What Information Does a Personal Loan Lender Require to Apply?

There are all sorts of reasons you might be considering taking out a personal loan. Maybe you’re trying to consolidate miscellaneous debts into a single monthly payment, or pay off high-interest credit cards. It could be that you’re finally getting around to that bathroom or kitchen remodel at home and need some cash up front for supplies or additional labor.

Maybe it’s that RV you’ve had your eye on, or that trip to Europe, or that wedding you worried might never happen! Sometimes it’s less pleasant – medical bills, funeral expenses, or a major move you didn’t anticipate. Having said that, when you apply there will be personal loan lender requirements. Keep reading to learn what you will need to get a loan.

Whatever the need, personal installment loans are a popular and straightforward way to access the resources you need. They don’t generally require collateral, and you can often get your personal loan online, saving yourself both time and headache. Before you start, however, you might want to start gathering a few things together to help smooth the process. To do that, it helps to be aware of the most common personal loan lender requirements.

What Documents Do You Need When Applying For a Personal Loan?

Most lenders are going to want the same basic information to get things started, although specific personal loan lender requirements may vary from lender to lender or with the terms of the loan. Don’t panic if they ask for something you don’t have in front of you or aren’t sure how to get. Just be as prepared as you can and provide as much information as you have. If they simply must have something specific that you didn’t anticipate, you and they will figure something out. Remember, they want you to get the loan and become their customer – they’re on your side!

The first thing a lender wants to confirm is that you’re who you say you are

Proof of identity can be one of the easiest things to forget about because we don’t really think about it very much. Most of us know who we are, at least in terms of our names, date-of-birth, and such; we forget how important it is to be able to establish those things with others.

The most obvious forms of identification are things like…
  • Driver’s License
  • Passport
  • Social Security Card.
  • Military ID
  • Official State ID

The key is that it something official, with your full name and usually a photo of your wonderfully trustworthy face. They’ll also want your Social Security Number, even if they don’t require the actual card. Keep in mind that lenders aren’t just looking to verify your name, although that’s pretty important. They want to confirm that you’re at least 18 years old and either a U.S. citizen or a legal resident. These are all normal personal loan lender requirements, but fortunately none of them are difficult to prepare for.

The next step is usually checking your credit score

You don’t have to provide this; they’ll be able to pull it up pretty easily. There’s no reason you shouldn’t know your credit score going in, however. It’s easy enough to find out and knowing will help you be better prepared. The better your score, the easier it will be to get the best interest rate or other favorable terms, of course, but a low credit score doesn’t automatically mean you won’t be able to find a personal loan you’re happy with. Your credit score matters, but it’s only one of several factors used to determine the specifics of your personal loan. Remember that most lenders want to loan you money – that’s how they stay in business.

What Do Personal Loan Lenders Look At On Your Credit Report?

The most obvious thing lenders are looking for on your credit report is whether or not you have a good history of making payments on your credit cards, car payments, previous personal loans, etc. Be prepared to address any periods of inconsistency. Be honest, and be ready to offer legitimate reasons why you don’t anticipate similar difficulties this time. It can take years for your credit score to recover after a rough patch, but every on-time payment you make, big or small, adds to your record of reliability now. This can be one of the personal loan lender requirements borrowers find most intimidating, but remember, it’s not personal. The lender just wants to better understand how things work in your world so they know what to expect.

Then They Look at What Type of Debt You’ve Incurred In the Past

Car loans and mortgages are nearly universal in this day and age. Nearly everyone has experience with this sort of debt; it’s normal and responsible, even if there’ve been a few late payments here and there. Credit cards are slightly less essential, but still an important part of modern life for most of us. If you’ve managed a reasonable number of cards without severe difficulty over the years, that speaks to your reliability with the loan you’re currently seeking. Multiple large loans for vacations or non-essential big-ticket items might raise an eyebrow, especially if your record of repayment has been inconsistent. Borrowing money actually helps build a good credit rating, but only if you pay attention and make timely payments, even on the little things.

credit report lender review

What’s your current outstanding debt? This one will be compared to your current income. In short, lenders want to make sure the math makes sense – that you can reasonably repay this new loan along with your existing obligations at your current level of income. If there’s any reason those numbers won’t look right at first glance, be prepared to justify extending yourself further, and have documentation to back it up. Some lenders have very specific personal loan lender requirements, while others allow their agents a degree of flexibility to use their best judgment, so keep things positive and professional. It can’t hurt, and it might improve your odds.

They Will Also Look at Your Lines of Credit

Have you opened up new lines of credit recently, or have there been multiple inquiries to your credit report in the past few weeks or months? If so, presumably you have a good reason for all this activity right before you’re seeking an unsecured personal loan. If you don’t, this might not be the best timing. Lenders want to work with you, but they’re interested in genuine clients with every intention of repaying their loans. Too much activity creates the impression you might not be that wonderful, sincere person you and I both know you are.

Do Personal Loans Require Proof of Income?

Naturally, income verification is pretty-much a non-negotiable when it comes to personal loan lender requirements. Lenders must determine what sort of monthly payments you can reasonably be expected to make. How they do this will vary widely, but you should be prepared to tell them as accurately as possible where you work and what you do, how much you make, and how long you’ve been there. They’ll also want to have a pretty good idea of how much money you currently owe on your house, car, credit cards, etc.

You may find yourself simply entering numbers on a form, or the lender may ask for proof for some or all of the items included. Common paperwork you should have with you might include:

  • Recent Bank Statements
  • Pay Stubs
  • Tax Returns or W-2s
  • Mortgage Paperwork or Verification of your House Payment or Monthly Rent
  • Recent Statements for Car Loans or other Installment Plans
  • Student Loan Information

If you’ve changed jobs recently or moved more than once in the past few years, be prepared to address this upfront. When my wife and I moved to another state a few years ago, I learned very quickly to volunteer relevant information when applying for jobs or setting up finances. Why yes, we moved in only recently – we’re still unpacking boxes! It’s been an experience, though, especially since we were in our previous home for over fifteen years and we’re not used to this! Here are some recent places I’ve worked. I was at my previous job for nearly a decade and I’m determined to find something equally permanent here.

Don’t Exaggerate or Distort Just Because There may be Uncomfortable Topics Along the Way

Just think through issues that might come up and how you’ll address them if they do. You might also want to use an online personal loan calculator to get an idea going in of what sort of monthly payments make sense for you. You may not be able to control everything wrapped up in personal loan lender requirements, but you can arrive prepared and informed.

What Other Information Do You Need To Get A Personal Loan?

Personal loan lender requirements will almost certainly include proof of where you live – and probably where you lived before that. Obviously it’s better if you haven’t been bouncing from place to place every few months, but whatever your reality, sit down and gather dates and addresses ahead of time. I confess that I’ve embarrassed myself a number of times trying to remember what year we moved in together or the name of the apartment complex we lived in when my kids were born. I’m sure you’ll do much better than I did. Please.

Paperwork to help verify your address(es) may include:

  • Utility Bills
  • Lease Agreements
  • Voter Registration Cards or Forms
  • Insurance Statements
  • Change of Address Confirmation from USPS

What Do I Need To Know Before I Apply For A Personal Loan?

So far, we’ve focused primarily on personal loan lender requirements – the types of information you should be ready to share with potential lenders. They’re not the only ones we want to be happy, however; you’re part of this equation as well. What are some things you should be thinking about before getting a personal loan to ensure you’re satisfied before you commit?

You’ve no doubt anticipated paying interest on the amount you borrow, but most personal loans involve miscellaneous fees or charges as well. These don’t have to be a problem if you know to look for them ahead of time.

Late fees are the most obvious example of additional charges. Most credit cards utilize these, and maybe you’ve encountered them with other lines of credit as well. Keep in mind that in addition to whatever additional interest you may incur by missing a payment, late fees can add up quickly and impact your future credit rating as well.

Some loans charge a penalty for paying them off too early (thus limiting the amount of interest they’re able to earn from having loaned you the money, to begin with). Others are happy to have you pay additional amounts on the principal each month or even to pay the loan in full well-ahead of what was scheduled. Ask about this before finalizing any arrangements. As with any contract of any kind, read the terms!


Origination Fee

Finally, most personal installment loans require some sort of origination fee to cover the paperwork and manpower involved in getting the loan set up and started. They’re not usually excessive, but you should be aware of them before finalizing them. If you’re asked to pay a fee upfront which seems unreasonable, or there are percentages or other terms woven into the small print which don’t make sense to you, ask for clarification. Legitimate lenders will have clear, easily-communicated personal loan lender requirements; they want you to understand both the benefits and responsibilities of what you’re getting into.

If you’re not happy with the process, trust your gut – that feeling could be a red flag. Legitimate lenders want to cover their costs and make a reasonable profit, but they benefit when you end up happy with the entire experience and successfully pay back the loan over time. Predatory lenders seek to exploit people in need and trap them into impossible financial situations by overpromising and under-communicating. They’re not looking for long-term relationships; they’re looking for an easy score.

The best way to avoid scam artists or questionable financing is to begin your search with known, reliable sources.

Where Can I Find The Best Personal Loans?

If you have a good relationship with your local bank already, that’s a great place to start. As unsecured loans, personal loans generally assume you have pretty good credit and a track record with the specific institution from which you’re borrowing.

