Cleveland is a city located in the northeast corner of Ohio. Its metro area of over 3.6 million residents makes it one of America’s largest population centers. Like many other large cities across the country, Cleveland is full of people looking for the perfect cash loan solution. But if you have a less-than-perfect financial profile, are there personal loans in Cleveland for you?

Cleveland: The Basics

Cleveland was founded in 1796—but not in Ohio! When it was established, it was part of the state of Connecticut. From the beginning, the city was a central hub for shipping, transportation, and industry. Cleveland grew rapidly after the Civil War, and at the end of the 19th century, it was the 6th largest city in America. Today, the city is home to a diversified economy with healthcare, insurance, and education among its leading employment sectors. 

Nestled on the shores of Lake Erie halfway between New York and Chicago, Cleveland has been a center of arts and culture for generations. The Cleveland Museum of Art houses masterpieces by Van Gogh and Andy Warhol. The city’s Playhouse Square is the largest center for the performing arts outside of New York. And most importantly, Cleveland is the home of The Polish Boy, the city’s signature smothered kielbasa that is probably what heaven tastes like.  

After we finish posting this article, we’re going to get lunch. But after you read this article, you’ll know how to hunt for personal loans in Cleveland. Read on! 

Personal Loans

People get personal loans for lots of reasons. They are a smart choice for getting caught up on bills, consolidating or settling debt, making big purchases, or covering other expenses. People often use personal loans to supplement incomes that have shrunk or disappeared altogether during tough times.   

One of the most manageable ways to borrow money is through a personal installment loan. Your lender will give you the approved loan amount in a lump sum to be paid back in equal monthly payments or installments. You pay a portion of the loan amount in each installment until your balance is zero. 

For many years, banks and credit unions were the primary sources for good personal loans. But, these kinds of financial institutions try to protect their reputation and assets by setting strict requirements for borrowers. Banks look at your financial assets and credit rating. Credit unions are private organizations that only serve their members. 

Fortunately, direct lenders create personal loans for people who may not find a loan anywhere else. Without the restrictions of traditional financial institutions, direct lenders can finance borrowers as they see fit and create loan packages catered to each borrower. 

Is an Unsecured Loan Safe?   

A loan is either secured or unsecured. A secured loan requires collateral that the lender can hold for the duration of the loan agreement. Collateral has to have significant value—like a car, house, or bank account. If your loan goes into default (that is, you fail to pay the loan back), the lender will seize ownership of the collateral to cover the money lost to you.

On the other hand, personal installment loans are unsecured. Does that mean that personal loans are bad? It’s true that unsecured loans sound like something to be wary of. After all, an “unsecured” anything doesn’t sound like it will help your financial security. However, unsecured loans are just loans that don’t require collateral. That means that there’s no need to risk your assets. It also means that personal loans are available to more people who need them. 

Credit Reports, Credit Scores, and Personal Loans

Your creditworthiness is essential to every personal lender. However, every lender considers creditworthiness differently. Whatever their needs, almost all of the information lenders want to review exists on your credit report. 

Think of your credit report as the story of your relationship with debt. Credit bureaus write the story. These data collection agencies analyze your behavior with past and current creditors and make their findings available in your credit report. Experian, Equifax, and TransUnion are the three major credit bureaus reporting on American consumers. 

Payment History 

Payment History matters more than any other factor of your credit report. This record of your late or delinquent debt payments tells lenders how likely you will repay a loan. Even if your credit rating may be less than ideal for a traditional loan, good payment history means a lot to private lenders. Any financial expert will tell you that the best financial habit you can keep is to pay your bill on time. 

Credit Utilization

Credit utilization measures your use of available credit. Low utilization signals lenders that you can use credit effectively and pay it down. If you manage your current credit wisely, the chances are high that you will continue your activity.  A good rule of thumb is to keep your credit utilization below 30%. 

Credit History 

Your credit history is the age of your oldest active credit account. A long credit history shows that you have been managing debt for a while. However, a long history mired with negative marks won’t help your chances, so keep your accounts current with on-time payments. If you are paying off a credit card loan or balance, consider keeping the card open instead of closing it. 

New Credit 

Lenders review the contents of your credit report in a process called a hard inquiry. The new credit section of your credit report keeps track of these hard inquiries. Hard inquires can stay on your credit report for up to two years. Each inquiry can harm your credit score, so it’s wise to limit the number of times you apply for new loans or lines of credit. 

