Taking a loan is always a great option when you are looking to handle an emergency or work towards your dreams. However, it is important to carefully consider the decision to borrow money before applying for funding. Over the past few years, there has been a steady increase in the number of lenders to whom potential borrowers can turn.
Since it is important to ensure that genuine borrowers are protected from unscrupulous lenders, there was a need to set up a code of conduct to promote best practice. We also saw the need to make personal installment loan shopping easier by helping consumers find reliable lenders. Part of our mission includes providing knowledge so that consumers make informed decisions. Here are a few things you may want to know before taking installment cash loans.
Personal Installment Loan Definition
The actual definition or personal installment loans are a type of consumer loans that are paid back over time on a fixed schedule. The principal and interest are repaid in scheduled intervals, with the term of the loan ranging from a few months to as long as 30 years. A personal installment loan can be used for a variety of purposes. Compared to other types of loans such as payday and title loans, installment loans are seen are a safe and affordable alternative.
These loans can be unsecured, meaning that the repayment is guaranteed by your promise to pay as opposed to a physical asset. This has made personal installment loans accessible to low-income consumers and borrowers with poor credit. The flexible nature of the loans and predictable payments also make them ideal when you need quick cash to cover unexpected expenses.
If you need an installment loan, and know all about them already, you’re probably here because you’re looking for a lender.
If you don’t know all that there is to know about installment loans, we recommend you keep reading. It’s much smarter to find out all you can and then come back here to make an informed decision, rather than rushing and making a wrong one.
Types of Installment Loans
Exploring the world of loans can be confusing. Whenever you need money for any type of project or use, personal installment loans can come in handy. While most of these loans are unsecured, others will require a physical asset to guarantee repayment. A secured personal loan is easier to obtain because it is backed up by a valuable asset, making it less of a risk to the lender. There are various types of loans to consider. Having said that, you can only take out this type of loan if you have the required asset to put up as collateral.
On the other hand, unsecured personal loans do not require you to have any form of physical security. The downside is that the loans present more risk to the lender. As such, you have to have a good credit rating and a steady stream of income to obtain them. These loans also tend to attract significantly higher interest rates, making them costly.
Debt consolidation loans allow you to pay off several liabilities and consumer debts using a new loan. Some of the existing debts you may want to repay include medical debt, credit cards, or other personal loans. As the name suggests, the loans let you consolidate a number of payments into one monthly payment. These loans can be secured or unsecured, depending on the lender and your credit rating.
The lender may also require that the borrowed funds be used to pay off the existing debt to reduce the amount of debt you have. Loan amounts, terms, and interest rates vary from one lender to another.
You can take out an auto loan when you need a car but are not able to pay the full amount upfront. In most cases, these loans will have a term ranging from 12 to 96 months, with fixed monthly payments, so you know how much you owe every month. While you may end up paying more for the car due to the longer loan term, you will enjoy the convenience of owning a car sooner. One of the dangers of auto loans is that the lender could repossess the car if you do not make payments.
Most people dream of owning property at some point. However, buying a house makes for a huge investment, making this dream beyond the reach of many. If you do not have the money to buy a house outright, you could consider applying for a mortgage. There are different types of mortgages, with most loans having a term of between 15 and 30 years with monthly repayments. Mortgages with fixed interest rates have standard monthly principal and interest payments, while those with varying interest rates have fluctuating monthly installments. In case you do not make payments on this type of loan, the lender can foreclosure your house.
Student loans are a special type of personal installment loans. You will receive a given amount of money while actively enrolled in school, and start making payments when the grace period ends after graduating. Like with other installment loans, there are different types of student loans available. Some have fixed interest rates, while others vary. It is important to note that interest on these loans accrues after the grace period ends. This means that if for some reason, you are unable to make payments, the monthly payments may end up being larger than they were previously.
This type of loan helps you finance your wedding expenses. Most wedding finance loans do not require collateral to obtain, but borrowers need to have good credit to qualify. The loan amount will depend on the credit qualifications of the borrower, income as well as the term length. Apart from traditional lenders, some rental halls and third-party lenders also provide this kind of financing. This is why you should invest time and thought before taking out the loan.
Vacation loans allow you to borrow money to travel. These personal installment loans can either be secured or unsecured. The secured loans are backed up by home equity and are generally affordable. On the other hand, the unsecured type has higher interest rates. Regardless of the type you choose, you have to have a steady income and good credit rating as proof of your ability to repay. Compared to using credit cards overseas, vacation loans are less expensive. The money obtained can be used for a wide variety of needs.
Medical emergencies can be difficult to handle if you do not have the amount of money required to settle the bills. This is why some people opt to take out a personal loan to pay off the related expenses. However, taking out such a loan will be more costly than paying the medical bill outright. To increase your chances of qualifying for the medical loan and borrowing larger amounts, you should have a steady income and a good credit score. With a large number of lenders in the market, you should compare interest rates before making a decision. In case you are behind on debts, debt consolidation can help reduce the financial burden.
Home Improvement Loans
Once you have lived in your house for several years, you may want to make some changes. Whether you are looking to make it more comfortable or functional, home improvements will offer you numerous benefits. If you want to put up the property for sale, a home improvement loan can help you add value to your property. This will allow you to make repairs and upgrades, allowing you to repay the loan in full once you sell the property. While it is possible to obtain such a loan without collateral, using home equity to back up the loan presents a more affordable option. This would be particularly important to consider if you are applying for large amounts.
Co-signer Personal Loans
You may find it difficult to get a personal loan if you have a low credit rating. However, there are a number of options that may be open for you. You can get someone with a steady income and good credit score to help back up your loan. This means that the second borrower may also be held responsible for the debt. To increase your likelihood of securing funding, the co-signer should have a better credit score and history than the borrower. The loan term, interest rate, and borrowing amount will depend on the qualifications of both individuals.
How Can I Get an Installment Loan with Bad Credit?
It is normal to find yourself in need of some extra cash at some point. When this happens, you can identify a suitable lender and take out a personal loan. However, if you have bad credit, you will need to do some research on installment cash loans for borrowers with bad credit. Although there are a number of lenders who can provide installment cash loans bad credit, it is always advisable to proceed with caution.
The first step would be to familiarize yourself with what constitutes bad credit. You will also need to identify lenders through a third-party who is not in the business of giving loans. Since we help consumers to find lenders easily, working with us will ensure you get unbiased feedback.
The Pros and Cons of Bad Credit Loans
To make an informed decision, it would be important to understand the advantages and disadvantages of these loans. This information will be of great value when making financial commitments.
Generally, bad credit loans are fast to get, with applications being available online and responses taking a few hours. This makes them perfect for when you are in a financial emergency. The interest rates are usually lower than those charged on credit card debt, and the repayment term could be as long as five years. When shopping around for bad credit loans, you will have many lender options. The loans could also provide a chance to improve your credit score if you make payments on time.
