There are many types of personal loans, sometimes also referred to as signature loans, available from online lenders. Although most loan providers offer more than one loan type, each usually has one area in which it specializes.
Whether you are taking out a personal loan to better your debt situation or you’re finally getting the kitchen remodel you’ve been dreaming of, the lender you choose is important. The right lender and rate could save you thousands over the lifetime of your personal loan.
So, you have student debt? You’re not alone, according to the latest Federal Reserve data, which shows that Americans owe more than $1.5 trillion on student loans. Among the Class of ’16, average debt at graduation topped $30,000 in 17 states, according to the Institute for College and Success’s 12th Annual Student Debt Report.
High medical costs can add insult to injury when you're recovering from a medical emergency. Even people who have medical insurance can find themselves struggling with high copays, an insurance company that refuses to pay up, or simply face a long delay until insurance payments are approved.
There are plenty of ways to borrow money. A popular choice is to go with an online personal loan provider. If you do not like the terms of a traditional lender, like a large bank, or you don’t have the credit score required, there is likely a non-traditional online lender that will approve your loan application.
If you haven’t applied for a personal loan before, you may not know what to expect. Thankfully, the process is pretty straightforward at most online lenders. Once you’ve decided on a lender, you usually just have to fill out a quick application. Then, the lender makes a decision and, if you’re approved, deposits funds into your account a handful of days later.
This new reality that we’re experiencing is changing everything, including the way we borrow money. We asked leading finance professionals to present the good and the bad options for American households and businesses seeking a loan.
If you’re looking to make renovations but don’t yet have the cash flow, a home improvement loan is a solid way to get the funds you need, with terms that won’t hurt your wallet.
Taking the time to research—and in particular getting some advice—can help you make sure you get a personal loan that gives you some financial relief, without getting yourself further into debt with high fees and interest rates.
If you have less than ideal credit or no collateral to put down, it can be difficult to get a personal loan with a low interest rate. This is where cosigning a loan can really help. With a low credit score (620 or lower), you stand to face some real reluctance, if not just flat out rejection, with many lending houses. Even if you are approved you stand to pay a high interest rate of 15% or higher.
Good personal finance habits aren’t only about saving money. They are about building patterns of behavior that keep you in control of your money, whether you choose to spend it, save it, or give it away.
Many people seek out personal loans without really understanding the mechanics behind the process. Getting accepted by a lender for a personal loan is determined by several factors, some of which you may not have control over.
If you’re in need of a large sum of money to pay off credit-card debt or fund a large purchase, a personal loan can be a tempting option.
From peer-to-peer lenders and micro loan websites to major brick and mortar banks, there are plenty of avenues for you to find your personal loan.
A long-term personal loan is essentially any loan with a repayment period longer than around 3 years. Long-term personal loans usually offer higher loan amounts, lower interest rates, and are frequently secured to some item of collateral, such as your home or your car. Unsecured long-term personal loans will not have lower rates or higher loan amounts because the risk to the lender is still high.
Getting a personal loan with bad credit can be tough, but thanks to a few specialist lenders it’s a lot easier than you may think. When a lender assesses a personal loan application, they usually start with the applicant’s credit score. If the applicant has bad credit, this tells the lender there’s a high risk of them not repaying the loan in full.
Short-term loans are generally unsecured personal loans that have repayment terms of 3 years or fewer.
If you need a personal loan to consolidate credit card debt, there are plenty of lenders who can help you pay off your debt faster and more efficiently.
Having an effective budget means you'll be able to save money and feel more secure so that you can splurge on things like a fancy meal with friends without worrying that it might have pushed you into the red.
When you need instant cash, it might be tempting to take whatever loan you can—including a no credit check loan. But before taking this or any other type of loan, you should understand the loan you’re getting, and how it might affect your financial future.
‘Tis the season for early holiday gift shopping–and for figuring out how to fund all those expensive purchases.
If you’re in the market for a personal loan, you’re not the only one. Personal loans are the fastest-growing consumer credit product in the United States, thanks to low unemployment, supportive regulations, and the rise of online lenders.
If, like most undergrads, you’re defined as a “dependent student,” you’re entitled to borrow up to $5,500 in federal student loans (also known as Stafford Loans) in your freshman year, $6,500 in your sophomore year, and $7,500 in both your junior and senior years.
Now that you’ve decided to take out a loan, how do you decide which type is the right personal loan for you? The first question to ask yourself is, “What is this loan for?” Is it for a small business or personal use? Is it to pay for a big expense, like a wedding or a car, or to cover personal expenditures? Is it to help you buy a home? The loan’s purpose will impact which type of loan is right.
