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.
A 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.
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.
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.
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.
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:
- Social security number
- Driver’s license/passport/state ID
You’ll also have to prove your income.
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.
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.
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