Although unsecured personal loans are quick and easy to apply for online, they are some of the most expensive and riskiest loan options. Excessive annual percentage rates (APR) make them more expensive, and short-term due dates make them hard to pay back on time. Each state has different laws and regulations regarding personal loans. Currently only 43 states allow this type of loan, so be sure to check your state laws even if a service advertises in your area.
Some of the best personal loan companies for low APR rates, long payback terms and easy applications are 100 Day Loans, NetCredit and FaxFreeCash. Keep in mind that the best personal loans are intended to help you out in a crisis; they are not a long-term financial option. If you're still unsure about whether you should take out a personal loan online or if you can trust a lending company, check out some of the latest articles about fast cash loans.
Cash loans online are not financially beneficial or cheap; they're simply good for quick emergency cash. Due to their easy-to-get nature, online personal loans are some of the best personal loans for bad credit. Nevertheless, if you have bad credit and need an overnight loan, there are some key features to look for in good online loans.
Although many companies can loan $1,000 to $10,000 or more, be careful. Online personal loans are designed for short-term, small expenses, and not for purchasing cars or boats. Depending on your state, credit history, loan provider and many other factors, your interest rate will fluctuate. You can use your APR to calculate the cost of your loan. For instance, if you take out a $100 loan for 14 days and your APR is 358% (an average rate), you could end up paying a little over $70 in interest and fees, plus the $100 of principal. The APRs for the best loans online should be as low as possible. However, the cost of your short-term personal loan can skyrocket all the way up to 1,500%; avoid anything above 600% if at all possible!
There are two types of online loan lenders: loan matching services and lending services. A loan matching service takes your information and matches you with a lender, which will then offer you a loan. Services like this are best for bad-credit loans, as there is a higher likelihood of finding a lender for your situation. Matching services also share more of your personal information (such as name, email address and phone number), so you'll probably get more junk mail if you apply this way.
With a lending service, you'll get your funds directly from the same website or service where you apply. Support is much more readily available through direct lenders. You're more likely to talk to real people instead of the automated machines you generally find with matching services. Both types of services offer direct deposit within hours or by the next business day. Depending on your lender, you might even be able to apply over the phone and not have to fax any documents.
Loan Application Information
Reputable personal loan companies will require you to be at least 18 years old and a U.S. citizen, and have a current source of income (employment, self-employment, Social Security income, disability, etc). You will also need a Social Security number, home address, valid email address, phone number and a checking account. Some services will also need a driver license and pay date information, and will have employment duration requirements. Not every loan service will run a formal credit check or disqualify you for having a bankruptcy on your financial history; a bad-credit personal loan is still a possibility from many good companies.
All of the best personal loan services have multiple repayment options to help you pay back your loan. Depending on your service or lender, you'll pay fees for late payments, missed payments, early payments, finder's fees and more. You can also incur fees if you apply for an extension, fees for renewals of your loans, fees for your fees and so on. The length of your loan can vary between two weeks and a few years. It's best to find a happy medium; two weeks to a few months is a safe bet. However, different term lengths are available depending on your situation.
Help & Support
Legitimate loans will be backed by legitimate companies. When you're searching for an online loan service, look for phone numbers, email addresses or live chat features so you can contact real-life people. Many loan services will allow you to apply over the phone as well, if that will help you feel more comfortable. A listed physical address in the U.S. and lengthy time in business (at least five years) can also help you weed out the scams from the real loan services. Keep in mind again that even though a company looks authentic, it could still be a scam, so be careful out there.
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