Unexpected expenses can disrupt your life and cause financial stress. However, an Installment loan could help you get money quickly for car repairs, medical treatment, and other unplanned bills.
World Finance is an online lender that offers personal installment loans for unforeseen expenses. But is this the right option for you? If you’re on the fence about working with World Finance, keep reading to learn how this type of loan works and about similar options for borrowers.
Finding the Right Personal Loan
A personal installment loan is a loan that provides money upfront to eligible borrowers. The money you borrow is repaid on a monthly basis.
Financial institutions that provide personal loans offer fixed rates, variable rates, or both. Knowing what type of interest rate you want before submitting a loan application is essential. The type of rate you get will determine whether you pay the same amount every month.
- Fixed Rates — A fixed interest rate does not go up or down, so you can reliably pay the same amount from start to finish. Loan payments are spread out evenly over the course of months or years. If you want financial consistency, a fixed-rate personal loan is an ideal option.
- Variable Rates — Variable rates frequently change due to a benchmark interest rate or index. You may prefer a variable rate if you have financial flexibility because you could save more money. However, remember that variable rates can increase unexpectedly, and you will still be responsible for making payments. Consider whether you can afford to pay a higher-than-average loan payment at a moment’s notice.
Personal loan borrowers make payments until their final due date. Keep in mind that most financial institutions report your payment history to the three major credit bureaus. These bureaus include Equifax, Experian, and TransUnion. The frequency of updates varies, but you may generally expect your credit reports to update monthly.
Your payment history is the most critical factor for credit score calculation. A long history of timely payments can improve credit scores over time. When it’s time to start making payments on your personal loan, consider signing up for automatic payments to avoid paying late. Automatic payments, also known as autopay, are electronic withdrawals from your bank account on your scheduled due date. If you prefer to make payments on your own, you can try signing up for monthly alerts via text message or email if your lender provides this service.
Personal Loan Terms You Should Compare
When trying to find the best personal loan, paying attention to specific terms is essential. For this reason, it’s critical to inquire with multiple lenders so you can pick the best loan offer for your unique situation. Keep reading to learn how personal loans work and what to expect.
The Loan Amount
The loan amount range for a personal loan typically starts at a few hundred dollars and goes up to a few thousand. But remember that the minimum and maximum loan amounts vary by lender. Personal loans are ideal for small and large expenses, which makes them suitable for almost any unexpected emergency.
The amount you qualify to get through a personal loan depends on your credit history and income. Higher credit scores can obtain a lender’s maximum loan amount because they are a low credit risk. But suppose you have a poor credit score. In that case, you may worry that you will not be eligible for the amount you need to pay upcoming bills or necessary expenses. Rest easy knowing that many personal lenders offer bad credit loans. A bad credit loan is generally an installment loan with a flexible minimum credit score requirement, meaning low-credit borrowers may qualify for higher loan amounts.
The Use of Collateral
Personal loans are generally unsecured, which means you do not need collateral to secure funding. Using collateral is financially risky for the borrower, as you may lose personal belongings in the event of default. However, some financial institutions do offer secured personal loans. A secured personal loan requires a valuable asset, such as fine jewelry, car titles, or cash in a savings account.
The Repayment Length
The repayment length for a personal loan typically lasts a few months up to a couple of years. For this reason, personal loans are ideal for almost any borrower. You could choose a short or extended repayment term if you want smaller monthly payments. But remember that a more extended repayment period will increase the total cost of the loan.
If you want financial flexibility, ensure you work with a lender that does not charge prepayment penalty fees. A prepayment penalty is a charge for paying the loan earlier than your scheduled final due date, typically a percentage of the outstanding balance. Lenders make money through interest fees, and early repayment decreases their earnings. The cost of a prepayment penalty fee can be steep, so avoid early payments or find an alternative lender.
The Interest Rate and APR
The interest rate is the yearly cost of borrowing money. In contrast, the annual percentage rate (APR) is the yearly cost plus additional fees. Personal loans generally have decent rates, but it’s in your best interest to inquire with various lenders to find the best rate.
Interest rates depend primarily on your credit score. If you have a good credit history, you can typically expect the lowest rates a financial institution offers. But you may have to shop around to find the best offer if you have bad credit. Many lenders offer flexible requirements, so you may still secure financing right when you need it.
The Fees
Personal loans, just like any other loan option, have various fees. However, some lenders charge more fees than others. Learn about some standard fees you may encounter below.
- Application Fees — An application fee is an upfront fee to apply with a specific lender.
- Late Fees — A late fee is when a borrower does not make a monthly payment on time.
- Origination Fees — An origination fee is the cost of processing a loan application.
- Prepayment Penalty Fees — A prepayment penalty fee is a charge for early loan repayment.
- Payment Processing Fees — Some lenders charge payment processing fees if the borrower pays using a credit or debit card.
Warning Signs of a Personal Loan Scam
If you are on the hunt for the best personal loan, you may try looking for an online lender. While there are numerous legitimate online lenders to choose from, stay vigilant of potential scams. There are various ways to verify lenders, such as reading online reviews and contacting your state attorney general’s office.