Bad credit loans are not without their downside. Since your credit score will project you as a risk to the lender, interest rates are likely to be high. Personal installment loans with bad credit may also contain hidden charges. There is also a good chance that the lender will require you to back up the loan with some form of security. Lastly, some of the lenders in this segment may not be licensed.
How to Improve my Chances of Getting an Installment Loan with Bad Credit
There are several things you can do to increase your chances of obtaining personal installment loans with bad credit. One of the best ways to ensure success is to start before you actually need the money. In case it is not an emergency, you can consider taking the necessary steps to improve your credit score. This will include making on-time payments on your credit cards, ensuring low credit utilization and stopping new credit applications. If you are in a financial emergency, it might help to ask the loan officer for an interview to prove your creditworthiness. Some of the documents you may need during this process include:
• Tax returns from the last few years
• Details of your job history
• List of some of the valuable assets you own
• A list of the unsecured debts you currently have
• Bank statements for your accounts
• Information on whether you receive alimony or child support
There are a number of creative ways through which you can secure funding if you have bad credit. Some of the options available are credit unions, borrowing from family and friends, getting a co-signer, taking a home equity loan, peer-to-peer lending, and online lenders. If you opt for a credit union, it is advisable to approach one that is affiliated with your employer or one that is community-based.
Are Installment Loans Good for Your Credit?
Today, your credit score plays a vital role in determining whether you can access loans. This is why it is important to develop a financial culture that will help build your score. It is equally important to consider the impact personal installment loans may have on your score. Before taking out an installment loan, some of the options you may want to consider include seeking financial assistance from government agencies and nonprofits, requesting for payment extensions from your bill providers and getting side jobs to help boost your income.
How Installment Loans Can Help Your Credit Score
Taking out an installment loan can provide a chance to build a positive credit history. However, you will have to make payments on time for this to happen.
Diversify your debt – one of the main benefits of installment loans is that they help to diversify your loan portfolio. When you have a number of loans open and can pay them off in time, this will have a positive impact on your credit history. Over time, such loans can help to boost your credit score.
Save you money – most personal installment loans have lower interest rates than credit card debt. This means that you will end up paying down the debt faster. In effect, this will not only save you money but also ensure that you owe less debt. Less debt to your name will eventually raise your credit score.
Improve your payment history – one of the important factors that determine your credit score is how punctually you pay off debts. Since most installment loans have predictable payments, you will be in a position to plan for the scheduled payments. These loans present a great opportunity to prove your creditworthiness by making on-time payments. Borrowing a small amount, in the beginning, can go a long way in helping to improve your credit score.
How Installment Loans Can Hurt Your Credit Score
For all the benefits that personal installment loans can have on your credit score, they are not without a downside. Here are some of the ways through which these loans can hurt your credit score.
Proof of missed payments – just the same way they can be proof of on-time payments, installment loans can also be proof of missed payments. Such a record will not only portray you as an unreliable borrower but could also attract additional fees from the lender.
It shows up as a credit inquiry – every time you apply for any kind of credit, the information shows up as a credit inquiry. Regardless of whether or not you get approved, this is likely to lower your credit score. The good news is that you can make on-time payments to make up for this.
Higher debt levels – what happens after you obtain an installment loan will have a huge impact on your credit history. Borrowers who use the money to finance further spending end up in more debt. This eventually makes it harder to pay off the debts, hurting their credit score in the long run.
The effect that these types of loans will have on your credit score will largely depend on your financial behavior and habits. If handled well, these loans can help you boost your credit and organize your finances.
What Is the Difference between an Installment Loan and a Personal Loan?
There are many types of loans available in the market today. This makes it necessary to understand what distinguishes them so you can choose the product that meets your needs. While a personal loan is an unsecured loan meant for meeting current financial needs, an installment loan is a type of personal loan used for emergency expenses or other short-term financial needs.
Generally speaking, personal loans are granted to eligible borrowers who need additional cash to meet a wide range of needs. Consumers can access different types of personal loans, each with its own set of interest rates, repayment term, and other terms. Installment loans, on the other hand, are repaid over a specified period and have a predetermined number of scheduled payments.
Personal installment loans differ from other fast-cash loans in several ways. For instance, while payday loans are repaid in a lump sum on a set date, installment loans are paid back in intervals and regular installments. This means that unlike payday loans, installment loans can extend over several months.
How Are Loan Installments Calculated?
While we can help you find lenders from whom to borrow, you will ultimately be the one to make a choice. To choose the best lender to work with, one of the factors you should consider is how much they are charging you. Most people do not pay attention to the details when applying for personal installment loans. Such people end up paying higher interests than they would have if they did due diligence. There are two main ways of calculating your monthly installments.
Using an Excel spreadsheet
This is perhaps one of the easiest ways to calculate your equal monthly installments. The three variables required for the function are the rate of interest (rate), number of periods (nper) and the present value of the loan (pv). Rather than equated monthly installment (EMI), the function for excel is PMT. The formula to use will then be:
The result you get will either be a negative number or a figure in red. This is because it indicates the cash outflow of the borrower.
Using a mathematical formula
In case you cannot access the Excel spreadsheet, you can use a mathematical formula to determine your loan installments. The mathematical formula is:
EMI = [P x R x (1 + R) ˄ N] / [(1 + R) ˄ N – 1]
Where P represents the loan amount, R is the interest rate per month, and N is the number of monthly installments.
This formula gives the same result as the one obtained when you use the Excel spreadsheet.
Benefits of Calculating Installments
There are many benefits of familiarizing yourself with how loan installments are calculated. This will help you to identify lenders with low-interest rates as well as those with hidden charges. Once you do this, you will be in a better position to choose the most affordable personal installment loans. Knowledge of how much you will be paying every month will also come in handy when making financial plans.
When you calculate the installments before applying for a loan, you will be able to establish whether you can afford the loan. In the end, taking into account the term of the loan, you can find out the amount you will pay as interest on the loan. It would be important to compare your results with the ones provided by the lender.
How to Find Online Installment Loans
There are many institutions that offer installment loans today. Both traditional lenders and online lenders can provide the funding you require to meet your financial needs. However, online lenders tend to have a faster and easier application process. Before submitting your application, you should ensure that you qualify for the loan you intend to take out. This includes having a good credit score, a steady income, and any collateral required.
Work with an Online Loan Broker
An online loan broker is a person who looks and finds the most appropriate loan for you in exchange for a fee. In most cases, you will only be required to pay the application fee if you accept the loan offer. One of the benefits of working with online brokers is that they know some of the best lenders in the industry. At the same time, employing an online broker will help you save the time you would have spent researching on your own. However, it is important to make sure that you select an online loan broker with a good reputation.
Find a Loan Aggregator
An online loan aggregator is similar to a loan broker in a number of ways. However, rather than charging you a fee, they will charge the lender. Loan aggregators focus on matchmaking and will match your lending profile with suitable loans. By allowing you to compare the different options available, this helps to save time and also settle on the most suitable loan for your needs. Just as with a loan broker, the importance of working with a loan aggregator with a good reputation cannot be emphasized enough.
