Best Personal Loans in Missouri of 2023

A personal loan can be a financial lifesaver for unexpected costs, such as medical expenses or home repairs. Its lack of limitations makes it unique; you're not confined to spending the money on a house or a car. This makes personal loans useful when you're faced with expenses that don't fit neatly into traditional loan categories, offering you the flexibility to manage life's complexities on your own terms.

The best personal loans in Missouri are provided by LightStream, according to MoneyGeek’s study. Borrowers with bad credit may fare best with Upstart, whereas those with good credit may consider SoFi. For debt consolidation, Upgrade is highly recommended, while Best Egg is the top choice for home improvements.

Whether you're want to finance your home renovation, consolidate high-interest debts or cover unexpected medical expenses, you can tailor a personal loan to fit your needs. This flexibility makes it unique from other types of loans that come with more rigid spending requirements.

A personal loan is a contractual agreement between you and a lender. You receive a lump sum upfront and commit to repaying it with interest in predetermined monthly installments. Interest rates can either be fixed, which eliminates the guesswork in how much you owe each month, or variable, which fluctuates based on market indices.

When you apply for a personal loan, lenders don't just run a credit check. They perform a comprehensive evaluation that may include scrutinizing your employment stability, reviewing your past financial behavior and even assessing your reasons for taking out the loan. Some lenders have specific criteria, such as minimum income levels or certain acceptable purposes for the loan, which can influence your eligibility and the loan's terms.

Personal loans typically come in various types, each serving a unique purpose and offering different benefits. Whether you prefer not to risk your personal assets or plan to use collateral to secure better terms, there's a type of personal loan suitable for you. Here's a quick rundown:

• Unsecured personal loans: With unsecured personal loans, you're not required to offer any collateral, but this freedom often comes at the cost of higher interest rates.
• Secured personal loans: Secured personal loans require collateral but reward you with lower interest rates. Just be cautious, as your collateral is on the line if you can't make payments.
• Debt consolidation loans: Debt consolidation loans help you roll multiple debts into one streamlined payment. They can be a game-changer if you're dealing with a mix of credit card, medical or other high-interest debts.
• Co-signed loans: Think of co-signed loans as a tag-team effort. If your credit isn't up to par, a co-signer with a better credit profile can help you secure that loan. But remember, your co-signer is also on the hook if you fail to pay.
• Fixed-rate loans: Fixed-rate loans offer the same interest rate for the entire loan term. If you value stability and predictability, this can be your go-to option.
• Variable-rate loans: For those who like to live on the financial edge, variable-rate loans offer interest rates that fluctuate based on market conditions. They can be a good option if you're eyeing a short-term loan and expect interest rates to drop.

Personal loans offer a range of options for various financial needs, but they also come with their own set of considerations that could impact your financial health. Understanding the pros and cons of personal loans is crucial for making an informed decision.

Personal loans are filled with diverse lending options, each catering to specific needs and financial situations. Knowing the key players can help you navigate this landscape more effectively and make informed decisions.

• Traditional banks: These are financial institutions that provide a sense of security along with a wide array of financial products beyond personal loans. However, their often strict eligibility criteria can make them less accessible to borrowers with credit challenges.
• Online lenders: These platforms offer quick, convenient loan approvals without the need for a physical visit. It’s worth noting, however, that the speed and convenience can sometimes come with higher interest rates, particularly for those with subpar credit.
• Credit unions: These are community-focused institutions that often provide more lenient lending criteria and lower interest rates. However, membership is usually a prerequisite, which usually comes with its own set of eligibility requirements or fees.

The average Missouri resident has a personal loan debt of $18,142. People typically get personal loans for different reasons, including investing in home improvements, funding a dream vacation or consolidating multiple high-interest debts.

If you're considering taking out a personal loan in Missouri, here's a step-by-step guide to help you find and apply for the best option for your specific needs and situation.

Before settling on a personal loan, explore other financial tools that might suit your specific needs and circumstances better. Each has its own set of rules, risks and rewards. Here's a quick guide:

• Credit cards: Credit cards offer the benefit of revolving credit, allowing you to borrow and repay funds as needed. However, this flexibility often comes with high interest rates, making it costly if you don't pay off the balance quickly.
• Home equity loans: Home equity loans offer the advantage of lower interest rates by using your home as collateral. But this also means that failure to repay the loan could result in losing your home.
• Peer-to-peer lending: This decentralized lending model can offer more personalized loan terms, as it connects borrowers directly with individual investors. However, your credit score still influences the rates and terms, and less-than-stellar credit could lead to higher costs.
• 401(k) loans: Borrowing from your 401(k) can be a straightforward process since you're essentially lending money to yourself. However, this choice risks derailing your retirement savings plan and may include penalties for late repayment.

Your specific needs and borrower profile play a significant role in finding the best personal loan in Missouri for you. To help you navigate this financial route, we answered some frequently asked questions about personal loans below.