If you’re a member of a local credit union, you may find it easier to get a loan on good terms even without spotless credit. Why is that? It all comes down to the differences between banks and credit unions. Jim Cramer’s TheStreet.com explains it this way:

The bottom line is that banks are for-profit institutions, while credit unions are non-profit. Credit unions typically brag better customer service and lower fees, but have higher interest rates. On the contrary, banks generally have lower interest rates and higher fees. Banks, on the other hand, often have higher fees but more convenience regarding location, technological efficiency, mobile access, and rewards programs.

Another option with which far too many people aren’t familiar is to consult a marketplace lender. What is that, exactly? Marketplace lending is a service-driven loan industry, usually based online, which competes for your business. There are a number of reliable online marketplace lenders who can get you your money relatively quickly and who are able to be flexible with your credit history. Unfortunately, just like you’ve probably noticed that sketchy “payday loans” place a few blocks down from your local credit union, there are some untrustworthy players on the web as well.

That brings us to a rather important element of this discussion – how, exactly, do I find these legit lenders? Should I just Google “get personal loans online” and hope for the best?

Here we are!

That’s where we come in. We help you loan shop by flipping the traditional dynamic associated with getting a personal loan. There’s no reason you should feel overwhelmed and alone, confused by the system, and desperate for options. What you really are is a client, who has the power to choose from numerous marketplace lenders who compete for your business by putting together their best solutions and hoping you’ll consider giving them your business.

What are we selling you? Nothing – nothing at all. Loanry gathers some basic information and offers a few tools to help better determine your needs, then connects you with a participating lender to secure a solution both of you decide is best. We don’t charge you any fees or take any payments from you. Period. Once you’ve found a lender that meets your needs, the rest is between you and them.

How To Qualify For A Personal Loan

If you have some flexibility with when you apply for a personal loan, you may consider doing some things ahead of time to improve your chances of qualifying for a personal loan and getting the best terms possible from the lender you choose. I know, I know – some of you are thinking that if you had that kind of time and money you wouldn’t be online right now scouting information on personal loan options! Whatever your circumstances at the moment, take a slow, deep breath and just stay with me for a few more moments while we look at some simple things almost anyone can do to improve their credit situation. I promise, it’s not as bad as it might sound.

First, look up your credit score. We talked about these above while covering the variety of personal loan lender requirements, remember? You probably know there are three primary credit reporting agencies which are used by just about everyone – Equifax, Experian, and Transunion. You may not know that while they have much in common, they each compute your credit score slightly differently. In general, though, your score falls into one of five categories:

  • Anything between 800 – 850 is considered “excellent.”
  • Scores from 740 – 799 are “very good.”
  • A score between 670 – 739 is still “good.”
  • 580 – 669 counts as “fair.”
  • And anything below 579 means, well… that things haven’t always gone as well as you’d have liked.

Poor Credit By The Numbers

If you discover you’re in that lowest category, you’re not alone. Nearly 1 in 5 Americans had a “poor” credit score in 2018 (although that percentage has gradually been falling as more and more people learn how to take better control of their credit ratings).

Whatever your credit score, it improves as you make payments on time. Big payments, little payments, car payments, credit card payments – the key is consistency. If you have a year before you need a personal loan, start paying attention to those due dates now. But even a few months of on-time payments help to start nudging those numbers in the right direction.

Should I get a co-signer?

Another option to consider is getting a co-signer. A co-signer is a friend or family member with a more established credit record who agrees to “back you up” on your personal loan. They must meet the same personal loan lender requirements, and they’re agreeing to make the payments if you don’t, so this is not something to take lightly. Money isn’t everything, but it does have the power to strain friendships or create family tension. Make sure both of you are clear on the specifics and comfortable with the arrangement before pursuing this option.

That said, a co-signer can help you not only get the loan, but may help you get a better interest rate. As you make your payments, your credit rating goes up just as if you were the only person on the loan. If you don’t, however, it will hurt your co-signer’s credit rating, which may not go over very well. The solution? Make your payments!

There are simply no quick and easy answers to building or rebuilding good credit, but it’s quite doable no matter where you are now. Even negative events like bankruptcy or accounts marked “non-collectible” are eventually will fall off your report. What’s left is your more recent behavior. So don’t get discouraged – get started!

If I Apply For A Personal Loan, Do I Have To Accept It?

No. Until the lender has agreed and you’ve signed, there’s no loan.

It’s possible you’ll still have to pay personal loan fees, depending on how far the process has gone. As with anything related to your loan, read the terms carefully as you go.

You can get more information and begin the search for the right marketplace lender for you right now if you’re ready. Or you can Contact Us for more information. Whatever your circumstances, you got this – and we can help.

Guide To Personal Loans



Personal Loans for Students: Your Study Guide

Using online lenders to get a personal loan online enables you to refinance your student loan to access more comfortable repayment options. Personal loans for students are available with lenders registered with Online Lenders Association (OLA). OLA is an independent website that harbors several online lenders that adhere to a strict code of conduct.

Why Get Personal Loans for Students

The advantages that come with student short term loan lenders or long term lenders cannot be understated. These come as a welcome relief for students that are drowning in debt barely able to make ends meet. These personal loans come in handy as students will not have more lending options that will help them get out of debt. Credits cards only dig deeper holes while borrowing from relatives and friends gets tiring and burdensome for others. Living from hand to mouth is also frustrating and leads to the likelihood of choosing options that will cause more problems with debt.

Brief guide on personal loans

Lower Rates

Personal Loans for Students may come with lower rates that are more manageable for individuals to allow income. There are high chances that your first job will not pay as well as you need it to. Having the loans deducted from the amount renders you helpless for a long time. The rates help you get smaller manageable decisions. It allows you to invest your money in other projects that will help you get more income or grow as a person. These rates are also spread over a long time making it convenient for you.

Loans With Bad Credit

There are also high chances that you have already gotten into bad borrowing habits. Mainly due to the condition that the student loan has put you in when it comes to your finances. Personal Loans for Students help you get back on your feet within a short time. Indeed, they are okay lending to people with adverse credit reports. The level of the credit report will determine the conditions the lender will offer you. Some will give slightly higher interest rates while others will shorten the amount of time you need to repay the loan. A loan on bad credit is an excellent opportunity for you to get out of debt if you honor your smaller payments.

Getting your scoreboard back in the green enables you to borrow even more in the future. At least, if you still need it to build your life. It means working on a tight but allowable budget to help you manage the crisis.

Quick Processing

Personal Loans for Students are processed very fast enabling you to repay your student loan fast. The short processing period is convenient to ensure that you do not accumulate more interest from your previous lender. The fact that it is paperless makes it all the more convenient for you. You can quickly get a loan while at home in hours.

Protected Borrowing

One of the most significant risks, when you want to get a personal loan online is unscrupulous lenders that take advantage of the situation. They will offer low rates with a lot of underlying traps and fines that are likely to get you in trouble. It is for this reason that OLA came into play. Online Lenders Association is a mediator between the borrower and the lender ensuring that bot is safer when it comes to lending and borrowing. The process is then made transparent for the borrower and much safer for the lender. The lenders listed with OLA adhere to a strict code of conduct that will put your mind at ease before signing up for Personal Loans for Students.

No Collateral Needed

It is impossible for a student that has just finished school to borrow using collateral unless he or she has a car or something else to borrow against. Loans that need a guarantee will limit your borrowing to the assets you have. The asset will also be evaluated and the value cut down in a way that the amount received will not be sufficient to help you in any way. Online Lenders for Personal Loans for Students give loans without requiring any form of collateral from the student. The credit score of the student will determine how much they get as well as the conditions they need to pay back the money with by the lenders. Options in the market include using co-signer which is a difficult process to achieve. Very few people if any are willing to be a guarantee for a person that does not have any form of creditworthiness.

Loan Consolidation with a Personal Loan

Personal Loans for students will easily allow you to consolidate all your accumulated debts into one pot for more flexible repayments with lower interest rates. It is a great way to start putting your life back on track. You need to get into healthy spending and income-earning trends for this to work for you. Climbing up the credit score ladder will enable you to get more student loan options as well as creditworthiness.

In Conclusion

Personal Loans for Students are not a cure for bad spending and borrowing habits. You need to remember that you are still in debt even after getting a personal loan. In as much as the rates are lower the interest is still high enough to cripple you if you do not get into a reasonable budget and spending habits. Budgeting and working towards reducing your debt is the only way to get out of a chronic debt situation. It is unfortunate that many students remain in debt from this state for the rest of their lives. Personal Loans for Students should be taken as an opportunity to get out of debt and invest in a more financially empowered lifestyle.


Personal Loans for Unemployed (Alternative Income Welcome)

Personal Loans for Unemployed

Some of us, unfortunately, find ourselves in situations where we are unemployed and cash becomes limited. Despite this limited cash, we find our expenses continuing to build. Some of these expenses require cash loans. While some may not believe there are loans for unemployed citizens, there are in fact short term loan lenders for unemployed customers available.

You might definitely need cash immediately and being unemployed doesn’t make it easier. But solutions do exist!