Use Online Loan Reviews Sites
Another option you can explore when looking for online installment loans is loan review sites. When you choose this method means that you will have to use your judgment to determine whether the site is reliable. At the same time, you will have to familiarize yourself with the different types of personal installment loans available in the market.
Thirdly, it would be important to dedicate enough time to find the best products. The online revolution has greatly changed the way individuals and businesses access credit. However, online financing options are associated with a certain level of risk. We simplify the process of finding online installment loans. By researching through us, you will have the assurance that the lender you get is professional. We make the process of finding online personal installment loans easier and quicker for you.
There is no doubt that, when used properly, loans can help you achieve your financial goals. Whether you need funding for your business, wedding, home improvement, or to buy a car, there are a variety of options available for you. However, going through these options in search of what works for you can be cumbersome. It is important to understand what personal installment loans are before taking them out. With this information, you will be in a better position to make the most of the opportunities available to you.
This will not only help in financial planning but also contribute to a good credit score. We aim to help consumers to identify and deal with reliable lenders in the industry. By making your work easier, you will find the funding you need quicker and meet your financial need more effectively.
Also, as a third-party that is not involved in the business of loans, we also work to protect borrowers from unlicensed and unscrupulous lenders. All the lenders we help you find abide by a set code of conduct and are guided by certain guidelines. We commit to ensuring the highest levels of privacy and security of personal information for our clients seeking personal installment loans.
Have you ever tried to borrow money but weren’t sure where to start? If you don’t have much experience in the world of finance, the choices may seem overwhelming. Your experience with banking and loans might be limited or entirely negative, but that doesn’t mean you won’t be able to get the loan you need.
One great way to get the cash you need is with a signature loan. Many people are unaware of this option, or if they have heard of it, they may think they don’t qualify. I am going to explain what a signature loan is and how you may be able to get one yourself even if you don’t have great credit or if you have no credit. Whatever you need the money for, a signature loan is a fast way to get the cash you need.
Before You Get Started: Do You Need a Loan?
When you take out a loan, you will have to pay it back. If you have other options available, or if you have other options available, you may not want to take out a loan. There are some steps you should take before finding a lender:
If you don’t need the money right away, you may consider saving it on your own.
Do you have friends or family who can help?
You could have a yard sale or get rid of some old clothes or movies at a resell shop.
Have a yard sale or garage sale to get rid of that old junk you should have gotten rid of years ago.
There are temporary jobs you can pick up to get quick cash, like yard work or other kinds of odd jobs.
Depending on your need, there may be public assistance available. Check your local volunteer and government groups, like township assistance, to see if you fall into any of those categories.
A signature loan is just what it sounds like from its name. Unlike most other kinds of loans, you can get a signature loan based simply on your signature and your promise to pay. Your Signature Loans No Credit Check are unsecured loans, as opposed to secured loans.
A lot of loans are secured loans, meaning there is some sort of asset or collateral which you are putting up to guarantee the value of the loan. The most common kinds of secured loans are car loans and mortgages for homes, and the original value of the loan will be based on the value of the collateral. For instance, if you get a secured car loan, the car is the collateral that is being used to guarantee the value of the loan.
If you stop paying on the car loan, the lender will contact you and try to get you to pay. They might be willing to work with you and forgive some of the late fees or change the due date so it falls on a better time of the month. But in the end, if you don’t pay, the lender can come and get your car and sell it to get some of the money back from the loan. If the lender doesn’t get the full value of the loan from selling the car, you will still owe the rest of the money.
There are a lot of reasons you may not want a secured loan. You may simply not have anything which you can use as collateral, like bank bonds or property. Even if you have collateral to back up your promise to pay, you may not want to risk it for the sake of a single loan. A secured loan usually has better terms than an unsecured loan, like a lower interest and fewer fees, but not everyone could or should get a secured loan.
Unsecured loans don’t have collateral, and the most common ones are credit cards, personal loans, and student loans. With an unsecured loan, there is no guarantee backing up the payment of the loan. If you don’t pay, the lender might try to work with you for a while to get you to pay. After you default, the lender’s only recourse is to try other ways to get you to pay, like taking you to court.
Whether you default on a secured or an unsecured loan, there will be negative consequences on your credit score. You need to be sure that you are able to pay back any loan before you take it out. With an unsecured loan, you can at least see that the consequences of failing to pay are different.
Budgeting Your Signature Loan
You may be getting your loan because you are having an emergency, but you need to be aware of the future implications. When you are looking over the terms of your loan, one of the most important factors is that you will be able to pay the money back on the schedule offered.
If you need help, you can use online budget tools to cut down on your regular expenses. There are probably several areas of your life where you are spending more money than you need to on a regular basis. if you cut down on those expenses, you can help yourself be successful with this loan. You will also feel less stressed out during the life of the loan, and you will be more able to borrow money later.
One of the biggest mistakes people make in life is living outside their means. Once you have conquered your budget, you will be surprised how much more competent you are in other areas of your life.
A Budget Worksheet
One great way to figure out your budget is by using a budget worksheet. On the worksheet, you can plug in the numbers for all the details relating to your personal situation. First, you will put your current role, such as whether you are a student. Then you can put in your income and fixed personal expenses, like rent and electricity. Don’t forget to figure in costs like your car payment and monthly commuting expenses, like gas or bus fare. Then you add in the expenses that are simply things you want, like cable and new clothes.
It would be difficult to live without spending money on some things you want. No one expects you to never eat out or go to the movies. It is important to be honest about how much you spend and how much of the money you spend on a regular basis could be better saved or diverted into more important endeavors. By tracking your spending, you can avoid surprises and find ways to save money later.
What Can You Get With a Signature Loan?
Some loans are very specific, and you will actually be required to use them in certain ways. For example, a home mortgage is a loan that will help you buy a house, and the collateral is the house itself. If you take out a home equity loan, you can get a good rate by using your home as collateral and use the money to make your home more valuable. Signature Loans No Credit Check doesn’t have the same specifications or requirements.
With a signature loan, you can use the money for anything you need. You can use the cash to make home improvements, buy a vehicle, or put a down payment on a home. You can also use the money for anything else you want, like to pay off a hospital bill, take a trip, or finance a wedding. Because there are no restrictions, you won’t have to explain what you are using the money for. You can just use the cash for anything you need.
One can use the money for an emergency, such as when you were expecting money from your job and something caused a delay. You can fix your car or consolidate your credit card bills into one easy payment. The signature loan amount can range anywhere from $500 to $50,000, although it is best to stay within the minimum range you need so that you can budget the payments more easily and make sure you don’t default.
You can check your own credit online and find out where you stand before you start looking for a loan. Even if your credit isn’t good right now, it is always a good idea to keep track of your credit score. Signature Loans No Credit Check are a temporary solution to a serious problem, but you can use them to make your credit score better and improve your own buying power for the future.
What Is the Biggest Mistake In Your Credit Score?
