Unsecured Personal Loans Online: Achieved Amazingly Hassle Free

loan officer placing finger on digital loan button choosing unsecured personal loans online

How To Get Unsecured Personal Loans Online Hassle Free

Sometimes, life happens and you need extra money. This is why many people look for unsecured low interest personal loans. To avoid all of the hassles, the best way is to get unsecured personal loans online.

personal loan often called an unsecured or signature loan, is determined based on your credit. Unlike a traditional loan, you don’t submit any collateral as security.

chalk board with the work problem crossed off and word solution remaining

You can get a loan from your bank or another major lender, or you can sign up with an independent lender.

Many people prefer taking out loans online. The application process is easy, confidential, and you can receive your money very quickly.

Are you interested in getting unsecured personal loans online? Read this guide and get a loan hassle-free.

Decide Whether You Want to Go Through Your Bank or an Independent Lender

These days, people have the option of choosing their bank or an independent lender to get unsecured personal loans online. But you should be cautious about which source you choose.

Banks are the most legitimate choice, but they require higher standards. Independent lenders are more lenient, but there are many sketchy lenders out there.

Here’s your guide when deciding to go to your bank or an independent lender.

Bank or Credit Union

Your bank or credit union usually offers unsecured personal loans online.

Their website and application are completely safe and confidential. Banks and credit unions are trustworthy options; they will deliver your loan quickly, oftentimes transferring the money directly to your account.

Going through a financial institution is the most convenient way to get a loan. If you’ve been a long-time client, they already know your credit score and financial history.

us dollars

But if you have bad credit, this may not be the best option. When giving out loans, financial institutions have strict standards. If they see your poor credit history, they will spike up the interest rate or will deny your application.

But if you have great credit, this is the recommended option. Your financial institution will award you a lower interest rate.

You don’t have to stick with the loans from your financial institution. Shop around at other banks and credit unions and find the best option.

Independent Lender

An independent lender isn’t affiliated with a major financial institution.

These are online companies that attract those with poor credit and low income. Even though they may seem untrustworthy, several independent lending companies are reliable when it comes to personal loans.

These options are the best if you have poor credit, little or no income, or bad spending habits.

These companies provide as much confidentiality and convenience as a major financial institution. Since they attract a poor credit clientele, their application won’t have strict standards.

One of the many benefits of independent lenders is their low-interest rate offerings on small personal loans online.

lender evaluating personal loan on laptop

Even if you have poor credit, you can get a better loan from a lending company than your financial institution. This is because an independent lender’s operating costs are much lower.

Keep in mind, these lenders will still look at your credit score. They can easily spike the interest up or deny your application. To ensure your lender is reputable, read their reviews.

Submit Your Application

When you decide which company you want to choose, it’s time to submit your application. They will request information to check your identity and credit history. They will also ask for additional information such as your income.

Most companies have a personal loan application available on their website. You can either fill it out online or print it out and submit the application in-person or through the mail.

Here’s the information you’ll need to submit:

  • Name
  • Address
  • Birthday
  • Social security number
  • Driver’s license/passport/state ID

You’ll also have to prove your income.

submitting application online

The lender may request a recent pay stub, tax forms or your bank statements. You also may need to provide your bills such as utility bill, credit card bill, mortgage documents, cell phone bill, car payments, and car insurance.

If you recently moved, they may ask for your previous address.

Be Honest with Your Debt and Credit

The last thing you want to do is lie on your application. Inform them of your debt and your credit score. Are you currently paying off a car loan or a student loan? Or do you have some credit card bills to pay off? Whatever the case, be sure to inform your lender.

Surprisingly, being in previous debt is often not a deal breaker, as long as you don’t have too many debt sources.

The lender only cares if you can make your minimum payments. But they need to judge your debts and current income to gauge this.

Your lender will do a credit check history, but you can always call your lender and discuss your credit score during the application process. They can estimate an interest rate before they perform a credit check.

Know the Amount You Need

You can get unsecured personal loans online at anywhere between $1,000 and $50,000.

But be aware – you have to pay back this amount. Be smart and choose a realistic amount. If you’re taking a loan to pay for something, only take out the cost of the item or service.

The lender will also ask why you’re taking out that amount. While they won’t require any collateral, the lender will like to know why you’re taking out the loan. Be honest and state why you’re taking out that amount.

After Your Application Is Accepted

Depending on the lending company, it usually takes two days to accept your application. Once the lender accepts your application, expect the money in a week or a week and a half.

stamped accepted

You should also know when to pay off your loan. Most companies require monthly payments. To guarantee faster payment and lower interest, pay the loan off as quickly as you can.

Time to Get Unsecured Personal Loans Online

There’s a time when life happens and you need extra money. Fortunately, unsecured loans offer fast financial relief. Getting a loan online is easy and confidential.

Just have all of your necessary information, credit history, income statements, and debt ready.

Always keep your credit and interest payments in mind. The faster you pay off your loan, the less debt you’ll owe.

For more personal loan advice, check out the rest of our resources.

 

Get Control of Your Credit With Our Free Ebook

* indicates required



 

4 Comments

  1. Hi Patrick –

    I don’t use credit or loans as much as possible.

    I do it to keep a credit score but I do pay them in full when the statement comes.

    Life hap[ens, though, and I do understand why some people can benefit from unsecured personal loans online.

    Since they are unsecured loans, what’s the safety net of the lending institutions if the borrower does not pay on time or does not pay at all?

    Also, how long are the terms of the loan? 2 years, 3 or 5 years to pay?

    Thanks for your post.
    Gigi

    • Hi Gigi,

      Same here.  Credit comes in handy to maintain a good credit score and their are other benefits to paying with plastic as opposed to cash.

      Now days it’s easier to get unsecured personal loans online.

      Even though the loan may be unsecured lenders do have options to get you to pay.

      For one thing if you don’t repay it can destroy your credit score, limiting your ability to get additional credit.

      You will also get harassed by collectors, which can be a very uncomfortable experience.

      Generally great borrowers can get the best offerings when it comes to personal loans.  If you have a bad credit score you may get approved, but you will pay the highest rates.

      Most loan terms for unsecured personal loans range from 12 to 60 months.  

      All the best. 

  2. Hello Patrick,

    Great information. I’ve been actually thinking of getting an unsecured personal loan to pay off some high interest rate cards and some other money I owe.  

    I had no idea the process was so simple and straight forward and like the idea I can do it all online.

    I’ll probably go the bank route since it is the easiest and I’m already a long time customer.  But I’ll be sure to check out the many options available online first before I move forward. 

    Thank you.

    • Hi Victor,

      Good idea to get an unsecured personal loan to payoff some high interest rate debt. Getting rid of higher interest rate credit card debt should be everyone’s motivation.

      I once worked with a client that had mountains of credit card debt.  The funny thing is she was paying on average 21% in interest charges to all of the card companies she had balances with. Even funnier, she had a great credit score.

      We found a local lender that was able to qualify her for a much lower interest rate unsecured personal loan.  We paid off her cards and she saved thousands of dollars in interest charges.

      If it’s possible you should do the same.  With the way the online world is working now, it may be in your best interest to look online first.  Rates are better with online companies, as their overhead costs are much lower which allows them to offer better rates.

      Best of luck!

Leave a Reply

Your email address will not be published.


*