Alternative Income for The Unemployed

Just because a customer is unemployed does not mean that they are without income. Income can come from numerous sources and does not require you to be employed. Some of these loans for unemployed include grad students who have growing debt. When you decide to look into a personal loan when you’re unemployed, it is essential to consider all types of your income. For example, if you receive income such as the following, this can be used to assist you with getting a loan:

  • Disability
  • Unemployment pay
  • Alimony
  • Child Support
  • Social Security Benefits
  • Retirement or Pension Funds
  • Rental Income
  • Royalty Income

These are some of the types of income that can be considered when applying for loans for unemployed customers. Personal loan lenders are no strangers to the options of alternative income. They graciously welcome it if it is fixed like a salaried position would be if the customer were employed. If any of this income is familiar to what you receive on a monthly or weekly basis, apply it to your loan application. Do not hesitate to use as a mean to pay back the loan that you desire. Lenders will consider this similar to your employer and consider your application of loans for unemployed. At least if you can prove that you receive this income as steady as you would if you were employed.

Access to Advances and Equity For The Unemployed

You may be wary about taking on personal installment loans for unemployed customers. That is okay! Especially as there are several options that may be available to you depending on your credit and home equity. If you are recently unemployed and find yourself looking for something other than loans for unemployed customers, you can consider the following forms of additional funds.

Credit Card Advance

If you have fair or good credit, you are more likely to be a credit card holder with a cash advance option. You can always treat this option like a personal loan. Indeed, your bank provide the cash advance to your credit card, and you pay it with your monthly payment. You will not be required to submit a credit check to make this cash advance. Not even to verify income.

Home Equity

Money Store

In many cases, homeowners find themselves in the place where their home is worth more than what they owe. This is considered home equity. Instead of seeking out traditional personal loans for unemployed customers, you can reach out to your mortgage lender for a home equity loan without having to verify income and will be fixed back into the mortgage for repayment.

Title Loans

Do you own your car, ATV, or boat? If you have a title for any of these vehicles, you do have an option to use them as collateral for a title loan. Whether you are visiting a local title loan company or financial lender online, you may be able to obtain a loan from these lenders. Even without employment verification, if you offer up this as collateral and any other income, you may receive a loan.

Where To Find These Loans For Unemployed Customers?

If you have decided to take on personal installment loans for unemployed customers, you may look to get personal loan online or through a traditional lender. These loans are often available with the same companies that offer personal loans to those who are employed. At least, as long as you can verify some form of minimal income.

Get Personal Loan Online

Do not hesitate to check the loans for unemployed customer options available online. Take advantage of the lender search service tool which allows you to provide minimal information for a pre-approval. Then search through potential loan offers through several lenders.

Once you have determined which lender proposal fits your financial budget, you should move forward. Move with a thorough application and include all forms of income that you receive. Once your application has been submitted and then approved, you can receive your cash in less than 24 hours. That is a great option for those who need this cash in a hurry. Be mindful when seeking out these short term loan lenders for unemployed. Indeed, they often have additional fees and high rates.

Bank or Financial Lender

If you decide to apply through your bank, credit union, or local financial lender, you will need to show verification of the alternative income that you receive monthly. You will need to submit an application either in-house or online. It may take a couple of days for them to review the application. Once it is approved, you receive your loan. It will then most likely be in check form, requiring you to deposit the check. For checks over a specific sum, the bank may or may not release these funds right away. This might force you to have to wait several extra days before accessing your loan.

If you have a checking account with the bank or credit union, you may be able to receive the funds through direct deposit. It provides you quick access to the funds.

Friend and Family Borrowing

If you would like a loan from a friend or family member, a credit check is not required. Nor is the traditional application. However, you must make an arrangement for paying back the loan. When trying to obtain personal installment loans for unemployed customers, this can be a more flexible option. Indeed, your friend may require repayment after you have sought out employment again and planned a budget.


Loans for unemployed customers do exist. Especially when there is an alternative income to consider for repayment. Banks and lenders find that loans can be approved when there is a verification of some form of income. When you go to apply for loans for unemployed customers, it is essential to make the alternative income known to the lender. Detail its central role in the repayment of the loan. This way they are not considering any additional amount of income when establishing your loan. Whether you plan to seek out an online loan, a bank loan, or borrow from a friend, do not use any estimated or future income as grounds for the loan.

Be sure to only include the alternative income that you can rely on at the moment. Should you find yourself unemployed longer than expected, it will help you out. Also, when you do find yourself employed again, the additional income will be enough to assist you with the loan payment. You could perhaps pay the loan off earlier than originally intended.


Unsecured Personal Loan As Soon As Tomorrow: Feel Secure

Unsecured Personal Loan
An unsecured personal loan can be borrowed from a bank, credit union, or online lender. They are paid back in installments of monthly payments. The payback period for these loans is usually about two to five years. Interest rates can vary and depend on a number of different factors.

Getting an Unsecured Loan Quickly

Banks may be the traditional method but they do take longer. In order to get an unsecured personal loan fast, try online lender finding services.

Advantages of Unsecured Personal Loans

Secured loans will generally be cheaper and have lower interest rates, but there are plenty of advantages for unsecured personal loans. Unsecured loans are better for those who don’t have the best credit or don’t have any collateral to offer. You will need to be careful about what you put up as collateral because you wouldn’t want to lose your home. Unsecured loans can be available to anyone and you wouldn’t have to worry about your collateral. You can get money much faster with unsecured loans because there is no need to appraise the property.

What Are Signature Loans?

Signature loans are a type of unsecured personal loan and can also be called good faith or character loans. These loans use the signature of the borrower and a promise to pay as collateral. It’s not just individuals who can take advantage of these loans, but businesses can as well. Loans can be used to consolidate debt in businesses, as well as to pay for unexpected expenses.

The process of getting signature loans is similar to other unsecured personal loan options. You have to find a lender. You will need documents on hand to show your identity and employment. Then, work with a lender to complete the application. Having a copy of your credit report before you apply can help.

Short term loan lenders do want to work with people who have good credit scores, so improving your credit before you apply can give you the best chance at approval and the best interest rate. Once you have filled out the application, be sure to check rates, terms, and fees. If you are trying to get your money from a signature loan faster, you may want to choose an online lender. The process of getting a loan with a bank may be more secure and straightforward, but it may take longer to get the money.

Personal Loan Shopping

Reasons You Need an Unsecured Personal Loan

There can be a number of reasons why you need to get an unsecured personal loan. Consolidating debt can save you a lot of money with lower interest rates and make it easier to manage payments. Medical bills are also a common reason for personal loans and one of the top emergency expenses. If you don’t receive the right medical care, it can be life threatening, but you may also need an elective procedure that is beneficial to your health in the long run.

If you have to move, it can be difficult to come up with the money at once to pay for all the relocation fees. Paying for moving expenses such as a moving truck, security deposit, and fees for turning on utilities can add up and a personal loan can help with these costs. Travel or paying for a wedding are two fun reasons to get a personal loan.

Both of these items can be expensive, but they are once in a lifetime opportunity that you want to be able to experience. Emergencies are another reason to get a personal loan. Emergencies happen and whether or not you use the money to paying for rent or car fixes, having some extra cash can come in handy.

Difference between a Secured and Unsecured Personal Loan

When taking out a loan, it’s important to learn as much as possible. One of the things you will want to do is research the difference between an unsecured loan and a secured loan. If you default on your loan, there can be repercussions. Among which, a negative effect on your credit score. However, if you take out a secured loan, there can be even more consequences for defaulting. Secured loans are loans where the borrower promises an asset as collateral for the loan.

Some common types of secured loans are home loans and auto loans. This means that the loan shop can take your home or car if you don’t pay back the loan. The lender then sells the car or home in an auction. If they don’t get back the full amount of the loan, then you still owe that money.

Difference Between Secured and Unsecured Personal Loans

You can also be forced to carry insurance on your collateral if you have this type of loan. Indeed, the lender has shared interest and wants it protected. Unsecured loans don’t have any collateral. If you default the lender has a more general right to your assets or property. These rules can vary from state to state. The lender will have a lot more to lose with an unsecured loan because there is nothing that will guarantee them money.

Common Unsecured Personal Loan Traps to Avoid

Regardless of whether or not you are getting a secured or unsecured loan, you will need to pay attention to traps to ensure you are going to get your money and not be scammed. One of the most common personal loan traps is excessive fees. There are five basic fees when you are getting an unsecured personal loan. Fees aren’t usually that expensive, but they can add up, especially if you are putting in multiple applications. You won’t get these fees back if you aren’t approved for the loan.

Some lenders won’t charge application fees, so search for those. Interest rates are a huge part of personal loans and securing the right interest rate is important. Compounded interest is interest that is added to other interest. Be aware if your loan terms mention compound interest. Understanding interest can make sure that you know what happens if you apply extra payments.

These extra payments may go directly to interest obligations, instead of the principal of the loan. You likely don’t need the additional loan insurance that can be offered to you. If you are worried about your ability to pay back the loan, you can consider the insurance, but you should know what it covers and how it can be used to pay back the loan if you lose your job. Be aware of phishing scams when you need to get personal loan online assistance. Be sure to research the company to know they are legitimate. They should have a physical address and a phone number. A legitimate business will want to give out information so customers can get to know them better.


Unsecured personal loans don’t require any collateral so they are a good option for those who don’t have the best credit or no collateral to put up. While the interest rates may be a bit higher on these loans, you can get the money in as quick as one day. Signature loans are a type of personal loan that can be used for a number of different reasons. When searching for an unsecured personal loan, there are certain traps to, pay attention to so you aren’t scammed. When you need a personal loan an unsecured one is a very popular option.


