Personal Loans Online, Bad Credit Accepted

Personal Loan Options - Understanding Them

A 2022 report noted that personal loan products were encroaching on the traditional space of credit card lenders, and with good reason. Before the advent of credit cards, personal loans were a preferred way for many individuals to seek short-term financing. While many people turn to credit card accounts for such purposes today, personal loans can provide better terms, an easier path to payoff and costs that are disclosed upfront.

What is a personal loan, and why get one?

A personal loan usually refers to a loan that is received without putting up collateral. Collateral is something of value that a lender might sell to recover money if the borrower doesn't make payments.

Common examples of collateral lending arrangements include vehicle loans from a bank or products bought on credit at a jewelry or furniture store. Those loans are tied to a specific piece of property. This means they are secured by that property, which is why they are referred to as secured loans.

Personal, or unsecured, loans are not tied to property. Lenders often review a person's credit history or income statements when making a decision on whether to offer an unsecured loan. When you accept this type of loan, you agree to a payment schedule and must pay the loan back within a specific time by making certain payments weekly, biweekly or monthly. In the case of LendUp's short-term personal loans, you might only make a single payment.

Why apply for a personal loan?

Common reasons people apply for unsecured loans include a need for immediate funds to cover an emergency expense or a problem accessing other forms of credit. LendUp works with people of all income levels and credit backgrounds, helping to cover necessary expenses or stretching finances during a time of crisis.

Minimum requirements to apply for personal loans with us

To apply for a personal loan through LendUp, you must meet some very basic minimum requirements.

First, you have to be at least 18 years old and able to complete our simple, five-minute application. The application asks for information including a current contact number and address and a valid email address. You will also need a checking account that accepts electronic transfers, and you must live in a state where online personal loans are legal.

Avoiding personal loan scams

As you search for the perfect personal loan, remain cautious and protect yourself from potential scams. Fraudulent online lenders may try to take advantage of unsuspecting borrowers, causing financial harm and distress.

Red flags to watch out for

Be cautious of the following warning signs when researching personal loans:

• Guaranteed approval

• False sense of urgency

• Upfront payment

• Excessive personal information

• Unprofessional communication

• Unrealistic loan terms

Guaranteed approval is a major red flag, as no legitimate lender can promise loan approval without considering your credit score and other qualifications. A false sense of urgency, such as a lender pressing you to make a decision quickly, should also raise suspicion.

Upfront payments and requests for excessive personal information are other warning signs to be aware of. Unprofessional communication and unrealistic loan terms, such as extremely low-interest rates or no fees, are also indications of potential scams.

What is the LendUp advantage?

Using LendUp's loan-matching service come with what we believe are numerous advantages for borrowers.

An advantage of LendUp is that we strive to make our fees and business model as transparent as possible. If you are approved for any type of loan, our lenders disclose exactly how much you will pay back and when.

Disclaimer: LendUp is not providing financial, legal or tax advice. If you need or want such advice, please consult a qualified advisor.

Reporting Suspected Scams

If you suspect that you have encountered a scam, it’s crucial to report it to the appropriate authorities. By doing so, you can help protect yourself and others from fraudulent activities and assist law enforcement agencies in investigating and prosecuting those responsible.

To report a suspected scam, contact the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau, or your state’s attorney general. By staying vigilant and reporting scams, you can ensure a safe and secure personal loan search process.

Frequently Asked Questions