Financial emergencies can derail your life at the absolute worst time. If your car breaks down and you need an immediate repair to get to work, you may be looking for same-day loan funds. According to the Kelley Blue Book, consumers spend an average of $548.32 fixing their cars!1 Fortunately, there are plenty of online loan options available!
However, choosing an online lender is more complicated than simply clicking the first suggested link on Google. No matter how quickly you need money, comparing lenders to find the most affordable loan offer for your budget is in your best interest.
In this article, we’ll share important facts about LendingTree and CreditNinja so you can make a fully informed financial decision.
Finding the Right Personal Loan
A personal loan is a monthly installment loan that most online lenders offer. Unlike other financing options, personal loans do not have to be used for a singular purpose. For this reason, borrowers typically rely on personal installment loans for all types of unexpected expenses.
For example, personal loans could help with the following:
- Credit card refinancing
- HVAC repairs
- Medical supplies
- Veterinary procedures
- Emergency travel expenses
- Debt consolidation
Average Loan Terms for Personal Loans
Personal loan terms vary depending on the lender, your income, and your creditworthiness. However, personal loans are usually able to provide anywhere from a few hundred dollars to several thousand. This flexibility makes personal loans ideal for both small and large expenses.
Personal loans are installment loans that are repaid monthly. Depending on the lender and the loan amount, the repayment length can last a few months or a couple of years. Remember that an extended repayment schedule could result in lower monthly payments, but you may end up paying more interest compared to a short repayment term.
Personal loan rates are typically better than other quick cash loans, such as payday loans and no-credit-check loans. Low rates are typically reserved for borrowers with good or excellent credit scores. If you have a low FICO Score, you can reduce your total interest fees by comparing lenders, opting for a short repayment term, or repaying the loan early.
Minimum Credit Score Requirement for Personal Loans
The minimum credit score required for a personal loan is different for every lender. For example, national banks generally have strict requirements and may require a good FICO Score, which starts at 670 points. If your credit score is lower than the national average, then you should look for a bad credit lender. These lenders have flexible qualifications to help individuals with poor credit scores get quick financial assistance.
Using Personal Loans To Boost Credit
Once you get approved for a personal loan and receive money in your checking or savings account, you can start working on improving your credit! A borrower can work on building a stronger credit score by avoiding late payments.
Your payment history is one of the most important factors that affect your credit score. However, according to a new NerdWallet survey, 37% of Americans have been charged a late fee!2 Late payments can result in loan fees and a decrease in credit. However, if your credit history shows you are a reliable borrower who pays your personal debt on time, your credit score can slowly increase over time.
How To Prepare for Future Unexpected Emergencies
It’s important to prepare for future financial emergencies. You can start saving money for the future in several ways, no matter your current income level.
Take a look at this helpful guide to better understand how you can start saving money for the future:
| Step | Description |
| 1. Set a Savings Goal | Determine the amount you need for an emergency fund, typically 3-6 months’ worth of expenses. |
| 2. Open a Separate Account | Use a high-yield savings account to keep your emergency fund separate and easily accessible. |
| 3. Create a Budget | Track your income and expenses to identify areas where you can cut back and save more. |
| 4. Automate Savings | Set up automatic transfers from your checking account to your emergency fund. |
| 5. Start Small | Begin by saving small amounts regularly and gradually increase the amount over time. |
| 6. Save Windfalls | Deposit any unexpected money, such as tax refunds or bonuses, directly into your emergency fund. |
| 7. Reduce Unnecessary Spending | Identify and eliminate non-essential expenses to free up more money for savings. |
| 8. Monitor Progress | Regularly check your savings progress and adjust your budget as needed. |
| 9. Avoid Using the Fund | Only use your emergency fund for true emergencies, not for everyday expenses. |
| 10. Replenish When Used | If you need to use your emergency fund, prioritize replenishing it as soon as possible. |
Loans Like LendingTree: What You Need To Know
You may have heard of LendingTree if you’re looking for an online loan. LendingTree is an online lending marketplace, not a direct lender. The company was created in 1996. The Lending Tree headquarters is currently located in Charlotte, North Carolina.
Learn more about how LendingTree works below and what you can expect:
How Does LendingTree Work?
LendingTree is not an online lender but rather a Marketing Lead Generator and a Duly Licensed Mortgage Broker. It provides an online marketplace that connects consumers with multiple lenders competing for their business. LendingTree currently works with over 500 loan companies nationwide, and interested borrowers can request between $1,000 and $50,000 in funding.
LendingTree may help qualified borrowers get one of the following loan options:
- Home loans
- Personal loans
- Credit cards
- Student loans
- Business loans
- Home equity loans/lines of credit
- Auto loans
Who Are They For?
