Personal term loans are a great resource to help pay down credit card debt, address unexpected emergencies and even start or acquire a business.
Personal term loans often have lower interest rates than credit cards and interest rates can’t change over time like credit card rates. That means your monthly payments will be the same each month until the loan is paid off, unless you decide to pay more than the minimum required.
What are Personal Term Loans?
A personal term loan is a fixed amount of money borrowed at a fix rate and repaid over a fixed amount of time – the term of the loan. Personal loans can either be secured or unsecured.
- A secured personal term loan requires some type of collateral. An example is an auto title loan, which is secured by your car’s title.
- An unsecured personal term loan can be used for a wide variety of purposes, from paying for a wedding or making home improvements, to consolidating debt or paying medical bills.
How do Personal Term Loans work?
At Deliver Capital, the process of applying for a personal term loan is fast and easy.
- Fully completed Application. Must include maiden name, house if it’s rented or owned
- Experian Personal Credit Report – Must obtain PIN and Security Question on every file and client must advise us of any changes while we are in the process of funding
- Driver License (Front and Back) in color, not in black and white
- Social Security Card (Front and Back)
- Personal Financial Statement (PFS)
- Federal Personal Tax Returns – last two years
- W-2s: last two years
- 2 most recent Paystubs
- Signed Financial Funding Agreement
- ACH or Credit Card Form
How long does it take to get funds with Personal Term Loans?
Although the timing of funding varies, the most important step is to submit all documentation as quickly as possible so we can begin processing your application and submit to our lending partners.
In general, you can expect to be funded in one to four weeks after all required documentation is submitted.
What rates can you expect with Personal Term Loans?
Personal loan interest rates can fluctuate depending on several factors, including the borrower’s credit, income or whether or not there’s a co-applicant. For those who have a high credit score, the interest rates will be significantly lower than for those borrowers with a lower score.
What can Personal Term Loans be used for?
Personal term loans can be tailored to your specific needs.
- Debt consolidation: If you’re looking to help consolidate your credit card debt, a personal loan can help by providing a lower interest rate. By making your payments on time each month, you’ll also have the opportunity to improve your credit score.
- Unexpected expenses: A personal loan can go toward an unexpected emergency where you need money fast.
- Medical bills: If your health insurance doesn’t pay for the entire cost of a recent medical treatment or appointment, and you’re expected to pay the balance, a personal loan can help pay off the difference. The same goes for an unexpected vet bill.
- Home improvement: Personal loans can also be used toward home repairs, home renovations or large appliance purchases. Before you take out a personal loan for home improvement, however, consider alternatives such as a home equity loan or a home equity line of credit.
- Special events: These loans can be used to help pay off your wedding, honeymoon or other major life events.
- Business Startup or Acquisition: a personal term loan is a great way to get the funds you need to start of acquire a business, such as a franchise.
Tips to Get the Best Rates for Your Personal Term Loans
It’s always a good idea to monitor your credit report so there aren’t any surprises or inaccurate information when it comes time to apply for a personal loan.
If your credit is an issue and you need a personal term loan right away, you may want to consider getting a co-applicant who has good credit.
