If you are in the middle of a financial emergency, a Florida Personal loan may be able to help you out. Florida personal loans come in many different forms, including secured loans, unsecured loans, bad credit loans, and more! Here, you will learn about some of the best personal loans Florida has to offer, how you can qualify, and how you can set your financial future up for success with the right kind of funding!
Personal installment loans are a type of personal loan distributed to approved borrowers in one lump sum. Borrowers then pay back their balance in monthly installments. Installment loans are usually available with lenders like a bank, credit union, direct lender, or online lender.
Unlike a personal line of credit, if borrowers want additional funding from an installment loan, they may have to reapply and go through another approval process, including sending in documents and undergoing a credit check. So, before you commit to a personal loan, review its core elements to make sure it’s the right fit for you.
The core elements of most types of loans, including an Installment loan, are:
- Collateral Required: Loans are commonly divided into two categories, secured and unsecured personal loans. A secured personal loan requires collateral to lock down the funding, while lenders that offer unsecured loans do not require a physical form of collateral. Consumers with extremely poor credit often turn to secured loans when they need to borrow money because lenders for this type of loan usually care more about the equity in the collateral instead of the borrower’s credit history. Since unsecured loans do not require collateral, lenders may put more of an emphasis on creditworthiness during the approval process. However, many installment loans come in the form of bad credit loans, meaning consumers with less-than-perfect credit may find approval without having to offer collateral.
- Loan Terms: The repayment terms of a loan will determine how long it will take borrowers to completely repay their loan balance, plus interest rates and other fees. Usually, higher loan amounts will also have longer loan terms, while loans with lower funding amounts may take less time to repay.
- Monthly Payment: The monthly payment of a loan is how much borrowers will contribute each month in order to pay off their loan balance. To avoid putting yourself in a situation where your loan becomes too much to handle, make sure your loan comes with affordable payments. That way, you will be less likely to run into late fees or other penalties that come with missing loan payments.
- Interest Rates/Annual Percentage Rates: The annual percentage rate and interest rate will play a major role in determining how much borrowers will end up paying for their loans. Traditionally, borrowers with higher credit scores are granted lower interest rates because lenders consider these borrowers to be a lower lending risk. Borrowers with a lower credit score or no credit at all may have to pay higher interest rates until they can improve their scores and qualify for lower rates.
- Loan Amount: The loan amount is perhaps the most important element of a loan. When thinking about what kind of loan amount you are looking for, ask yourself exactly what you want to pay for with your loan. Larger expenses like home improvements or debt consolidation may require higher loan amounts, while minor expenses such as catching up on a late bill may require less cash.
- Fees and Penalties: Depending on the lender and credit product you decide upon, you may come across a few different types of fees, charges, or penalties. When inquiring around, ask lenders what types of fees or charges they typically include with funding. For example, many lenders often charge origination fees. An origination fee is a type of Underwriting charge that borrowers pay in exchange for their lender writing up their loan contracts.
Other less common fees include prepayment penalties or balloon payments. A prepayment penalty is a charge some lenders impose on their borrowers if they try to make their loan payments before their designated due date or try to pay off their loan early. A balloon payment is a large lump sum charge some lenders require at the end of a loan’s repayment terms. Prepayment penalties and balloon payments are inconvenient charges that often make paying off debt more difficult. While most lenders charge origination fees, you may be able to avoid dealing with early payment fees or balloon charges when working with the right lender.
- Funding Time: The amount of time it takes for lenders to approve borrowers and distribute funds may also be a huge factor in determining what kind of loan you want to go with. Some lenders will require borrowers to submit lengthy documentation, attend in person meetings, or wait weeks until they hear back about their approval status. Other lenders who specialize in assisting borrowers going through financial emergencies are able to deliver approved funds as soon as one business day. Other times, these lenders are able to give borrowers their money in as little as a few hours!
No Credit Check Loans
A No Credit Check Loan is funding from a lender who does not check the official credit scores of its applicants. Keep in mind that most lenders who advertise loans as no credit check loans will still review credit history in some way before they approve borrowers for funding. These lenders will typically perform soft credit checks instead of official hard credit checks. While soft credit checks are not always official reports on credit, they contain virtually the same information lenders get when they perform hard credit checks.
Below are some tips on how to handle your loan if you want to work on improving your credit over time.
- Keep a positive payment history, or consider signing up for autopay.
- Avoid applying for new credit until you pay off your current debt.
- Pay more toward your monthly payments when you can.
Cash Advance Loans
Borrowers may access cash advance loans as a way to receive part of their paycheck before their official payday. In order to receive a Cash advance loan, borrowers usually must have an active bank account. This is because most cash advance lenders want to deliver your loan funds directly into your bank account and access their repayment right when your paycheck comes in. Below are some common types of cash advance funding Florida residents may consider:
- Payday Loans: Payday loans are a type of fast cash funding that usually come with low loan amounts and a higher interest rate. Repayment periods for payday loans typically range from one to two weeks. Payday loans are often considered a predatory lending product because they advertise high-interest funding with little to no qualification requirements. This kind of lending practice could put vulnerable borrowers at risk of running into late payments, missing monthly payments, or even loan default.