Personal Loan Companies Online: Find Here

Personal Loan Companies Online

There are many different types of loans. A personal loan can provide funds to get you though tough times when you need some cash. It can be easier to get a loan with personal loan companies online.

How Does a Personal Loan Work?

When looking to get personal loan online, it’s important to know how a personal loan works. When shopping around, be sure to not sign anything without understanding what is required. Look over the paperwork and be sure to check the interest rates. Also be on the look out for fees and be sure to understand the terms. An interest rate is what the lender is charging you to borrow the money. With a good credit score, you can get a lower interest rate.

There are fixed and variable interest rates. Fixed rates never change and will stay the same throughout the life of the loan. There will also be terms on when the loan will need to be paid back. Personal loans can range from 12 months to five years. There will also be different types of fees. You should pay attention to application fees, administration fees, origination fees, and late fees. There may also be a prepayment penalty. If you pay off a personal loan too quickly or try to double the monthly payment, you could be hit with a prepayment penalty.

Personal Loan Shopping

Personal Loan Eligibility Requirements

Every personal loan company will have its own set of eligibility requirements. Many personal loan companies online will look at a client’s debt-to-income ratio and if monthly payments are being paid on time. If you aren’t able to pay monthly bills on time, you may not get approved. Sometimes lenders also look at education level, career experience, and financial history.

Lenders may also require the borrower to be at least 21 years of age. Another factor that is considered is income. Most lenders will prefer to have their borrowers have a steady job. Minimum annual income that is accepted is usually around $15,000. There are also always credit requirements. It’s important to stay within your credit limit and use less than your limit.

Where to Go to Find Personal Loans

Shop personal loans online near you in order to get funds as quickly as tomorrow. There will be a lot of options for personal loans near you if you know where to look. When personal loan shopping online, you will need to use money tools to compare. An assessment tool can include the estimated debt and payoff calculator. Some tools can even give you a quick quote with your finances and other factors analyzed. The more information you are willing to give online, then the better you will be matched with the right loan.

What to Know Before Looking for Personal Loan Companies Online

It helps if you know what your credit score is so you can think about what type of credit score you will need. If you find that a minimum score is needed and yours tends to fall lower, then you will need to keep looking around. The good news is there are plenty of different ways to find a better match, especially to get personal loan online. Lenders want to know that they can get their money back, so this is why there are set requirements. It won’t help to lie on your application.


Benefits of Personal Loans

There are both benefits and downsides of personal loans, but depending on your situation, the benefits can outweigh any negatives. With this type of loan, you are borrowing a set amount of money so you know how much your monthly payment will be and there aren’t any surprises. Many personal loans will be unsecured, which means you won’t have to put down collateral. Personal loans are efficient and convenient.

When you look for personal loan companies online you can get your money in as soon as a day. You can also apply for the loan from the comfort of your own home. There are even websites to help you with shopping for personal loans so you can easily compare. Personal loans will have lower interest rates than most credit cards. When balancing the positives and negatives of personal loans, you need to look at the interest rates. A credit card can cost you much more than a personal loan because of the interest rates.

Personal loans will give you a set amount of money for a set time period. If you are only paying the credit minimum, then you won’t be getting much closer to paying it off.

What can You Use Your Personal Loan for?

Personal loans can be used to consolidate debt, since people can often get in trouble with credit cards. You can also use them to rebuild your credit score. In some cases with credit cards it can take 10 to 15 years to pay off the debt, but with a personal loan and debt consolidation you can get your debt paid off much quicker.

Personal loans may also help with your credit score, as long as you keep some key points in mind. Personal loans will only help with your credit score if you don’t miss a payment and you make your payments on time. Don’t underestimate the power of fixed payments and interest rates. You know how much you will be paying each month so you can work this into your budget. The interest rate won’t change like on some credit cards.

Personal Loan Companies Online for Bad Credit

It’s still possible to get a personal loan with bad credit online. When searching for personal loan companies online for bad credit, there are some things to keep in mind. It’s important to know the distinction between a secured and unsecured loan. A secured loan will require collateral used as backup. An unsecured loan doesn’t require any collateral, which means they are riskier for lenders. With bad credit, you may be getting a secured loan and it’s important to know what you are putting up for collateral so you don’t lose important assets.

When getting a personal loan with bad credit you should expect that the interest rate and fees will be higher. You want to find the lowest APR for the shortest term. While extending the length of the loan may be tempting since it will reduce monthly payments, you could end up paying more interest than you need to.

You must properly prepare when getting a loan with bad credit. You will need copies of your financial documents, housing history, bank statements, ID, and employment information. This paperwork will need to be submitted with your loan application. If you don’t have a strong credit report to back up your application, then you may have to do more work to get the loan. Don’t be discouraged if you get rejected from one company. There are others out there and plenty of possibilities. You can also ask the loan company why your application was rejected so you know ways you can improve.


Knowing how personal loans work can make the process for looking at personal loan companies online much easier. It’s also important to know loan eligibility requirements. Personal loans can provide a lot of benefits. People with bad credit can also use these loans, if you know where to look when searching. When shopping for personal loan companies online, pay attention to your credit score and don’t get discouraged if you get rejected. There are plenty of options, so keep looking.


Low Interest Personal Loans: Secrets Uncovered

Low Interest Personal Loans

Personal loans are beneficial and can provide cash. Either it is for emergencies, vacations, home improvement, and other uses. Since there is no collateral attached to personal loans, they are often considered to be the higher loan option offered by lending companies. If you need a personal loan but are concerned about the interest rate that is often attached to them, continue reading to uncover ways to better your chances to receive a personal loan with a more favorable interest rate.

Low Interest Loans 101

There are low interest cash loans online and financial institutions. Both offering low interest personal installment loans for your benefit. Lower interest is, of course, relevant to your credit and financial situation. There is no silver bullet option, just good money tips to improve your position. Here are those secrets uncovered.

Know What Constitutes A Good Credit Score

At any point that you desire to borrow money or finance something, you can expect a lender to review your credit. Each of us has a personalized score. It changes depending on our credit activity, how much debt we accumulate, payment history, and types of debt we have gathered. The lowest interest rates available are awarded to those who hold what is considered a “good credit score.”

Sitting at 740 or above, your credit score determines your risk for obtaining low interest personal loans and not paying it back. Low-interest personal loans are often considered unsecured. This is mainly because of the lack of collateral. Therefore making lower rates something harder to receive, and more dependent on your financial past.

Scores that are between 650 through 739 are often still considered good scores. However, the rates that are offered are a median rate. It is between low and high offers to other customers with low or high credit scores. Before you apply for a personal loan with fair credit, you should work to get your credit score above the 740 thresholds.

Review Your Debt

Do you currently have outstanding debt? Before you get a low interest personal loan, you should consider the outstanding debt that you currently have. Outstanding debt can include balances that you are carrying on your credit cards. It can also include a mortgage, car payments, and any other debt that you have accumulated and are making monthly payments on. The secret to low interest personal installment loans is to have minimal debt. Your lender will consider your personal loan in addition to the current debt. Therefore they determine if this is something you can afford based upon your income, and how much of a risk you are for them.

When reviewing your income, these lenders will determine whether or not you have the right amount of funds coming in. They want to make sure you can cover the loan and not be a serious financial burden on yourself. These lenders review the overall debt that you have and the income that you are bringing in to develop a ratio.

Before they will lend you money, they expect that even with the anticipated loan payment, you will still be at or below this ratio. Making sure that this loan will not cause a financial burden for you. For minimum loan amounts, you will need an income of approximately $30,000. The higher the income you have, the more money you can borrow.

Explain Your Credit Inquiries

Do you have several credit inquiries? If so, consider that multiple hard hits can negatively impact your credit score. These inquiries will stay on your credit report for two years before falling off. More than two credit inquiries in the last two years can cause a lender to raise their eyebrows in concern. Multiple requests for credit can cause a red flag and have them question how much of a risk you may be.

A secret is to be ready to explain these credit inquiries. Especially if these inquiries are within only a few months of you applying for a loan with that lender. Let them know that you may have been shopping around for insurance, or refinancing a different debt, should that be the case.

Where To Find A Low Interest Personal Loan

If you want a low interest personal loan, you can find these options in two places. They are available online as well as in your local banks and financial lenders.

Get Personal loan Online

With the new wave of technology and the access of the internet at our fingertips, traditional lenders are no longer the only option. Many lenders that offer low interest personal loans are available online. They are also conveniently located online by using a loan finder service tool. Those are made for you to search out the leading lenders and receive pre-approved offers. Some of your banks and lender with physical locations even offer online applications and pre-approvals. At least for their customers with good credit. Search around and review the offers presented in order to determine which options have the lowest interest. You can also leave us your information in the form below and get offers from lenders who may be willing to give you a low interest loans. You can expect offers within minutes.

Credit Unions & Banks

You can also still achieve a low interest personal loan with your bank or credit union. At least if you meet the credit score qualifications. A quick and easy application is available online for you to complete. Then you can go into the branch to determine the status of the loan. Prior to this ability, you would have needed to take paper forms to the bank or credit union. Then sit in there for several hours while they determined whether or not you could access the loan.

Compare Loan Companies

Before you accept the first personal loan offer, you should shop around and ensure that you are receiving the best deal available. You need to review all of the fees that are associated with the loan. Indeed some lenders have additional fees in their loan contracts that are not required by competitors.