If you’re like most people, debt is a big problem for you already. Debt is one of the worst things most people face because it affects everything else about their lives and their lifestyles. They borrow money to have a car, a place to live and even to go on a trip. Most college graduates feel strangled by the amount of debt they have accumulated by the time they graduate.
One frightening statistic quoted by the Huffington Post says that one out of every three Americans has more credit card debt than savings. Instead of putting money aside for a rainy day or, more importantly, retirement, most individuals are borrowing against the future for daily expenses. They go out to eat, to the movies and other activities, thinking of the current need without the consequences. Debt is one of the most important factors in your credit score.
— Even if you have credit cards, you may not need to see it as a negative thing. Potential lenders like to see that their future clients have paid on time in the past, and in fact, this can be the strongest factor for some when considering whether to loan you the money or not. Are there collections? Foreclosures? Bankruptcies? Those are proof that at least at some point in the past you did not pay your bills.
Level of Debt
–One of the things you may be shocked to learn when you do your budget is how much of your monthly payments already go toward accounts you owe. Your potential lender will compare the amount of money you owe to the amount of money you earn. Your income to debt ratio is a critical part of your creditworthiness. You need to look like you are going to be able to earn enough to pay off your loan.
The Age of Your Credit History
— It may not seem fair but the age of your credit history is very important. Some people are proud that they have never borrowed money before, only to find that the lack of credit history works against them when they finally need to borrow money. This factor accounts for a full 15% of your score, but you can improve the age by being careful. Opening a lot of new accounts at once is one thing people don’t realize significantly lowers their credit scores.
The Types of Credit on Your Credit History
— What kinds of actual things have you done? Student loans are different from credit cards, and a mortgage is different from a car loan. If you have different kinds of loans, it shows that you have the experience to handle different kinds of loans and situations.
The Number of Credit Inquiries on Your Credit History
— Not everyone realizes that making an application for a loan is an activity that will show up on their score. You may actually find it difficult to be approved for a loan if the potential lenders see that you have recently applied for other loans. Whether or not those other lenders approved you, that is considered a negative aspect of your score. One of the things you can do when applying for Signature Loans No Credit Check is apply with a place where the company can search in several places to find the best loan for your circumstances without running multiple credit checks.
You haven’t spent all this time learning about Signature Loans No Credit Check on a whim. If you are here researching, it is because you really feel like you need that extra cash right now or soon. If you have gone through your options and decided that a loan is in your best interest, the process of applying for Signature Loans No Credit Check is easy and fast.
Make sure when you get personal loan online with no credit check that you use a reputable company, and use one that will search multiple lenders without putting in multiple applications, so it has less of a negative effect on your credit score.
Don’t wait to get the help you need. The process only takes a few minutes once you have everything together. Make sure you are using a secure connection so you are not sharing your personal information and qualify for Signature Loans No Credit Check today. Apply online to find lenders near you who can offer you the best rate for your circumstances.
Once you look for no credit check loans, you’ll be able to find a lender within minutes and may get money in your bank account as soon as the next business day.
Sometimes events in our life spark the need for fast personal loans. For those who live paycheck to paycheck, extra money lying around for emergencies is not something that really exists or is realistic. Fast personal loans are fast quick cash loans that provide funds to the customer as soon as tomorrow.
Everything You Should Know About Fast Personal Loans
Many of fast loan options advertise themselves as fast emergency cash loans. Whether we have an unexpected automotive expense, a medical bill, or a month that was short on income, many of us from all walks of life find ourselves in this situation where we need to seek-out fast emergency cash loans.
This can be daunting for those needing the cash. Because the idea of applying for a loan includes providing a ton of documentation and waiting for at least a day or two to determine if you are even eligible for the loan that you are seeking. 2019 has seen a shift in this pattern, however, thanks to the internet that allows you to do everything from shopping for lenders to uploading an application safely and securely.
How To Shop For Fast Personal Loans?
Even if you are in a hurry and seeking to get a personal loan as soon as tomorrow, you should take the time to do fast personal loan shopping. There is a choice to reach out to local finance lenders or choose from the lenders that are available online. There are tools online that allow you to find lenders based on a certain loan amount like a fast 5k loan online. A quick pre-approval application that includes just basic information about you and your income will populate several options for you that you can review.
Even if the loan is an emergency, you have an idea of what you can afford from month to month. Consider this information and review three things on the options presented; amount, terms, and interest rate. If you are not comfortable with the options available to you online, seek-out local finance lenders in your area to see what they are offering.
When you are reviewing these lenders, check out their web address for the https. This determines the safety and security of its web portal, which is just as important as reviewing the other features of the offer. For example, if you are offered a premium loan offer at a great rate and monthly payment, but the web address is not secure, chances are that it not real and your information is at risk if you apply.
Get Approved For Fast Personal Loans
Once you have reviewed the pre-approved options that are available for you, determined the security of the lender, and chose an offer, you can move forward with the application. Online applications for fast personal loans are quick and easy, requiring you to input your personal information and provide income information.
In most cases, you will not need additional documentation for the application unless they need a pay stub to verify current employment. Some lenders will review your application for several minutes and others will review it much quicker for fast quick cash loans.
If you are applying for a lender in your local community, the application process should be just as easy, as the representative will input your information to their system and have your application verified internally. This is also a secure way to apply for fast personal loans if you are not comfortable entering this information online yourself. No matter which route you take for a lender, the application process can be less than 24 hours from you applying and you receive an answer.
Fast personal loans are available for customers who have all types of credit scores. Credit scores have the ability to determine the interest rate in which you will receive for your loan, how much you can borrow for your loan, and also where you have the option to borrow money from when seeking fast personal loans.
Those with good credit scores can use any of the online lenders available, local financial lenders, and even their banks or credit unions in which they have checking and savings accounts. These credit scores range from approximately 740 and higher, allowing them to have more negotiating leverage on their end with lenders.
These customers who have a credit score from approximately 650 to 740 are usually classified as those with fair credit. These customers have many of the same lending options as those with good credit, but they do not have much room for negotiation in terms of interest rates. Also, your borrowing amount may have a limit.
For the customers whose credit scores are below 650, the options of fast personal loans are limited to the online lenders available with higher interest rates and some local financial lenders that require collateral for fast personal loans.
Banks, credit unions, and some private financial lenders will not offer loans to anyone who has a credit score below the 650 thresholds. These customers often have to settle for similar pre-approval offers of similar interest rates and amounts. Often, $5000 or less are the loan amounts for these types of customers.
Other Fast Personal Loans Options
Credit Card Cash Advance
Do you have a credit card? If so, the chances that you have a cash advance option is pretty high. As long as your balance is low on your card, you have the option to get a cash advance off of your credit card. Operating similar to fast personal loans, cash is deposited into your account. And you have a separate APR payment that you must make to pay back to the credit card company. These advances are done instantly and deposited into your account.
Secured Personal Loans
If you have a local finance company in your area, you may decide to use them for fast emergency cash loans, but they may demand collateral. If you have any electronics or other items of value that you can use as collateral, you will need to provide the serial number of these items and maybe pictures before receiving cash.