But there are warning signs of a speedy cash scam, such as:
Guaranteed Approval
There is no such thing as guaranteed approval for personal loans. Instant approval is possible with online lenders, but a legitimate lender cannot guarantee that you will qualify to borrow money. Suppose you find an online lender that advertises guaranteed loan approval. In that case, avoiding working with that financial company is in your best interest.
Unsecure Website
If a financial institution’s website is not secure, you may be dealing with a fraudulent company. Take a look at the URL to verify the SSL certificate. A secured website will begin with “HTTPS” instead of “HTTP.” The additional “S” signifies the website uses a Secure Sockets Layer (SSL) Certificate to encrypt information. In addition, ensure the website does not have any typos or grammatical errors. Often, fraudulent websites are made quickly, and you may notice warning signs on the URL.
Upfront Fees
An upfront fee may be a warning sign that a lender is a scammer. Remember that an upfront fee is different from an application fee. An application fee is typically added to your total loan cost. Scam artists ask for upfront fees in the form of gift cards, prepaid debit cards, or wire transfers. If a lender asks for unusual forms of payment, steer clear and do not share your personal bank information.
Urgency
You may be dealing with a scammer if you notice a lender is overly insistent that you complete the approval process or submit personal information. Legitimate lenders will not harass or threaten potential customers. Never feel like you must complete an application process quickly or risk losing out on a good financial offer.
Lack of Information
Reputable lenders have essential information readily available on their websites. If you are struggling to locate a customer service phone number or address, you should proceed with caution. You should not have to hunt high and low for basic contact information. Officially registered lenders have an accessible contact webpage.
Loans like World Finance: What You Need To Know
World Finance is an online lender that has been providing personal installment loans since 1962. Interested borrowers can apply for a personal loan if they need money for auto repairs, home repairs, and other unexpected expenses.
World Finance offers an online pre-approval process, although applicants will need to visit a branch location to complete the process. Currently, World Finance has over 1,200 branch locations in 16 states. If you need assistance during the approval process, you can stop by a local store and get one-on-one help from a branch service team member. In addition to personal loans, World Finance also offers tax and roadside assistance.
You can file your taxes with the help of World Finance, which has over 23 years of tax prep experience. The cost varies because it depends on your state of residence and personal information. However, you may inquire about getting a free tax refund estimate. If you let World Finance handle your taxes, you can choose from three convenient ways to file. The process, both online and in person, takes approximately 60 minutes.
If you’re interested in filing your taxes with World Finance, you will need the following documents:
- Your W-2.
- Your state identification card.
- Your Social Security card or Individual Taxpayer Identification Number (ITIN).
Although it typically takes three weeks for the Internal Revenue Service (IRS) to process your taxes, you can apply for an interest-free tax advance loan of up to $5,000. The money is sent straight to a debit card in about an hour. However, know that the 0% interest offer is only for qualifying individuals filing through World Finance. This means you can file your taxes and still not qualify for an interest-free loan.
Aside from personal loans and tax filing, World Finance offers roadside assistance through one of the industry’s largest towing networks. A Motor Club Membership gives drivers access to 24/7 on-call roadside assistance, qualified service providers, and full coverage for the entire household. If your car needs repairs, you could get a 30% reimbursement.
This full coverage program offers help with the following:
- Towing.
- Battery jumpstarts.
- Tire changes.
- Fuel delivery.
- Lockouts.
- And more.
The Motor Club Membership also offers a FortegraPerks Program. This program provides cashback and discounts on everyday purchases, activities, and digital vouchers for entertainment events. In order to join the Motor Club Membership program, you must visit a local branch location. The website does not offer information on the cost of joining, so you will have to ask a team member in person.
How Do They Work?
World Finance offers personal loans for individuals that have imperfect or no credit. Loan terms are personalized to match a borrower’s unique situation. Loan amounts range from $450 to $12,000. However, the amount you qualify to get depends on your overall financial picture.
Keep in mind that you may have to provide collateral to get a personal loan from World Finance. The website states, “Collateral in the form of personal property is generally required.” There is no additional information on the type of collateral you can use. Still, you can contact a local branch for details. Using collateral can be financially risky since you can lose valuable personal property in the event of default. Carefully consider what you want to use to secure a loan and whether you would prefer to look for an alternative financing option.
How Will the Application Process Work?
If you want to apply with World Finance, you must visit a branch in person. While you can start the pre-approval process online, you have to travel to a branch location to complete the qualification process.
If you start the approval process online, the first step will only require basic information, such as your first and last name, zip code, and desired loan amount. The second page of the online approval process will ask for your address, date of birth, Social Security number (SSN), monthly net income, and contact information.
If you are eligible to receive a personal loan from World Finance, you must go to a local branch to finish the approval process. An in-person visit is necessary to submit your documents, review your loan agreement, and set up a payment option.
These are the documents you will have to submit in person:
- Picture ID — Your photo ID must have a signature. You can use your driver’s license, state-issued ID, or passport.
- Proof of Residence — Recent power bill, water bill, gas bill, etc.