Each lender has annual percentage rates (APR) and interest fees that are associated with their loan package. When you use a loan service finder tool online, review the pre-approvals thoroughly for the different rates that are posted. Narrow down your list to the three best options available based on fees. Don’t forget to read their loan contracts.

You should also consider the approval process of these lenders and the ease of receiving your loan. If you have two identical loan offers, but one will provide a check for you to deposit and the other will direct deposit the amount, then why not take the second offer with the direct deposit? Weigh all of the pros and cons of each lender before you settle on a decision.


Despite there are a variety of options for personal loans for those with less than good credit despite what is advertised, there are options available for those with good credit. Those can get a low interest personal loan. The secrets to obtaining low interest cash loans online are to thoroughly research the offers available. Review the lenders and their fees. Also, it is your responsibility to maintain your credit score so that you are eligible for these options.


Personal Loan Basics Spelled Out: Loan Shopping 101

There are many types of loans. Knowing the personal loan basics is important to helping you distinguish. For someone who plans to buy a house, then a home mortgage loan is what you need. If you need cash for a new car, then an auto loan is what you are looking for. But what about those times when you are unprepared? Or when you plan a summer get-a-way with the family, but are short on funds?

Everyone at one point in time or another thinks about taking out a personal loan. Whether it is because of an unforeseen accident or a major crisis, people will always need money to solve financial problems.

A personal loan can provide the funds to help you though those times; and this is what makes personal loans different from other types of loans. However, the question remains, how do you go about finding the best solution to your financial dilemma? Well, here are a few answers to some of the most common questions when you shop personal loans. I call them my Personal loan basics.

How do Personal Loans Work?

For the most part, Personal loans are simple to understand and usually do not require any collateral, unlike buying a house. The first thing to do is to find a personal loan lender. Once approved, you will receive the amount in one lump sum. The way you pay it back is in installment loans. Personal installment loans can be used to finance items such as high-interest credit cards, an upcoming wedding, or just unexpected circumstances.

When you shop personal loans, make sure you do not sign anything without completely understanding what all is required of you. Look over the paperwork and always check the interest rates. Be aware of the terms and watch for fees. It will take some time to pay off your personal loan in full. However, it can get you out of a tight situation.What are the Rates, Terms, & Fees?

Personal Loan Rate, Fees and Terms

Common Personal Loan Traps: Fees, Rates, Oh My!

One of the first steps to personal loan basics are to understand the rates, terms, and fees that comes with it. Wouldn’t it be nice if we can all borrow money and not have to pay any interest? Sorry, we don’t live in a perfect world. However, there are ways to pay a low interest rate when you apply for a loan.

Sometimes if you can get personal loan online help, the lending site may offer lower interest rates. The websites may even provide lower interest rates than going right into a bank or a loan office. Thus, where you shop personal loans are just as important.

In addition to interest rates, loan terms and loan fees are also part of the process of applying for a personal loan. Depending on a person’s credit score, income, and the capacity to pay off the loan will determine the interest rate and the length of the loan offered. In my next few paragraphs, I will explain some personal loan basics about rates, terms, and fees in more detail, including what each are and how to prepare for them.


The Interest Rate

An interest rate simply is what the lender is charging you for the use of borrowing their money. A client that has a good credit score, then the interest rate can be pretty reasonable.

However, if the credit score is low, then the interest rates offered can be very high. There are two types of interest rates: a fixed rate and a variable rate. Fixed rates never change and stay the same throughout the life of the loan term.

The interest rate of a personal loan with a fixed rate is usually low. On the other end of the spectrum, variable rates may be low at times, but increase whenever the market changes. This can be very frustrating for someone new to loans. I would suggest to shop personal loans really well, and consider which type of rate would be best for you and your financial situation. Some personal loan basics to remember is to always shop around. Checking out several lenders will help in determining the best interest rate for you.

Personal Loan Terms

Each personal loan lender provides the client with information on not only on the interest rate on the loan, but on how many months or years it will take to pay back the loan in full. Personal installment loans may be a short as 12 months or as much as five years. Collateral is not always required, but it may help if your credit score is low and you need some help with securing the personal loans. Collateral is good if your personal loan term is long as well.

Many cash lenders or banks want collateral to feel safe about giving money to a client; and the same goes for the client as well. All parties want to feel they are making a good decision and that it is not wasting anyone’s time or money. To learn more about the personal loan basics of loan terms, check out loanry website- how to borrow smarter

Personal Loan Fees

No one likes the sound of the word “fees”. I know I sure don’t. But there is just no way around it. Clients that take out a personal loan will always have to pay to apply and also process the loan. When you shop personal loans, you should know about the several types of fees that comes with borrowing money. As you read on, take notes, so you can be prepared when it comes time to apply for your own loan. Below are some personal loan basics about fees.  I have also made it simple by explaining each one in detail:

Types of Fees

  • Application Fees– The fee to apply for the loan itself. Usually the charge is $50 or under. Getting denied for a loan is not always the worst thing to happen. You may need to reevaluate your  finances and try another way to get out of a financial situation. However, if you do get denied, you will have to pay another fee if you decide to apply again.  However, at some loan lending offices, they may waive the fee if your credit is in good standing.
  • Administration fees– This is the cost to process the application and normally runs the applicant around $35-$50. Some loan offices may not charge a processing fee or it may already be built into the application fee. Always check with the lender before you sign your agreement papers.
  • Origination fees– The origination fee is the cost to take out the loan itself. Many lenders ask for this in replacement of both the application and administration charges. Normally it is about 10% of the loan. However, this fee is paid from the amount of the loan. For example, if your loan amount is $1000, then your origination fee will be $100. Thus, what you actually receive is $900.
  • Late fees– A late fee is added to the loan when you do not pay your monthly installment amount on time. The fee is usually around $30-$37 for each time you are late. Some loan offices may offer a one-time forgiveness affect, similar to a grace period. This can mean if it is your first time you forgot to pay, then you may not receive the late fee.

Prepayment penalty

The idea of paying early seems like a good thing, right. It saves you on all that interest. However, there is something to consider. If you pay the personal installment loans too fast or try to double your monthly amount, you can be subject to a penalty. The Prepayment penalty may be steep, depending on where you got your loan. On average the fee is 80% of six months of interest.

Personal Loan Eligibility Requirements

Every lender has his or her own set of eligibility requirements or factors.  In my opinion, one of the first personal loan basics to know when going into a loan office is what are the eligibility factors of the loan. A lender’s first job is to see how an applicant manages their credit.

Many personal loan lenders look first at the client’s debt to income ratio and if the monthly payments are paid on time. Keep in mind, If you cannot pay your regular monthly bills on time, then chances are, you will not get approved. Sometimes underwriting methods can have a role in the eligibility process. For instance, looking at career experience, education level, and financial history of the client.

Increase Your Odds of Getting Your Personal Loan Approved

Bottom line, don’t job hop!

Lenders may look at your time with your employer. Another requirement is the age of the applicant. Depending on the lender, a client may need to be at least 21 years old before applying for the personal loan. It may be a good idea to not house hop either. Some lenders may not care about a prospective client moving from place to place as much as others.

However, the longer you plant roots in one house or even an apartment, the better it will be for your overall credit. Plus, it will show stability, dependability, and commitment to your community of where you live. A lender may look at your housing situation as well, meaning, who lives in the house with you.

This is not necessarily a factor for not being approved for a personal loan, but it can question your reasoning for the loan, especially if they are familiar with your housing issues. Another eligibility factor is your time at your employer.

Income Requirements

Another factor of my personal loan basics list is to consider is how you plan to pay the personal loan. Almost every lender office would prefertheir clients or applicants to have a steady job. Lenders that approve loans also look at the monthly income for a loan to determine the debt to income ratio.

The minimum income annually accepted by lenders is usually around $15,000. Some lenders however, will not accept incomes that are less than to $30,000.  Your best option is to shop personal loans by either calling around or searching the internet for the best deals.

Some people like to work with lenders they already know or feel comfortable sharing their personal information with. For those needing extra assistance, you can get personal loan online help at Loanry.com. The site provides the personal loan basics about income requirements needed when you apply for a loan.

Are there any Credit Requirements?

In many types of loans, there are always credit requirements. Nearly one half of Americans hold Credit card debt. Some people are smart by staying within their limits or at least try to keep their credit limit at or less than 30% of the credit limit. Many credit card companies may even reward clients for staying with the 30% limit by increasing their credit limit over time.

However, it can be hard to do so and using your card too much or too often can increase your balance, along with lowering your credit score. So why is this important? Having a low credit score makes it difficult to get personal loan online help or with a lender in person. The credit score for a personal loan should be greater than 580, according to Rebuild.org.

However, a score closer to 630, is probably ideal. Rebuild.org also states that applicants who are applying for a personal loan should have at least $1000 per month in verifiable income.

As mentioned earlier, your income plays a vital role in being approved for a personal loan. Plus, it will help in paying off your personal installment loans as well. Part of understanding the good and bad decisions about personal loans, is knowing the Pros and Cons of them.

Pros and Cons of Personal Loans

There are Pros and Cons to every financial commitment. Knowing if a personal loan is the right call for you, will make a world of difference for your financial future.  Some personal loan basics is researching Pros and Cons of loans. Here is a small list of some of the best, (and not so best) reasons to shop personal loans. If you need more assistance about the Pros and Cons of personal loans, you can get personal loan online help at Loanry.

