Your Top 10 Questions about Personal Loans Answered
You’re thinking about getting a personal loan, but you haven’t done it before, and you have questions. It’s smart to ask questions and get answers before you start something new, especially with something as big as borrowing money. Let our experts answer all your questions on everything from how to get a personal loan to how it works and what your credit score has to do with it. When you work with our lenders, you get safe, convenient, and fast personal loans that you don’t have to have a perfect credit score to get approved for.
1. What exactly are personal loans?
Personal loans are loans that are approved for individuals and for whatever personal needs that individual has. These are distinct from business loans, which are approved for business entities rather than a single person. Loans that are for specific uses, like mortgages or car loans, may also be considered personal loans, but general the term is reserved for a loan that can be used for any purpose.
A personal loan may come from a bank, a credit union, or any lender that meets all the professional requirements. Being approved for it generally depends on things like personal credit score and credit history, which can make it difficult for some people. The size of the loan varies but these are often smaller than business loans or home mortgage loans. They may require repayment in one lump sum or over a course of smaller installments.
2. How do personal loans work?
Exactly how the loan will work depends on the product and lender you choose. Most have several things in common, though. They begin with an application that you have to complete in order to be considered for approval. You may have to supply varying amounts of information, depending on the lender, including income and credit score.
Once approved, you get the money you borrowed and are given a certain amount of time to repay it. You should be given the terms of the loan before you commit and sign them, and these will explain the repayment process. You will have to pay a certain rate in interest, and in most cases if you can’t repay on time you face paying additional loan fees.
3. Is it a good idea to get a payday loan?
One of the many types of personal loans that people like to rely on is the payday loan. These are personal loans that are mostly dependent on your income and job history rather than your credit history and rating for getting approved. Some people don’t like the idea of payday loans, but these are usually the so-called experts who would never have to use one. A payday loan is a good idea for you if you have lower credit and you need a small amount of cash fast.
4. Who has the best payday and personal loans?
There are many lenders out there offering payday loans, but they are not all the same. You need to find a reputable lending service, like NationalCashCredit.com. These are lending services that have reliable contact information and a selective network of professional lenders. In addition to being reliable, you get an online service that is more convenient than going to the bank or a cash advance store.
5. Can you get personal loans if you have bad credit?
Bad credit is a big impediment to getting loans, but it doesn’t have to be that way with personal loans and payday loans if you choose the right service. The simple answer is that yes, you can get personal loans even with bad credit. This is because payday loans are offered based on the strength of your monthly or bi-weekly paycheck and less on your credit history.
The lenders in the network that you get connected to when you apply online for payday loans use a proprietary formula to get people approved. It relies very little on credit and almost never on the traditional credit score that you get from the three main reporting agencies. With your income as the main factor, you can rest assured that you can get a personal loan and that you can even use it to improve your credit score if you do it right.
6. What is a no credit check loan?
It can be confusing when you hear of a lending service offering a no credit check loan or a no credit personal loan. There really isn’t such a thing, unless you are willing to offer up something as collateral like you would with a car title loan or at a pawn shop. To get a no-strings-attached personal loan, your credit may have to come into the approval decision to some degree. However, when you choose the right kind of loan for you and the right lender, credit won’t be a big consideration and you will still get approved even with a lower credit score.
7. Do personal loans affect your credit rating?
Personal loans definitely do affect your credit rating and score, and it can go both ways. When you are not responsible with loans it can harm your credit and lower it. Being irresponsible means taking out more money than you can afford, not repaying loans on time, being chronically late, and spending too much with lines of credit.
You can actually use personal loans to positively affect your credit score, though. When you get approved for one of these loans and you use it responsibly, borrowing an amount you can actually afford and repaying it on time, you can boost your score. You shouldn’t use too many loans, but when you get and use a loan wisely every once in a while, it’s good for your credit rating.
8. How do you apply for a personal loan?
When you choose the best services, like our lending service, you can apply for a personal loan just by going online. Our websites have an online application page, with a simple, short form that you can complete and submit in just minutes. You can also use an app that is available on all mobile devices for an even more convenient solution to applying for a loan. With these options for applying, you don’t have to think about how you’ll find the time to go to the bank. You won’t even have to leave home.
9. When do you get the money from a loan?
When you apply for personal loans, the time it takes to actually get the cash can vary quite a lot. The best thing about going with personal loans through an online service is that every part of the process is faster. While a bank may take weeks to finance your loan, an online service takes just hours to days. In most situations, the cash is transferred to the borrower’s bank account on the next business morning, often the next day. With cash that fast you can get to work spending it and taking care of your bills and other responsibilities.
10. Can you really trust online personal loans?
Online personal loans are incredibly convenient, and they’re fast, but the last thing anyone wants is to sacrifice security for these other desirable qualities. It just wouldn’t be worth it. The good thing about our online personal loans is that you can get all of these things and keep your information safe at the same time.
The network of lenders you will be connected to are professional lenders who protect client security. The online application you use will be protected by the same level of security you can expect on your bank’s website. And, you can trust that your information won’t be sold on to third parties. You can trust that all measures are taken to keep you safe.
Personal loans are great for getting cash when you really need it, but it’s smart to learn more before you go ahead with one. With the answers to all your top loan questions, you are now equipped to make the right decision, the decision that makes sense for you, your family, and your financial situation. When you’re ready to do it, go online or download the app and start completing the application that will lead to your personal loan and your next source of extra cash.