What Makes Personal Loans Great?
Whether you need some extra cash to repair a vehicle, pay for moving expenses, fund a wedding, or consolidate some debt, a personal loan may be the answer. Unlike many loans that are conditioned on physical collateral, personal loans are unsecured. Below, learn more about how a personal loan works and how you can apply for a personal loan online.
What is a Personal Loan?
A personal loan is a loan for a fixed amount, usually distributed as a single lump sum. Most personal loans are used for large purchases or to pay off, or consolidate, debt. Consolidating your debt with a personal loan can make it easier to manage your finances by allowing you to pay down your debt and leave you with one, ongoing payment, with a single interest rate.
Many loans are “secured”—guaranteed with collateral, like a vehicle or a home. But personal loans are unsecured, which provides you with far more flexibility when it comes to spending or using these funds.
How to Apply for a Personal Loan with Bad Credit
Today, it’s relatively simple to apply for a personal loan online. Many lenders offer an online application, which allows you to submit an application at any time of day, or night, from the comfort of your home. This application will request information like:
- Your name, address, Social Security Number
- Your income
- Your checking account information
After you provide this information, the lender can decide whether it’s willing to extend a personal loan to you. It’s important to thoroughly understand all fees and interest charges before you sign a loan contract.
How Long Does the Process Take?
Many online personal loans offer quick decision. If your online lender extends a personal loan to you, it will often deposit the funds directly to your bank account. You will then be able to spend these funds as you would with any other type of deposit.
Soon, you will be required to make your first payment. The lender may offer autopay, allowing you to have the payment withdrawn directly from your bank account to ensure it’s not late. Autopay can be convenient, but make sure you will have adequate funds in your bank account before you agree to have a payment automatically withdrawn.
What Should I Look for in a Personal Lender?
When it comes to choosing a personal loan lender, there are a few factors to consider:
- Speed
- Affordability
- Reputation
If you need a loan quickly, your lender’s speed may be one of the most important factors. In other cases, you may prioritize the affordability of the loan or the lender’s reputation.
Bad Credit Personal Loan FAQs
What benefits do personal loans have over other types of loans?
Personal loans can sometimes present more advantages than other types of loans. They tend to have more flexible requirements than secured loans like mortgages and auto loans. If you apply for a personal loan online, the funds could be in your account in less than a day after approval.
How can you track your credit score?
Your credit score can be key in predicting your interest rate. Here are a couple of ways to access your current score.
First, you can apply for a credit card that provides you with a monthly FICO statement or scorecard, giving you free access to your credit score. You could also sign up for a service like Credit Karma that will provide you with an estimate of your credit score. Knowing your score can give you a better idea of what type of loan will work best.
At Integra Credit, we pride ourselves on providing a fast and secure application process that uses advanced underwriting to look at more than just your credit score. If you are ready to learn more about available loan products, apply now and check your rates to get started.
