Personal Loan FAQ: What You Need to Know Before Applying for a Personal Loan
How do I check my rate for a personal loan?
Checking your rate for a personal loan through Splash Financial is fast and easy. Simply create an account with us using your email address, answer a series of questions about yourself and your loan request, authorize a credit check, and see what options may be available for you! Check our current personal loan rates.
Can I lower the interest rate on my personal loan?
Refinancing your loans may transfer them to a different lender and could potentially give you a lower interest rate.
How much can I borrow with a personal loan?
Our lending partners each have their own minimum and maximum loan amounts. In general, the minimum loan amount is $1,000, and the maximum loan amount is $50,000, but will vary by lender. Some lending partners on the Splash Financial marketplace offer personal loans up to $100,000 for qualified borrowers. Any loan offers provided are based on the information on your application and will depend on a variety of factors, including terms of loan, financial history and other factors.
How long does it take to get a personal loan?
Once you have successfully completed the loan application process, the process to receive your funds typically takes 24-48 hours. However, for some lenders, the process may take up to two weeks.
What is an unsecured personal loan?
An unsecured personal loan is money you can borrow from a financial institution, such as your bank, credit union, or favorite online lending partner. Unlike a secured loan, an unsecured personal loan doesn’t require collateral – like your home or car. Like any personal loan, if you are approved, you will make monthly payments to pay it back in full (plus interest) over a set duration of time. The loan terms and interest rate vary based on the lending partner you choose, your personal credit history, and other factors.
Are there any fees to apply for a personal loan?
Some lending partners charge origination fees and the amount of the origination fees, if any, vary by partner. Any applicable fees will be disclosed and will be part of the APR calculation.
Can you pay off a personal loan early?
You should always confirm your repayment terms with your lender. Some lenders will allow you to pay off a personal loan without any prepayment penalties. However, some installment loans may have fees associated with early payoff.
Are there autopay discounts on personal loans?
Some Splash lending partners offer an autopay discount, which will lower your total monthly payment amount. Your rate offer through Splash will include details of any available autopay discount. You can easily sign up for autopay after your personal loan details are finalized. The funds will come out of your bank account automatically on the due date.
How does applying for a personal loan affect my credit score?
When you are trying to secure a personal loan, your credit score will have an impact on your interest rates. Some of the key things most lenders look at when considering you for a personal loan include:
- Your debt-to-income ratio
- Total amount of credit available vs total credit card debt
- Length of credit history
How will my credit score affect my eligibility for a personal loan?
To check the rates and terms you may qualify for, as well as determine your eligibility, Splash will conduct a soft credit pull. A soft credit inquiry will not affect your credit score.
However, if you choose a product and continue your application, a lender will request your full credit report from a consumer reporting agency, which is considered a hard credit pull and may affect your credit. This allows Splash and our lending partners to ensure that you’re receiving the best rate possible on your loan!
How do I get personal loan with a low rate?
If you’re wondering how to get low personal loan rates, you’re not alone. Each lender evaluates applicants differently and uses its own method to determine rates, and the applicant is required to meet specific underwriting requirements based on the lender’s criteria. However, not all applicants will receive the lowest rates advertised.
Your online application, loan terms, credit score and approval, and other factors considered by the lender determine whether you qualify for a loan as well as the interest rate presented to qualified borrowers. You can shop and compare different lender options through Splash Financial’s personal loan marketplace. Check our current personal loan rates and see what will work best for you.
What can you use a personal loan for?
We know there are many possible reasons why you might need a personal loan, which is why funds can be used for a variety of purposes. Prohibited purposes may include, but are not limited to, educational expenses, home improvement, business expenses, home financing or refinancing. Our borrowers commonly seek loans for debt consolidation, to finance major purchases.
What is the difference between APR and interest rate?
The interest rate refers to the annual cost of a loan to a borrower and is expressed as a percentage. APR refers to the loan’s annual percentage rate and represents the total cost of credit as a yearly rate, including fees. For example, your lender may charge an origination fee for processing your personal loan application, so APR would include both the origination fee and the interest rate.
Do I qualify for a personal loan if I have other loans that are not paid off?
Your previous loan history may not automatically disqualify you from receiving a personal loan. Many people have student loans, auto loans or home loans in conjunction with a personal loan.
What do I need to secure a personal loan?
Aside from having a basic checking account and savings account, you may need to supply some pay stubs, a valid ID, and the reason why you want a personal loan. From there, the lender will decide whether or not they can approve you for a loan.
How long does it take to pay back a personal loan?
The amount of time you have to pay back a loan varies from lender to lender. Generally, they can offer a repayment period between 6 months and 7 years.
If your repayment period is longer, your monthly payment could be less expensive than if it were a shorter time period.
What does my credit score need to be in order to qualify for a personal loan?
Most of the time, lenders look for credit that ranges from average to excellent. Typically, this means that you should have a credit score of 620 or higher. However, if your credit score is lower than that, you still may be able to qualify for a personal loan with a higher interest rate.