What Is a Personal Loan?
A personal loan is a type of installment loan that is offered by banks, credit unions, and online lenders. Usually, funds are made available in a lump sum and can be used for all kinds of expenses, including emergencies. Interest rates and monthly payments are usually fixed, and they are usually unsecured.
If you are an Illinois resident who is facing a need for urgent funds, you can avoid loans like payday loans and turn to these options instead. Installment loans are often recommended over short-term options like payday loans because they can have fewer hidden fees and be easier to repay.
There are a few different kinds of personal loans you may come across:
- Secured Personal Loans — Secured loans involve an asset as collateral. Because of this, the loan process can take a little longer than unsecured loans.
- Bad Credit Personal Loans — These are specifically designed for borrowers who have poor credit.
- Unsecured Personal Loans — The most common type, unsecured loans do not involve any collateral and are based on the borrower’s income, credit history, and ability to repay.
- Expense-Specific Personal Loans — These personal loans are designed to be used for a specific financial situation, such as home improvement or medical bills.
What Are The Types of Personal Loans You Can Get?
There are a variety of loan options available if you are an Illinois resident, including both secured and unsecured loans. For instance, unsecured personal loans can help cover everyday expenses or unexpected emergencies, while secured loans, such as mortgage loans, are designed for larger, long-term purchases like buying a home. Below, we’ll go over some common options that you’ll find alongside personal loans:
Bad Credit Loans
Borrowers in Illinois have access to bad credit loans. These can be personal loans, payday loans, secured credit cards, or any other loans that are available for borrowers who have a poor credit score. While these options can make it possible for bad credit borrowers to get funding, they can come with high rates and potentially be difficult to repay because of their loan terms. It’s important to research lenders and loan options carefully.
Payday Loans
Payday loans are extremely short-term loans that are available for borrowers with extremely poor credit or no credit at all. They make a few hundred dollars available, which need to be repaid usually as soon as two weeks. While these options can make fast cash accessible, they can quickly lead to a cycle of debt.
No Credit Check Loans
No credit check loans are options that don’t require a credit check. While this may be convenient for those who don’t have any credit history or poor credit, no credit check loans are often extremely short-term and can come with high fees and interest rates.
Cash Advance Loans
Cash advance loans make a small amount of cash available for borrowers, usually only a few hundred dollars. Credit card cash advances and payday loans are two examples. While these can be a fast option, they can come with high fees, and in some cases, interest rates can start accruing right away.
Illinois Installment Loans
Illinois installment loans are loan options that are repaid in steady monthly payments until the loan is paid off in full. These options are preferred over other fast funding options because they usually can be personalized with repayment length, and a steady payment means more manageability for a variety of lifestyles.
Here are some qualities of personal loans that you may find:
- Loan Amounts — Loan amounts can range quite a bit from a few hundred dollars up to several thousand, depending on the lender and the borrower’s finances.
- Fixed Interest Rates — Interest rates are typically fixed, which means they stay the same throughout repayment.
- Repayment Terms — Personal loans can be long-term or short-term, depending on the lender.
- Fees and Penalties — Just like any other loan, if you have a late payment/miss a payment, there can be fees. Additionally, costs like origination fees are usually standard.
- Online Loan Management — When working with most online lenders, you’ll have the option to manage your loan through some kind of online portal, which can make repayment more convenient.
Illinois Installment Loan Rates
Let’s look at how monthly payments on a hypothetical $500 loan can vary based on the length of the loan, while keeping the interest rate the same. Remember: the better your credit score, the better the rate you’re likely to qualify for, which can help you save money over time.
|
Term Length |
APR as low as |
Monthly Payment |
|
0-4 |
13% |
$128.40 – $505.42 |
|
4-8 |
13% |
$65.59 – $103.27 |
|
8-12 |
13% |
$44.66 – $58.61 |
|
12-24 |
13% |
$23.77 – $41.44 |
Loan details in the table are illustrative and not guaranteed. It does not constitute an offer, commitment, or guarantee of any specific loan terms. Final terms depend on creditworthiness, underwriting, and law. Contact the lender for personalized offers.
