February 11, 2016

2018 Best Unsecured Personal Loans Online – Search & Compare Different Loan Offers

Best personal loans online

(Everything you need to know before applying for a loan)

Applying for personal loans online is a great alternative solution to finance expenses when you do not have the necessary financial capital.  It is one of the quick money solutions for its simplicity and funding speed.  Compare to traditional bank loans, the loan requirement and approval process are much more generous.  The average acceptance of online loans is higher than the local banks or credit unions.

Borrowers for online personal loans can receive the money you need in a much faster and personalized way. You can have the opportunity to choose the loan amount and loan terms with the one that best suits your income and payment schedules. However, this will vary depending on each lender’s terms.

The entire process for the acquisition of the loan is 100% online, which means borrowers can apply from any device that’s connected to the internet.

What are the general loan requirements?

  1. Address of current residence: Most require this information to be able to locate you in case of any unforeseen event.  Some lender doesn’t serve in certain states.  Be sure to use our loan search filters to find the applicable lenders in your state.
  2. Be of legal age: No online lender or bank does not grant loans to minors.  Generally requires at least 18 to 21 years of age.
  3. Current employment information or amount of income: This information is to verify your financial status to determine if you have the adequate financial income to repay back the loan on a monthly basis.  Some lenders might require you to be at least 3 months with your current employer in order to consider you.
  4. Contact number and email: This requirement is essential to know where to contact you and communicate with you in case of delays with payments or any information you need. Some lenders may contact you for a brief interview & consultation as well.
  5. Bank checking account: The reason for this requirement is obvious, this requirement is the most important because it is where you will receive the money for the loan.  If you don’t have a checking account, your application can be denied.
  6. Credit score and history: The credit history is required to evaluate how well you will repay back the loan. Note: some lenders don’t take credit score as the main decision maker and some lenders could also evaluate your application based on your educational backgrounds such as what’s your highest level of education and etc.
  7. Fill in the form: It is necessary to complete the application form correctly, and completely so that the loan application, is approved immediately. Otherwise, your application will be denied.

Rates and types of personal loans

The rates of personal loans online will depend on the amount of money of the requested credit, which will also depend on the history and credit rating. The rates also vary from the credit institution with which you decide to send the application for the loan. The rates usually hover from 1% to 40%.

Interest rates are the first thing to consider when applying for a loan. Interest rates vary by a few percentages that differ from other online loan entities, which at the economic level is very significant for loan applicants. However, it generally depends on the amount of the loan and the estimated time to pay the established fees.

On the other hand, you should consider the check processing fee is an extra charge that today’s lenders include as an extra charge to the requested amount. This is an additional charge added for the processing of check payments.

Before applying for a loan, you must first know what type of loan you need. Most personal loans are guaranteed with fixed rates. However, there are other types of personal loans where secured loans and variable rate loans are included.

To determine the type of credit ideal for you will depend on the history and credit score, as well as the time you may need to pay such loans.

The types of personal credits are:

  1. Unsecured personal loans: This type of credit is the highest rate because it is not backed by collateral (Home or car) and is riskier for the loan entities. The approval of this type of personal credit is based on the credit score you have. Rates range between 5% and 35%, the terms for paying vary from 1 to 7 years.
  2. Guaranteed personal loans: Guaranteed loans are those loans where the lender demands something of value as a guarantee that the loan will be paid in full. The guarantee can be the mortgage of the home or the car in case the person has. These loans are those that have the lowest interest rates since they are considered as the least risky loans for the lenders.
  3. Fixed-rate loans: Loans with fixed rates are the most requested due to their ease of payment, this type of loan maintains the agreed interest rate from the beginning of the loan, that is, it does not increase or decrease in the period of time of the loan.
  4. Variable rate loans: The variable rate loans have the particularity that the interest rate, is based on the interest rate established by the banking entities. The interest rate may increase or decrease periodically which could imply additional expenses if the credit is long term, If the loan is short term, there are few additional. 
  5. Payday Loans: In this type of loans, it is usually reimbursed the next day instead of being based on installments in a certain period of time. Payday loans are short-term loans and are known as the most difficult loans to pay since interest rates increase rapidly and people usually find it difficult to finish paying off the debt.