Guide To Personal Loans

Personal Loan Pros

Paying a lower interest rate compared to credit cards – If you plan to consolidate two or more credit cards, then you may get a chance for a lower interest rate than you previously did with the cards alone. Lenders may offer a lower rate, due to a high loan amount.

Having only One payment – Consolidating your credit into one single payment each month makes it so much easier to keep track of where and what you spend your money on.

Building up your Credit – It’s true. When you open another credit account, it gives your credit a boost. It may just be a few points, but it can make a difference from a poor rating to a fair score.

Opportunity to a fixed rate – By getting a fixed rate, you don’t have to worry about your interest rising. Personal installment loans have a tendency to be high on interest, but this keeps it from increasing.

Personal Loan Cons

Not enough debt – the worst time to get a personal loan is when you really do not owe too much or very little.  For instance, if you can see yourself paying off a small credit card in just a few months, then there’s really isn’t a reason to deal with a lender for such a small debt. You will be wasting your money and the lender’s time.

Getting sucked into a financial trap – As much as it seems like a good idea to get one lump sum of money to take care of a bundle of credit cards, a vacation get-a-way, or a special surprise to your spouse, sometimes this may cause a person to accumulate even more debt! The idea in consolidation is to pay it all off, in one monthly bill. However, if you keep spending on the card, (which you were supposed to cut up), you will never be out of debt.

Having too high monthly payments – depending on the loan amount, the interest rate, and how long the term is, your monthly bill can be higher than the average credit card.

What Else Too Should You Know Before Getting A Personal Loan?

Other personal loan basics to know before getting a personal loan is how the lenders get your credit information. Lenders look at the FICO score of the applicant. This score is based on several factors. Every lender gets their information from either one of the three credit bureaus; However, in some cases from all of them. What they provide to the lender is how well you (the applicant) have managed your finances and if you are working toward financial stability.

The factors that are the most important is if you have any credit cards going to collections, if you have recently claimed bankruptcy, have maxed out your credit limits, and have accumulated any outstanding balances.

These are red flags to personal loan lenders and I encourage you to stay away or proceeding to allow them to occur. Another thing to watch out is Store-based credit cards. I know, we have all done it one time or another. You get a credit card just for the use at one particular store. It may seem like a great idea at first, but adding another Visa or MasterCard in your wallet, on top of your already struggling credit problems, means another monthly bill you will have.

How do You Get A Personal Loan?

Getting a personal loan is not as hard as one may think. Most Personal loans can take about a day or so to get approved. However, online lenders may be quicker than the traditional bank or credit union. I have heard that some online loan lenders can approve a client in less than a few hours; however, these lenders may charge a higher interest rate for faster approvals.

Some basic steps to know about getting a loan. According to Loanry.com, First, you should start by paying off any outstanding loans. Second, a respected lender or loan office you can trust. It may be a good idea to review any comments about the loan office, good and bad. Next, go ahead, apply, and be compliant to all term loan terms. The last step, secure collateral if necessary by the loan agreement. To know more about personal loan basics and how they work, you can get personal loan online help at Loanry

The Best Personal Loan Companies 

To truly understand everything you need to know about personal loans is to do research on the top personal loan lenders nationwide. Beware! There are many that want to scam people by charging exceedingly high rates or their monthly personal installment loan agreement is not cost-effective. But have no fear, I have found that going to creditable sites, provides the best rankings or statistics about money issues.

They are also very is helpful in making your final decisions on personal loans. The USNews website lists what are the best personal loan companies that accept good or fair credit have decent APR ratings, have flexible terms, and fee information. Many are very common throughout social media. To read more on each of the lenders, and a detailed look of what they offer each client, go to USNews.com

Top Lender Picks

  • Best for well-established credit, low APR and no origination fees: LightStream
  • Best for good credit, no origination fees and a range of offerings: SoFi
  • Right for good credit and low APR with merit-based qualifications: Earnest
  • Best bank for good credit with a wide range of loan terms: Discover
  • Best bank for fair to good credit with merit-based qualifications: LendingPoint
  • Right for fair to good credit with a co-signer option: LendingClub
  • Best for fair credit with flexible approval requirements: NetCredit
  • Best for fair credit with a low APR: FreedomPlus

Learn the Basics of Other Types Of Loans:

Mortgage Loan Basics Spelled Out: Lending 101

Auto Loan Basics Spelled Out: Lending 101

Business Loan Basics Spelled Out: Loans 101


7 Benefits of A Personal Loan to Finance Anything

A personal loan is a money loaned from a bank or other financial lender that is paid back with fixed payments that include interest over time. These are often referred to as personal installment loans, which is a type of personal loan. They can be either secured or unsecured. Secured personal loans require collateral. Unsecured personal loans, which are the most common type, do not require any form of collateral. There are many benefits of a personal loan. I’m excited to share these with you below.

What Are the Benefits of a Personal Loan?

A personal loan is usually a much cheaper option than using a credit card or getting a payday loan because the interest rates are often much lower. Additionally, payday loans must be paid back all at once so a personal loan is a more convenient option. Most personal loans are small amounts though they can range all the way up to $100,000.

You may have considered applying for a personal installment loan but you just are not sure if it is a good move. Depending on your financial situation, a personal loan may be a great way to help you make your payments. Continue reading to learn some benefits of a personal loan.

1. Lower Interest Rate Than Most Credit Cards

One of the many benefits of a personal loan is that it will most likely cost you much less than using a credit card. Personal loans can help you save over other types of finance options. Personal installment loans generally have a much lower interest rate than credit cards whose interest can be 20% or more. That credit card interest is also due monthly, so if you have not paid your full bill by the end of your billing cycle, you will be paying interest on that amount the next month. As many people tend to pay only the minimum payment on their credit cards each month, they hardly touch the actual amount due. When their bill comes in next month, more interest is added meaning that they owe more than before.

Let's take an example - Benefits of a Personal Loan

Let’s say that instead of using my credit card, I take out a personal loan for $1000, the interest rate is the same fixed 10% that my credit card charges and I have the loan for 12 months. That brings my loan total to $1100. Since this is a personal installment loan, the interest is already fixed into the total. My payments would come to approximately $92 per month. No extra interest is added. I simply make my payments and that’s it. A personal loan can save a great amount of interest and help you stay out of further debt as long as you make your payments.

2. One Way to Consolidate Debt

Another benefit of a personal loan is that you can actually use a personal loan to consolidate other debt. If I ran up my credit card balance too high because I either did not know that the minimum payment was not enough or even just did not have more than that to pay back, I am going to find myself in a good bit of trouble that may affect me for years to come. If I have more than one out of hand debt that I simply cannot catch up, the stress is probably eating away at me. I can either continue on the same path, work extra jobs to try to pay it all back, or consider a personal loan.

If I get approved for enough to cover the debt I owe, I can pay the debts off and pay a much lower interest loan payment. In simple math, paying off one $1,500 personal loan at 10% interest is a lot better than paying on two debts that charge 25% interest each.

3. Free Up Your Cash Flow

If I take out the loan mentioned above to pay off those debts, I am likely to have a little more cash each month than I did when I was attempting to make higher payments. That freed up cash can then go to other necessities, savings or paying off yet another debt. When you owe less out, you can accomplish more financially.

4. Finance Anything: Medical Expenses, Repair Emergencies, Travel and more

Unlike a mortgage loan that is applied to mortgage or a vehicle loan which is applied to a vehicle, a personal loan can be used for pretty much anything from medical bill expenses, repairs, vacation, clothing, shopping for back to school items and much more. Another benefit of personal loans is that they offer more freedom than some other types of loans and even some credit cards do.

5. A Personal Loan Can Improve Your Credit Score

Personal loans can help borrowers build their credit. Lenders report to the credit bureaus. Consistent and on time payments reflect positively on your credit report open up new opportunities for you in the future, like lower interest rates.

6. Fixed Payments Are Easy to Manage in a Budget

One of the major benefits of a personal loan is that the fixed payments can be budgeted. When you take out the loan, you know how much your monthly payments will be. There is no guessing to it. Therefore, you can go straight home and rework your monthly budget knowing how much you will have to pay and for how long.

7. Fixed Interest Rates Create Predictability

If you have or have ever had a credit card, you might have seen an increase in interest rates. It could be that you signed up for it during a promotion, the lower payment is only guaranteed for the first few months, or something similar. This is extremely frustrating when you have figured out a repayment plan and suddenly you get surprised and your plan goes out the window.

Another huge benefit of personal loans is that this will not happen. When you take out a loan, the interest rate is the same until you pay the loan off. Knowing what your payments are, as mentioned above, allows you to budget it in more easily.

As you can see, there are many benefits of a personal loan.

Types of Personal Loans

There are different types of personal loans. One of the benefits of personal loans is that you can get them for pretty much anything. Personal loans are approved for specific needs and more general ones. The required credit score for each type of loan may vary between lenders, and they may require additional documentation for specialized personal loans. Below is some information on different types of loans.

A secured loan is simply a loan that is secured with some type of collateral. It may be money in a savings account, a piece of land, a vehicle, or something else of value. Interest rates are lower with secured loans because there is less risk. If you default, they can take your collateral to cover the money you owe.

Unsecured loans do not require collateral. The lender loans money to you with the agreement that you pay it back.

These are loans with fixed payments. Often, if you pay the loan back, you can borrow that money back with less hassle than the first time.

These are loans that pay off debt and put the total amount under one new payment, usually with a much lower interest rate.