- Credit Card Cash Advance: Generally, credit card cash advances are available to credit card holders, who can access them at most banks or ATMs. Although credit card cash advances don’t come directly from a cash advance lender, most account holders are still required to have an active bank account.
To avoid accumulating too much credit card debt, try not to carry a balance from credit card cash advances. Interest rates on cash advances from a credit card tend to be higher than rates for standard purchases, so you could potentially save money on interest rate charges by not carrying a balance.
- Employee Cash Advances: Some employers may be willing to grant their employees cash advances on their paychecks. Getting a cash advance from your employer should be reserved for extreme financial emergencies where absolutely no other options are available. While a cash advance from your employer may be able to provide some immediate financial relief, make sure there is room in your budget to handle a lower income until you can work off your employee cash advance.
Online Bad Credit Loans
If you don’t have good credit, you may think that your options are limited when it comes to Florida personal loans. But this isn’t always the case. Thanks to bad credit lenders, Bad Credit Loans can be accessible to borrowers with poor credit, no credit, or even past bankruptcy! Furthermore, with a convenient online process, getting these loans has never been easier.
To begin the process, head over to the lender’s website and fill out an application. The initial application for most personal loans will ask for basic information such as your name, address, general income, and desired loan amount. After sending this information, a loan agent should get back to you with your approval status. Some traditional lenders may take a few days to give potential borrowers their approval status, while others may only take a few hours or less.
Once approved, the next step will be to send in a few documents. Many lenders request documentation for personal loans in order to confirm the information given on the initial application form. To make your approval process go even faster, it may be a good idea to gather these documents before you submit your application. Here are the documents you may want to get together:
- Government-Issued Photo Identification: To confirm your identity, lenders require a government-issued ID. Common forms of identification given for online loans are a driver’s license, passport, or state-issued ID.
- Proof of Income: Lenders need to make sure that potential borrowers have the proper means to pay back their loan balances. In order to prove you can pay back your loan, you may submit documentation like a paystub, bank account statement, certain tax statements, Social Security payments, and more!
- Proof of Residency: Rules and laws regarding loan amounts, repayment periods, interest rates, and more can differ depending on which state you live in. To make sure you are being paired with an appropriate lending product, lenders ask borrowers to show a proof of residency. You can prove where you live with documents like a lease/rental agreement, mortgage statement, or simply a bill with your name and address listed on it.
- Bank Information: To send approved funds to your checking account via direct deposit, many lenders require a borrower’s bank information, including their routing number and bank account number.
After your lender has processed your documents, it’s time to sign your loan contract and get your money. However, before you sign your loan contract, read it over and ask your lender to clarify anything that doesn’t make sense to you. Your loan contract is a binding agreement, so feeling comfortable with your interest rates, terms, and other aspects of your loan is important.
Payday Loan Alternative
While potential borrowers may think that a Payday loan is the fastest and easiest way to get cash, this, thankfully, is not true. Below are some other options to consider if you want to stay away from payday loans.
- 401K Loan: A 401k is a retirement account many employers have available for their employees. While 401k accounts are meant to be saved for retirement, account holders may borrow money from their accounts before they retire. Keep in mind that borrowing from a 401k account can come with fees and potential tax penalties but MAY be an option for you.
- Home Equity Loans: If you own a home, you may be able to use its equity to secure a home equity loan or a home equity line of credit. Since the value of a home/property is usually quite high, home equity loans and home equity lines of credit tend to have higher funding amounts and credit limits. However, since this type of funding is secured by the borrower’s home, they risk losing it if they default on their loan.
- Car Title Loans: Similar to payday loans, title loans are a type of secured loan that usually come with lower loan amounts and extremely high-interest rates. Title loans are secured by the borrower’s free-and-clear vehicle title, so if you do not own your car outright, you may not be able to qualify for a title loan.
- Auto Loans: Auto loans are loans meant specifically for buying a car. Borrowers may be able to access an auto loan directly through their car dealer or from unique car loan lenders.
- Non-Loan Alternatives: You may also be able to take care of your expenses without applying for a loan at all. If your expenses are low enough, you may consider asking a trusted friend or family member, getting a temporary second job, or simply reorganizing your finances in order to get the cash you need.
Are Florida Personal Loans Right for You?
To avoid predatory lenders, make sure to do research on the different lenders and financial products offered in your area. Many lenders also have customer reviews available online, so you can see what kind of experience other borrowers had. Some other tips that may help you find the right personal loan in Florida are:
- Check Your Credit Score: More traditional types of lenders, such as a bank, may have qualification requirements that involve a minimum credit score. Knowing your credit score may help narrow down your search when it comes to finding the best lender or funding product for you.
- Review Your Current Debt: Florida residents should take inventory of their current debt before applying for an additional loan or line of credit. If you have a substantial amount of debt, you may find that a debt consolidation loan will work best for your current situation. You can also use a free debt consolidation calculator online to help you determine how long it will take you to manage all your debt.
- Have a Financial Plan: Never go into a loan blind. Before applying, think about how long you want to take to pay off your funding and what income/assets you are going to use to do it. Having a financial plan may help you manage your loan better and avoid unnecessary budgeting mistakes.
A personal installment loan may be the right choice for you, but make sure you do plenty of research to find the best one.