Best Personal Loans From Online-only Lenders in October 2023

Ask Yourself the Important Questions

Your chances of getting approved for your personal loan depend on several factors. Ask yourself the important questions first before going through the loan application process.

• How much money do you need? You’ll have to pay interest on the amount that you’ll borrow, and the more money you need, the more difficult it will be to secure approval. Determine how much money you truly need and find a lender offering that amount.
• What’s your credit score? Since personal loans are unsecured, lenders will rely on your credit score to establish your creditworthiness. Having a high credit score will improve your chances of approval.
• Can you afford the monthly payment? Check your monthly expenses and calculate if you have enough disposable income to pay for the loan. It’s important to do this since late payments or defaulting on your loan can seriously affect your credit score. Make sure you can afford the monthly payment before applying for a personal loan.
• Do you have existing debts? Lenders may look at your debt-to-income ratio when evaluating your loan application. If you have a lot of existing debt, providers will be less inclined to grant you a personal loan.

Do Your Research

Collect all the information you can before applying for a personal loan. Pick your preferred companies and study their policies regarding interest rates, repayment terms and credit checks. You can also see if they have restrictions on how you can spend the loan.

Shopping around and comparing offers from various lenders is the best way to find the lowest rates and most flexible packages. MoneyGeek gathered all the information you’ll need throughout the process. Nonetheless, our figures and recommendations are based on generalizations, which can be different from your personal circumstances. Thus, you should also explore other options and do your own research.

Wait

Getting a personal loan is a major financial commitment. Before deciding on anything, make sure that it’s the best choice for your needs. As with any big decision, it’s a good idea to wait for a day or two before making your choice. The passage of time will give you a fresher outlook and a more objective perspective, which is important for situations like this.

Personal loans are paid over an extended period of time and with interest. If you’ll be using your personal loan for leisurely expenses, consider if you can wait until you’ve saved the necessary amount. Even if you’re absolutely sure that a personal loan is the best option for you, it makes sense to wait before acting on anything.

Read the Fine Print

If you’ve reached this point, you have probably made up your mind and decided that you should get a personal loan. Now’s a good time to narrow your options and revisit their offers. Check out the small details that are often missed during initial research — look beyond your preferred lenders’ marketing materials and study their fine print.

Some of the details you should look for are prepayment penalties, origination fees, late payment fees and other items that can add to the loan’s total expense. Doing this can result in big savings over time, as you’ll avoid unnecessary charges that may come with your personal loan.

Apply for the Loan

Once you have considered all your options, feel good about a specific lender and studied their policies, you’ve finally reached the moment to apply for a personal loan. To start, prepare the documents that will be requested by the loan provider, which typically include proof of identity, address and income.

If you’re getting a personal loan from an online-only lender, you’ll go through the entire process online. This means you’ll fill out forms, send documents, receive approval and agree to the loan’s term digitally. An online application is a convenient way to apply for a personal loan, but that shouldn’t stop you from calling or visiting a lender’s office if you have additional questions.