There are plenty of loan options available to choose from when you need emergency cash quickly. One popular lender that people work with is Ascend Loans. Ascend Loans offers online personal loans worth up to $1,000 for eligible borrowers. A personal loan can provide a lump sum for unexpected expenses, but is Ascend Loans the right lender for you?
Learn how loans like Ascend Loans work and how they differ from alternative options like CreditNinja. Increasing your financial literacy is important because knowing the ins and outs of loans can help you make a confident decision and avoid financial regrets.
Finding the Right Personal Loan
Personal loans are an installment loan option for consumers that need money for emergency expenses. Installment loans provide a lump sum that borrowers repay over time through monthly payments. Monthly loan payments are convenient because borrowers can pay off large loans through smaller, affordable increments.
You can apply with a traditional or online lender to borrow money through a personal installment loan. Both types of lenders typically follow the same approval process. However, speed may be a convenient benefit of online lenders. Online lenders allow applicants to submit documentation online, so no time is wasted on travel or waiting to speak with an agent.
Picking the right personal loan is easy once you know your preferred loan terms. Every financial institution has different benefits, so it’s essential to compare multiple lenders and loan offers before making a final decision and signing a loan agreement. Keep reading to learn how different factors can affect the repayment process.
Credit Score Requirements
Many lenders that offer personal loans have minimum credit score requirements. Even though some financial institutions provide last chance loans for bad credit, they likely have a credit cutoff range to mitigate risk.
Take a look at how FICO scores are split into five categories:
- Poor — 300 to 579
- Fair — 580 to 669
- Good — 670 to 739
- Very Good — 740 to 799
- Excellent — 800 to 850
Many financial institutions require a good credit score, which is a score of at least 670 points. But with the right lender, applicants could qualify for instant bad credit loans with scores lower than 670 points. The lowest credit score you can have while still being eligible for a personal loan depends on the individual lender. For this reason, it’s essential to inquire with more than one financial institution if your credit score is less than perfect.
Remember that once you sign your loan application, making every monthly loan payment on time is imperative. Missing payments will result in late payment fees, which can be pricey. And if a lender does not receive compensation within 30 days, your credit score can suffer. Most financial institutions report payments to at least one of the three major credit bureaus. Late payments stay on your credit report for up to seven years and can continue to negatively affect your score.
Five different financial categories affect your total credit score calculation. Your payment history is the most critical factor, so avoiding late payments is essential. Take a look at how much each category affects your score below:
- Payment History: Paying your debts on time makes up 35% of your credit score. Borrowers can sign up for automatic payments or mobile alerts to avoid late payments.
- Total Debt: A borrower’s debt counts for 30% of a credit score. Financial experts typically agree that keeping your debt-to-income (DTI) ratio below 43% can help you prevent negatively affecting your credit.
- Length of Credit History: The amount of time you have handled credit counts for 15% of your credit score. Keeping your accounts open can help improve the length of your credit history. An established credit history proves that you are financially responsible.
- New Credit Inquiries: The number of inquiries you make affects your credit by 10%. Every hard credit check you agree to can decrease your score by a few points. Financial experts advise consumers to avoid making more than six inquiries per year.
- Credit Mix: The type of loans you have affects your credit score by 10%. Ideally, it would help if you had a mix of installment and revolving credit accounts. However, having more than one type of account is not necessary to improve a credit rating.
The Repayment Period
The repayment period for a personal loan varies depending on the financial institution. Generally, personal loans can last from one month up to a couple years. When you submit a loan application, your lender will use your desired loan amount and monthly income to determine your repayment period.
Small personal loans worth a few hundred dollars may get a shorter repayment length. In contrast, more substantial loans may get an extended repayment length. Remember, the more time you take to pay off a loan, the more you may spend on interest fees. But perhaps increasing the total cost of the loan is worthwhile if you get smaller monthly payments. Paying less on your loan every month can reduce your financial stress by keeping more money in your pocket for other expenses.
You can speed up the repayment process if you get an extended repayment period and have the financial ability to repay the personal loan sooner. You can do this by making more than one payment or increasing the amount you pay monthly. But keep in mind that some lenders charge prepayment penalties.