As the name suggests, short term travel loans are available for the purpose of traveling.

Medical finance loans are for the sole purpose of repaying medical bills.

This loan is specifically for repairs and improvements to your home.

Things to Know Before Getting a Personal Loan

As tempting as it may be to jump up and start applying for loans, that can be a mistake. Some lenders charge application fees and other things so it is best to know what to expect first. Read on to understand all the things to know before getting a personal loan:

Do You Really Need This Loan? Will It Help or Hurt You?

Taking out a loan just because you can or for something you do not actually need is usually not the best idea. You should be sure that you are helping yourself in some way, not just digging yourself into a deeper hole.

What Credit Score Do You Need?

Most lenders have their own requirements for credit scores. Some want excellent credit while others are willing to work with lower credit scores. Find a lender that accepts your credit score.

What makes up a credit score.
How Much Income and Consistent Work History Does the Lender Want to See?

Generally, lenders are more concerned about your debt-to-income ratio than the amount you make. However, you should still check first. Also, some lenders require five years of job consistency while others just want to see the last two years.

How Much Does That Lender Typically Loan Out?

If you need $2,000 but a particular lender does not go above $1,000, it is not worth your time to apply with them.

What Is the Interest Rate?

Shop around for the best interest rate that is available for your particular financial situation.

Is There an Application Fee or Any Other Type of Fee That Will Be an Out-Of-Pocket Expense?

Some lenders charge a $25 $50 application fee that must be paid upfront. Find out before you go to apply so there are no surprises.

Are There Any Fees Added Into the Loan, Like an Origination Fee?

An origination fee is a fee that is charged for processing the loan and gets subtracted from the money you borrow. While this expense does not come out-of-pocket, the fee could affect the amount you need to borrow.

How Much Can You Pay Back?

If you cannot make high enough payments to pay back a $2,000 loan, do not get a $2,000 loan. Only borrow what you know you can make payments for. Defaulting on a loan destroys your credit faster than positive marks build it up.

Final Thoughts

Debt is a scary, stressful thing. The idea of adding more may terrify some people. There are times, however, that the benefits of a personal loan outweigh the negatives. At times, the benefits of a personal loan may even set you on the right path when handled responsibly. With research and planning, the benefits of a personal loan just might change your life.


Should You Use A Personal Loan for a Computer: Power On!

Personal Loan to Buy A Computer

We may try and try to keep our bills paid and money in the bank, but many of us find ourselves living paycheck to paycheck or barely above that. Something unexpected hits, and we lack the money to take care of it. Now we have to make a decision: take out a loan or not? Though debt is never the best option, sometimes taking out a personal loan can be a good idea, but is a personal loan for a computer one of those times? Read on to learn more.

Should You Take Out a Loan for a Laptop?

Most people answer with “Yes, if you can make money using the computer”. The popular opinion is that the only “ok” debt is for a home, a car, or a degree. Let’s face it though- we live in a digital world and a laptop is often necessary. The question is whether it is necessary enough to get a personal loan for a computer? Below are some pros and cons of getting a personal installment loan to purchase a laptop.

Pros- Personal Loan for a Computer

  • You can get the laptop immediately instead of having to wait until you save enough. If you need the laptop ASAP for work, school, or some other project, accessing the laptop now is a priority.
  • It can help to build your credit- if you can to pay it back. Small personal loans can improve your credit report if you make timely payments.
  • A personal loan can be less expensive than retailer financing. The interest charged by retailers is much higher than that of personal loan lenders.

Cons- Personal Loan for a Computer

  • Unless you can pay the loan off immediately, you are looking at paying interest. Paying more than the item’s amount is never fun. Sometimes the interest can add up to the amount of the item.
  • Most personal loans do not go under $1,000. That means you will be borrowing more than you actually need. If you need that money for something else or can put the extra away to make your first loan payment, this may not necessarily be a bad thing. As a general rule, however, borrowing more than you need can lead to trouble. Remember: the more you borrow the more you have to repay.

Can I Take Out a Personal Loan for a Laptop?

You can get a personal loan with these simple steps for just about any reason. Though they ask what the loan is for, the lender cares much more about your ability to pay the loan back than they do the reason you are requesting it.

If you choose to take out a personal loan for a computer, do not accept the first loan offer you get. Do your research to find the best loan terms and interest rates available to you. Just as you shop around for a car you should also loan shop for a laptop. You can do this from the comfort of your couch because these days you can easily do your computer loan shopping online from your phone. Websites like Loanry can help you find a personal installment loan lender.

Modern home office with laptop on the desk.

Using a Credit Card to Purchase a Computer

You may be wondering about buying a laptop with one of those handy things we call credit cards. A credit card can, of course, pay for a laptop, just as it can pay for anything else. With a credit card, as long as the item is within your credit limit, you can bring the item home as soon as you purchase and put it to work.

However, there are cons to using credit cards, as well. If you do not pay off the full amount by the end of your billing period, you are charged interest. Sadly, if the bill is not paid fast enough, you could be paying at least half the amount of the item in interest alone, many times more. You have to decide how much you are really willing to pay for that laptop. If using a credit card is the route you choose to go, be sure to shop around for the best credit card for you.

How Does Computer Retailer Financing Work?

Retailer financing means that the retailer is loaning you the money to purchase an item, which is a laptop, in this case. At times, you are required to pay a down payment but not always. The retailer will check your credit score to determine how likely you are to repay the loan. If your credit score is high enough, they will discuss loan options and terms with you. Approval rates are higher for this type of financing than for a traditional loan. If approved, you are billed and pay for the laptop over time, much like a credit card.

Sounds simple enough, right? Not so fast. You have to find the catch.

There is Generally Always a Catch

Often, retailers advertise “90 Days Same as Cash”, “0% Interest for 24 Months” or something similar. It sounds extremely tempting but is often misleading. I once worked for a retailer that ran deals like these and I saw how often people were surprised after the special financing period was over. As far as 90 Days Same as Cash goes, you have 90 days to pay the item in full without any interest being added. If you do not pay the item off during that 90-day period, the interest is compounded and seemingly out of nowhere skyrockets. That interest you thought you were avoiding for 90 days has just been added to your bill.

What About the “0% Interest for 24 Months”?

What about the 0% Interest for 24 months? It is a great deal for those that can pay off the amount during those two years, but the same compounded interest applies here. You can take full advantage of this deal if you make more than your minimum billed payment and get the item paid off before the interest kicks in.

The bottom line: you need to understand what your payments will look like after the special financing period is over. Read the fine print and ask questions until you are clear on the matter. If you decide that retailer financing is the way you want to go, learn everything you can about what you are signing up for so there are no surprises later.

Computer Loans for Students

Most students find themselves in need of their own computer. Between research to complete, graded online discussions, and papers to write, library visits every time you need to use a computer is tough. Some schools understand this. They solve the problem by providing a laptop to the student. They simply add the cost in with your tuition. Sometimes college bookstores have them for sale and students can use their financial assistance to purchase them.

There are also the options to go through:

Rent-to-own stores are convenient as there is no credit check, you can walk out the same day with your item, and if you decide you do not like that particular brand or there is a problem, you can simply exchange it. However, the buyer usually pays out almost double the cost of the item making this a costly choice. For a personal loan, a college student may not have established credit yet. In this case, you may ask your parents to cosign for the loan.

Computer Loans for Bad Credit

Trying to get a personal installment loan with bad credit can be an overwhelming and discouraging process- I know firsthand. It can be possible but very difficult. Having a bad credit score tells lenders that investing in you is a high risk. Not everyone will approve you and those that do will likely charge really high-interest rates and may even require collateral. Before trying to get a personal installment loan, understand that you will definitely have to research and loan shop to find someone to approve you as well as give you the best interest rates.

When Is Taking Out a Personal Loan a Good Idea?

In order to answer this question, you need to answer a few more like:

Do you need to get a computer to run your business to pay your bills and eventually this leads increasing your net worth or do you just want to go on a shopping spree? The purpose of this kind of computer shopping loan will greatly weigh in on whether the loan is a good idea. Obviously, fixing your car to get back and forth to work is important and would likely to be a good reason to get a loan, especially if you have no alternative modes of transportation. However, taking out a personal loan to simply go on vacation or to just have a good time, step away now! It is not worth the debt.

Likewise, if you need a computer for work or school, a personal loan for a computer might be worth it. If you just want the computer to scroll through social media or stream videos, it would be better to save up money and purchase it outright.

Are computer personal installment loans the only way to take care of this situation? Could you have a yard sale instead or borrow from a friend with no interest? Do you have enough time to budget and save for a few weeks? Could you pick up an extra job and get paid in time?

If there is absolutely no other way to take care of your problem in the necessary time frame, you should probably consider a loan. Just be sure you have exhausted all other known possibilities first as debt is debt, regardless of why it is there. If you can borrow a friend’s laptop when you need it or even use the library computers, it may not be necessary to take out a personal loan for a computer. If you do not have consistent access, a loan may be worth the consideration.

A major factor is whether you will be able to pay the loan back. Not paying a loan can lead to repossession of items, the lender taking whatever you put up for collateral, and messing up your credit. It takes so much longer to fix credit than it does to destroy it. Look through your finances carefully to decide if you can pay it back. If not, getting a loan is not a good idea.

Once you take out a loan, you are responsible for it. You will be required to make scheduled payments until it is paid off. Are you willing to stick with it? Can you diligently work on paying off the loan to prevent bad marks on your credit?

