As of January 2023, there were 5.16 billion internet users across the globe, representing 64.4% of the global population. That’s a pretty staggering statistic. And the truth is that people need loans for a lot, from shopping for houses to cars and other items wanted for daily life. In today's world, where technology has made everything easily accessible, loans have become a popular way to borrow money.
Loans offer a convenient and hassle-free way to get your funds without needing the money immediately. Whether you need the money to pay off debt, cover an unexpected expense, or fund a home renovation project, loans provide various options to meet your needs. However, with so many lenders and loan types, it can be overwhelming to choose the right one. So whether you need loans for bad credit or otherwise, this guide to loans will let you know what to look for.
Lenders offer a highly convenient alternative to the days of yesteryear when you needed to visit a bank location in person and fill out page after page of paperwork as part of the application process. Today, you can apply for many loans in minutes with the right requested materials.
But with the convenience comes potential risk, especially since it is so easy to click a button here or there. This guide to loans will help you understand what to look for and what red flags should make you walk away (literally and figuratively).
One of the most important things to consider when choosing a lender is the interest rate they charge and any fees associated with the loan. Let’s do a calculation of our own to show how important it is to understand the rates and fees. Using this interest rate calculator, assume a $3,000 loan with a 9.34% APR (the average personal loan rate according to the Fed’s most recent data). If you take out this loan for three years and make only the minimum monthly payments, you will pay a total of $3,840.60 over the course of your loan. Even an interest rate of 1% less can save you $90. So, compare rates and fees from several lenders to ensure you get the best deal possible.
If you apply for a loan, make sure the lender offers loan amounts and terms that meet your needs. Some lenders may have minimum and maximum loan amounts, and terms may vary from a few months to several years. Loan terms to look for include:
Thousands of consumers take out new installment loans for bad credit daily. So make sure that you learn from their experiences. Trustpilot, Google, and even Facebook are great places to see what other customers have said. You can also check your local Better Business Bureau or Attorney General website to see if there have been any complaints. Finally, pay attention to the contact center hours and how to communicate with a representative if you need help.
Check out the lender's application process and how long it takes to get approved. Some lenders offer a quick and easy online application process, while others may require additional documentation or a longer approval process.
Researching and carefully considering your options before working with a lender is essential. If you experience one or more of the following red flags, consider it an indicator that you should look for an alternative lender to work with.
There are several red flags that you should watch out for when considering working with a lender:
If you need an emergency loan and reside in Idaho, Texas, or Wisconsin, Cash Store can help. We offer a reputable and personal approach to lending and have a long-standing history of approving cash advances quickly for qualified customers without the need for a credit history or credit score. We look forward to helping you too.
*The content on this page provides general consumer information or tips. It is not financial advice or guidance. Each person’s circumstances are unique. The Cash Store may update this information periodically. This information may also include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.
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*Loan Amount is subject to loan approval. Loan terms and availability may vary by location. Approval rate based on complete applications received across all Cash Store locations. Customers can typically expect to receive loan proceeds in less than 20 minutes; however, processing times may vary.
Loans / Advances are provided based on approved credit. Cottonwood Financial uses a proprietary model to evaluate the creditworthiness of each applicant for credit. Vehicle is subject to evaluation for title/auto equity loans. Please see the Licenses and Rates page for additional product details.
Cottonwood Financial offers consumer credit products that are generally short-term in nature and not intended for long-term borrowing needs. In Texas, Cash Store is a Credit Services Organization and Credit Access Business. Loans are provided by a non-affiliated third-party lender.
Customer Portal residency restrictions apply. Availability of funds may vary by financial institution.