A prepayment penalty is a charge for paying off a loan sooner than the agreed-upon date. Lenders make money through interest fees and thus earn less capital from borrowers that do not adhere to the loan agreement schedule. The lender will likely charge a percentage of the outstanding loan balance rather than a flat fee. Verify that your lender does not charge prepayment penalty fees before attempting to repay your personal loan early.
Type of Interest Rate
Personal loans can have fixed or variable interest rates. The best interest rate for you depends on your income and monthly expenses. If you need to know precisely how much your monthly loan payment is, you are likely better off with a fixed interest rate. Fixed rates do not change, so you will pay the same amount every month until you pay off the loan.
But suppose you have income flexibility due to fewer monthly bills. You could get variable interest rates that change monthly, quarterly, or annually due to a benchmark rate or index. Variable rates are affected by the economy. For example, interest rates typically fall during a recession, so you could save more with a variable rate. However, rates also have the potential to increase exponentially and may result in unaffordable payments.
Personal loan rates are fixed or variable, so it’s best to determine how much you can afford to pay each month before you decide which type of rate is ideal for your personal loan.
Annual Percentage Rates
The annual percentage rate (APR) is how much you pay to borrow money via a yearly percentage. The APR includes the interest rate and finance charges, such as loan origination fees. High APRs will increase the cost of monthly payments and the total cost of the loan.
When you apply for a personal loan, the lender will determine your APR by looking at your current credit score. Low credit scores indicate risk, so borrowers with bad credit may get higher APRs. In contrast, borrowers with excellent credit scores can typically secure the lowest rates.
Charging high-interest fees helps financial institutions earn more money during the repayment process. In the event a borrower cannot repay their personal loan in full, the lender can make enough through interest fees to offset the cost of the remaining balance.
If you want to apply for bad credit installment loans, know that every financial institution offers different rates. It’s in your best interest to compare loan offers to get the lowest APR possible.
Additional Fees
Borrowing funds through a personal loan costs money, and you may be subject to a few different fees. Taking time to compare lenders and loan offers can help you pick the best lender with fewer fees.
Your lender will likely charge standard fees such as origination and late payment fees. Loan origination fees vary by lender, but it is typically a one-time upfront charge. Origination fees help pay for administrative and processing costs.
Some financial institutions charge additional fees that may not be as common. For example, you may inquire with a lender that charges application fees. An application fee is a charge for applying with a financial institution. Paying application fees does not guarantee that you will qualify, so you can pay and still be deemed ineligible for a personal loan. You can avoid paying this type of fee by shopping around with different lenders.
Loans like Ascend Loans: What You Need to Know
Ascend Loans is a direct lender specializing in short-term loans to subprime borrowers. A subprime borrower is a consumer that lenders deem a high credit risk. Subprime borrowers typically have trouble getting loan approval from traditional banks and credit unions. But interested borrowers do not need a good credit score to qualify for an Ascend Loan.
Ascend Loans provide eligible borrowers with a lump sum to spend on unforeseen expenses in their checking account. The money is repaid through equal monthly payments for a specified amount of time. The borrower makes their final payment on the due date and completes their financial obligation.
Eligible borrowers could get up to $1,000 with Ascend Loans. Ascend Loans are meant for unexpected expenses, so you could use the lump sum you receive on surprise medical bills or car repairs. The money a borrower qualifies to get is repaid through equal payments. A predictable payment schedule allows borrowers to stick to a budget plan and avoid financial surprises. The monthly due date of an Ascend Loan directly matches the pay period of the borrower, so the risk of a late payment is reduced.
Ascend Loans offer perks to returning customers through Emerald Rewards. These rewards are automatically applied to returning borrowers with an excellent payment history. All you have to do is apply through your existing online account to take advantage of Emerald Rewards.
The first reward level of Ascend Loans is known as Emerald Trek. Reward information can be found on your first loan agreement. When you borrow money through an Ascend loan, you will see a lower interest rate and annual percentage rate for a future Ascend loan on the loan agreement. If you apply for a third loan, you move up from the Emerald Trek reward level to the Emerald Ascent level.
The Emerald Ascent level rewards customers with an even lower interest rate and loan amounts of up to $2,000. To qualify for this reward tier, you must have an excellent payment history with no financial issues. In addition, there must be no significant changes to your income or credit score since your last loan. Suppose you successfully repaid two Ascent loans, but your credit decreased due to a late credit card bill. In that case, you may not be eligible to reach the Emerald Ascent level.
