Nashville is the capital of the state of Tennessee. It has a metro area of 1.9 million people, making it the largest city in the state. Known as “Music City,” Nashville has a rich history of producing talented country, pop, gospel, and rock musicians. Nashville is a great place to live, work, and especially play. And if you’re looking for a way to dig yourself out of a hole, a personal loan is a powerful tool for you to use. This article will show you how to find the best personal loans Nashville, TN, has to offer. Read on!
What Is a Personal Loan?
Are you in financial trouble? You should consider the benefits of personal loans. Nashville, TN, has many loan options, but how do you know which one to choose? And if you have less-than-perfect credit, do you have any choices at all?
A lender gives you a personal loan in a lump sum. You then pay the loan back with fixed monthly payments. These payments are also called installments. You may have also know personal loans as installment loans.
Personal Loan Uses
Personal loans provide immediate cash and fixed monthly payments. That makes them good financing options for lots of different expenses. Here are some of the most common uses for personal loans.
Credit Card Debt Consolidation
A debt consolidation loan makes it easier to pay off credit card debt—especially if you have multiple credit cards. The consolidation loan pays off the cards, and you pay one fixed monthly payment. Consolidation gives people an opportunity to make drastic changes to their debt and credit rating.
The unexpected challenges in life also are expensive. Medical issues, car repairs, or sudden job loss could mean you need a loan. A personal loan could give you the breathing room you need to deal with your emergency by covering your short-term money problem.
Whether it’s a trip down the highway in a new roadster or a trip down the aisle with your spouse-to-be, our milestones and significant events deserve to be memorable. A personal loan can give you a way to finance the fun that makes life worth living.
Personal Loan Lenders
You can get a loan from several different sources. Each lender has its specific requirements and can approve or deny loans based on its criteria. When it comes to personal loans, these are the three primary sources:
Banks provide personal loans with low rates and long terms to their customers. There are many advantages to working with a bank on a personal loan, including management options that auto-transfer funds from your bank account. However, banks are financial institutions that rely on a solid credit history for a personal loan.
Credit Unions are financial institutions that serve a membership instead of the general public. Membership for credit unions typically depends on your work affiliation. For example, there are credit unions for teachers and credit unions owned by corporations that serve their employees. Credit Union can offer many bank services—including personal loans—at competitive rates. But if you aren’t a credit union member, you can’t work with them.
If you can’t get a loan from a bank or credit union, it may seem like no one will help you. But, there are plenty of opportunities available with private lenders. Not burdened by the regulations or reputations of traditional financial institutions, private lenders can help people from all types of financial situations. The reason for this lies in the way private lenders work. Instead of reviewing the whole of your financial past, they pay more attention to behavior that reflects what kind of borrower you’ll be now. You can also apply for a personal loan online and receive a faster loan decision on your mobile device than spending hours at a bank or credit union. For many people who have made financial mistakes (and that’s a lot of us), Private lenders provide a second chance at getting out of debt with a stable personal installment loan.
Secured vs. Unsecured Loans
Loans are either secured or unsecured. The two loan forms have one significant difference between them—collateral. You provide collateral for a loan as a security for the lender. It is an asset with value. If you fail to repay the loan, your lender will resell your collateral.
Secured loans require collateral. They are loans like car loans and mortgages that use your house or car as collateral. The collateral guarantee also allows the borrower to pay the loan back over a long period.
Unsecured loans don’t require collateral. Lenders that work with unsecured loans review our creditworthiness, which is the level of your ability to repay debt. Without the need for collateral, unsecured loans are much more accessible to people who either don’t have collateral to risk. Unsecured loans include credit cards, student loans, and one of the most versatile lending options around—personal loans.
Personal Loans, Credit Reports, and Your Credit Score
Your credit follows you throughout your life. As an indicator of your past, present, and future financial behavior, your credit rating will somehow affect your lender’s loan decision. Most of the information anyone would want to know about your creditworthiness is available in your credit report.
Your credit report is a log of information supplied by your past and current creditors. It divides into the following components, with some of them weighing more heavily on your credit score than others.
Your payment history is the record of all of your late or delinquent payments. So if you fail to pay a utility bill or make a late loan payment, your credit will add that instance to your credit report. Because payment history is a clear indicator of how you behave as a borrower, it is the most critical factor in your credit report. Many private lenders consider your payment history instead of your overall score to make their loan decisions. Avoid building a horrible payment history by paying your bills on time or working with your lenders to make alternate payment arrangements.
