There are various online loan options to choose from when you need fast cash. However, it can be overwhelming trying to determine which lending option is right for you. In this article, we’ll go in depth on Dollar Hand and CreditNinja, two online lending options that people use. Knowing what you can expect from these personal loan lenders can help you narrow down your options.
Finding the Right Personal Loan
Personal loans are a popular financing option because borrowers can use them for various types of expenses. You could use a personal loan to pay for home repairs, car parts, emergency travel, and much more. A personal loan can usually provide up to a few thousand dollars, but remember that your credit score, recurring income, and state laws will affect the amount you are able to get.
Unsecured vs. Secured Personal Loans
While most lenders offer unsecured personal loans, there are secured loans available. A secured personal loan is generally easier to qualify for because it requires collateral. Collateral for a personal loan varies depending on the lender, but many people use the following:
- Cash in a savings account
- A certificate of deposit (CD)
- A car title
- An investment account
- Real estate
- Equipment
Using collateral is not uncommon. Mortgages and car title loans are two popular secured loan options. However, while secured loans may help you get funding with bad credit, they are risky. Remember that you could lose your collateral if you fall behind on payments and default.
Personal Loans vs. Payday Loans
Consumers with bad credit generally opt for payday loans when they need same day funding in their bank accounts. But while payday loans are convenient, they can also cause more issues than they solve.
A payday loan is a one-payment loan that typically has a two-week repayment period. Most payday lenders only require a reliable source of income, so it’s likely that you can qualify with a bad credit score. Payday loans do not typically offer more than a few hundred dollars, but their rates and fees can be astronomical.
Like personal loans, payday loans affect your credit if you do not keep up with payments. But unfortunately, many borrowers roll over their payday loans because of high rates and short repayment terms. According to the National Consumer Law Center, consumers took out 36 advances a year on average.1
Loan Terms You Should Know
Before you apply for any type of loan, it’s important to know loan terms. Learning about common loan terms can help you better understand your financial obligations and avoid predatory terms.
These are some of the most critical loan terms a borrower should know:
| Loan Term | Definition |
| APR (Annual Percentage Rate) | The annual rate charged for borrowing or earned through an investment, which represents the actual yearly cost over the term of a loan, including any fees or additional costs associated with the transaction. |
| Principal | The original sum of money borrowed in a loan, or the remaining balance of the loan excluding the interest. |
| Interest | The cost of borrowing money, typically expressed as a percentage of the principal, is paid to the lender periodically for the privilege of using their money. |
| Term | The length of time over which the loan is scheduled to be repaid. |
| Amortization | The process of spreading out a loan into a series of fixed payments over time. The payments go towards both principal and interest. |
| Monthly Payment | The amount due each month to repay the loan, including both principal and interest. |
| Origination Fee | An origination fee is charged by a lender on entering into a loan agreement to cover the cost of processing the loan. |
| Late Payment Fee | A fee assessed for a payment not received by the due date. |
| Prepayment Penalty | A fee that may be charged if a loan is paid off before the agreed-upon end date, as compensation for the lender’s loss of expected interest income. |
| Default | Failure to meet the legal obligations (or conditions) of a loan, which can result in legal action and loss of collateral. |
Loans Like Dollar Hand: What You Need To Know
Dollar Hand is an online indirect lender that helps consumers get installment loans. An indirect lender acts as an intermediary between the borrower and the lender.
Dollar Hand operates in the following states:
- Alabama
- California
- Florida
- Louisiana
- Mississippi
- Ohio
- Texas
- Tennessee
Eligible borrowers are able to get loan amounts between $100 to $35,000. However, the amount a borrower can get is dependent on their creditworthiness, income, and state of residence. The repayment length can range from 1 to 60 months.
Learn more about how Dollar Hand works below.
How Do They Work?
Dollar Hand is an online brokerage platform, which means they do not provide loans directly. Instead, they connect applicants with one of over 50 reputable lenders across the US. Dollar Hand is free to use, but they receive a fee from their lending partners if loan requests are approved. Dollar Hand connects applicants with lenders that are likely to approve them.
While this process of founding a lender seems convenient, keep in mind that there’s a potential conflict of interest. Dollar Hand may not connect you to the best lender for your financial situation, but rather one that offers the highest commission.
Who Are They For?
Dollar Hand is a financing option for borrowers that struggle to get loan approval due to bad credit scores. They are a payday loan alternative that aims to help consumers save time looking for a lender willing to work with them.
In order to potentially get connected to a lender through Dollar Hand, you must meet these qualifying requirements:
- Be a US resident
- Be over 18 years old
- Have a contact number
- Be able to make repayments
- Have a live checking account to receive the loan
- Earn at least $800 each month
What Are the Interest Rates Like?
