If you need money sooner, be sure to choose a lender with a short funding time

If you need money sooner, be sure to choose a lender with a short funding time

Time to Funding: It will take each lender a different amount of time to process your application and disburse your funds to your bank account.


Customer Reviews: It’s often valuable to read customer reviews and complaints on external sites like the Better Business Bureau and Trustpilot to see if there are any common issues with the companies you are considering that could negatively affect you.

When to Use a Personal Loan

Personal loans can be used for almost anything. That doesn’t mean that it’s a good idea to use them for everything, however.

You should make sure you are using the funds for something that will help you financially-such as paying off high-interest credit card debt or making improvements to your home-or something that is absolutely necessary like responding to an emergency.

You shouldn’t use personal loans for “wants” like a vacation or new clothes. While rates are typically lower than credit cards, they are still high enough that you shouldn’t go into debt unnecessarily.

Before taking out a personal loan, be sure that it makes financial sense to go into debt for whatever you are planning to use top in Ohio cash advance it for. You should also calculate what your monthly payments will be to make sure you can afford them.

Personal Loan Interest Rates

Personal loans usually have fixed interest rates that won’t change over the life of the loan, making repayment straightforward and predictable.

Most lenders advertise annual percentage rates (APRs) for their loans. This includes all costs of the loan including both the interest rate as well as things like origination fees.

Your rate will mainly be determined by your credit history. Higher credit scores equal lower rates and vice-versa. Based on our past users and research, here are the rates you can expect based on your credit score:

  • Excellent credit (781+): Under 12%
  • Good credit (661-780): 12% – 16%
  • Fair credit (601-660): 16% – 26%
  • Poor credit (Under 600): 26%+

If you don’t have a good credit score, you may want to work on improving it before taking out a loan. This can help you secure a lower rate and reduce the amount of interest you pay over time.

Personal Loan Application Process

Applying for personal loans online has become much easier these days. With an emphasis on convenience, many of the best loan companies have focused on cutting the time required and difficulty of their applications.

Eligibility Criteria

Each lender has different eligibility criteria, but most personal loan lenders will look at your credit report and income. The higher your credit score and income, the more likely you are to get approved for a loan.

Online personal loan companies tend to approve borrowers who don’t have ideal credit scores more often than large banks and credit unions. Part of this has to do with a trend towards using additional criteria outside of credit history, including education, employment history, and free cash flow.

If you are a U.S. citizen you likely won’t have an issue applying with any of these lenders, but for non-U.S. citizens there may be certain visa or green card requirements.

Information You’ll Need When Applying

When applying for personal loans, you will need to provide the lender with certain information so they can make a decision. For lenders with alternative credit models, you may need to provide more information, but in general, you will likely need the following:

  • Identification. A driver’s license, Social Security card or number, passport, or other official form of identification.

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