Taking advantage of fast personal loans is something that is available to most customers no matter what their need or credit score may be. Also, the options for these loans have doubled over the last decade with online access to lenders.
If you find yourself in need of fast quick cash loans, it is essential to your credit and financial security that you do fast personal loan shopping before accepting offers and signing a contract. There are always options available and the resources to determine the best option for you has never been easier.
Quick personal installment loans allow consumers to obtain a loan from peer-to-peer lending platforms, investors, or directly from a bank to help with financial emergencies. These types of personal loans are negotiable. They come with predictable rates tied to your creditworthiness, employment, and income levels. Thanks to the internet, there are also online services. Those can help consumers find a lender for their circumstances.
Quick Personal Loans When You Need Money Now
There are many reasons as to why you need a quick personal loan. You may need it for emergency funds, help in financing expenses, or pay for medical bills. With a bit of know-how, knowledge, and recognizing the factors that lenders consider when supporting a loan applicant, you’ll be able to use quick personal loans to your advantage.
Use personal loan shopping tools to help you find a lender for you, your income, credit level, and situation. Alternatively, you can also use a personal loan calculator. These calculators will allow you to project monthly payments and the lifetime cost of the loan.
Start with Finding a Lender
Do not be afraid to get in contact with personal loan officers and lenders. They recognize that for some, quick personal loans can be a bit of a gray area. When looking for a personal loan, keep your documents in hand. These documents include pay stubs, verifiable documents to show that you have employment, and proof of identity.
Your personal information, including your identity, credit profile, and financial history are all parameters that are factored in. They are the main factors that will influence lenders. There are a few things to know before getting a personal loan.
One of the best things you can do to prepare for getting a personal loan is to get a hold of your credit score. You can get a free copy of your Trans Union, Experian, and Equifax credit scores. Your lender will consider these numbers to build a risk profile. Lenders will want to work with consumers who have healthy credit scores. It is better if you also have a long history of financial responsibility. It includes paying bills on time, ensuring that credit cards have a relatively low utilization rate and that financial investments made in the past are prudent and sensible.
Lenders will also consider your income when you are applying for a personal loan. Personal loans are unsecured, which means that there is no collateral if you don’t pay your loan back. Unlike other types of loans, the lender cannot seize your car, home, or personal property. While they may be able to file against you and cause your credit score to fall drastically, there is no other form of collateral. That is why so many lenders strongly consider your income and income level when you apply for a personal loan.
Check the Terms, Rates, and Fees
The average interest rates for a quick personal loan will vary greatly depending on how much you’re borrowing and your credit profile. However, you can expect your interest rates to be between five and 36%. Your score is the most significant determinant of your annual percentage rate.
There will also be personal loan prepayment fees, a type of charge enacted on the loan if you decide to pay back to early. Some lenders enable you to pay back early without any penalty. There’s also an origination fee that covers the cost to initiate the loan, as well as late payment fees.
You May Get Quick Personal Loans As Soon As Tomorrow
There are several channels that you can employ when trying to secure a personal loan. While most will go to a bank for a quick personal loan, there are also peer to peer platforms, well-off friends, and even online services that can help you when in financial need. While the banking process is much more secure and straightforward, it will typically take longer than a day to obtain your loan.
Peer to peer platforms also takes longer than a day but usually shorter than a loan coming from a traditional bank. It is advised not to get a loan from friends — while your friends may mean well, financial strife is one of the reasons why relationships become strained. Online funding services tend to be as secure as getting a personal loan from a bank without the convoluted application process.
While shopping for a quick personal loan online, you also have access to different funding services. These funding services aggregate information and help connect you with an appropriate lender that can satisfy your loan conditions.
Alternatives to Quick Personal Loans
Personal loans can be particularly beneficial, especially for an educated consumer who can make sound financial choices. It’s essential to realize there are also alternatives to quick personal loans.
Zero-interest Credit Cards
A zero interest credit card is easily obtained, especially if you have proper credit. While a 0% interest credit card will defer interest or even offer balance transfers for anywhere between 12 and 24 months, you should comb through the fine print. Depending on the institution, there might be incredulous fees associated with the card that may not make it so viable. Once you find the right card, you can easily apply online, and you will typically be approved in minutes.
Home Equity Loans
Home equity lines often are for large purchases. Since your home is seen as a type of collateral, the banking system offers lower rates on most home equity loans. These loans are also coupled with favorable interest rates, with the interest you pay is deductible on your taxes. While flexible with favorable rates, home equity lines aren’t for everyone, especially if you have a history of not paying the mortgage on time.
There is a myriad of online banking institutions that do not have any brick and mortar storefront. These banking institutions operate solely online and can defer some of the cost savings in the form of lenient fees and loan conditions. When considering a personal loan from an online lender, take note that interest rates can vary greatly, as well as the quality of customer service that you will receive.
How Can I Get a Personal Loan Fast?
To get a personal loan as quickly as possible, have all of your personal information at hand. While the process of obtaining a personal loan is usually streamlined, it can be cumbersome and riddled with delays if you do not have the proper information at hand. Some of this information includes several forms of identity, pay stubs, credit reports, bank statements, and employment information.
You also need to verify how much you can afford to pay back. You do not want to put yourself in a worse financial position by getting a personal loan and not being able to pay it back promptly. Use quick personal loan calculators to determine how much money you can take and how much you can payback. These calculators will use your income as a factor.
Once you learned how much you could afford, you can use online search engines to find a reputable lender that is willing to align with your needs. For example, some personal loans are only enacted for specific projects – like home improvement project or renovation. A bit of online research for quick personal loans will ensure that you are using the right financial tool for your situation.
Online Quick Personal Loans
The change in the economy and lending regulation has made online lending much more viable and a significant revenue stream for consumers. While the Internet does suffer from scams and spammers, an educated consumer can take advantage of online lenders and loan services. Here are some of the questions associated with getting a quick personal loan online:
Can I get a loan if I currently have one out? Some lenders might ding you if you currently have a loan and it’s outstanding. However, that does not mean that they will deny an application for a personal loan. It will also factor in your income, creditworthiness, and financial history. Some organizations will also be willing to extend a cash loan under extraordinary circumstances.
Does a quick personal loan affect credit scores? Like any loan, paying the loan back on a timely basis will improve your credit score. A quick personal loan repaid shows positive payment history on your report, especially if you pay more than the minimum and show a dedication of paying off the loan as quickly as possible.
How about a quick personal loan for those with bad credit?
The approval process from traditional banking takes longer, with strict credit parameters. Personal loans tend to be more forgiving, giving you the chance to explain your situation. A welcoming aspect of personal loans is that it diversifies your credit portfolio. Having a mix of auto loans, credit card, and installment plans improve your credit position as it shows financial reliability.
3 Quick Personal Loans you should stay away from
Quick Payday Loans
According to a 2015 study by Pew Charitable Trust, about 12 million Americans take out quick payday loans each year, totaling to about $7 billion on loan fees. This is mainly due to the astronomical interest rate, typically ranging from 300 to 500% APR. Compare that to the 15 through 30% APR on most credit cards, or the much lower APR for quick personal loans.
