Obtaining a loan isn’t as difficult as it might seem, considering the surge in popularity of loan products that specifically cater to customers with poor credit scores and even worse credit histories.
However, knowing which lender to choose is a whole different game; they all appear the same on the surface, but it’s the fine print that matters, quite literally when it comes to borrowing money. In this guide, we’ll walk you through how to locate some of the best loan companies near your location.
Top Reasons to Get a Personal Loan
There are plenty of reasons to get a personal loan from an online lender, as these can range from a few hundred to a few thousand dollars, enough to cover small, immediate emergencies or massive purchases, big renovation projects, or medical bills.
Personal loans are also used in debt consolidation. This implies taking out a loan to pay all the small debts accrued over time and consolidating all the debt and interest rates into a singular loan payment and interest rate. This eliminates having to juggle different monthly payments.
How to Get a Personal Loan
The loan application and loan approval processes for obtaining personal loans are similar to those of more traditional financial institutions. Let’s discuss the application process and approval.
Apply for the Loan
Online services, such as ours, allow you to fill out an inquiry form online, either via a computer or a smartphone. We’ll share that information with the potential vendors in our network. Once a lender decides to offer you a loan, they’ll contact you with the loan terms, repayment terms, interest rates, and minimum and maximum loan amount.
Provide the Necessary Details and Paperwork
Once your loan application has been reviewed and pre-approved, you still need to provide the lender with the necessary details and paperwork. This paperwork includes the following:
- Personal details: You’ll need to provide personal details during the application process. This includes your name, phone number, email, social security number, date of birth, and address.
- Government-issued ID: All lenders typically require an official ID, driver’s license, passport, or any other state-issued document that can be used for identification. The lenders will cross-reference the personal details you provided with those on your documents and use the documents to verify your age and residence. Those in California must be at least 18 years old and residents of California.
- Proof of income: Lenders require that you provide proof of income, demonstrating your ability to repay the loan. Traditionally employed borrowers can submit bank statements, tax returns, pay stubs, and employer contact information. Self-employed borrowers can submit bank statements, income tax returns, and business financial documents. Retired borrowers can qualify by submitting pension documents, SSA documents, and retirement account statements.
- Proof of residency: You’ll likely need to provide lenders with proof of address; any document addressing your name with a visible address should work. This includes utility bills, property tax statements, mortgage statements, property insurance, and rental agreements.
- Loan-specific documents: These mostly apply to secured loans such as car title loans and mortgages and include the relevant documentation. For example, car title lenders will ask you to provide them with vehicle details, car title, and car insurance.
Once the lender’s agents have reviewed all the information, they’ll provide you with the loan offer, including the lump sum, competitive rates, monthly payments, repayment terms, and many other details. If you find the loan offer satisfactory, you can sign the contract electronically.
It’s worth mentioning that some loan options are marketed to consumers as loan products that don’t require credit inquiry and take a look into the borrower’s credit report and credit history to establish creditworthiness and eligibility for the loan.
While this remains true, lenders maintain the right to inquire about the borrower’s credit history to establish appropriate interest rates and repayment tools.
Get Your Funds
Once you have signed a contract, the lender will deposit the loan funds into your bank account. Thanks to the past and streamlined loan application and approval processes. Most lenders will deposit the funds into the provided checking account within 24 hours of signing the contract or the next business day.
Depending on the loan you obtained, you should focus your efforts on repaying the remaining loan balance by following the repayment terms provided by the lender. In case your finances change and you become unable to make payments promptly, it would be best for you to notify your lender. That way, you can avoid incurring penalties while also refinancing your loan.
Best Place to Get a Personal Loan
Primo Personal Loans is one of the best places you can visit online to search for a personal loan. Simply fill out an online form with accurate information. Upon receiving your application, we will forward your data to our network of lenders, exposing your demand to the market.
When the lenders review your information, they’ll offer you a loan and provide you with a loan agreement that contains all the important details surrounding your loan, including the loan amount, all the associated costs and fees, and the installment loan payment terms. Remember to review the loan offer thoroughly to better understand what exactly it implies before signing.
How to Pick the Best Personal Loan Companies Near Me
There are plenty of factors to consider when trying to select the best loan company. Fortunately, the internet has made obtaining and securing a loan considerably easier than ever before, and thanks to online application processes, you don’t even have to leave the house to secure a loan.
The internet also made it incredibly easy to compare different loan companies and their offering and see which one offers the lower interest rate, same-day funding, maximum and minimum loan amounts, and whether they offer both secured and unsecured personal loans.
Regardless of the repayment terms getting more competitive, the lowest rates allow you to make more affordable monthly installments. It’s worth noting that both online and traditional lenders usually factor numerous things into the loan application process as part of their risk mitigation strategies.
Another factor you want to consider is the minimum credit score requirements; even businesses that market themselves as no-credit-check lenders have a minimum credit score requirement, which you’ll need to meet to qualify for the loan. The same applies to your debt-to-income ratios, with lenders preferring you keep your DTI below 40%.
Annual percentage rates are also important; many bad-credit or no-credit-check lenders impose an origination fee, which is a fee based on the percentage of the loan amount. APR vastly depends on the loan; long-term personal loans usually feature an APR of up to 36%. However, this doesn’t apply to short-term, small-dollar loans, which come with exorbitant APRs, often ranging upwards of 350%, due to their unsecured nature and the risk the lender perceives.
Frequently asked questions
Here are some of the most frequently asked questions about Personal Loans:
There are plenty of factors you should look out for when choosing a personal loan, and accompanying fees are one of those things. Depending on the type of loan you’re looking to obtain, you should pay attention to the origination fees, application fees, late payment fees, prepayment penalties, cash returns, processing fees, and annual fees.
The answer to this question depends on multiple factors, including lender policies, credit score, debt-to-income ratio (a crucial factor), repayment capabilities, and the purpose of the loan. The latter is important because some lenders allow multiple loans for different purposes, like home improvement and another loan for medical expenses.
The advent of online technologies has streamlined the loan application and loan approval processes, cutting down the processing time by a considerable margin. As a result, modern lenders now offer faster loan application processes and loan approval, leading to faster funding times. It’s not uncommon for the loan amount to be loaded into your bank account on the same or the next business day.
The easiest personal loan to obtain is a payday loan, an unsecured, small-dollar, short-term loan with exorbitantly high interest rates and annual percentage rates. They’re exceptionally easy to get, and they only require your ID and signature before the funds are loaded into your bank account.
Summary
Finding a personal loan company doesn’t have to be hard. If you’re looking for personal loans to cover financial emergencies, bigger purchases, or simply debt consolidation, contact us.
We’ll connect you with reputable third-party lenders and financial institutions without inquiring about the nature of your financing. Our services are available 24/7, allowing you to inquire about income-based loans and other loan products regardless of whether it’s day or night, weekday or weekend.