This benefit program allows returning customers to earn the following perks:
- Lower Interest Rate: You may get a lower interest rate on every Ascend Loan you borrow if you have a history of continuous, reliable payments. As long as you paid your last loan as intended, you can potentially get a discounted rate every time you borrow money.
- Higher Loan Amount: Returning borrowers with a history of on-time monthly payments could get a higher loan amount than new customers. You may qualify to borrow more than $1,000 but less than $2,000 in emergency cash.
- Lower Monthly Payment: You may get lower monthly payments with every Ascent Loan you borrow. However, you must borrow the same amount with the same repayment terms as your prior higher APR loan.
Who Are They For?
Ascend Loans offer short-term personal loans for subprime borrowers. It is typically challenging for low-credit borrowers to meet strict qualification requirements. However, Ascend Loans offer inclusive qualifying guidelines that allow bad credit borrowers to qualify for emergency financing.
When you apply with Ascend Loans, you are still subject to a credit check. However, Ascend Loans does not run credit inquiries with the traditional credit bureaus used by banks and credit unions such as Experian, TransUnion, and Equifax. Instead, Ascend Loans runs credit checks using specialized credit bureaus.
If you do not have a credit score, you may worry about your eligibility for a personal installment loan. Ascend Loans does not rely on information from traditional credit bureaus, so you may still qualify despite having no credit history. This lender considers alternative information, such as your mobile phone payment history. For example, If you have a history of timely rent payments, you can prove that you have the financial ability to pay your loan on time.
You can complete the online application form to determine whether you qualify for an Ascend Loan. However, these are the minimum requirements necessary to get loan approval:
- A consistent source of income that is verifiable.
- Meet the legal requirements of your state.
- Have an active checking account.
- Meet the Ascend Loans underwriting requirements.
Ascend Loans offer loans that generally last 10 to 12 months. Short-term loans are great for small emergency expenses you cannot afford at this time. Many people prefer short-term loans because the financial commitment typically only lasts a few months. This type of repayment length is ideal if you do not want to be stuck repaying a loan for years.
Short-term installment and payday loans are similar, but installment loans may be the better option. The average payday loan provides a small loan with a short repayment period. However, payday lenders usually expect the borrower to repay the entire loan amount within fourteen days. These strict repayment terms are challenging for most people to meet. Due to predatory lending practices, financial experts often advise consumers against applying with a payday loan company.
Interested borrowers need to know that while Ascend Loans offer convenient funding, these loans are not affordable. The website states that Ascend Loans is a “high-cost option.” While subprime borrowers can qualify, they will likely end up with a very high-interest rate.
How Will the Application Process Work?
The application process to get an Ascend loan includes three steps:
- Apply — You will need to provide basic information to get a qualifying decision. Prepare to submit your name, date of birth, SSN, residential address, and other details.
- Review and Sign — If eligible for an Ascend loan, you will receive a loan offer. Your loan offer will include your potential repayment details. Applicants get 24 hours to sign their loan agreement.
- Get Funded — If you accept the loan offer, you will need to electronically sign and provide your bank account details. Once your deposit details get verified, you can expect to get your money quickly through your preferred payment method.
Ascend Loans provide instant funding through your debit card or by ACH. Automated Clearing House (ACH) allows borrowers to get online installment loans by the next business day. The only exception is if the next day is a bank holiday. Borrowers that qualify to get instant funding can expect to receive their loan proceeds in as little as 30 minutes after signing the loan agreement online. The applicant must provide their debit card number to qualify for instant funding.
CreditNinja: How Does It Compare?
CreditNinja is a premier online lender that provides eligible borrowers with convenient and affordable personal loans. The easy online application offers instant approval decisions. Qualified borrowers can receive their loan funds as soon as the same day.*
Since 2018, CreditNinja has been helping provide consumers with an alternative option to traditional payday loans. We have helped over 200,000 people since we began lending all those years ago. We pride ourselves on providing exceptional customer service and beneficial loan terms that work with your existing budget.
CreditNinja aims to be the best financial option for borrowers experiencing difficult financial situations. A good credit score is not necessary to qualify because we take your entire credit history into consideration. Don’t have a credit score? You may still be eligible if you provide proof of your eligibility to make timely monthly payments.
