3 Loans that will be easiest to get in 2023
Key points
It’s harder to get some loans than others.
If you need to borrow money in the new year, these are the best options.
Personal loans, home equity loans, and home equity lines of credit are all options (HELOCs).
See our choices for the best personal loans.
You might need or want to borrow money at some point in 2023. If there is a recession, you could lose your job and need money to pay your bills. If your car has seen better days, you may need money to repair it. And if you’re sick of looking at your lime green kitchen appliances, you might decide to take out a loan and make some changes.
But it’s not always easy to get a loan. There are different things that lenders look at when deciding who gets a loan. If you’re trying to get a large loan, like a mortgage, and your credit score or income isn’t that great, you may have trouble.
But it’s usually easier to get some types of loans than others. Here are three that might work for you in 2023.
These personal loans are best for consolidating debt.
More: Find out if you are eligible for a personal loan before it affects your credit score.
3 Loans that will be easiest to get in 2023
1. A personal loan
With a personal loan, you can borrow money for whatever you want. Since personal loans are unsecured, it might be hard to get approved for one if you have bad credit. That means they are not tied to a specific asset. But if you have good credit, you might be able to get a personal loan with a low interest rate, making it an affordable option.
Remember that there are personal loans out there for people with bad credit. But if you take one out, you might be stuck with a higher interest rate than you’d like. That’s because lenders see borrowers with lower credit scores as bigger risks. And because they are taking a risk, the same lenders want to make sure that the interest they earn is enough to make the loan worth it.
2. A home equity loan is a
If you own a home that you have equity in, it may be easy to get a home equity loan. Home equity loans, on the other hand, are secured by the homes that are being used as collateral. This means that your lender could force you to sell your home if you stop making your loan payments and it needs to get the money back to pay for the loan.
Obviously, that’s not the best situation. But the point is that if you have a fair amount of equity in your home, a lender might give you a home equity loan at a reasonable interest rate. This might be true even if your credit score could use a little work, because the fact that your home is being used as collateral gives your lender some security.
3. A HELOC
A home equity line of credit, or HELOC, is not a loan in the traditional sense. But it can work as if it were one.
With a HELOC, you have access to a line of credit from which you can take money out during a certain time period. Once you take a withdrawal, you have to pay it back, just like a loan.
HELOCs are secured by the homes that are being used as collateral, just like home equity loans. You might find that getting a HELOC is not too hard. Just be aware that while interest rates on home equity loans and personal loans are usually fixed, interest rates on HELOCs can change. That could make the cost of your HELOC go up over time.
If you end up needing to borrow money in 2023, a personal loan, a home equity loan, or a HELOC could be your best option. But no matter what kind of loan you get, try your best to only agree to payments that you can afford. If you fall behind on a loan payment, there could be serious consequences, so it’s important to only take on payments that you can afford.