What is the time a loan can last?

 

 

There are several factors, that will influence the duration of a loan. One of the factors is credit score history, if you have a bad credit history, your application for the loan could be automatically declined, or in case they accept your application they would only approve a short-term loan.

Another factor is the financial situation you are in when applying for a loan. The lenders take into account the economic status to determine whether or not you have the ability to repay the loan requested.

Generally, the duration of a loan varies from one year and ten years. If the loan is for the long-term, more will be the interest rate that you will have to pay.

Precautions when requesting personal loans online

It is no secret to anyone that scams nowadays abound everywhere and in the online world much more. However, the scams regarding loans are very obvious, so you should be alert if any of these situations happen:

 

  1. The lender shows no interest in your credit history: ALL lenders always focus on credit history and credit score if you notice that the lender does not show interest is a clear signal that you should not make any deal with them to avoid being cheated.

 

  1. Do not answer calls or emails with credit offers: In case you receive any offer related to loans to your email or phone call without your request, do not agree because it could be a scam.

 

  1. Do not make advance payments: If a lender requires you to make a payment in advance without having received any part of the loan funds that you are requesting, do not accept it because it is not correct and it most likely ends up being a scam.

 

  1. Thoroughly investigate the loan entity: You need to have enough information from the lender. If you are about to make a contract for a loan, you should make sure to verify that the person you are doing business with is registered in the state and verify if the local location you have is completely correct.

 

 

Methods of payment of personal loans online:

 

Being personal online loans, the methods to make the corresponding payments are completely simple and you will have the opportunity to choose which one is the most comfortable for you:

 

  1. Payments with bank cards: With this option, you can make the corresponding payments from the comfort of your home. The transaction is quite simple and is very similar to any purchase you make online. The card number, name and security code are required.

 

  1. Transfers: from any place, you can make the payment of the corresponding fee by means of a bank transfer to the account provided by the agency or loan agency.

 

  1. Bank deposit: In this payment option you must go to the bank corresponding to the bank details provided by the lender and make a deposit with the amount corresponding to the rate.

 

Pros and cons

 

Pros:

 

  • Facility for the acceptance and delivery of the loans.
  • The whole process can be done from the comfort of your home and with any device with an Internet connection.
  • You can get loans with a large amount of money for long periods of payments.
  • Requires few requirements compared to a bank.
  • In general, interest rates are usually lower than those of the bank.
  • The online process is fast, and you can have the money in a short time.
  • Helps to generate and improve a positive credit history.

Cons

  • Additional expenses can be generated in loans with variable rates and long-term loans.
  • Late payments can lower your credit scores and have a lower credit score that can limit your ability to get credit at better rates.
  • If you fail to pay a loan with collateral, you may lose the property or the car placed under warranty.
  • Applications for a loan are usually rejected if you have a bad credit score.

What do you do if you do not accept your application for a personal loan?

They usually ask you to complete a form to request the loan. If you are denied the loan you should not be alarmed, it is most likely that you have not completed the form in full or have not been specific to do so. On the other hand, there is also the possibility of the credit history that you have does not have good punctuation.

If you have a good credit history, it is advisable that you look for a way to contact the loan agency to be able to know information about the denial of your loan application. This way you can know the reason, and you can solve those errors so you can send the loan request again correctly.

Tips

Before submitting a personal loan application, it is necessary to know your current financial situation and take into account the following questions:

Is money urgent?

How much money do you need?

How much money are you sure to pay each month?

By taking these questions into account, you can be much clearer about your goals and abilities to pay each installment and you can avoid having problems that can cause losses or a bad credit score. You will also feel much safer when applying for the loan.

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