The pandemic has completely changed the way people around the world view and handle financial issues, especially regarding emergency situations. But widespread unemployment and economic strife have created a need for fast, liquid financing to cover bills and unexpected expenses.
For those searching for personal loans near me, there are a variety of services and options on the market for every borrower. Considering criteria like income, expenses, and the reason for borrowing is essential for finding the best loan provider for each person’s individual needs.
Read on to learn more about the steps to find personal loans in your area, for your unique financial situation.
What are personal loans?
Personal loans are an option for borrowers who are looking for installment-based financing. In this case, borrowers are lent a fixed amount with a repayment plan that includes interest owed over a set period of time.
According to Experian, the amount of personal loans issued has risen significantly in the past few years, rising from 15 million to 20 million between 2019 and 2020. Additionally, the amount of accounts in economic hardship or poor standing also grew – signifying the sharp change in financial stability across the pandemic.
Personal loans can be issued by your local bank, online financial services provider, credit union, or private lender. Depending on your personal situation, current economic standing, income, and ability to repay the loan, you could be eligible for better rates and higher loan amounts that vary from provider to provider.
Loan amounts can range from $1,000 to upwards of $100,000 depending on the lender, and where the borrower is based. But borrowers typically qualify for set loan amounts based on credit health rather than collateral.
There are two main types of personal loans:
- Unsecured personal loans: Personal loans that aren’t backed by any type of collateral, such as a car or initial deposit, are categorized as unsecured loans. These lines of financing and credit are often more difficult to obtain and require the lender to review the applicant’s credit and financial history as the primary decision-factors.
- Secured personal loans: For lenders that do require upfront collateral as part of the application process, secured loans are offered as a means for those with little or short credit histories to obtain financing. In these situations, borrowers might be required to place an initial deposit to secure the value of the loan – such as savings accounts or CDs. Additionally, if the borrower falls behind on payments, this collateral will be used by the lender to reconcile the balance.
If you’re in the market for a personal loan, the type you choose will depend largely on what you need to use it for, how strong your financial history is, and whether or not you want to use a form of collateral. Submit our form now in order to see whether you qualify for a LoanCenter secured title loan.
Where is the best place to get a personal loan?
There are a variety of lenders and institutions that offer personal loans in a wide range of amounts. From payday loan offices to banks, the option you choose could depend on these important factors.
Here are a few of the most popular ways to obtain a personal loan in 2021:
Compared to standard banks, credit unions have been popularized because they tend to offer lower rates and more flexible application terms. Credit unions are more likely to work with borrowers with lower credit scores and credit histories, but there are some catches to be aware of before taking this route.
Credit unions might also charge membership or branch fees to extend loans to those who are out of their network. This means that applications typically need to open an account with their credit union of choice, which could lead to monthly and annual fees in addition to the charged interest on the loan.
As the world moved online in 2020, so did many lenders and loan origination branches. Online lending solutions tend to offer competitive rates, as well as relaxed credit and income requirements without impacting the speed at which borrowers can expect their money.
The ease of use and convenient application process draw all kinds of borrowers to this method, and the growth of personal loans in 2020 reached a peak of 20.9 million borrowers, and many of these contracts were issued online.
For homeowners who found themselves in need of fast cash last year, interest in taking out Home Equity Line of Credit (HELOC) loans spiked across the board. But there have been some key changes throughout the industry that could affect borrowers’ access to their own equity via credit applications and HELOC loans.
HELOC loans use the equity you currently have on your owned properties to determine a loan amount that, as the borrower, you are expected to be able to pay. This has long been a favorable solution for borrowers who are looking for easy accessibility through the assets they’re already managing.
During the pandemic, HELOC loans have become difficult to obtain as a result of high strains placed on credit companies and banking institutions. This has led lenders to tighten the amount of credit allotted for first-time borrowers, among other criteria.
Did you know that it’s possible to borrow against your retirement plan as long as your circumstances meet certain requirements?
Borrowers that currently have equity in their personal or employer-led retirement plans can withdraw pre-specified amounts within certain terms and conditions. If you’ve experienced a loss in the family, reduction in employment, natural disaster, or other unexpected emergency – this could be a practical way to get the money you need fast.
Asking friends for money is rarely easy – or a good idea. But there are a ton of resources available for people who need a bit of extra help in a short period of time. Rather than calling your parents or best friend, it’s possible to generate small amounts of money from multiple online users or investment groups in less time than ever before.
Peer-to-peer lending is a form of crowdfunding that relies on the donations of individuals who are willing to lend to qualified applicants.
This form of financing was invented in 2005 and has grown to help individuals pay for medical expenses, investments, and unexpected bills and costs across the world. While this form of online lending is more accessible for those with low credit and low income, the borrowing process is similarly facilitated through P2P loan websites that connect investors directly with potential borrowers.
How can I get a personal loan immediately?
Emergency loans are available in many different places if you know where to look. Using online lending platforms and instant rate quotes, it’s possible to go through the entire lending process in a matter of minutes.
Look for providers that offer instant pre-approval to simplify the process and be sure to ask around to get the best rates for your individual situation.
Additionally, online lending solutions typically provide clear-cut lending terms that specify whether minimum credit or income requirements must be met to qualify.
What is the best personal loan to get?
If you’re in the market for fast liquid cash, getting a secured loan may be the quickest and easiest way to get the money you need as soon as possible.
Seeking out a verified online lender that aligns with your goals and needs, while also recognizing your credit and financial history, is the best way to find personal loans near you.
Shop around to identify the best online and in-person lenders by soliciting multiple quotes, considering your own credit background, and predicting your future repayment terms over the next few weeks or months – depending on the option you choose.
Personal loans are a great way to get out of hot water if you’re ever in an unexpected (or unprecedented) economic emergency. Staying on top of outstanding bills and payments is essential for maintaining a favorable credit history, which will determine your lending options further down the line.