Millennials have more positive opportunities than Baby Boomers and Gen Xers did. Millennials have a wealth of internet knowledge at their fingertips and more flexibility and benefits than previous generations.
Taking out a personal loan can be a smart and highly-effective way to consolidate your debt, which is the most common reason to take out such a loan, or you can also use one to get the funds necessary to pay for a sudden expense. You might need to deal with an emergency, pay for a large household expense, or just cover a temporary personal cash-flow issue.
We gathered four leading professionals on personal finance to discuss the state of the economy, how it affects American households and what you can do to keep your head above water during this high tide.
If you love the idea of adding a pool to your home but don’t have the financial means to do so, a personal loan can be a good option for making your dream come true.
Getting a personal loan can be a long and complex process. Ideally, your personal loan will help you to make the purchases you need or cope with emergencies and not be a source of debt and anxiety.
The choice of reliable, reputable online loan companies that offer good rates, high-level customer service, and fast turnaround times for personal loans is greater than ever. We put SoFi and Marcus head to head to evaluate their application process, loan terms, eligibility requirements, fees, security, and customer service so that online borrowers can choose which one is right for them.
The monthly cost of a personal loan is determined by 3 factors: loan amount, interest rate, and loan term. The bank decides the interest rate based on your credit score and other factors (and tacks on fees to form your APR). Assuming we hold loan amount and interest rate constant, the size of your monthly payments will be determined by the duration of your loan, also known as the loan term.
Your FICO credit score is a big deal. The slightest change in your score can mean the difference between loan approval or rejection, or between a good or bad interest rate. That’s why it’s important to understand how FICO’s new credit rating scale will affect you – and what you can do to emerge stronger.
Direct lenders provide personal loans and other lending products directly to consumers. The big banks used to dominate the direct lending space, but online lenders have grabbed a significant portion of the market share in recent years. Online lending marketplaces leverage powerful algorithms to match consumers with the direct lenders that meet their needs.
Sometimes you may need to secure a loan and find this easier said than done. A popular option is to look for unsecured personal loans—offered by many personal loan companies. These are often easier to get than secured loans, though there are some guidelines to keep in mind before moving forward.
A secured personal loan is called that because the loan is secured by some form of collateral. Unsecured personal loans rely on your personal credit score, financial history, and debt load to determine whether you can be eligible for a loan or not.
Getting back to civilian life can be tough for military veterans, and financial issues can often arise. Many vets find that without the regular service pay and benefits, they may not have the funds they need, and that when it comes to job experience, their service often doesn’t help them put together the type of resume that employers are looking for.
Bad credit can make loan providers wary of lending money to you. Personal unsecured loans, which are the fastest and easiest type of borrowing, might not be open to your credit score but there are other ways to access money if you need it in an emergency, to cover temporary cash flow issues or to pay for a large purchase. Here are 7 of the best types of loans to turn to if you have bad credit.
When you apply for a personal loan, one of the factors that stands above all others in determining your rate is your credit score. The higher your credit score, the lower the rate. Generally speaking, a good credit score should be enough to qualify for an interest rate below the national average of 10.1%. An excellent credit score is needed to qualify for the lowest APRs of 5%-7%.
What do you do when extra expenses come knocking and you just don’t have the money? You can borrow against your house or car, but then there’s a risk of losing your collateral. If you get an unsecured personal loan that risk is eliminated - but because it’s a riskier loan for the lender than a secured loan, you end up with higher interest rates and fees.
Whether it's for purchasing a car or house, consolidating debt or for general expenses, you may be considering taking out a personal loan. Personal loans can be secured or unsecured, at fixed or variable rates, and range from as little as several hundred dollars to $100,000 for major expenses.
Your credit score reflects your financial health, and you probably only notice it when it’s bad. Every adult in the US has a 3-digit credit ranking that shows whether their credit is good or bad. A credit score of over 680 is considered good or excellent, whereas a credit score under 600 is below average. A poor credit score of 580 or lower can seriously affect your life.
If you need some extra funds, one of the most important things to know is the best type of personal loan for your needs. When it comes to personal loans, there are 2 major categories that you will come across: secured loans and unsecured loans.
In its latest move towards educating and empowering its customers, leading personal loan provider SoFi has introduced SoFi Wealth, a native wealth management platform. But, what is SoFi Wealth all about, how does it work, and what makes it different than the rest?