Many emergency loan options are available, but how do they compare? Read about some alternative loans below to learn how they compare to personal installment loans:
- Payday Loans: A payday loan offers small-dollar loans with extremely short repayment terms. This type of loan is for consumers that need money for unexpected expenses between pay periods. Carefully consider whether you can afford to repay the loan balance and interest fees within two weeks.
- Credit Card Cash Advances: Credit card borrowers can use their cards to withdraw cash. The maximum loan amount depends on your credit limit, although you can only withdraw a small percentage. While convenient, credit card cash advances generally come with exorbitant interest rates and fees.
- Pawn Shop Loans: Interested borrowers can visit a local pawn shop to exchange a valuable asset for fast cash. The loan amount you can get is a small percentage of the item’s current market value. Pawn shop loans require collateral, which is financially risky. In the event of default, you can lose ownership of your personal property.
How Does CreditNinja Stand Out?
CreditNinja stands out among alternative loan options by offering personal loans with exclusive benefits. Personal installment loans can be a great financing option for unforeseen expenses.
Take a look at some of the benefits you could take advantage of as a borrower:
Same Day Funding*
Eligible borrowers can get money right when they need it. You may get your loan funds sent directly to your bank account via direct deposit the same day you apply.* Fast funding allows you to take care of bills before the due date and handle time-sensitive emergencies.
Bad Credit is Okay
CreditNinja works with borrowers that have all types of financial backgrounds. Unlike many other financial institutions, we do not require a good credit score to apply. Many consumers with bad credit scores tend to look for lenders that offer no credit checks. Although we run credit checks, we consider multiple factors when making an approval decision. You are more than your credit score, so we take into account your income, debt-to-income ratio, payment history, and more.
Flexible Spending
You can use your loan money on almost any purchase when working with CreditNinja. Other loan options require specific purchases, such as auto loans. But you can use your personal loan to take care of almost any unexpected emergency. Borrowers can pay a mechanic to repair their vehicle, buy a plane ticket in case of a family illness, or cover the school expenses for their child. Personal loans can also work as debt consolidation loans.
Flexible Repayment Schedule
The repayment schedule is flexible with CreditNinja. The repayment length can extend from a few months to a few years.
And if you decide to repay the personal loan early, you can. We do not charge prepayment penalty fees for early repayment. You can speed up your final payment date to save on excess interest fees.
Competitive Interest Rates
CreditNinja offers competitive rates on personal loans. Eligible borrowers can get an interest rate that doesn’t break the bank or cause unnecessary financial stress. In contrast, working with a payday lender could be stressful. But you may be able to get a fast cash loan with decent rates by working with CreditNinja.
Who Should Pick CreditNinja?
CreditNinja is a beneficial option for anyone that requires fast financial relief. The application process is streamlined, and approved borrowers can potentially get their money quickly.
The qualification requirements are flexible, and a perfect credit score is unnecessary for approval. Low-credit borrowers may still be eligible to get an affordable personal loan. Typically, it’s difficult for consumers with bad credit to qualify for fast cash. But at CreditNinja, we take various factors into consideration. We don’t judge you based solely on your credit score.
If you want fast convenient funding, then CreditNinja may be one of your best options.
How Will the Loan Process Work?
Interested borrowers can fill out a simple online application form to get an instant approval decision. The process takes only three steps and requires basic personal information. You can apply online at any time via your mobile phone, tablet, or computer.
Take a look at the simple three-step approval process:
- Apply – The online form will ask for basic information, such as your name, address, contact details, etc. You will have to submit your SSN, but rest easy knowing your data is secured and encrypted.
- Qualification Decision – Once you submit the required information, you can get an instant qualification decision. Eligible applicants can see their personalized loan amount, interest rate, and loan terms.
- Get Your Money – You can input your bank account details and sign your loan agreement. Your money will be sent super fast via direct deposit. Once you get it, you can start taking back control of your life!
*Applications approved before 10:30 a.m. CT Monday-Friday are generally funded the same business day. Applications approved after this time are generally funded the next business day. Some applications may require additional verification, in which case the loan, if approved, will be funded the business day after such additional verification is completed.
References:
About Us │ Ascend Loans
FAQ │ Ascend Loans
Ascend Loans Emerald Rewards │ Ascend Loans
