When looking for some extra funds, you will likely come across personal loans. A personal loan can definitely be helpful for emergency expenses. More than 20 million Americans have taken out these loans for emergencies.1
One lender you may find on your loan search is Prosper, and below, you can learn more about them, along with how they compare to CreditNinja or other funding options such as loans like Lendup.
Finding the Right Personal Loan
The right personal installment loan for you will depend on a few different factors; here are some things you should consider when trying to find the best personal loan:
The Loan Fits Your Budget Well
Everyone’s budget is different, so it is extremely important to find a personal installment loan that fits your financial situation. You will want to make sure that you will be able to afford your monthly payments comfortably.
A Personal Installment Loan That Offers Flexibility
The best personal loans offer flexibility for borrowers. You may not think too much about this when searching for a personal loan, but it is essential. If your finances change during repayment or you simply miss a payment, flexibility might be the cushion you need to protect your credit and loan standing.
A Personal Loan That Covers All Your Costs
Regardless of what kind of loan you are looking at, you will want it to cover the full cost, if possible, for the emergency expense. Juggling multiple loans can become complicated and may not be the best idea. The best personal loan for you should be able to cover the cost of whatever expense you are taking out your loan for.
The Right Personal Loan Will Offer Competitive Interest Rates
Interest rates are the true cost of borrowing, so it’s imperative to find a personal installment loan with a competitive interest rate for your specific financial situation. Keep in mind that the better your credit score, the better your interest rate, and vice versa. Get your credit report from each of the major credit bureaus before you apply to better understand your financial position.
What Are Personal Loans Usually Used For?
Personal loans are usually best for short-term emergencies. Here are some ways you can use personal loans:
- Medical bills or dental bills: Although many hospitals and dentists break down a balance into installments, those installments may still be unaffordable out of pocket. Some cases may require payment before a treatment or procedure, which a personal installment loan may provide.
- Veterinary bills: Whether you need to pay for a visit, medication, or surgery, a personal installment loan can be used for an emergency for your pet.
- Debt consolidation: Debt consolidation loans work by helping you pay off multiple debts. If your debt payments become unaffordable, then you could use a personal installment loan to consolidate and get a better interest rate and more manageable repayment terms.
- Everyday expenses: When a financial emergency happens, one of the first things many people have trouble with is their everyday expenses. The great thing about an approved personal installment loan is that you will get a lump sum upfront and can use the funds for multiple expenses.
- Rent and mortgage payments: Rent and mortgage payments are usually the most expensive but crucial costs most people have every month! A personal installment loan could help tide you over until you get back on your feet.
What Other Loans Will I Come Across?
When trying to find a personal installment loan, you will likely come across a few other loan options. Here are some other loan options you may see:
| Feature | Payday Loans | Installment Loans | Cash Advance Loans | Credit Cards |
| Interest Rates | Typically Very High | Varies, Often Lower | High | Varies, Can Be High |
| Loan Term | Very Short (Weeks) | Fixed (Months to Years) | Short-Term | Revolving |
| Loan Amount | Small | Varies | Small | Up to Credit Limit |
| Repayment Structure | Single Payment | Monthly Payments | Single or Multiple Payments | Minimum Monthly Payments |
| Credit Score Impact | Often Negative | Depends on Payment History | Can Affect Credit Negatively | Depends on Usage and Payment |
| Flexibility | Low | Moderate to High | Low | Moderate to High |
| Approval Speed | Fast | Varies | Fast | Varies |
Payday loans: Payday loans are extremely short-term loans that make a small amount of funds available for borrowers. These are usually single-payment loans, which means that you may have to pay the entire loan balance, including interest, at once! This is one reason many people end up in a cycle of debt with one of these loans.
Installment Loans: Installment loans are any type of loan that have steady monthly payments. Personal loans can fall under this category, along with home equity loans, student loans, and auto loans.
Cash advance loans: Cash advance loans are a type of loan that usually make cash available to borrowers. When compared to personal installment loans, cash advances will likely be more expensive, potentially offer lower loan amounts, and usually have less flexibility with repayment.
Credit cards: Credit cards are a form of revolving credit, which means you can use them multiple times until you reach your credit limit. Interest rates with credit cards can change and are compounding, which can make them quickly add up. When compared to personal loans, generally, credit cards will have stricter credit score requirements and can add more debt to your finances faster.
Loans Like Prosper: What You Need To Know
Prosper is an online lender that has been in business since 2015 and was the country’s first peer-to-peer lenders marketplace. They offer personal loans, home improvement loans, debt consolidation loans, healthcare financing, credit cards, home equity loans/lines of credit, and investment opportunities.
How Do Personal Loans From Prosper Work?
Personal installment loans from Prosper range from two years up to five, making them long-term personal installment loans. Interest rates for personal loans may range from 6.99% to 35.99%. The lower end will be for borrowers with better credit scores, while the higher interest rates will be for borrowers who don’t have the best credit.
Prosper offers a personal installment loan amount between $2,000 to $50,000. Your specific amount will depend on your application and finances, including your credit score and income. Prosper allows borrowers to repay their loans without any prepayment penalties.
Although they do not state a minimum credit score requirement, they do mention that it may be difficult to get approval with a credit score that is lower than 600. Prosper recommends that if you are denied a personal installment loan initially, you should apply with a co-applicant.
How Does the Application Process Work With Prosper for Their Personal Loans?
