How to Get a Personal Loan
If you need some fast cash to cover an expense, a personal loan may be a good option. Since there are a variety of personal loans available, it’s important to do your research and compare options so you can choose the best loan for your unique situation. Let’s dive deeper into how personal loans work, what types of personal loans are out there, and how you can apply for one.
How do personal loans work?
Personal loans are usually offered by banks, credit unions, and online lenders. Once you apply for and get approved for a personal loan, you’ll receive a lump sum of money upfront or be able to withdraw funds whenever you need to. Then, you’ll pay back what you borrow plus interest and fees over an agreed upon term, which may range from a few weeks to a few years.
Types of personal loans
Not all personal loans are created equal. There are many types of personal loans you can choose from, including:
Payday loans are short-term, small dollar loans you can pay back when you receive your next paycheck, often within two to four weeks. These loans can be useful if you need fast cash to cover expenses until you get paid.
With installment loans, you’ll get a lump sum of money at once and repay it over time (anywhere from a few months to several years) via fixed monthly payments, or installments. If you need a large sum of cash, an installment loan may make sense.
Car title loans are secured loans that use your car as collateral. Upon approval, you’ll give the lender your title in exchange for a lump sum of cash, based on your vehicle’s value. You’ll be able to drive your car as you pay back your loan. If you own your car and are willing to use your title as collateral, a title loan can be useful.
Lines of credit
Lines of credit work a lot like credit cards but typically offer lower interest rates. You can withdraw funds whenever you’d like up to a set credit limit, and you’ll only pay interest on the amount you borrow. Lines of credit are a smart choice if you want a flexible loan.
How to apply for a personal loan
If you’re wondering how to get a personal loan, follow these steps:
1. Research lenders
Since there are countless personal loans on the market, do some research and find the various lenders and loans that pique your interest. Then, compare their interest rates, terms, and fees.
2. Choose a personal loan and gather documents
Once you choose the ideal personal loan for your budget and needs, collect the documents you’ll need to apply. These will likely include a government-issued ID, like a driver’s license or passport, and pay stubs or other proof of income.
3. Fill out and submit an application
Fill out the application online or in person. Be prepared to share personal details like your name, email, and phone number. You may also have to provide information on your income and employment history.
4. Wait for approval
Once you submit an application, you’ll need to wait until the lender reviews it and gets back to you with a decision. Fortunately, many lenders offer quick approval decisions and may let you know you’ve been approved that same day or within 24 hours.
5. Receive the funds
If you’ve been approved for a loan and sign the agreement quickly, you won’t have to wait long for the money. Depending on the lender, you might receive the funds via direct deposit, check, or prepaid card shortly after approval.
Get a personal loan today
From payday loans and installment loans to title loans and lines of credit, Advance America offers personal loans with quick approval decisions and fast funding. With these loans, you can fill out an application online or in store in just a few minutes. If approved, you can receive the funds you need as quickly as the same day you apply so that you can start covering expenses right away. Visit Advance America today to learn more about the loans we offer.