What is a personal loan?
An online personal loan is money you borrow from a reputable lender that’s paid back with interest over a set period of time or through a number of principle and interest payments — usually between one to seven years. Your lender determines your loan amount, interest rate, and fees based on factors like your credit score.
What can I use a personal loan for?
A better question is: What can’t you use a personal loan for? This type of financing can cover almost any large expense or life incidental or even consolidate your debt. They are very attractive to everyday folks because of their flexibility. Also called an unsecured signature loan, the uses for a personal loan are endless. Good and poor credit signature loans are approved.
I want a personal loan — where should I look?
Reputable online lenders. Our partner lenders offer straightforward application processes so you can conveniently borrow money online. If approved, your loan amount is deposited into your bank account.
Banks and credit unions. If familiarity is important to you, you can consider getting a loan through the credit union or bank you already have a relationship with. The application process may be expedited if you have an existing account with the institution. Keep in mind that banks and credit unions tend to have stricter eligibility criteria than other lenders.
How much do personal loans online cost?
There are typically 3 main factors that contribute to your loans cost: Principle, Interest rates, and fees.
Interest rate. This is what our partner lender will charge you to borrow money and is usually a percentage of the loan amount. Your loan can come with either variable or fixed interest rates. Variable interest rates are typically lower but can increase over the life of your loan. Fixed interest rates might start off higher but stay the same. Good credit typically gets lower rates, whereas bad credit personal loans come with higher interest rates.
Fees. There are a few fees that can add to the cost of your loan. It’s common to see origination fees up to 5% of the loan amount. Watch out for prepayment penalties if you plan to pay your loan off early. Lenders may also charge for late or missed payments and unsuccessful or failed payments.
Principle. Of course what you borrow, must be paid back. This is the bulk of your payment.
Your annual percentage rate (APR) is an expression of your interest rate and fees as a percentage. Your APR can give you an idea of how much your loan is going to cost. APR doesn’t include late fees, nonsufficient funds fees (NSF) or prepayment penalties.
Personal loan rates by credit score
Online personal loans include APRs which typically range from 4% all the way up to 36%, which is the legal limit for personal loan APRs in just about all states that allow them. Interest rates can sometimes be lower, but doesn’t happen often. In fact, most people don’t get the lowest advertised rate on a personal loan, even if they have excellent credit. Here’s what rate you might expect from our Nationwide partner network based on your credit score.
|Credit type||Score range||You might get an APR around..|
800 or higher
579 and under
So who gets the best rate? People with long and perfect credit histories, high salaries and almost no debt. Sometimes even those people can’t qualify for the lowest rates unless they apply to borrow over a certain limit. Keep in mind, you don’t need perfect credit in order to qualify for a personal loan to fit your needs and your budget. Our 100+ nationwide partner lending network lends to people from all walks of life. There are a lot of factors that go into determining ones interest rate besides credit. Length of employment, salary or wage, residence, time, etc. Apply today and see what your eligible for.
What makes a personal loan online competitive?
There are a few key features you’ll want to consider when comparing loans. To find the best deal, ask yourself these questions:
- Does it have a competitive interest rate? Look at the rate itself, but also consider whether it’s fixed or variable — variable interest rates are subject to change. Most folks find our partner network very competitive and funding happens fast.
- What are the fees? Most lender will charge application, origination, prepayment, late or NSF fees. All information from our partner network is disclosed up-front to you after submitting our secure form with all required information.
- How long will I have to pay it back? Aim for a loan term that gives you monthly repayments you can afford without being too long. Otherwise, you could wind up paying a lot in interest in the long run. However, you can always pay the loan off faster. Don’t pick a length of term with a payment you cannot afford. If need be, take out the longer term and atleast make the required payment every month. If you have a good month or come up on a cash windfall, then pay more at that time.
What lenders look for in an online personal loan applicant
Lenders take on unsecured risk when they lend large amounts of money for signature loans online. That’s why they require applicants to meet certain eligibility criteria. Our nationwide partner lender network lends on good and bad credit, however banks would prefer everyone have great credit. Here are some common qualifications lenders look for:
Good credit/Avg Credit/Fair Credit. Most lenders rely on credit scores when choosing borrowers to approve and even calculate specific loan terms.
You pay your bills on time. You may have had a slip up or two on your credit report, but essentially pay your bills.
Low debt-to-income ratio. You can calculate your DTI by dividing your monthly debt payments by your monthly income. Lenders put a heavy score on this number as much as your credit score and normally don’t accept anyone with a DTI above 43%. A good DTI is anything below 36%, though as we mention before, under 20% is ideal.
Employment. Most lenders require you to be steadily employed. Some lenders have minimum income requirements as well that can include wages, alimony, pensions or any other form of funds coming in on a regular basis.