Can You Get a Bad Credit Loan In Illinois?
Even if you have bad credit, you may be able to get a personal loan as an Illinois resident. In general, most lenders will ask that you are of legal borrowing age, in Illinois, in most cases, that is 18, have a source of income, be okay with a credit check, have a valid phone number and address, have an active bank account, be a United States citizen or permanent resident, and lastly, prove your ability to repay your loan.
When it comes to credit history, most lenders may pull all three credit reports. Bad credit lenders may check your credit history, but they tend to focus more on your income and ability to repay your loan for eligibility.
Other Considerations
When looking for a loan, always search for reputable lenders and read customer reviews. Review any notice about changes in terms or fees. If something seems unclear, contact the lender directly to get clarification or request written documentation. Some lenders even offer dividends or referral bonuses to loyal clients, particularly for those using multiple financial products through the same company or site.
What Can You Use an Installment Loan in Illinois For?
You can use an installment loan in Illinois for all kinds of expenses. Here are a few examples:
| Home Repair Whether you have a plumbing emergency, a major appliance that needs fixing, outdoor damage, or anything else, a personal loan can be used to take care of any home-related repairs. | Credit Card Debt Consolidation Personal loans can be used to consolidate credit card debt, which can help lower interest costs. | Medical Costs An installment loan can be used towards medical costs. Whether it’s medication or a procedure. |
| Car Repairs Personal loans can be used for both cosmetic and essential car repairs. | Life Events Installment loans can help bridge any gap that may come up during major life events like continuing school, moving, or even weddings. | Other Emergency Expenses If you lose your job, have a medical emergency, or anything else comes up, a personal loan can pay for those emergencies while you get back on your feet. |
How Illinois Loan Options Work
In general, personal loans in Illinois, will work like this:
- Apply for Your Loan — Start by filling out a quick and secure application with your basic personal and financial details. When working with an online loan, the entire application process can be done from the comfort of home. Just ensure you’re on a trusted WiFi network when filling out an online application. Loan applications usually take up to 20 minutes.
- Verify Income and Other Qualification Information — You may be asked to upload documents or link your bank account to confirm your income and employment status.
- Find Out Whether You Qualify — After you complete the application process and submit, the lender will review your information and determine eligibility. You’ll receive a decision typically within a few days, with an online loan often within a few minutes.
- If Approved Review the Loan Contract — If you get loan approval, take time to read through the terms, including the interest rate, repayment schedule, and any fees to figure out whether the loan fits your budget and your unique needs.
- If Everything Looks Good Review, Sign, and Get Your Funds — Once you sign electronically, the money is typically deposited into your bank account between 1-7 days. With an online loan, it may be as soon as the next business day. Keep in mind you never have to borrow more than the maximum amount that you need.
- Begin Repayment — Make regular monthly payments according to your schedule, many lenders offer autopay to make it easier. You’ll be responsible for repaying the loan in full.
| Apply Online Fast & Easy The first step is to apply. With an online loan this can be done from the comfort of home. | Income Verification The next step is to verify income. In most cases, with an online loan this can be done with a few steps. However, some banks and credit unions may ask for documentation. | Same-Day Availability In some cases, you may be able to get funds from a personal loan as soon as the same day. This depends on the lender, an online loan may be faster! |
Top Illinois Loan FAQs
What is an installment loan?
An installment loan is a type of loan that is repaid in steady payments. Personal loans are one example. They can be unsecured loans or secured loans. An installment loan can be an online loan or from a brick-and-mortar lender.
How much can I borrow with a personal loan with bad credit?
This will largely depend on the lender and your income and credit. Some lenders may offer thousands of dollars. However, you’ll have to meet their income, credit, and any other requirements.
What are the eligibility requirements?
In general, you must be of borrowing age, be a United States citizen or permanent resident, have income, be okay with a credit check, have an address and phone number, have an active bank account, and show your ability to repay your loan.
How quickly can you get funding from a personal loan?
In some cases, with quick loans, you may be able to get funding as soon as the same business day, usually with online personal loan lenders. Generally, personal loans can take 2-7 days to get funding to you once approved.
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