The reason why payday loans are still popular regardless of their extremely high fees is that they target cash-strapped customers who don’t typically qualify for conventional credit cards due to past financial problems. While consumers may enjoy credit cards to cover emergency expenses or apply for a personal loan to help with home renovations, payday loans target needy individuals who have no other choice than to work with them.
To avoid payday loans, be sure that you apply for a loan via your bank, contact creditors, or ask your employer for advance for emergencies. These are a lot more accessible and affordable over quick payday loans.
Auto Title Loans
A title loan has extremely short repayment terms that will last less than a month. Title loan differs from Payday loans in that your vehicle will be used as a form of collateral. Lenders that offer title loans will usually accept cars, and other vehicles like SUVs and motorcycles as a form of insurance — as long as the value of the car covers the loan amount. These also carry very high-interest rates and fees, with the interest rates typically being 25% a month, or about 300% APR. Careful of this debt cycle and the potential to lose your vehicle.
Eligible consumers for auto title loans need to have a hard copy of their vehicle title to provide to the lender. The lender or the lending company will then place a lien on your car until you repay the loan.
Quick payday loans have the edge over title loans due to the ease of access and the relatively minimal eligibility requirement. For short-term financial solutions, quick personal loans are superior. A title or payday loan typically does not run a credit check. That means that even if you’re responsible and pay your loan in time, you cannot reap the benefits of improved credit scores. With a quick personal loan, repayments show a positive payment history on your report.
Cash Advance Loans
Your credit card provides quick cash loans online, but you can also get a cash advance from merchant accounts. A cash advance is a type of loan from a credit card company that will allow you to withdraw cash from an ATM. The terms and conditions will differ from institution to institution. But typically you are able to withdraw sums ranging from $50 to a couple of thousand dollars a day.
While it’s a be easy to get, this ability has a high price tag tagged on to it in the form of high fees and interest rates. The charges will fall between two and 5% of the total amount. On top of the very high-interest rates, there are additional fees from using an ATM. There’s also no grace period between taking out the cash and interest beginning to accumulate. Not only that, but consistently taking out cash advances from your credit card will affect your utilization rate which can negatively impact your credit score.
How to Get Quick Personal Loans Based on Your Credit Score
To obtain a personal loan based on your credit score, you would need to view your creditworthiness from the eyes of a potential lender. This will allow you to streamline the process of obtaining a quick personal loan, while also understanding what sort of credit score numbers lenders are looking for.
Several factors affect loan rates offered to you. These include:
Your credit score. Typically a credit score north of 680 is deemed proper for most lenders, with higher scores lending you better rates and fees. Once a year you can get a free copy of your credit report.
Final loan amount. The amount of money would also affect the terms and fees given to you. It’s always a smart idea to borrow the minimum amount, as well as be realistic with your ability to pay it back. Keep in mind that borrowing too little will defeat the purpose of getting a personal loan — but acquiring too much is unnecessary and wasteful.
Employment history. Personal loans do not enact any collateral for their services. Instead of focusing on physical goods, they will focus on your financials, including your employment history. The most desirable candidate are those who have a diverse credit portfolio, high credit scores, and have a substantial job history with a particular employer.
Keep in mind that lenders of different institutions and platforms will not offer the same fees or interest rates. We recommend to loan shop around for the best product with favorable fees and convenient installment loans.
One of the best things you can do to prepare for a quick personal loan is to improve your credit score. You can do this by paying your bills in full and ensure that there aren’t any outstanding charges. Also, avoid opening up new lines of credit. Immediately after opening up new credit cards or loans, your credit score will take a small dip. This can artificially place you in a disadvantaged position in the eyes of the lenders. Also, do not close any credit cards either. A long history of staying with a particular credit card shows financial responsibility and will fetch you favorable rates and fees from the lender.
To learn more about how we empower consumers to make the right financial choice, contact us.
If you are struggling to make ends meet, you may have to ask friends or family for help.
How Do I Ask Family or Friends for a Loan?
It is important to have a relationship with your friend or family member outside of this need. You don’t want to ask a distant cousin oracquaintance because they will feel you are only trying to use them. You want to set aside a time you can meet without interruptions and ask in a well-thought-out way. Remember, when asking friends or family for money, you are asking someone to trust you and do you a big favor.
Mo matter why you are asking for money, treat the process as a business loan. Be especially careful if you are close to the person because it will be easier to take advantage of your relationship. With close friends and family, working odd jobs (like mowing or painting) may count as a repayment option you could ask about. Offer to pay a low interest rate (like 1-2%) to show appreciation and responsibility. Have your current expenses and income listed out. You want to be able to show you are not a flippant spender and you have thought through your repayment process for quick cash loans from friends.
With every loan, you should sign a promissory note or personal loan agreement. A physical agreement is helpful for making sure everyone is comfortable and there is no potential for confusion. Stay in contact with your friends and family throughout the repayment process, updating them on how you are doing. More communication is better than ghosting — even if you are struggling to repay the money. Be honest and responsible.
Who to Ask for a Loan and How?
It can be very hard to ask for emergency cash loans. While you may have the best of intentions, if you struggle to pay back the money quickly, things can get awkward. If you need money and plan on asking friends or family for money, follow these rules:
Only ask the friends or family you are closest to.
Only ask people you believe have the money to lend.
Ask face-to-face if possible.
Don’t ask anyone that has faced emotional or financial difficulties recently.
Only ask someone who has had a steady and regular job.
Be honest and explain why you need money or what the money is for.
Ask for an exact amount.
Provide a plan for when the money will be paid back.
How do I Ask my Friend for a Loan?
Asking friends or family for money can forever change the nature of your friendship. Before asking a friend to loan you money, exhaust your other finance options. Look at how much you might end up paying if you took out personal installment loans with an online lender or bank. In most cases, a credit card loan or payday loan will be a very high interest rate. You may be able to ask for money from a friend if you plan to pay them more than they would make putting the money into the bank, but still save money with paying less than you might pay for a credit card loan or payday loan.
If you do agree to terms, make sure your friend agrees to the repayment schedule. If your finances are in order, you may still be paying for some forms of entertainment or unnecessary expenses. You can avoid awkward situations by explaining you will still live life. Tell the friend you will make regular payments and every effort to pay the loan back early, but may still splurge occasionally as your budget allows. You don’t want to feel uncomfortable if you end up going to a movie together while still owing money.
Creating a Personal Loan Agreement
If you were borrowing money from short term loan lenders, you would sign a legal contract for a repayment plan. Borrowing money from friends or family shouldn’t be any different. If you are asking friends or family for money, provide a loan agreement that both parties can sign to protect both of you. The loan agreement should be simple and include:
The amount borrowed.
The interest rate.
The repayment schedule.
Fees associated to nonpayment or late payments.
Recourse, including legal action, collateral and modifying loan terms.
