8 Important Facts Everyone Should Know About Personal Loans Online

Daniel Joelson

Daniel Joelson

Total Posts: 508

Published Date: December 3, 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.

Over 44% of Americans said they’ve taken out a personal loan in the past year. As you can see, many people need some financial help when it comes to reaching certain achievements in life, and it’s not a bad thing to take on a little debt to do so.

Do you have something important coming up you need cash for, such as a car repair, wedding, honeymoon, or renovation? Then you might be giving personal loans a think.

In that case, here are 6 important facts you should know about personal loans 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.

1. There Are Different Types of Personal Loans

Personal loans are a type of consumer loan. This means basically everyone can take one out as an individual.

But personal loans can be divided into different types, depending on what you need the money for.

For example, you might be familiar with mortgages; this is actually a type of personal loan. There are also auto loans, student loans, and credit cards, just to name a few.

As you can see, there’s a wide variety of personal loans available. So it might be worth taking a few extra minutes to find out which is best for your personal situation and needs. All of these will have their general term lengths and interest rate ranges.

2. Know the Difference Between Secured vs Unsecured Loans

Not only are there different types of personal loans, but there are 2 categories they can fall into secured and unsecured loans.

Secured loans are ones backed by collateral, such as car title loans. This means you give them something like your car title to secure a loan. If you’re unable to pay back the full amount within the specified timeframe, the lender will get to keep your collateral and sell it to recoup their losses.

On the other hand, unsecured loans don’t require collateral. Because of this, lenders usually require higher credit scores and charge higher interest rates. However, you’ll get peace of mind knowing that if you default on your loan, your treasured belongings won’t be taken away.

Which type of loan is better for you will depend on how much you want to borrow, your credit score, what assets you have, and what you’re comfortable risking.

3. You Can Use the Money on Whatever You Want

In general, you can use money from a loan on whatever you want. One exception is student loans, as you’re expected to use that money on things related to your education, including food and rent. This is why you get a lower interest rate, after all.

However, with things like mortgages and auto loans, you can technically use the money however you wish. There’s a good chance you have leftover money after you use it on what you initially took the loan out for, so it’s reasonable that you’d use this cash on other aspects of your life that need attention.

Otherwise, you can even use a personal loan to fund a vacation.

4. There Are Different Types of Online Lenders

Traditionally, you’d take out personal loans with your bank or credit union. Today, you can still do that, whether in person or online.

However, there are many more options available to you, thanks to the convenience of the internet!

There are quite a few online lenders that have emerged, plus innovative options like peer-to-peer lenders and online brokers. As a result, you have significantly more windows of opportunity to get loan approval.

Always make sure to check these businesses with the Better Business Bureau before applying, just to make sure you’re dealing with a legitimate company.

different types of loans
Different loans

5. Lenders Will Do a Hard Credit Check When You Apply

When you browse all these amazing personal loan options, you might be tempted to apply for them all. After all, the more you apply to, the better your chances, right?

However, doing this will have its consequences. This is because when you apply for a personal loan, the lenders will pull a hard credit check on you. This means that when they check out your credit history, this will lower your credit score by a little bit.

As you can imagine, if multiple lenders have to do this, then your credit score can go down by a lot. So be selective in your applications and only go with 1 or 2 companies rather than all the ones you have a slight interest in.

6. Watch Out for Prepayment Penalties

For most people, when they take on debt, their goal is to repay it all as quickly as possible. This is the most responsible decision, after all.

But what many don’t know is with some lenders, actually have a prepayment penalty. This is where you get charged for paying your debt off earlier than planned.

When this comes as an unexpected surprise, it can be a disappointment and feel like you’re being punished for being responsible. But when you think about it, if you pay your debt early, the lender loses out on the interest you would’ve paid, so they need to make it up in another fashion.

So if early repayment is something you might want to consider, be extra careful about prepayment penalties.

7. Get Personal Loans Online Today

Now you know all the pertinent information about personal loans online. You can make a much better-informed decision, especially when it comes to all the different types of personal loans available to you.

8. A Title Loan can be a Personal Loan Too

If you feel like you’d benefit from one, then the next step is to apply for one. Fortunately for you, we offer some great options here at TFC Title Loans.

So feel free to get in touch with us now and apply for an online title loan. We’ll let you know within minutes if you’ve been approved!

Need Cash Now? Get Approved In Minutes!

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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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