6 Things You Should Know About a Personal Loan

Daniel Joelson

Daniel Joelson

Total Posts: 508

Published Date: December 6, 2021

Daniel Joelson has been in the consumer finance space since 1994, he has helped to develop underwriting manuals for the financial sector. With a vast amount of Knowledge in consumer finance, he has been writing articles for all types of loans. With his knowledge, he is able to help many people to answer different financial problems.

Here are 6 things you should know about personal loans before you apply for one. Americans take out personal loans every passing year to offset diverse bills such as paying for medical bills, home repairs, and debt consolidation among others.

According to TransUnion, the number of persons applying for personal loans in the United States has increased over the years, from 23 million to over 26 million. In 2016, personal loans emerged as the fastest-growing loan product.

Personal loans are generally appealing because of the low-interest rates they offer especially for those with good credit, and their ability to help consumers get small loan amounts. However, this is not to say that they are the best solution in every situation or they are suitable for everyone.

There are a few things you should consider when you plan to get a personal loan. I will be highlighting some of these things to consider in the sections to follow.

information about personal loans
Personal loans information

How do personal loans work?

A personal loan is an unsecured loan meant to be paid to install mentally. What this means is that you will be repaying a fixed amount on a monthly basis till you completely pay off the loan including the interest on the loan. The life of the loan can be between a year to seven years. Once you completely pay off the loan, your account is closed by the lender and you can apply for another loan if you need more money.

This type of loan can be either secured or unsecured. If it is secured, it requires collateral, while an unsecured loan will not need any collateral.

Types of personal loans

There are two types of personal loans; they are secured and unsecured loans.

Unsecured loans are not backed by collateral. The lenders approve borrowers based on their credit score, and financial history.

The other type is referred to as “secured loans.” Secured loans require collateral. Hence, you might have to use your house or home as collateral to get a secured loan.

Where can I get a personal loan?

Banks are not the only place one can get personal loans as most people think. Their other specialized lenders are online and there are credit unions too who offer personal loans.

Most of these lenders now operate online. Make sure to check with the Better Business Bureau or the Consumer Financial Protection Bureau to ensure that the lenders you are dealing with are licensed and legitimate.

Personal loans against other lending options

A personal loan is not the only option available when you need cash. There are other lending options and this is why you need to consider the options available to you to decide whether you should go for a personal loan or not. If you have good credit, it will be easy for you to qualify for a balance transfer credit with a 0% Annual Percentage rate. If you are able to pay off the balance before the interest rate surges, then a credit card may be an ideal option for you.

Effect on your credit scores

A hard inquiry into your credit report by your lender as part of the application assessment may have an adverse effect on your credit score. It can lead to a few deductions of points in your credit score.

Interest rates and other fees

The interest rates your lender is offering you can make a huge difference in the cost of the loan. Also, the charges that apply from your lender can also influence how much you will pay over the life of the loan. These charges or fees vary from lender to lender.

Some of these fees include interest rates, prepayment penalties, origination fees, and closing fees among others.

Above all, you might want to consider a personal loan if you need additional cash to complete a project. However, make sure you are comfortable and able to pay other primary bills while servicing your debts.

How do TFC Title Loans work?

TFC Title Loans is an online title loan provider. We offer title loans for individuals who need short-term loans using their car as collateral. You can apply for your auto title loan online and one of our loan representatives will get in touch with you as soon as you submit your application online.

This article was brought to you by TFC Title Loans, we try to bring to you the most informative information. If you are interested in getting a title loan local to you, we are able to help you with our large referral network.

We will help you to get the most money by using the equity that you have in your vehicle, the application is fast and we can provide you with same-day funding.

All of our referral partners are in compliance with the CFPB. We will help you to get the money that you need but from a trusted and reliable title lender.

Same day funding

We offer same-day funding on all our loans. We understand that most people who apply for title loans are running against time or facing one emergency or the other and this is why we will not keep applicants waiting. We treat every application as they come in.

Hence, our consumers are assured of timely loan approval and disbursement.

To apply for a car title loan, you will need proof of identification, proof of residence, the title of your vehicle in your name, car insurance.

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DISCLAIMER: As our policy to make sure you know what we do and what are our limitations, we offer you these disclaimers. We are NOT A LENDER and we do not make short term cash loans or credit decisions. We are a referral service and work only with licensed lenders/brokers.

We may act as the broker for the loan and may not be the direct lender. Loan proceeds are intended primarily for personal, family and household purposes. We do not offer or service student loans.

*Loan amounts by the lenders vary based on your vehicle and your ability to repay the loan.

*Since we do not lend money directly we cannot offer you a solicitation for a loan, except in the state of California. In all other serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans and Auto Title Loans are not available in all states and all areas.

*Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan.

*All lenders are responsible for their own interest rates and payment terms. TFC Title Loans has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

*The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you.Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically larger loans or higher risk loans use a GPS.

*In some circumstances faxing may be required. Use of your cell phone to receive updates is optional.

*Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

*Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

*Trading Financial Credit, LLC dba TFC Title Loans, Car Title Loans California, Dineromax. If you are using a screen reader and are having problems using this website, please give us a call at 1-844-242-3543 for immediate assistance.

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