The interest rate you get on a personal loan depends on the lender Dollar Hand connects you with, as well as your state of residence. Rates can be very high, as some states do not have APR limits. Dollar Hand provides loan regulations for various states on its website to give interested borrowers an idea of potential loan rates. For example, if you live in Missouri, your annual percentage rate (APR) could be as high as 1,950%! Unfortunately, you are unable to predict how high your APR will be before being connected with a lender.
CreditNinja: How Does It Compare?
CreditNinja is a direct lender that offers quick cash loans. Eligible consumers could borrow money the same day they apply!*
Who Should Pick CreditNinja?
CreditNinja is an online financing option for individuals with bad credit who struggle to get approved by traditional lenders. We aim to help bad credit borrowers get the fast cash they need to handle unexpected emergencies.
While banks and federal credit unions offer personal loans, they tend to have strict qualification requirements. A traditional lender typically has a high minimum credit score requirement. But at CreditNinja, your bad credit score may not disqualify you from a personal loan. Your credit score is just one factor we consider when performing a credit check and making approval decisions.
What Benefits Does CreditNinja Offer?
CreditNinja offers a lot of exclusive benefits for borrowers. When you look for a lender, it’s critical that you get more than just money. For example, you should expect exceptional customer service and convenience.
Take a look at some of the perks we offer below.
- Fast Funding — Eligible borrowers could get a direct deposit the same day they apply!* But remember that in order to get a direct deposit, you must have an active bank account.
- Easy Online Process — Our application process is done entirely online. You do not have to travel to a store location or deliver documents in person.
- No Prepayment Fees — Customers can repay their loan early to save money on interest fees. We do not charge any prepayment penalty fees!
- Flexible Requirements — You may be eligible with bad credit! When we conduct a credit check, we consider your entire credit history, not solely your credit score.
- Competitive Rates — We offer competitive rates! We are generally more affordable than most payday loans and bad credit loans.
How Will the Loan Application Process Work?
The CreditNinja application process is simple to complete and hassle-free! In three simple steps, you may get a same-day approval decision.* All you have to do is complete our online application form, which usually takes a few minutes. After submitting your application, an agent will review your information and contact you with an approval decision. If you are eligible for a CreditNinja personal loan, you could get money in your bank account the same day you get approved!*
Our repayment terms are meant to fit your budget. That’s why we offer a flexible repayment period that can last several months. We also allow borrowers to adjust their repayment terms through early payments. If you end up shortening your repayment terms to save money, you will not be charged a fee!
FAQs About Loans Similar To Dollar Hand
Payday loans generally have much higher interest rates than personal loans, often ranging from 300% to 400% APR or more, which reflects their short-term nature and higher risk for lenders. Personal loans, on the other hand, usually have lower interest rates, often between 6% and 36% APR, depending on your credit history and other factors.
Yes, many payday lenders offer loans without a traditional credit check. However, they might still check your financial history in other ways, such as verifying your income and bank account details. This is to ensure you can repay the loan.
Before opting for a payday loan, consider the high interest rates and fees associated with these loans. Assess if you truly need the quick cash for an emergency and explore other options like borrowing from friends, family, or perhaps a small personal loan from a federal credit union, which might offer lower rates and more favorable terms.
Yes, there are alternatives. Many credit unions offer payday alternative loans (PALs) that provide small loans with capped fees designed to be a less expensive way to obtain quick cash than traditional payday loans. Additionally, some online lenders specialize in loans for individuals with poor credit, offering more manageable interest rates and repayment terms than most payday lenders.
Generally, borrowers with good credit scores are offered lower interest rates because they are considered less risky. Conversely, if you have a lower credit score, you might face higher interest rates. Improving your credit score by paying bills on time, reducing debt, and correcting any errors on your credit report can help you secure better loan terms.
Yes, some lenders offer personal loans without an origination fee. An origination fee is a one-time charge by the lender for processing your loan application. It can range from 1% to 8% of the loan amount. However, not all lenders charge this fee. If you’re looking to save money on your loan, it’s worth shopping around for lenders that offer no origination fee loans.
A Final Word From CreditNinja
CreditNinja and Dollar Hand are two financing options that can help consumers get financial relief quickly. If you have a bad credit score, it may still be possible to get money in your bank account through an online lender. However, the best personal loan option for you depends on your unique financial needs and background. Remember that it’s critical to compare rates and terms to find the best affordable deal!
If you have any further financial questions, check out the CreditNinja blog. Learn if you can remove a payday loan from a credit report, how you can improve a credit score, and even how to start budgeting with irregular income.
References:
- Frequently Asked Questions│Dollar Hand
- Data on Earned Wage Advances│National Consumer Law Center
