Sometimes it happens that you find yourself in emergency money need. Of course, you will try to find an option which lets you borrow money with the smallest interest rate and minimum fees. It’s the case when service provided with short term loans through direct lenders will be so useful.
You can easily get attractive terms and low interest rate if your credit score is high enough and your employment doesn’t arouse suspicion.
Why should you choose a personal loan?
A personal loan is a short term unsecured loan which is provided for a really wide range of cases. There are no strict requirements for consumers who can apply for such money help. You may use the loan to buy anything you want and be ready that some lenders may ask you to disclose your reason.
It is just necessary to remember that a personal online loan is not a good solution for buying such expensive things like a car or a house. Using a personal loan is different from using a credit card because in the first case you will have to make installment payments and your balance is active all the time while repayments are being made.
The impact of a credit score
You are required to provide some sort of personal information when applying for a personal loan as well as when applying for any other type of loan. This information includes your passport details, employment, contacts, social security number, and details of your bank account. Note that your credit score will also be checked and its value would have a certain impact on the level of interest rate.
The level of rate depends on some other factors like the amount of money you want to take, the term of the personal loan, except of the credit score, and it may vary from 6.25% to 11.95%. If you want to get money with a bad credit score, you will be suggested to pay up to 20% of the interest which is quite a lot. That is why it would be very good to have high credit rating. It is the rule – the higher your score is the lower interest rate you are able to get.
When to get the loan?
There are several ways how you can get a personal loan. First of all it is reasonable to turn to your credit union or bank in order to get benefits as a regular customer.
You will be able to get from $2 000 to $10 000 without any problems and you will get an attractive interest rate if your credit score is high enough.
If you want to save your time and effort you may turn to online personal loan lenders. You will be required to submit personal information with an online application form.
It will take up to 20 minutes to get an approval if you are accurate with providing personal info and if your credit score is ok.
You will get the money transfer of your current bank account during 24 hours. It often happens that customers get money the same day. Though the interest rate may be a little bit higher, you will avoid much hassle.
P2P (or peer-to-peer) lending is also a good way to borrow the necessary money. This is the service which makes it possible to borrow cash from other individuals.
You may find the opportunity to submit your application over the Internet and the lender who agrees to lend you the money will contact you.