FAQ on personal loans helps you to understand about online loans. Online personal loans offer a convenient way to cover unexpected short-term expenses, plan for a big event, or consolidate debt. It’s easy to apply for a personal loan, and in some cases it can be cheaper than borrowing on your credit card. If you’re thinking about applying for a loan, read these commonly asked questions for more information about the process.

What can personal loans be used for?

There are many reasons you might consider a personal loan and the money can be used for just about anything. Whether you have unexpected medical experiences or would like to plan for a fun family vacation, a fast, easy loan can help you meet your goals.

Who is eligible for a personal loan?

Both employed and self employed. Regardless of credit history, most people can qualify for a personal loan. All you need is a credit score of at least 580 and a permanent source of income (can be verified).

Can I get a personal loan if my credit is bad?

Most P2P lenders want borrowers to have a min 580 or better for a no collateral Personal loan.  If your credit is less than perfect, your interest rate will be higher, but the application process is still fast and easy. Assuming you have less then 580 credit score then you must read this article to know your odds of getting a personal loan for bad credit.

How do lenders determine my interest rate?

Lenders charge interest based on a loan’s risk level. They are betting on whether borrowers are likely to default on their payments. They may consider a person’s current monthly expenses, level of debt, and credit history to determine interest rates. Credit scores provide the simplest way to judge a person’s credit risk, so many lenders look at that number exclusively.

What interest rates do your lenders offer?

Depending on your credit history and the length of the loan, rates can vary from 5.99% to 36%. If you know your credit score, most lenders will let your check your rate before you apply so you’ll know exactly what to expect.

Is there a minimum credit score requirement?

Most lenders want borrowers to have a score of min 580 or better for a no collateral personal loan. For P2P loans, you’ll need a score of at least 600. In case, you have less then 580 or 600 then you may get a personal loan with high interest rates.

Does checking rate hurt my credit score?

Yes, if you apply for multiple times in multiple places.

No, if apply here the lender will perform what is known as a “soft inquiry” to your credit report using SSN. Which will not affect your score. If you have multiple inquiries in a short period of time, then it will have impact on your score. The good news is that if you know your credit score, our lenders will let you see your interest rates before you formally apply. If you don’t know your score, you can get a credit score estimate by answering a few simple questions.

How much can I borrow?

Depending on your current income and credit history, you can borrow from $100 up to $35,000.

How long will it take to get a loan decision?

In most cases, you’ll get an answer the same day within few minutes

What does it cost to apply for a loan?

The loan application process takes only a few minutes and it’s free. There is no obligation, and you can always cancel the request if you change your mind. Once you decide to accept a loan, most lenders charge a small origination fee, typically between 1% to 5% the loan.

What information will I need to provide?

The application process varies depending on the lender you choose, but typically you’ll need to provide your address, employment information and social security number. So the lender can run a soft inquiry. You should also be prepared to show pay stubs or tax returns as proof of income.

How long will I have to pay back my loan?

Personal loans typically have a repayment period of three, five, or six years. During this time, your APR rate is fixed, so you’ll always know exactly how much each payment will be. For bad credit, it will be short term from 3 months to 12 months max.

Can I pay off my loan early?

Yes. Making extra payments or paying off your loan early will save you money, and there is no prepayment penalty.

How fast can I get my Personal loan if I am approved?

After submitting your loan application, you will get approval same day. If your loan is approved, your money will be available for withdrawal within 1 to 4 business days.

How to compare personal loans?

Compare personal loans that are available online based on their minimum credit score requirement. They will further have information like average loan amounts offered, APRs, terms, and extra fees.

Make a note of this information and apply to the one that fits your needs. To save your time try to find the reviews online, by visiting here you see top online personal loans reviews that offer loans from bad to excellent credit score.

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