Will making the payments on this loan interfere with your ability to buy groceries? Will you still be able to comfortably buy your baby diapers? Are you going to have to work two full-time jobs? Will you need to take out an additional loan to simply cover regular bills?

Having to make some sacrifices is one thing. If you have to skip necessities or run yourself into the ground to pay back a loan, you should probably stay away from them. If you can pay back the loan with nothing more than sacrificing your daily Starbucks run, a loan is worth the consideration.

Final Thoughts

Basically, getting a loan is an extremely personal decision. Only you know your full situation and whether it calls for solutions, like a personal loan. As with any major decision, for your research and consider all options. Do not make the decision without heavy consideration. Look over your current finances to determine if a personal loan will honestly help or just dig you into a deeper hole. It may be prudent for you to talk it over with a friend or family member who can help spot potential problems. If you still feel that taking out a personal loan for a computer seems like the right choice for you, shop around here at Loanry.com. We can help you find a personal installment loan to buy a computer.


How Much Income Do You Need to Get a Personal Loan

Applying for a personal loan is easy, but to get an approval is the hard part. There are several factors that determine your ability to get a personal loan; income being one of them. Therefore, the question “How Much Income do you Need to get a Personal Loan” is a relatively important one. Before we answer it, let’s talk about personal uses and the basics.

Some seek a personal loan to consolidate debt or improve their own credit score. It’s all about making available credit more accessible for other parts in your life. When it comes to gaining financial empowerment, one way to achieve this goal is securing a personal loan to improve your own credit situation.

Unlike other forms of financing, unsecured personal loans don’t require collateral to be put up before gaining approval from a lender. It’s important to remember that you will have to pay back the loan at some point. You can make the process go much easier if you plan out a timeframe to pay off the personal loan as this approach avoids any chance of being overwhelmed by the entire process.

How Much Do You Need to Make to Get a Loan

A personal loan is requesting a set amount of money that can range from $1,000-to-$100,000. The lender’s requirements are all based on personal and financial information. One of the main requirements answered by the information submitted is how much income do you need to get a personal loan.

Usually, the minimum salary requirement for how much income do you need to get a personal loan is in the area of $15,000-$20,000 a year for the lowest loan amounts. If you’re asking for a $100,000 loan then your income needs be about 10x the minimum salary. You may get up to $100,00o with high income of at least $150,000 a year.

It is important to note that when it comes to getting a personal loan there is no set income requirement. The above figures are simply average markers. Each lender will have difference requirements. Income also just one factor in the lenders underwriting criteria.

What Is The Minimum Salary to Get a Personal Loan

When you’re applying for a personal loan, the lender must be confident that you have the capability to repay the loan. There is no set dollar amount that can secure a personal loan. Instead, you must at least qualify for the minimum income requirements that do vary with the terms of the personal loan. Again, it will come down to how much income do you need to get a personal loan.

The one plus that is in your favor will be having a good, steady income. But, if you have high debt, you might not be able to meet the monthly payment requirements. You will need to show how much disposable income is available each month as this number will show your money management skills.

Disposable income is the portion of your monthly salary that remains after you pay bills, rent and other living expenses. Many lenders call this dollar figure a borrower’s monthly cash-free flow. Often, they will adjust the final total after taking into consideration the amount of taxes paid and other financial obligations

Do You Need Proof of Income For a Personal Loan

You will need to show proof of income when applying for a personal loan. The standard form of documentation to prove income is showing pay stubs for a period of three months. Lenders use this proof to verify the borrower’s ability to repay back a personal loan. Before personal loan shopping based on your income, it’s smart to research the type of proof of income most lenders are looking for on an application form before approving a personal loan.

The reason to research how to get personal loan online could be if a proof of income verification is missing from the application packet, then your approval for a personal loan could be greatly jeopardized. Plus, research this topic will help answer how much income do you need to get a personal loan.

Why Does a Lender Need This Information?

Showing pay stubs will confirm that you’re a “W2 employee”. Other workers like self-employed or independent contractors will have to show other forms of employment documentation that will confirm their income amount. Lenders will need verification of their current financial state before determining how much income do you need to get a personal loan.

If your occupation on a tax form is self-employed or independent contractor, then you will also need to show proof of income. Usually, a lender will require you to show some form of regular depositing into your bank account as this will confirm that you do have a consistent source of income coming into your home each month. Other financial documents may be required during the review of your personal loan application. This information will help to determine how much income do you need to get a personal loan.

How Much Personal Loan Can I Get on My Salary

When, it comes to obtaining a personal loan, the guidelines on what a person can afford are very clear. It’s important to take a look at your own financial situation as there are questions that must be answered before moving forward. The biggest question is how much income do you need to get a personal loan.

One way to get a better understanding on how much personal loan can a person get on their salary is beginning the application process with a lender. After all, the lender’s main interest is keeping their business doors open. This is only accomplished by limiting the amount of money offered to potential borrowers. They achieve this by offering the right affordable dollar amount to a borrower who then can pay it back over time. Lenders determine how much income do you need to get a personal loan by the information submitted on the loan application. This course of action prevents them from losing money on the loan.

Income Types to Calculate

Most personal loans come with terms of two-to-five years. Most lenders will require you to fill out an application and authorize a credit check. The types of personal loans are either a single or joint. The difference is requiring one signature or multiple signatures on the final documents. The typical underwriting requirements include a minimal credit score between 640-750. It also requires your debt-to-income ratio being no higher than 45 percent.

The debt-to-income ratio will show how much debt you have already accumulated in your lifetime. The percentage number will determine whether you gain approval for the personal loan. In some cases, it will be the deciding factor over your income and credit rating score. Some lenders won’t approve a borrower over the above number (45%) on debt-to-income ratio.

Even, if you have a low percentage number, but have a large amount of credit card debt, you may have trouble getting approval for a person loan despite holding a high-salary job. The main reason is you’re too big a risk defaulting on the loan.

Here are important financial definitions in relation to determining how much income do you need to get a personal loan:

Income Definitions

  • Term is the length to pay back the loan. Often, when a lender is calculating and determining how much income do you need to get a personal loan, they will ask you how many years you need to repay the loan.
  • Interest Rate is the percentage of your loan balance that the lender will charge a rate over time.
  • Gross Income is all money you earn and account for on income taxes for the year. This figure excludes untaxed income like government benefit payments or money you collect from renting property.
  • Untaxed Income is funds you recieve monthly, but aren't subjected to paying taxes each year. This type of income could include work pension, social security, disability and child support. All fall under the untaxed income umbrella
  • Rental Income is the amount of money you earn from renting an apartment, home or any other living quarters. Once again, it's the number accumulated before taxes.

Individuals that fall short of the above criteria can still obtain a personal loan. At least, as long as they can afford to make monthly payments to repay the lender back. You may be eligible to borrow an amount of money between $1,000-$5,000. How much income do you need to get a personal loan you will know when you look at the information on the application.

Borrowers will list all income earned as some falls under the heading entitled “reasonable expectation of access”. This terminology has a broad definition. Unfortunately, there is no guideline to calculate irregular income unless a person reports this amount on their tax return. It’s smart to use common sense when reporting income on a personal loan application. This information will help to answer how much income do you need to get a personal loan.

Other Factors Besides Income

Lenders look at factors like your credit score, your debt-to-income ratio (DTI), what you intend to use your funds for, number of other times you’ve looked for credit and sometimes even look into your employer.

The loan can serve in a number of ways. Some borrowers will use the money from a personal loan to get through an emergency situation. Others will pay off outstanding credit balances in order to get their finances in order to make a “big ticket item” purchase in the future.

The basics of a personal loan for a borrower is having a fixed monthly payment plan, a repayment timeline and securing an interest rate that is based on your current employment status and how much money you make in a given year. Besides offering your own credit score, you will need to figure out the exact amount of money needed to borrow, and the length of time you will need to pay back the loan. This information helps the lender determine if you (the borrower) have the capacity to repay a personal loan back.

The lender will want some assurances that you will be able to make the scheduled payment each month and still have the ability to weather other untimely expenses that will add debt to your finances.

What Credit Score Do I Need For a Personal Loan

Credit scores play a major role in what type of personal loan a person can obtain. Most lenders will offer personal loans up to $50,000. Other lenders will offer loans up to $100,000 to those borrowers who have an excellent credit score and hold a high income job. The more positive you can be in your credit history, the more money you will likely get in a personal loan.

714 is the average FICO score in the U.S. in 2021.

An average credit score is between 620-679 and a poor credit score fall under 580. If your credit score is below this range, you can still secure a personal loan. You may have to use your personal (car, home or land) property as collateral to gain a secured loan from a lender. These types of personal loans come with a higher interest rate. It remains all throughout until you pay back the lender in full. Plus, the lender will repossess the property if the borrower defaults on the personal loan.

Using Collateral to get a Personal Loan

Most cases, individuals aren’t required to put down something of value as collateral in an unsecured loan. The lender may place a cap dollar amount on how much a person can borrow based strictly on their yearly salary. If you don’t own property that has some value, then you might want to reconsider your situation and work on rebuilding your credit score.

If you have provided all the information necessary to qualify for a personal loan, then once you’re approved, the money will be deposited into your bank account as fast as one business day. However, this is all based on a lender’s personal loan process.

Guide To Personal Loans