Personal Loans For Big Life Events
Getting married? Moving to a new house? Sometimes you need extra money to cover important moments in your life. Personal loans can be a great way to get those funds. According to a November 2021 NerdWallet survey, approximately 30% of Americans took out a personal loan within the past year — with 39% of loans being used to pay for life events, including:
• Birth of a child or adoption
How much should I borrow?
Personal loans offer the flexibility to borrow amounts between $1,000 and $100,000. Financial experts recommend that you only borrow as much as you need so that you avoid paying extra interest. It’s important to take time to calculate your expenses, as realistically as you can, before applying. You should also be sure you can afford the monthly payments before you accept a loan.
Where do I get a personal loan?
You can apply for a personal loan with banks, credit unions, or online lenders. Be sure to do your research to find the right lender and loan for your needs. Online lenders can often send funds within 24 to 48 hours after approval. But if you prefer an in-person process and immediate funding, banks, credit unions, or branch-based lenders are the way to go. The loan you choose may also depend on other features that are offered, such as autopay discounts, financial and career resources, or unemployment protection.
Do I need to provide collateral?
You only need to provide collateral if the personal loan is secured. However, many personal loans are unsecured and easier to obtain. Lenders will determine your creditworthiness based on income, debts, and credit profile. Be sure to check your credit history before applying for a loan and dispute any errors that could be having a negative impact on your credit score.
What’s the repayment process like?
Installment loans allow you to pay back what you borrow over time, often with fixed interest rates — unlike with credit cards, which have higher, variable interest rates and can trap you in a cycle of debt. Fixed interest rates and terms with predictable payments can reduce the stress of making fluctuating payments during difficult economic times (like inflation). Most lenders don’t charge penalties if you pay off your loan early. Terms often range between a year and 10 years. As with terms, interest rates and fees vary depending on the lender.
How do I know if my application will be accepted?
Many online lenders allow you to do a soft credit check while comparing your loan options. A soft credit check doesn’t impact your credit score. But when you apply for the loan, there will be a hard inquiry on your credit report and an approval decision.
Need funds for important events in your life? We can help you find your loan solution. Contact a Lendmark expert today to discuss your situation.