Credit Mix 

Let’s say that in addition to a credit card, you’re also paying on an auto loan, and perhaps a student loan as well. Then you have a perfect credit mix. These pieces of various debt speak to your ability to manage your debt. The extent of your credit mix won’t necessarily make or break your credit score.  

Credit bureaus compile and weigh this credit report data and calculate your credit score: 

Excellent: 800-850
Very good: 740-799
Good: 670-739
Fair: 580-669
Poor: 300-579

Each bureau uses its own credit score algorithm, making it is possible to have three different scores. When you apply for installment loans or financing, the lender may review your score from a preferred credit bureau, or you give the option to choose. 

Whether your credit score is good or bad, it is not fixed. Developing good financial habits and living on a budget can help you organize your finances and pay down debt. Additionally, staying on top of your credit report is essential to your financial health. Federal law requires all three major credit bureaus to provide access to your report every year. Review it often to check for any credit report errors, and dispute them so that the credit bureaus at fault can remove them. 

Does My Credit Score Matter for a Personal Installment Loan? 

Your credit score says a lot about your financial behavior. Good credit is a sign of responsible pattern managing debt. On the other hand, bad credit makes some lenders believe that you won’t be a good loan customer. Your past behavior is the source of those assumptions. But does your past always have to predict your future? It depends on what type of lender you’re looking for. Banks and credit unions tend to rely on credit scores and history to determine if you’ll be a good customer. However, private lenders rely more on your present-day conditions. Private lenders often use factors like payment history and your debt-to-income ratios to determine loan approval.

Personal Loans in Cleveland: The Alternative to Payday Loans 

In addition to personal installment loans, there are cash advance loans that are readily available and promise minimum requirements and fast cash. These features make cash advance loans attractive to underbanked people with bad credit. 

The most dangerous cash advance loans are payday loans. Sometimes referred to as payday loans online same day and are short-term, high-risk loans described as “hassle-free” money solutions by payday loan lenders. You are supposed to use a payday loan to fill the gaps in your budget before payroll hits. But, the high interest and short loan terms that come standard with payday loans make them tough to pay down. Payday loans not repaid by the end of the loan term are hit with more fees and rolled over into new payday loans. It is tough to break free when a borrower gets into a payday loan debt cycle.

Payday loans remain popular because people with bad credit believe they are their last chance for a loan. Fortunately, the rise of online lending options has given people new hope for loans that work. You can apply online with many direct lenders, and they don’t require a lot of documents and paperwork. But unlike payday loans, direct lenders can offer a wide range of personal installment loans you can fit into your budget.

Cleveland Rocks. And So Do CreditNinja Installment Loans.  

If you’re drowning in debt, CreditNinja loans can pull your finances out of the deep end. Our personal installment loans are helping people break free of the debt traps that come with payday loans. Every CreditNinja loan is guaranteed excellent service, from the first installment payment to the last. 

A Fast, Fully Online Experience 

Who has time to sit in a bank or stand in line at a payday loan store? When you apply for a personal installment loan at CreditNninja, you can do it anywhere, anytime. Funds for our approved loans are sent straight to your bank account—sometimes in as little as one business day. 

Zero Prepayment Penalties 

It may sound weirder than the Cavs winning the World Series, but some lenders will punish you for paying them back before the end of your loan agreement. At CreditNinja, we think it’s great when our customers get on top of their finances. Feel free to repay any CreditNinja personal loan as early as you like. We’ll be here for the next time you need some help, too. 

Customer Service 

CreditNinja’s affordable personal loans are fast and easy. But, you’re going to have questions about your loan agreement or other ways CreditNinja can help you. So we’ve assembled a Customer Care Team ready to help you with whatever you need. 

We Design Loans With You in Mind. 

CreditNinja is ready to rock Cleveland with personal installment loans options that work. Payday loans are no longer your only access to fast cash advance loans. Apply online today, or contact us for more information. And if you want to send us a couple of those Polish Boy sandwiches, we wouldn’t be mad about it.

What our borrowers are saying

¹Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications approved before 10:30 a.m. CT Monday – Friday are generally funded the same business day. Applications approved after this time are generally funded the next business day. Some applications may require additional verification, in which case, the loan if approved, will be funded the business day after such additional verification is completed.