Declaring bankruptcy used to carry stigma, but today declaring bankruptcy is mainly seen as a necessary step taken to repair financial well-being. While it does afford you a fresh start, it also brings new issues to contend with.
The best strategy for paying off a personal loan can be summed up in one word: preparation. No 2 borrowers are equal, and a loan perfectly suited to one person could easily be a cause of stress for another. That’s why it’s crucial to be prepared. Before taking out a personal loan, it’s important to figure out what you need the money for, how much you need, and how you plan to pay it back.
If you’re waiting for approval for a personal loan, you’re likely eager to find out that you’ll be approved. Although it feels like it takes a long time, when you think about what needs to be done, approval for a personal loan actually happens relatively fast.
More Americans are using personal loans in 2018 than at any other time in history, thanks largely to the rise of online lenders. To understand why, take a look at how online lending is re-shaping the personal loans market and the other trends that are helping borrowers to save on personal loan rates – and to favor personal loans over other lending products.
The cost of planning a wedding has climbed high, making it difficult for the average Jane to make a wedding on the average monthly salary. For this reason, more people are turning to personal loan services to fund their wedding.
A payday loan (or cash advance loan) is a high-interest loan that borrowers can turn to when they have an immediate need for cash. Payday loans are usually for small amounts (anything from $50-$1,000), and are offered by non-bank lenders and marketed mainly to low-income customers.
How would you like it if your loan provider invited you out for drinks? Maybe yoga is more your speed? That's no problem. If you're working with SoFi, you can find any number of events that may appeal to you. But, since when do money-lenders get involved in the private lives of their customers? When your name is Social Finance, it shouldn’t come as a big surprise.
Taking out a personal loan can be a wise decision if you’re looking to consolidate debt or make a purchase that you simply don’t have the funds to make at the moment.
Maintaining financial security isn’t just a matter of making all your expenses every month, it also means clearing enough to put some away for a rainy day or for major purchases down the road.
A personal loan is typically a small loan ranging from several hundred dollars to as much as $100,000. These are more likely to be unsecured loans. That is, the borrower wasn’t required to put down any collateral, but typically pays a higher interest rate to compensate for the risk the lender is taking.
If you’ve ever applied for a loan, tried to buy a large item on a financing plan, or have a credit card, you’ll have been asked about your credit score. Your credit score is a way of measuring how financially responsible you are so that banks and other lenders can decide how risky it is to give you a loan.
The number of people taking out loans in the US has been steadily on the rise in the years since the mortgage crisis. As the economy recovers, more consumers are avoiding traditional credit alternatives in favor of better deals and safer terms thanks to new loan options.
Online lending has become a booming industry in recent years, providing loans to countless people who prefer the ease, speed, and competitive rates of online lenders.
Before you head to the bank to take out a loan for a new car, small business or other investments, take the time to fully understand how your interest rate is calculated. This will help you to better understand your loan terms and conditions with your bank, and put you in a better position to negotiate your rates.
Applying for a term loan can be difficult and tedious, not to mention all the different eligibility criteria. Applying for a loan? Be aware of the debt-to-income limit. Business loan? Let’s hope you’re making more than the minimum monthly revenue. Personal loan? Get ready to reveal your annual income.
Here is proof that even the darkest clouds have a silver lining. As humanity faces its greatest challenge this century, one small upshot is that borrowing costs will fall.
Personal loans are the fastest growing form of consumer credit in the United States and they’re about to become even more popular.
Today, there are more lenders and funding options available than ever. From debt consolidation to innovation funding, borrowers look toward these resources for financial help. With thousands of lenders to choose from, how can you tell which one is the best fit for your needs? Compare LendingClub and Prosper, 2 reputable lenders, to see which one comes out ahead in this head-to-head comparison.
What if there were something you could do to instantly improve your credit score, possibly by more than 20 points? That something, according to a new TransUnion study, is a debt consolidation loan. Read on to find out how.
The financial services industry of today is full of companies promising easily approved loans with good rates no matter what your credit’s like. These companies advertise loans for people with credit scores hovering around 500, who don’t have a cosigner or assets to put up for collateral, but need some financial assistance, at least in the short term.
In a world where financial crisis is a commonly-used term, knowing a good lender can make the difference to someone struggling with their own financial situation.
A personal loan is a loan for all seasons, and lenders will let you use them for virtually anything. Planning to consolidate debt, make home improvements, or go on a long vacation? A personal loan isn’t the only way to get funding, but it is generally the simplest and quickest way to borrow at a potentially single-digit interest rate.