The relationship is going to go south if you default and don’t repay the money. If you offer a clear loan agreement up front, you are showing your efforts towards responsibility. As long as you follow the terms and repay the loan as soon as you can, the lender is unlikely to feel any ill will towards you. However, if you stop paying the money or miss payments, the lender is likely to start feeling frustrated and uncomfortable. The contract would serve as proof if a small claims court ever had to get involved. This can serve as additional motivation to keep you on track in your dealings.
When making your personal loan agreement, be realistic in what you can repay. Consider including a clause about what happens if you face a sudden change, like losing your job or if you have medical finance bills because of an emergency. No matter what happens, keep the lines of communication open during the repayment period.
How Do I Ask Family for Money in a Letter?
If you can’t speak to someone face-to-face, letter writing may be your next best option. When you are asking friends or family for money, you want a thought-through and personal touch. Emails and texts are far too casual to use when asking for money. Write a formal letter that is relational, direct and clear.
Recipients name and address (top left)
Letter greeting (Dear…)
Relational paragraph talking about their family or life (well wishes) and introducing your need for cash.
Explanation of what has changed and why a one time loan amount would make a difference.
Specific amount of money you are asking to borrow, along with your repayment time frame and interest amount.
Closing paragraph to summarize your gratefulness and money struggle.
If you are thinking about asking friends or family for money, the first thing you need to do is get your finances in order. Track your expenses and look for places you can cut spending. Some of the easiest places to cut excessive spending include:
Take-out coffee: Start brewing your own. One bag of coffee and creamer is going to cost you the same cost as 2 cups of coffee at a coffee house.
Restaurant dining and fast food: Cook cheap meals at home using ingredients like chicken, eggs and rice that are filling but inexpensive.
Phone plan: Shop around for a plan that trims your expenses each month. You may find a plan that will let you pay only for the data or minutes you need instead of unlimited.
Clearance and sales: Think you are saving money by hitting the clearance racks? Chances are, you are just buying things you don’t need. Make shopping lists and stick to your budget when shopping.
Coupons: Using coupons can save you money or help you spend more. Look for coupons on items you plan to purchase or things you buy regularly. Watch for opportunities to purchase cheaper generic options instead.
Entertainment: Movies, dates, shopping trips, games and other form of entertainment will add up quickly. Look for ways to enjoy yourself without spending money.
Smoking: The cost of smoking regularly adds up quickly. Calculate how much you spend on your smoking habit. You may find quitting is easier when it clears up your finances as well as your lungs.
Drinking: Alcohol can be pricey, but it is incredibly pricey when you are out. Avoid purchasing alcohol for dinner or at a bar. If you want to relax with a drink, do it at home. Chances are, you can buy a bottle of wine or a pack of beer for the same amount as you would spend on one drink in the bar. Soda is the same way.
Another thing you can do if you get your finances in order is look for an actual lender. Keep in mind that when you get a loan from a lender, it comes with an interest. Usually when you borrow money from friends and family, they don’t ask more back. But the lender does. It is important to find a reputable lender who is not going to scam you and who is going to be clear and transparent with you. Loanry partnered with Fiona to bring you these lenders. Put your information in and see if you qualify for a loan:
Realize when asking: this loan is not a balanced transaction. You are asking friends or family for money, which means they are doing you a big favor and taking a personal risk. Take what is offered or politely decline, but do not try to haggle. If you are offered a lower amount of money or a higher percentage than you wanted, you cannot negotiate. And, when you are back on track, make sure you pay it forward!
If you’re struggling with finances for whatever reason, paying your rent on a timely basis can be a huge burden. Whether you lost your job or are facing significant and unexpected expenses for a car repair, you may find yourself without enough money to make your rent payment for the month. If you’re in a tight spot, you can get an emergency loan to pay rent. Here is some information about how to get an emergency loan to pay rent when you are in a bind.
What is a Rent Loan?
Individuals who need an emergency loan to pay rent typically are unable to wait another month to make a payment. They need the money quickly to avoid losing their apartment or house. While there are several local non-profit and state government organizations that offer rent assistance and grants, it can take days or even weeks to receive cash or check from these programs. Due to how long it can take to get money in hand, these rent assistance programs and grants are not a feasible option for many people struggling to pay their rent on time. Emergency loan to pay rent may be the fastest and most convenient option if you need money quickly for rent.
What Is a Personal Loan?
A personal loan is a flexible loan that can be used for a number of purposes, including wedding expenses, debt consolidation, auto repairs, and home repairs. Personal installment loans are offered by online lenders, banks, and credit unions. Since certain financial institutions don’t restrict how you can spend the funds, it is possible to get a personal loan to pay rent. Personal loans are unsecured or secured. If you have good credit, you can get an unsecured loan that doesn’t require collateral. However, if you don’t have a strong credit history, you may have to get a secured personal loan, which does demand collateral.
Before you get approval for a personal loan, you will need to authorize a credit check and fill out an application. The lender may also confirm your income and employment. Different lenders have different guidelines for approval, so it’s possible to qualify for a personal loan even if you don’t have perfect credit. If you have no credit or bad credit, you should apply for a personal loan through a credit union, loan shop, or online lender, as these institutions tend to have more flexible lending guidelines.
Should You Take Out a Personal Loan to Pay Your Rent?
Some of the reasons you should take out a personal emergency loan to pay rent include the following:
Convenient and fast – If you need funds fast to pay your rent, getting a personal loan is one of the fastest and most convenient options. As a result, many people prefer getting an emergency personal loan to make their rent payment over other options, such as rent assistance programs.
Build your credit history – Getting a personal loan to pay your rent can help you establish your credit history. If you already have a credit history, a personal loan can boost your credit score. However, you need to make your loan payments on a timely basis to improve your credit. A good credit score will make it easier for you to get a mortgage loan if you decide to buy a new home in the future.
Wide borrowing ranges – Personal loans can amount to as little as $1,000 or as much as $50,000. The maximum amount you can receive is typically based on your credit score and your income. Even if you can borrow a large amount of money, you should only borrow the amount you need to make your rent payment. You can use the funds from a personal loan to cover rent for an long period of time, such as six months to a year.
Every state has slightly different eviction laws. In general, rent is due on the 1st of the month and late on the 2nd of the month. Landlords call tenants three times a day from the 5th through the 10th. On the 10th, the landlord will put up a 3-day notice, which is a form given to a tenant who has failed to pay their rent on time. After three days, the landlord can file for eviction. Once your landlord files for eviction, they will no longer accept rent payments. At this point, the tenant will not be able to escape the legal ramifications of not paying their rent.
If the landlord wins the court eviction, they will be able to regain possession of the property by sending bailiffs to your home. Everything owned by the tenant will be removed from the home by the moving crew. All your possessions will remain on the curb until 5pm, which is when a dump truck will move your possessions to storage for 30 days.
How Can I Get Help Paying My Rent?