LendingTree can be a helpful guide for borrowers who don’t know where to start looking for financing. However, there are some disadvantages to consider. LendingTree does not lend money directly, which can result in a less personalized borrowing experience. In order to get connected with potential lenders, you must consent to information sharing with third parties, which can result in an overwhelming number of phone calls, emails, and texts from prospective lenders.
How Will the Application Process Work?
To connect with a lender through LendingTree, you must fill out the online form on the company’s website. You will be asked to provide basic personal information, such as your date of birth, address, employment status, etc. For lenders to contact you, you must provide a valid email address and phone number.
Potential lenders will contact you and aim to do business with you. It’s up to you to determine which loan offer best fits your financial needs and initiate the application process. The application steps and time to get your money varies by lender. Still, you can generally expect to get funds deposited directly into your savings or checking account.
CreditNinja: How Does It Compare?
CreditNinja is a direct online lender that provides personal loans for all types of unexpected financial emergencies. Since 2018, CreditNinja has helped over 275,000 consumers nationwide get the fast cash they need to get back on their feet. But while we offer quick, unsecured loans, we also provide free financial resources through our Dojo to help Americans better manage their finances and understand their financing options.
If you are looking for personal loans, learn more about how we operate below.
CreditNinja’s Credit Score Requirements
Your credit score is typically the sole factor that lenders evaluate for funding. If you have bad credit, you may have trouble getting approval for a personal loan with a high minimum credit score requirement.
At CreditNinja, we understand that most Americans do not have perfect credit. That’s why we offer flexible approval requirements! When you submit an application, we look at your entire credit history. It’s entirely possible to qualify for an unsecured loan with bad credit because we consider multiple factors, such as your recurring income and outstanding debt.
What Benefits Does CreditNinja Offer?
We offer a lot of exclusive benefits for our customers because we know that you want more than just quick funding. These are some of the perks you can look forward to with a CreditNinja personal loan:
- Quick Approval – Applicants can get same-day approval decisions!* You don’t have to wait long periods before finding out if you’re eligible.
- Easy Online Process – Our application process is done entirely online! You don’t have to travel to a store location or wait in line to talk with an agent.
- Flexibility – Our requirements are flexible because we aim to help borrowers who struggle to get approved for traditional loans.
- No Hidden Fees – We are completely transparent, so we do not have any hidden fees. And while some online lenders charge prepayment penalty fees, we don’t! Feel free to pay off the loan early if you want to.
- Unique Loan Terms – Many lenders offer the same terms to all of their customers, but we don’t. When you apply, we analyze your information to offer personalized terms that work with your financial situation.
When Can Borrowers Expect To Get Funding?
At CreditNinja, we know that you may need cash now, not several days from now. That’s why we prioritize fast funding. Eligible borrowers may get their money as soon as the same day they are approved!* Your approved money is sent straight to your checking account through a direct deposit. And once it’s time to start making payments, we offer several convenient payment options.
FAQs About Loans Similar To LendingTree
SoFi is a direct lender, while LendingTree is a Duly Licensed Mortgage Broker. SoFi can provide funding directly, while LendingTree can only connect you to potential lenders. The average of SoFi Personal Loans funded in 2022 was around $30K, but not all applicants qualify for the lowest rate. It’s critical to evaluate all of your options before applying for a loan.
Many lenders offer personal loans to borrowers with low credit scores, but the minimum required score can vary. Generally, a score of 580 or higher may be required, though some lenders may have more flexible criteria. It’s essential to check the specific requirements of each lender.
Yes, some lenders charge an origination fee, which is typically a percentage of the loan amount. The origination fee is often deducted from the loan proceeds before you receive the funds. Be sure to understand the origination fee structure before accepting a loan offer.
Absolutely. Many lenders offer personal loans specifically for debt consolidation, which can help simplify your payments and potentially lower both your interest rate and monthly payment. Be sure to compare debt consolidation loan offers and consider the total cost of the loan.
Enabled payroll direct deposits can show lenders a steady and reliable source of income, which can make you a more attractive borrower. This consistent inflow of funds can help demonstrate your ability to repay the loan, potentially improving your loan terms and interest rates.
An eligible cash management account is a financial account that combines features of checking, savings, and investment accounts. Having a well-managed account can show lenders that you are responsible for your finances, which may improve your chances of qualifying for a loan.
The Bottom Line on Personal Loans
It’s not challenging to find an online lender that offers personal loans. What is difficult is finding an affordable loan offer for your financial situation. However, you can ensure that you make a fully informed financial decision by comparing lenders and paying attention to the rates.
At CreditNinja, we aim to help consumers like you get access to free financial resources. Check out our blog to learn how to get an advance without a bank account, how to start budgeting, whether refinancing affects your credit score, and more!
References:
- Here’s How Much the Average Car Repair Now Costs│KBB
- Nearly 40% of Americans paid a late fee in past 12 months│KXAN
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