- Income Documentation — You will need to show proof of employment, such as a recent paycheck stub.
- SSN — You must have a Social Security card.
- References — Be prepared to provide the phone numbers of a few references.
- Collateral — Under certain circumstances, you may have to provide a vehicle title or list of personal property to use as collateral.
Keep in mind that qualification requirements vary by state, so you should contact your local World Finance branch for a complete list of required documents. According to the World Finance website, the in-store approval process only takes about an hour. An agent will process your application and distribute your funds through a check.
What Can I Expect if I Get One?
If you get a personal loan through World Finance, you can expect a monthly payment plan with equal payments. A fixed-interest rate means you do not have to worry about your monthly payments changing due to external factors, such as the economy. Fixed payments allow you to stick to a budget and plan your monthly spending.
The repayment terms vary from 6 to 48 months. Remember that an extended repayment period may result in smaller monthly payments. Still, it can also increase the total cost of borrowing money. In contrast, a short repayment period may save you money in the long run, although you will likely pay more monthly. Consider your financial situation and what you can afford to pay each month. Talk to a team member about your current budget and what options are available to you.
Once it’s time to make your first payment, you can repay through one of three methods:
- Online Payment — You can make payments through your online account. You will need to provide a credit or debit card.
- In-Person — You can visit any local branch to pay in person. You can find a list of nearby locations on the World Finance website.
- Over the Phone — You could pay over the phone with an eligible debit or credit card by calling (844) WORLD-15. This customer service line is available 24/7.
CreditNinja: How Does It Compare?
CreditNinja is a highly-rated online lender that provides personal loans to eligible borrowers. We’ve been in business since 2018 and have offered fast financing to over 275,000 satisfied customers.
If you are looking for lenders similar to World Finance, look no further than CreditNinja. We offer online personal installment loans for life’s unexpected expenses. You could get money for upcoming bills, small or large purchases, debt consolidation, and more.
Keep reading to learn what makes CreditNinja one of the best premier online lenders for quick installment loans.
How Does CreditNinja Stand Out?
CreditNinja stands out among the rest of the competition by providing an easy online application process and multiple benefits. Below is a short list of rewarding perks you could receive as a customer.
Simple Application Process
The online application process is convenient and easy to use. Unlike traditional lenders, we do everything online so you can quickly submit your information as soon as possible. There is no need to look for documents because you typically don’t have to submit any paperwork. Most applicants complete the online approval process within a few minutes and get an instant approval decision.
Small to Large Loans
Our loans range from a few hundred dollars up to a couple thousand. Eligible borrowers could get loans for small or large emergency expenses. Use a personal loan to pay a small upcoming bill or consolidate high-cost credit card debt. Our loans are versatile and convenient for life’s unexpected life events.
Flexible Repayment Schedule
CreditNinja offers a flexible repayment schedule for customers. The repayment length for one of our personal installment loans lasts months or longer, depending on your loan amount and repayment schedule.
But suppose you get an extended repayment length but then decide you want to save money on interest fees. In that case, you can repay the loan early. We do not charge prepayment penalty fees. You can make additional monthly payments or increase the amount you pay each month. You can speed up the repayment date and keep more money in your pocket by paying more than your minimum monthly payment.
Fast Funding
Many people settle for payday loans because they need money quickly and cannot afford to waste time on a lengthy approval process. But when you work with CreditNinja, you could get a loan the same day.* Fast funding allows you to quickly handle emergencies and avoid further issues. Your money is sent directly to your bank account, so you can conveniently swipe your debit card or withdraw cash.
Flexible Qualification Requirements
A low credit score is typically the reason why so many people in need of emergency cash cannot access it. But there are online lenders for bad credit, such as CreditNinja. Applicants do not need excellent credit to qualify for a personal installment loan. We work with all types of financial backgrounds because we take various factors into consideration. We do not base eligibility solely on your credit score. We examine your income, payment history, existing debt, and more.
Who Should Pick CreditNinja?
A CreditNinja personal loan is for individuals that want fast funding, flexible qualification requirements, and quality customer service. Our loan terms are convenient and personalized, which makes them ideal for many different kinds of people.
Do you have a bad credit score? Many people struggle to get loan approval without perfect credit, but low-credit borrowers may qualify with CreditNinja. Our wide-ranging loan amounts and flexible repayment lengths result in manageable loan terms. CreditNinja is one of the best choices for people that want a solution to unplanned expenses.
How Will the Loan Process Work?
The online process for CreditNinja is fast and straightforward. There are three steps required for loan approval, but you can complete them right from home. You don’t need to make travel plans or waste time looking for various documents. You can start the application process anytime on your smartphone, tablet, or computer.
- Initial Inquiry — Start the online approval process by submitting basic personal information, such as your name, date of birth, contact details, etc.
- Approval Decision — After submitting your information, you can expect a same-day pre-approval decision. Eligible applicants can see their personalized loan amount, interest rate, and terms.
- Get Your Funding — If you like our loan offer, you can sign the loan agreement, provide your bank details, and get your money! Applying early could help you get money directly deposited the same day!*
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