You can find help paying your rent from charity programs and non-profit organizations. Some of these agencies may offer financial aid for rent on an ongoing basis. You can also apply for one-time rental assistance or for a referral for long-term housing support. The type of assistance you receive will depend on your situation and the amount of funds available.
Many local governments and agencies administer public assistance programs for rent, storage fees, security deposits, and other housing expenses. Some examples of such agencies include RAFT in Massachusetts, EFAHP in Florida, THHSC in Texas, and RAP in Connecticut.
When it comes to cash loans bad credit can make it difficult to qualify. If you’re struggling to qualify for a cash loan due to bad credit history, seeking help from charity programs, government agencies, and non-profit organizations may be your best option.
We always recommend looking at ways to save on your rent before considering a loan. A loan should be the last option.
How Do I Qualify for Rental Assistance?
The requirements that an applicant must meet to qualify for rental assistance depends on the program. In general, to qualify for rental assistance from government agencies, you must meet at least some of the following requirements:
Meet the low-income limits in your state or region
Have an eligible immigration status or be a U.S. citizen
Online lenders often provide emergency loans for rent to individuals who have a bad credit history. Therefore, if you have a bad credit score and poor credit history, you can still be eligible for a loan for rent. All you need to do is fill out a short form online to find a lender here, which should take you a few minutes. Be sure to take a look at the interest rates before you fill out an application for an emergency loan to pay rent as well as the average amount of time from application to the decision. Once you’ve been approved for a loan, you will receive a loan offer. Before you accept the loan offer, you should pay close attention to the terms and conditions. If you accept the loan, the lender will deposit the money into your bank account.
Getting an emergency loan to pay rent is one of the best and most convenient steps that you can take if you find yourself in a bind and cannot afford to pay your rent. For more information about how to get quick cash loans for rent payments and other housing costs, don’t hesitate to contact us.
Junou Mminored in Finance for her Bachelor’s Degree from the University of Central Florida. She has completed over 250 orders about finance for both private clients and marketing companies. Therefore, she has the experience and knowledge necessary to complete articles on the topic of finance. In her 10+ years of experience as a freelance writer, she has completed thousands of articles and is frequently published on Loanry® (www.loanry.com) and Cashry® (www.cashry.com).
If you are struggling to pay off debt, you might wonder is it worth it to do to get a personal loan to pay off debt? Well, the answer is it depends. In certain situations and with varying financial products, you will save money by choosing to go personal loan shopping. Take a look at these common questions we hear among consumers trying to dig themselves out from under mountains of debt.
Is It a Good Idea to Take Out a Loan to Pay Off Debt?
For consumers with stacks of bills piling up, it is time to make a decision. Do you try to continue paying each monthly payment or take out a loan to pay off your debt? Each month you struggle to meet deadlines leading to some expensive late fees. This only adds to your overall debt.
In addition, you might pay only the minimum payment on some credit card debt. This simply adds on to the amount you pay in interest over your lifetime. The smarter solution, in this case, is to pay off your debt as soon as possible. If you are short on cash, you may consider taking out a personal loan to cover your debt.
Even if you are not struggling to pay off your debt, you can still benefit from taking out a personal loan to cover your total debt. In fact, this can be a smart financial move to make. If you get a personal loan with a smaller interest rate, you can use this to pay off your debt so you avoid paying more on interest costs in the long term.
Can You Pay Off a Personal Loan With a Credit Card?
However, you want to make sure you get a credit card with a lower interest rate than you are currently paying on the debt.
Choose credit cards that allow you to directly transfer your balance to the card. The only stipulation is that you need to have a balance on your credit card that will cover your debt.
Does Paying Off a Loan Early Hurt Credit?
Paying off a loan early has a few consequences to your credit. These can be both positive and negative depending on your existing credit situation. If you wait to pay off the loan throughout the entire terms of the contract, your credit score is benefited. However, if you pay it off early, you will see a slight drop in your score.
The reason is to encourage consumers to pay the entire amount of interest in a loan. After all, if you pay off a loan early, you no longer have to pay interest on that loan. This can save you a great deal of money on interest costs. It also reduces the money lenders make on consumers, which is why credit scores drop some when paying off a loan early.
Cons of Paying Off a Loan Early
According to the Credit Karma community, having a good or bad credit score before paying off the loan early makes no difference. Everyone sees a credit score drop in this situation. If you pay off the loan early, and you close out the account, this reduces the number of credit lines you have open.
As a result, your total credit to debt ratio is skewed significantly. For example, if you have an auto loan of $45,000 and you pay it off in 27 months instead of 50, you suddenly decrease your total credit by that full amount.
Also, once you have paid off the auto loan, it is no longer listed among your aging accounts. The longer you have an account open, the better it is for your credit score. By closing an account early, you automatically shortchange your overall credit age. As a result of this, you may see your credit score drop after paying off a personal loan early.
Pros of Paying Off a Loan Early
Even if your credit score is dinged slightly for a short period of time due to paying off a loan early, the benefits far outweigh the cons. By paying off your loan early, you are getting out from beneath that debt. The Balance points out this frees you from the psychological burden of being in debt. This can help reduce financial stress and a whole slew of health concerns stemming just from stress.
In addition, you no longer have to pay the interest, potential late fees, or actual loan payment. This increases your spendable income and can be put towards other debt, savings, or spending needs. If you are paying a high interest rate, then paying off a loan early is a huge plus as it reduces the amount you will pay overall.
One popular way to do this is through debt consolidation. Debt consolidation places all of your high-interest loans in a single monthly payment with a much lower interest rate. This helps you in a few ways. To start with, debt consolidation organizes the debt so you can finally wrap your mind around the amount of money you owe.
Consolidating your high-interest bills to a single monthly payment also greatly reduces the task of keeping track of your bill payments. You only have a single payment to deal with each month instead of 10 or 20. More importantly, when you pay off your loans using debt consolidation, you drastically reduce the amount of money you owe overall.
How to Get a Personal Loan to Pay Off Debt?
Getting a personal loan to pay off debt starts with finding a lender. Traditionally, this meant visiting a local community bank with fingers crossed that your application will be approved. If not, well if you live in a rural area or proverbial banking desert, you were stuck without a personal loan option.
Other ways to get a personal loan online include credit unions, trusting individuals, or with online banks. In fact, one of the more popular methods of the 21st century is to get a personal loan online. With online banks, consumers can truly shop around for the best interest rates and banking services. This helps you take control of your financial future as you get a personal loan to pay off debt.
At Loanry, we offer a way to bypass the old school way of getting a personal loan for paying off debt. Instead of spending your time searching for lenders willing to take your loan application we help you find a lender to get quick cash loans online.
Our personal loan lenders may be ideally suited for paying off high-rate interest loans. Choose quick cash loans to find a lender who may be able to help you find a loan option. You can also compare credit cards to consolidate debt.
Loanry® is an interactive platform to help consumers find a lender. Powered by the company’s network of third-party lenders, consumers can shop for personal loans, business loans, credit cards, mortgages and other types of loans. Consumers can even compare rates from multiple lenders using money tools or use other financial management services with a membership.