About 61% of the American population lives from check to check, so having no savings, most people rely on personal loans and credit cards. Even with savings, there are also several large purchases that are difficult to do without the help of some type of financing. Although there are many different uses for loans, these are the most popular options for which most people use their personal loans:
- Debt Consolidation
- Bill Payment
- Medical emergencies
- Shopping and Travel
- Family emergency
These loans can be very useful, but they have to be used responsibly since an unpaid loan can hurt your credit record and opportunities to receive loans in the future.
How Personal Loans Work
Personal loans are financial instruments in which a lender makes a credit for a certain amount of money to another person (the debtor). The debtor agrees to pay back the original amount in addition to interest, and other costs associated with the loan in time or term defined according to the established terms.
Always make sure you understand and agree to the loan terms that you will accept. Terms such as interest and term change according to the following factors:
- Your level of current debts.
- Your credit history (How to verify my free credit online).
- Quantity being requested.
- Your monthly income
- Time at your work and current residence.
The biggest factors to determine if you apply to a loan are your monthly income, level of debts compared to your income level and your credit history.
Although there are several lenders who do not check your credit (especially personal loans for people with bad credit) it is always good to understand the 5 factors that affect your credit score and how to improve them. Improving your credit helps you save on your finances as you improve the terms of the loans you apply to.
PS: In case the lender reviews your credit, remember to ask what type of credit check you would do since the “soft pull” reviews do not damage your credit but a “hard pull” check if you can lower your credit score by some points.
How to Ask for a Personal Credit
Personal loans have existed since the beginning of our society, but over time they have evolved. The function is always the same, but the way of receiving and borrowing has changed a lot over the years.
Historically, loans are received by going to an institution in person presenting their data and waiting for an agent to review their application. Although this process still exists, with technology and the internet the process has been greatly facilitated. Thanks to technology, borrowing online has the following benefits:
- With the ability to compare more lenders online you can find better loan terms.
- The deposit of funds is faster (as fast as 24 hours) and direct to your bank account.
- The approval process takes less time (on the internet the loan response is instantaneous).
- The application process can be completed from the comfort of your home and in your own time.
- Applying online with an encrypted system can be safer than applying in an office where someone can keep your information without you knowing.
If you want to request a personal loan you can review the loan options we work with or the Forsyte family experts can help you for free: http: //hola.Forsyte family / loans.
Personal loans according to your credit history
Although getting loans is easier for people with a good credit record, there are also many options for people with bad credit or who just need a short-term loan given an emergency. We have created a list of the different possible terms of personal loans according to your credit history and more information on how you can apply:
- Excellent Credit: A credit score of 670-850 is considered excellent credit. By having excellent credit you apply to the best loan terms available in the United States. An estimate of personal loans to which you can apply is of amounts up to $ 100,000 with interest starting at 3.84% and a repayment term of 12-84 months.
- Good Credit: A credit score of 620-669 is considered good credit. By having good credit you still qualify for good loan terms, what changes is the amount you qualify for and the interest you would have to pay. An estimate of personal loans to which you can apply is for amounts up to $ 50,000 with interest starting at 7.99% and a repayment term of 12-84 months.
- Regular Credit: A credit score of 580-619 is considered a regular credit. An estimate of personal loans to which you can apply is for amounts up to $ 25,000 with interest starting at 14.99% and a repayment term of 12-84 months.
- Bad Credit: A credit score below 580 is considered a bad credit. Getting a loan with bad credit is more difficult since you are seen as a “greater risk” for the lenders (read more about loans for people with bad credit) but it is still possible to get a loan. An estimate of personal loans to which you can apply is for amounts up to $ 5,000 with interest starting at 19.99% and a repayment term of 2 weeks to 36 months.
Where You Can Request Personal Loans:
We work with lenders that cover all 50 states in the United States, but we have certain special states where we have more options. Read more of these statements in these articles:
- Florida: Miami, Orlando and Tampa
- California: Los Angeles, San Diego, Riverside and San Francisco
- Texas: Houston and Dallas
- New Mexico
- New Jersey
Frequently Asked Questions About Personal Loans
1. ARE PERSONAL LOAN INTERESTS AN ANNUAL OR MONTHLY INTEREST?
Personal loan interests are usually offered in annual terms, although payments are made monthly. For example: The personal loans with which Forsyte family works are starting from 3.84% annual interest.
2. WHAT ARE THE REQUIREMENTS TO APPLY TO PERSONAL LOANS?
The requirements to apply for personal loans vary by company. Forsyte family works with lenders for all types of credit, so the greatest requirements are the following:
- Have an income of more than $ 1,500 per month (before taxes).
- Have a social security (if you have an ITIN read this article ).
3. HOW MUCH IS THE APPLICATION OF PERSONAL LOANS TAKEN?
The time it takes to apply for personal loans varies according to the company. With Forsyte family, it takes 2 minutes and the response is instantaneous. If you go to a bank or other companies the application and approval process can take 3-7 days or more.
4. CAN I APPLY TO PERSONAL LOANS IF I HAVE BAD CREDIT?
Although there is a possibility that you are not approved for a personal loan with bad credit , you can still apply through Forsyte family. You do not lose anything applying since the application is free, fast and does not affect your credit.
5. WHAT CAN I DO IF THE LOAN DENIED ME?
- Improve or repair your credit.
- Explore our 4 options on how to earn money online.
- Consolidate or manage your debts.
Other Resources for Personal Loans:
For personal loans we recommend you always check with the CFPB (Consumer Financial Protection Bureau) and FCC (Federal Communications Commission). These sites give information and news of personal finances which give you tips to avoid online fraud.
- Success story: Camilo received $ 25,000 with Forsyte family.
- Comparison of lenders: Money Mutual, OppLoans, Fiona
- How personal loans work and how to calculate costs
- Savings accounts, credit repair, cards and debt management
- More tools: free consultation and blog