What Is a Personal Loan?

A personal loan is a type of installment loan where borrowers receive their entire loan amount upfront and pay back the balance, plus interest and fees, over time. Factors that can affect loan approval include employment status, income, financial history, and your credit score. 

Personal installment loan amounts can range from a few hundred to a few thousand dollars, which means they can pay for a variety of expenses. Common uses for personal loans in NJ include consolidating debt, paying rent or a mortgage, and covering bills. 

What Are the Types of Personal Loans You Can Get?

Different types of personal loans include bad credit loans, payday loans, no credit check loans, and certain types of cash advances (such as an advance using your existing credit line). Check out more info on each of these loan types and how they work if you live in New Jersey! 

Bad Credit Loans

Bad credit loans are funding options designed for borrowers with a less-than-excellent credit score. While loans for bad credit may have higher rates and a shorter loan term, they allow those with poor credit access to cash as well as the opportunity to repay their loan and build credit over time. 

There are secured bad credit loans, like title loans, where borrowers sign over partial ownership of their vehicle to the lender, and there are unsecured bad credit loans, where there is no collateral required. 

Payday Loans

Payday loans, also known as payday advance loans, are a type of short-term, high-interest loan.

Due to their high interest rates, inconvenient repayment terms, and tendency to trap borrowers in a cycle of debt, in-person and online payday loans are illegal in the state of New Jersey. 

No Credit Check Loans

No credit check loans are a type of short-term loan where lenders skip a traditional credit check during the approval process. Since these loans are so similar to payday loans in their design and history of trapping borrowers in debt, they are also usually illegal under New Jersey law. 

Cash Advance Loans

Cash advance loans come in a few different forms. First, there is a credit card cash advance, which involves taking out money against the limit on your credit card. Second, there are cash advance apps, which allow you early access to your paycheck. There are also short-term online cash advance loans, but like payday loans, New Jersey law prohibits these products. 

New Jersey Installment Loans

Personal installment loans are the preferred funding option for so many borrowers because they are perfect for just about any financial situation. When choosing an installment loan in New Jersey, make sure you pay attention to the following factors: 

  • Loan amounts — Decide what you’re looking to pay for with your loan and how much money you need to cover those expenses. Do you need a few hundred dollars to cover some unexpected expenses or a few thousand dollars to cover a larger financial emergency? 
  • Fixed interest rates — Look for loans with fixed interest rates, that way each monthly payment will be the same, and easier to fit into your current budget.
  • Repayment terms — You’ll want a loan with flexible terms, allowing you to pay early if you want, with no prepayment penalties.  
  • Online loan management — Many loan options are available online, allowing you to apply, receive funding, and even make monthly loan payments without ever having to leave your home! 

New Jersey Installment Loan Rates

Let’s take a look at some personal loan options. Below you’ll find loan estimates for a $500 loan with a 25% APR paid over the course of 4, 8, and 12 months.

Term LengthAPR as low asMonthly Payment
0-425%$131.58 / 4 months
4-825%$68.50 / 8 months
8-1225%$47.52 / 12 months
12-2425%$26.69 / 24 months
Disclaimer: 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 New Jersey?

Yes! You can apply for a loan with most credit unions, online lenders, and even some banks. Many lenders simply require you to have a steady source of income and proof of ID in order to qualify. 

While there are many laws and regulations restricting the types of short-term loans New Jersey borrowers can access, there are still ways you can get a quick loan, even with bad credit. 

Keep in mind, lenders may use your credit report to determine your loan amount, interest rates, and other loan details, but they usually won’t base initial approval on your credit score alone. 

Alternatives to bad credit loans include taking out a personal line of credit, using money from your savings, getting a temporary part-time job to earn extra money, or asking a close friend or family member for a small loan. 

What Can You Use an Installment Loan in New Jersey For?

Since installment loans come in both large and small loan amounts, they can be a great solution for just about any expense. Check out some common uses for personal installment loans below:

Home Improvement
Patch a roof, fix an appliance, or update a room.
Credit Card Debt Consolidation 
Consolidate multiple debts into one convenient payment.
Medical Costs
ER visits, hospital stays, prescriptions, and more.
Car Repairs
Cover costs upfront so you can get back on the road faster.
Life Events
Unexpected travel, funerals, surprise expenses.
Other Emergency Expenses
Bills, student loan debt, unanticipated debt, loss of income.

How New Jersey Loan Options Work

When you apply for a loan in New Jersey, you’ll fill out your basic information like your name, address, and income. From there, the lender will give you an approval decision and determine your APR, loan amount, and terms. 

After you read over your loan details and important disclosures, you can sign your contract. Most lenders can deposit your funds directly into your checking account. This is called “direct deposit,” and is by far the fastest way to receive your approved loan money. 

Here’s a breakdown of how the process works: 

Apply Online Fast & Easy
Apply online from a computer, smartphone, or tablet. Usually, you can complete the entire credit approval process online!
Income Verification
Many lenders use income verification to confirm borrowers have the means to repay their loan.
Same-Day Availability
Go with a lender that offers same-day funding to get your approved funds as soon as the same or next business day.

Top New Jersey Loan FAQs

What is an installment Loan?

An installment loan is a type of personal loan that gives borrowers a lump sum of cash up front. Then, the borrower repays the balance with monthly payments, or installments. People use these loans for everything from debt consolidation to surprise expenses.

How much can I borrow with a personal loan with bad credit?

Loan amounts for personal loans will depend on factors like your credit score, income, and financial history. If you have poor credit, you may have to deal with higher interest rates at first. However, as you pay off your debts and improve your score, you may be eligible for a lower interest rate in the future. 

What are the eligibility requirements?

Basic loan requirements for most New Jersey personal loans include having a consistent source of income, a bank account, and a valid form of ID (Driver’s license, state ID, etc.).

How quickly can you get funding from a personal loan?

Funding time can vary depending on the lender you go with, but most personal loans are funded within a day. Many lenders offer same-day funding for borrowers who need quick loans.

What our borrowers are saying


References: 

  1. New Jersey Legislature | NJleg.state.nj.us

CreditNinja does not act as a direct lender in all states. In certain states, loan products are offered and originated via bank partners, which are duly licensed financial institutions. The availability of loans and the identity of the originating lender may vary depending on state of residence and applicable state and federal regulations.