Credit Utilization measures how much credit card debt you have. It is a percentage of your overall credit limit. So let’s say you have two credit cards with a max limit of $500 each. That means you have a credit line of $1,000. Currently, you have a Balance of $100 on one credit card and $150 on the other. That means that you are using $250 of your $1,000 of credit and have a utilization ratio of 25%. You should work to keep your utilization below 30% for an optimal credit score. Not only will you show potential lenders that you regularly pay on your credit, but you will also keep the majority of your credit available at all times.
Your credit history shows how long you have been managing credit. History depends on the age of your oldest credit account. Don’t cancel your credit cards after you pay them off to ensure that your credit history reflects your real experience as a borrower.
Whenever you apply for a line of credit or certain loans, lenders can look at your credit score in a process called a hard inquiry. A hard inquiry shows that you are actively seeking financial assistance and stay on your credit report for up to two years. If potential lenders see that you have several hard inquiries over a short period, you may be considered too high of a risk. So, when you apply for a critical personal loan or financing, try not to apply for multiple loans or credit at the same time.
Your credit mix shows how many different types of credit accounts you manage. For example, if you’re working on paying an auto loan and a mortgage, you have a credit mix because those two loans have different payment structures. Your credit mix has the most negligible impact on your credit score, so don’t worry too much about your variety. It’s much more important that your accounts get paid on time!
What Your Credit Score Means
Credit bureaus take the information from your credit report and use different algorithms to calculate your credit score. Based on the FICO standard, your credit score ranges from 300 to 850. The higher your number, the better your credit.
740-799 Very Good
You’ve probably heard the general rules about your credit score. That is, good credit gets you good loans, while bad credit closes doors. While good credit can make finding an outstanding personal loan easier, is there hope for people with bad credit who want to borrow money?
Alternative Loans and the Underbanked
“Underbanked” people that don’t regularly access services from traditional financial institutions. While underbanked people may have a bank account, they regularly use different loan products to send or borrow money. Underbanked people can’t easily find convenient, manageable loans with challenges like bad credit or bankruptcies attached to their history. Here are some of the most common loan alternatives available:
Credit Card Cash Advance
If you have a major credit card, you can use it to withdraw cash from almost any ATM in the world. But before you turn your credit line into an instant cash loan, you should know that a “credit card loan” is loaded with fees. Cash advances on major credit cards are subject to an automatic service fee. The advance counts as a credit card purchase, and it is subject to the card’s APR. A credit card cash advance will keep costing you for a while.
Car Title Loans
Car titles loans are secured loans that use your car’s title as collateral. These loans may allow up to a month for you to repay, but these loans have high interest and fees that are very expensive. And, of course, if you don’t repay the car title loan, you lose ownership of your car.
One of the most volatile alternatives to personal loans is payday loans. On the surface, an easy payday loan looks like a simple solution to a short-term financial problem. The rise of online payday loans makes this high-risk loan alternative even more accessible. However, the marketing behind payday loans blinds many borrowers to their actual costs. A payday loan is usually due within a few days and always comes with very high interest. The expense makes it difficult to pay these loans off. Unpaid personal loans become new loans with more interest and new fees. The process keeps repeating until you can clear the debt.
Why You Should Choose CreditNinja
Nashville is the home of music. And now it’s home to a wide range of personal loan options from CreditNinja. All of our personal loans feature:
A Fast Application Process
If you’ve got an internet connection and a few minutes, you’ve got what you need to start your personal loan journey with CreditNinja. Our loan applications are available anytime. And every one of our approved personal loans is electronically transferred to your bank account.
No Pre-payment Penalties
Since interest means big profits for lenders, some companies will charge you a fee for paying off your loan before the due date. At CreditNinja, there are no pre-payment penalties for any of our loans. We want you to get out of debt as soon as you can.
Excellent Customer Service
Even with a CreditNinja loan, you’re going to have some questions. So that’s why our Customer Care Team is ready with all the answers you need. From your first payment to your last, we’re here to help.
Loans Designed With You in Mind
If you’re looking for a personal loan in Nashville, let CreditNinja work with you on your financial fix right now. Apply today, or contact us for more information.