US citizen or permanent resident. If you’re a US citizen or permanent resident, you’re able to apply for personal loans. Temporary residents are only eligible to apply with certain lenders and may need to build up a credit history. They may also need a US citizen to cosign the loan. You may be able to get one as a non-US resident if you have full-time employment and a US Social Security number.
18 or older. Since the age of majority varies by state, the minimum age for lenders varies as well and is usually between 18 and 21.
Personal loan application checklist
The application process differs between lenders, but they’ll generally ask for the following:
- Proof of your identity, like a government-issued ID, US passport or military ID
- Your Social Security number and date of birth
- Pay stubs, tax returns and other income details
- Banking details for disbursing your funds and elective automatic repayments
How to apply for a personal loan step by step
Budget accordingly and find out how much you need to borrow
The first thing you need to do once you decide to apply for a loan is determine exactly how much money you want to borrow. Whether you have good credit or bad credit, you need to apply to see what you can get approved for. Borrowing too little or too much could leave you either unable to cover your costs or with extra money that increases how much you pay in interest.
Applying for a signature personal loan through our partner network is typically a quick and straightforward process that goes something like this:
- Personal details. Start with our secure form with information you may know., how much you need, employment information, and personal details. Then gather the necessary information such as proof of identity (passport, driver’s license, or ID), proof of address (utility bills or lease), and proof of income (W-2s, pay stubs or bank statements).
- Loan application. This is where our partner lender will communicate with you regarding loan amounts and terms, specify what you want the loan for and accept your payments. Many banks and lenders have applications online, so you avoid the hassle of having to go to a branch and fill out paperwork.
- Loan agreement. If you’re approved, digitally sign the loan documentation and agree to all the terms.
Receive your funds
Many lenders require that you have a checking account to receive your money via direct deposit, but that’s not always the only option. Some lenders may be able to send you a check in the mail.
Spend your money
Once you receive your funds, you are free to spend it on what you want. Make sure to stick with your plan of action. Getting off track or splurging can lead to inappropriate spending and cause issues with initial items getting paid.
Make payments on time.
It’s important to make your payments on time so you don’t end up paying extra in fees. Be sure to verify how you will be required to make payments. Can you pay by phone with a credit card or account number? Is there an automatic payment option?
Paying off a personal loan
So you’ve been approved from our Nationwide partner network and the money is in your bank account. You’re done, right? Not quite. Now you have to pay it back.
Set up autopay
Many lenders — especially online lenders — require you to set up autopay with your bank account. Others might give a discount on interest if you set it up.
Autopay is a great way for you to make sure you don’t miss any payments, but don’t think you can just forget about your loan. If your account doesn’t have enough money to cover your payment, you could be slapped with an NSF fee.
Stay in touch
In fact, it’s a good idea to stay in touch with your lender, especially if you run into any trouble making repayments. Many lenders are willing to renegotiate your loan if you have an unexpected financial problem. You won’t know until you ask. The fastest way to get in touch is usually by phone. Some lenders also have a live chat option, but those are generally better for finding basic information.
Paying it off early
Most personal loans online have interest that accumulates during your loan term, but some require you to pay most of your interest in the first few months. With the first type of loan, check if your lender does prepayment fees. If not, you can save on interest by paying off your loan early.
Paying off your loan early has other benefits: It can get you out of debt faster and improve your debt-to-income ratio
If you’re considering prepaying your entire loan, look for your payoff amount — not your balance. Your payoff amount includes interest and fees and you can typically find it on your online account. Don’t have an online account? Call your lender.
Tips for paying off your loan early
Make half of your monthly repayment amount every two weeks. That is, not twice a month. It’ll feel like you’re paying roughly the same amount but you can save on interest and shave a few months off of your loan term.
Round up your repayments. Rounding up your payments to the nearest $25-50 is ideal, but even the nearest $10 could help you repay your loan months — or even years early.
Make one large payment during your loan term. Making one large payment toward your loan’s principle can help you save a lot on interest during the course of your loan.
Don’t skip payments. Not only will you likely have to pay a late penalty, your interest will continue to accumulate at a faster rate.
Refinance. If your credit score has improved over the course of your loan term — or you experienced other positive changes in your financial situation — you might be able to qualify for another loan with more favorable terms, which you can use to repay your original loan. Lower interest almost always means savings when the term length stays the same — or gets shorter.
Why Choose OnlineCash4Payday.com?
Fast and secure process
One of the largest nationwide partner networks in the country providing loans no matter what your credit situation looks like.
Fast funding: Approved applications usually fund as fast as the next business day.
Over a decade online: Our nationwide network has grown to over 100+ nationwide lenders who are in the business to lend much needed capital to everyday people today.