What Is a Personal Loan?
A personal loan is a type of funding where borrowers receive payment in one lump sum and pay back the lender with monthly installments. Depending on the loan amount and interest rates, borrowers can pay back their loan balance in a few weeks, a few months, or longer.
Personal loans can include everything from installment loans, title loans, payday loans, no credit check loans, and even credit card cash advances. CreditNinja recommends personal installment loans because they tend to be the most versatile and convenient loan type. We recommend installment loans over other bad credit loan types because they can come with benefits like:
- Competitive interest rate
- Fixed monthly payment
- Bad credit support
- Same-day funding*
What Are the Types of Personal Loans You Can Get in Pennsylvania?
Check out more details about some of the most popular personal loans you can get in Pennsylvania below:
Loans for Bad Credit
Bad credit loans are a type of loan designed for borrowers with poor or no credit. Keep in mind these loans usually come with a higher interest rate and lower loan amount. But, by paying back your balance early or on time, you can work towards improving your credit, which can help you get better rates and higher funding amounts in the future.
Payday Loans
Payday loans are a type of unsecured loan meant to provide people with early access to their paycheck. The downside to this type of loan is that they come with high rates and short terms, often resulting in the borrower getting trapped in a cycle of debt. So, unless you can repay your balance in full within about 14 days or less, you may want to stay away from payday loans.
IMPORTANT NOTE: According to state law, payday loans are often illegal in the state of Pennsylvania.1
No Credit Check Loans
No credit check loans are loans where lenders skip a traditional credit check during the approval process. These loans usually have fast approval and quick funding, but often have short terms and high fees that can make them an extremely expensive and stressful form of funding.
Cash Advance Loans
People can borrow with cash advance loans by taking out money against the credit limit on a personal line of credit, like a credit card. While this is convenient because you don’t have to apply for a loan or go through a credit check, credit card cash advances often have higher fees than regular credit card purchases, making them an expensive form of borrowing.
Auto Title Loans
Auto title loans, often referred to as title loans, are a type of secured loan where borrowers use their free-and-clear vehicle title as collateral. Similar to payday loans, title loans usually come with high interest rates, low loan amounts, and lots of fees.
While most title lenders allow borrowers to keep their car while they repay the loan, there is still the possibility of having your car repossessed if you fall behind on payments or default on your loan.
IMPORTANT NOTE: Like payday loans, auto title loans are also often illegal under Pennsylvania law.
What Is the Application Process for Personal Loans in Pennsylvania?
Applying for a personal loan in Pennsylvania typically works like this:
- Fill out an inquiry form — You’ll give the lender some basic information like your name, address, and employment details.
- Provide your loan documents — Based on your initial information, the lender may ask for some identifying documents like a government-issued photo ID, and a bank statement or paystub to prove your employment.
- Receive an approval decision — After reviewing your application, the lender will give you an approval decision.
Online lenders are usually able to complete this process fairly quickly, sometimes in a few minutes or less! From there, your lender will provide you with your loan details (personal loan rates, loan amount, loan terms, etc.) in the form of a contract. At that point, all that’s left to do is sign your contract and receive your loan proceeds.
Eligibility Requirements for Pennsylvania Personal Loans
Basic eligibility requirements for Pennsylvania personal loans include the following:
- Age — Borrower must be at least 18 years or older.
- Residency — Borrower must reside in Pennsylvania and prove ID with a driver’s license, PA state ID, etc.
- Income — Borrower must have a steady source of income.
- Bank Account — Some lenders require borrowers to have an active checking account in order to perform IBV (instant bank verification) and send approved funds via direct deposit.
While most lenders who offer personal loans will pull your credit report during the application process, bad credit lenders look at more than just your credit score when determining eligibility. For example, approval for bad credit loans is often based on factors like your income, available assets, current debts, and financial history.
Can You Get a Bad Credit Loan in Pennsylvania?
Yes! Bad credit loan options for Pennsylvania residents include personal loans, payday loans, and cash advances. While these lenders will look at your credit when determining approval, they’ll also consider other factors such as your income and general financial history.
Before applying for credit approval, think about how paying back a new loan will fit into your current budget. Do you already have several loans out? Will adding another payment to your routine stress you out in the long run? If the answer is yes, now may not be the best time to take out a loan.
If you decide that taking out a traditional loan isn’t the best option for your budget right now, you could also seek out non-loan alternatives, such as dipping into your savings or asking a close friend or family member for a small loan.
Top Pennsylvania Personal Loan FAQs
What is an installment loan?
Installment loans are a type of loan where borrowers receive a fixed loan amount and repay the balance, plus interest, over time. Pennsylvania borrowers can use installment loans for consolidating high-interest debt, home repairs, short-term financial emergencies, and more.
How much can I borrow with a personal loan with bad credit?
Typically, loan amounts will vary depending on the type of expense you’re looking to cover, as well as your credit score and financial history.
What are the eligibility requirements for a personal loan in Philadelphia?
Some lenders have minimum credit score requirements, but others simply require borrowers to have a steady source of income, a proof of ID, and a bank account for direct deposit.
How quickly can you get funding from a personal loan?
Depending on the lender you go with, you could get your approved funds the same day you apply. If you’re looking for quick loans, look for lenders that deliver your funds via direct deposit. These lenders often offer a faster approval process and are able to put your loan money right in your bank account.
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