Applying for a prosper loan can be done online by filling out a loan application with basic personal information about yourself and your finances. For final approval, you will likely need to submit documentation to verify your information. Once approved for a personal installment loan through Prosper, the loan proceeds can be sent straight to your bank account.
What Can Prosper Personal Installment Loans Be Used For?
Prosper has a few different categories they provide, which they say their personal installment loans can be used for. Here are some of them you will find on their website and pre-approval application:
- Debt consolidation.
- Home Improvement.
- Business.
- Auto, motorcycle, RV, and boat purchases.
- Everyday household expenses.
- A large emergency purchase.
- Medical and Dental Expenses.
- Taxes.
What Fees Can I Expect With a Personal Loan from Prosper?
Like most other personal installment loans, personal installment loans with Prosper will have some fees you may be subject to:
- Origination Fee — An origination fee makes up for the different costs that a creditor has when creating a loan. Almost every personal installment loan will have an origination fee; think of an origination fee as a service fee.
- Check Payment Fee — Prosper charges a check payment fee if you make a payment via a check, so keep that in mind before paying this way.
- Late Fee — Anytime you miss a payment deadline, a late fee will be charged to your loan balance. Personal loan lenders can charge late fees upwards of $39 per late payment.2 Contact Prosper for an accurate late fee cost.
- Insufficient Funds Fee — An insufficient funds fee occurs when a lender tries to pull from an account and there are not enough funds.
When it comes to the payment, you’ll have steady loan payments that will be scheduled every month until the loan is paid off in full. On their website, you will find a few examples that may help you better understand repayment for one of these loans. Here is one of those examples:
“A three-year $10,000 personal installment loan would have an interest rate of 11.74% and a 5.00% origination fee for an annual percentage rate (APR) of 15.34% APR. You would receive $9,500 and make 36 scheduled monthly payments of $330.90.”
CreditNinja: How Does It Compare?
At CreditNinja, we’ve been offering financial solutions since 2018! Our goal has always been to help borrowers experiencing difficult financial situations—and we achieve that through our personal installment loans.
How Do CreditNinja Personal Loans Work?
CreditNinja offers personal installment loans for borrowers going through financial emergencies. The interest rates for loans will largely depend on your financial information, including things like your FICO score and income. You may ask, “Can you get a loan with social security?” We work with all types of income, so inquire today to see if you qualify for a personal installment loan.
What Are Some Benefits of CreditNinja’s Personal Installment Loans?
At CreditNinja, we have some unique benefits with our online loans. Here are some of them you may look forward to:
- You don’t need to have excellent credit to apply with CreditNinja.
- There are no prepayment penalties with our loans.
- You could have the funds by the next business day.
- You can apply from the comfort of your home online.
- We have an exceptional customer care team.
- We offer flexible payment schedules.
- You could get convenient loan terms.
What Will Repayment Look Like With CreditNinja?
Repayment with a personal installment loan with CreditNinja can be easy and predictable. You will get to make steady monthly payments until the full loan amount is repaid. You can make your payments online or over the phone and repay your loan earlier if you would like.
Is There a Minimum Credit Score to Apply for a Personal Installment Loan With CreditNinja?
No, there isn’t a minimum credit score you will need when you apply for a personal installment loan with CreditNinja. Borrowers with all types of credit are encouraged to apply for one of our loans! And so, even if you don’t have the best credit score, don’t hesitate to apply.
FAQs About Prosper Loans
The origination fee is a one-time charge that covers the cost of processing your loan. It’s deducted from the loan funds before they’re disbursed, so it’s essential to consider the origination fee when determining the amount you need to borrow. Origination fees will vary based on your credit score and other factors.
Yes, Prosper personal installment loans can be used for debt consolidation. By consolidating multiple debts into a single loan with a potentially lower interest rate, you may save money on interest payments over time. Debt consolidation can also simplify your monthly payments so you can manage your finances easier.
Prosper does not state a specific minimum credit score requirement, but it may be challenging to get approval with credit scores lower than 600. Fair credit borrowers may still apply, and adding a co-applicant might increase the chances of approval despite a low credit score.
Prosper determines your interest rate based on several factors, including your credit score, debt-to-income ratio, and loan term. A lower debt-to-income ratio may lead to a more favorable interest rate, as it indicates a lower risk to the lender.
Prosper is transparent about its fees. Besides origination fees, you may encounter fees for late payments, check payments, or insufficient funds. It’s essential to review the loan agreement carefully to understand all potential charges.
Once approved for a personal installment loan through Prosper, the funds can be sent straight to your bank account. The timing may vary, but understanding the required documentation and having it ready can help expedite the process.
Yes, Prosper allows borrowers to repay their loans without any prepayment penalties. Prepaying your loan can save money by reducing the amount of interest you pay over the life of the loan. It’s a great option if you find yourself in a position to pay off the loan early.
CreditNinja: A Summary of Prosper Loans
A personal loan is a versatile option that can help you get the money you need quickly. But it’s essential to inquire with multiple lenders to find the best loan offer for your unique situation and budget.
CreditNinja believes that everyone should have access to informative content, which is why we provide a resource blog on our website. Consider learning more about loans and increasing your financial literacy before submitting a loan application.
References:
- Personal loans are ‘growing like a weed,’ a potential warning sign for the U.S. economy │ The Washington Post
- Do personal loans have penalty APRs? │ CNBC
- Personal Installment Loans │ Prosper
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