Auburn’s economy has grown over the years, fuelled by a positive business environment, a fantastic education system, and a viable workforce. The city’s commercial development continues to grow, supported by the population growth in East Alabama, as well as a rapidly expanding tourism and travel marketing.
Auburn’s population in 2010 was 53,453, and it has grown to 65,738 in 2019 – a 23% increase. The typical Auburn household makes roughly $44,654 annually.
As an Auburn resident, you may occasionally need financial assistance to take care of unexpected expenses that you cannot readily cover with your income. In those situations, a personal loan in Alabama may offer the financial assistance you need.
What are Personal Loans?
A personal loan is money offered by lenders that you’ll repay with interest and other fees. It can be secured (requiring collateral) or unsecured (no collateral required). Lenders determine the interest rate on unsecured bad credit loans largely based on your credit score.
TransUnion, one of the credit scoring companies, reported that unsecured personal loans reached $138 billion in 2018. The average loan amount in the last quarter of 2018 was $8,402.
Apart from your credit score, lenders may consider multiple aspects when evaluating your loan application, including your income, liquid assets, work history, and your total debt. These aspects show your capacity to pay back the credit. Having a higher income and assets compared to your debt is a positive sign for lenders.
Lenders usually issue loans as a lump sum, and you repay the credit in monthly installments. The amount of each monthly payment will depend on several factors, including the duration of your loan, interest rate, and principal amount. The total duration of payment can be as short as one year or as long as ten years.
Personal Loan Benefits
Besides offering financial assistance when you need it urgently, personal loans offer several other benefits, including:
- Boosting your credit mix to improve your credit score:
Ten percent of your credit score comes from your “credit mix.” A credit mix refers to the different types of credit you have, including things like installment loans, credit cards, and financial accounts. Therefore, a personal loan can add to your credit mix, and potentially boost your credit score. Keep in mind, however, that applying for unnecessary loans just to improve your credit score isn’t a good idea.
- Prompt payment of loans can improve your credit score:
You can improve your credit history by developing a track record of prompt and full payment of your loan. This has the potential of improving your credit score.
- Long-term loans can boost your credit score:
The length of your credit history (the average age of your credit accounts) can impact your credit score. This factor applies from the date you open an account for currently active loans or lines of credit. Therefore, a long-term loan has the potential of positively impacting your credit score.
Why Should You Choose CreditNinja?
CreditNinja offers a web-based lending platform where you can complete all transactions online or over the phone. This makes for a convenient loan application process even with less than perfect credit, which only takes a few minutes. In addition, we offer flexible and customizable services to suit each borrower’s needs.