Is the thought of applying for a personal loan causing you stress and confusion? With so many options and companies to choose from, you want to make an educated decision on what loan is best for you.
Personal Loans: The Basics
The Scenario: You’re in need of some emergency cash. You’ve been turned away from the bank and you’ve read (or even experienced) the alarming dangers of PayDay loans. Where do you turn next?
The Solution: A Personal Installment loan. A personal installment loan is a form of consumer debt that is repaid over time in regularly scheduled intervals. An installment loan can be used for a variety of purposes, including debt consolidation, building credit, or funding everyday expenses. These personal loans are easier to obtain for poor credit or low-income consumers because they can be unsecured, which means that repayment is guaranteed only by your promise to repay, and not by a physical asset like a house or car.
A Saturated Market
A simple online search for a personal loan will bring you thousands of results. Instead of choosing the first one you come across, you need to know which company is best for your individual needs. So how do you choose?
Firstly, get a credit report (you can do this for free here) and begin by narrowing down the companies to suit your particular credit history: Borrowers with good to excellent credit scores (690 and above) may have their pick of personal loan companies, where borrowers with troubled credit histories are more likely to qualify with lenders that accept bad to average credit (300-689).
Next, figure out the amount you need and the time frame you can pay it off as well as comparing interest rates, fees, loan terms and payment options. A perk of certain personal loan companies is they let you pay your loan back over a longer period of time so your payments are more affordable.
Applying for a Personal Loan
Now you’ve completed your research it’s time to apply for a loan! You will need to have the following information available to begin your application:
- Your Social Security Number
- Your address and phone number
- Income information
- Banking information
Once everything is filled out, verify that the information is correct and hit submit. You’ll be notified with a decision on your loan application within a few minutes. If you’re approved, your lender will likely contact you to confirm your information, and most people receive their loan funds as soon as one business day after approval.
Once Your Receive Your Funds
If you took out a loan for something specific you should spend it on that. However, you are free to spend your loan funds on whatever you’d like.
It’s very important to make your payments on time so you don’t end up paying extra in fees or hurting your credit. Be sure to verify how you’ll need to make repayments. Can you pay by phone with a credit card or account number, online through the lender’s website or do you need to mail in a check? Find the answers to these questions out right away if you haven’t already.
Each consumer has different needs, and many lenders specialize in specific areas designed to meet them. Because no lender is perfect for every consumer, recommendations are based on eligibility requirements, interest rates and features that make them good matches for different types of consumers.
If you need assistance in finding the right loan, loan amount and a company you can trust, give Total Loan Company a call on (855)222-0209. Our mission is to provide you with a solution that resolves or bridges your current troubles for an extended period of time and to provide you with a convenient and dependable source for additional cash whenever you need it.
We hope this article helps you find your path to financial freedom!