for just about anything you want.
Types of Personal Loans?
There are basically two main types of personal loans:
1. Secured Personal Loans
This type of personal loan requires some type of collateral. If you get a loan from your bank, you might have to put a certain amount in a CD as collateral to secure the loan. Or, you might secure a personal loan with your car or some other asset. If you don’t make payments, the lender can take your collateral to offset what you owe.
2. Unsecured Personal Loans
One of the biggest benefits of getting an unsecured personal loan is that you aren’t risking an asset. If you can’t pay, the lender has little recourse beyond sending your account to collections or suing you to try to collect what it owes. You haven’t tied the debt to an asset, so there’s a little less risk to you.
However, because of this, lenders may decide to charge a higher interest rate or require a better credit score. Just remember, when you miss payments, it is reported to the credit bureau and can cause your credit score to decrease.
However, there are many lenders willing to provide unsecured personal loans at reasonable rates. Carefully consider which type is likely to best fit your needs.
Benefits of Getting a Personal Loan?
There are several personal loan benefits to consider when deciding if getting one is the right way for you. Flexibility is one of the great benefits of getting a personal loan, but there are other benefits as well.
1. Personal loans can be used for multiple purposes.
When you get a personal loan, it can be used for almost any personal expense. There are a few exceptions, but, for the most part, you can use the money how you want. Some of the ways you can use personal loans include, Debt consolidation, unexpected expenses, making a big purchase, paying for a wedding, going on vacation, buying a car, etc.
2. Personal loans tend to have lower rates and higher borrowing limits.
In many cases, it’s possible to get a personal loan for a larger amount than you might have available on your credit cards. Additionally, many personal loans can have rates that are lower than credit card rates, though this is not always the case.
3. A personal loan can help to improve your credit score.
Another benefit of getting a personal loan is the fact that it can improve your credit score. When you make your payments on time and pay the full amount required, you build your credit history.
4. Personal loans follow a predictable payment schedule.
The set payment schedule offered by personal loans can let you see exactly when you’ll be done paying off your debt, and it also allows you to see exactly how much interest you’ll pay.
Which Is The Best Bank To Take Personal Loans in Iowa?
The best banks for personal loans vary depending on your needs, but many offer competitive deals for a variety of potential borrowers. The best will offer a low annual percentage rate, long repayment terms, and little to no fees. And of course, your personal needs and financial profile will also affect the type of lender you find ideal. If you live in Iowa, USA and need a personal loan, these are some of the best lenders you can use.
| Lender | Best For | APR Range | Minimum Loan Amount | Maximum Loan Amount | Terms | Recommended Credit Score |
| Wells Fargo | Best Big Bank | 5.74%–24.49% with relationship discount | $3,000 | $100,000 | 12–84 months | 620+ |
| LightStream | Best for Home Improvement Loans | 3.99%–16.49% with autopay | $5,000 | $100,000 | 24–144 months | 680+ |
| Marcus by Goldman Sachs | Best for Debt Consolidation Loans | 6.99%–19.99% | $3,500 | $40,000 | 36–72 months | 660+ |
| TD Bank | Best for Co-signers | 6.99%–18.99% | $2,000 | $50,000 | 12–60 months | 660+ |
| American Express | Best for American Express Card Members | 5.91%–19.98% | $3,500 | $40,000 | 12–36 months | 670+ |
| USAA | Best for Military Members | 7.24%–17.65% | $2,500 | $5,000 | 12–84 months | 600+ |
| Citibank | Best for Relationship Rewards | 7.99%–23.99% with autopay | $2,000 | $30,000 | 36–60 months | 670+ |
| Discover | Best for Fast Funding | 6.99%–24.99% | $2,500 | $35,000 | 36–84 months | 670+ |
How to Get a Personal Loan in Iowa?
Applying for a personal loan is a fairly straightforward process, and many lenders now allow you to apply online, so you can (and should) check with multiple sources to try to shop for the best interest rates and fees. For each application, you’ll need to indicate how much you want to borrow, and you’ll need to submit information about your income, employment and, often, your outstanding debt and monthly expenses.
Most lenders will check your credit score and credit reports as part of their lending decisions, so unless you’re in an emergency situation, it makes sense to review your credit reports and scores so you’ll have an idea what the lenders see when looking at your application.
As with virtually all types of personal credit, personal loan lenders reserve their lowest interest rates for people with excellent credit scores. If your credit is fair to good, finding a personal loan at a low rate may be challenging, and if your credit is on the low end of the spectrum, you may need to take the time to build up your credit scores before you can qualify for a personal loan.
In Conclusion
Before you decide to take a personal loan from a bank, be sure to first explore all your options, including alternatives. Depending on your needs and how quickly you need the money, you may find that some banks or lenders are friendlier than others. If it takes you days or weeks to apply for a loan and get money, it will not help in a situation that requires an urgent solution.
We hope you find this information helpful.