Kentucky is one of America’s southern states known first for its unique food and drinks, especially it’s bourbon. While the people in Kentucky know how to enjoy the finer things, they are incredibly hard working! 69% of Kentucky’s workers are in the labor force. The state’s innovative and creative contributions to American history are another great highlight the residents can be proud of.
According to the U.S Census Bureau, there are about 4,467,673 people who reside in this state, and most of these Kentucky residents have a median household income of 50k a year. If you are a resident of this state and share this median income with your neighbors, chances are that you may need a personal loan from time to time.
Kentucky Personal Loans
Personal installment loans (also simply called personal loans) can come in all kinds of amounts, various repayment terms, and interest rates. Generally, there are two types of loans: secured and unsecured, and you can choose between them to find the right option for you. One unique and convenient aspect of personal installment loans is that you will have steady monthly payments until you pay the funds back in full.
When searching for personal loans in Kentucky, you will come across national and state-specific commercial banks, credit unions, and private lenders (usually online). Picking the right lender will be crucial when looking for personal loan funding. A lender will determine loan approval and terms based on your income and credit score. You will usually find more flexibility with private loan companies and secured loan options.
How Much Can I Get With a Personal Loan in Kentucky?
Personal loan amounts will vary based on your financial situation, such as your income, monthly expenses, and credit score. In general though, personal loans usually range from $5,000 and $7,500, making them a good option for a small purchase or cost.
General Benefits of Personal Loans
With the right credentials and lender, you may find a personal loan with great benefits. There are personal loans that come with a fair interest rate, a fast application, and can mean manageable and predictable monthly payments. Along with those benefits, once you get approval, the funds can be deposited directly into a bank account.
These are just a few reasons Kentucky residents seek out personal loans when they need to cover unexpected costs.
How Can I Use a Personal Loan in Kentucky?
Personal loans are best for short-term emergencies or expenses. You can use them for a variety of costs; here are a few examples:
Medical Bills
If you are facing medical bills, the expenses can be overwhelming. Whether it is expenses for surgeries, hospital visits/stays, or even prescription costs, a personal loan can help.
Borrow Money for Essentials
You can use personal loans for everyday essentials such as groceries, childcare, pet care, gas expenses, etc.
Home Improvement
According to the U.S Census Bureau, 72% of residents in Kentucky owned a home in 2020. And being a homeowner can come with a ton of unexpected costs. Have a costly but necessary repair on your home or have a home improvement project? The cash from a personal loan can help you get that repair done.
Car Repair in KY
Whether it is maintenance or a significant car issue, funding from a personal loan can help you find the money you need to pay for repairs on a vehicle.
Emergency Travel
You can use the funds from a personal loan to pay for emergency travel. And so, whether you need to fly, pay for gas, or rent a vehicle, a personal loan can help you get to where you need to go.
Bill Payments With Personal Loans in KY
Rent payments, utility bills, credit card bills, insurance bills, etc., can all be covered with the funds from a personal loan.
Debt Consolidation / Loan Refinancing
You can also use a personal installment loan to refinance an existing loan. If you have a good credit score, you could get reasonable rates on a personal loan which can be an excellent option for debt consolidation.
Can I Get a Personal Loan if I Am Unemployed?
Technically you don’t need to be employed to take out a loan or line of credit. Most lenders will ask that instead, you have a valid source of income and the ability to prove it. Here are some alternative income options you can use in an application:
- Permanent disability
- Workmen’s compensation
- Legal settlements
- Prizes, awards, or other types of settlements
- Inheritances
- Severance pay
- Social Security Benefits
- Annuity payments
Do I Need a Co-signer for My Loan?
A co-signer is someone a borrower can add to a loan application to provide security for the lender. You don’t need to have a co-signer for a standard loan, but you can add one if you do not meet financial requirements for the loan on your own. A co-signer can increase your chances for approval and increase the amount of funds that you could get from the personal loan.
Adding a co-signer to a loan is a big decision. It is essential to understand the responsibility you are handing over to whoever signs on the loan for you. When you add a co-signer to any loan, that person will be responsible for paying back the entire amount left on the loan if you cannot pay it back.
Top 10 Cities in Kentucky
- Louisville
- Lexington
- Bowling Green
- Owensboro
- Covington
- Richmond
- Georgetown
- Florence
- Nicholasville
- Elizabethtown
How To Take Out a Personal Loan in Kentucky
Thinking about personal loans to borrow money but not sure where to begin the process in Kentucky?
The first thing you should consider is your current financial situation, including your income, monthly expenses, current credit score, and existing debt. And because there are so many personal loan types, it may be easiest to pinpoint exactly why you need the funds.
In addition to secured and unsecured personal loans, you will come across personal loans specifically catered to debt consolidation (usually used to take care of credit card debt), a personal line of credit, variable-rate loans, and fixed-rate loans.
From here, you can contact lenders and ask about loan estimates by giving them the necessary information.
When you are ready to apply for a personal loan, you’ll need to have a few pieces of information:
- A Government-issued photo ID (A driver’s license, passport, etc.)
- Proof of income (paystubs, bank statements, etc.)
- Proof of residence (valid mail)
- References
- In most cases, you will need a checking account
Following that estimate, you can put those numbers into a personal loan calculator to figure out how much you will be paying each month. To get a monthly payment estimate, you will need to know the principal loan amount, the interest rate, and the loan period (how long the loan will be).
After a credit check, you will find out exactly how much you can borrow and at what interest rate. After a close review of the contract, you can either move forward with the prospective lender or apply elsewhere.
Hard credit checks will impact your credit score, while soft credit checks do not. So, be sure to ask each lender about their credit approval process before giving the okay on multiple applications.
When going through personal loan options, pay attention to the following:
- The interest rate of the loan to determine the total cost (the APR (annual percentage rate), MPR (monthly percentage rate), and ask about fixed rates or variable rates
- The repayment term (the life of the loan)
- Any fees
- Minimum payment due each month (the monthly principal and the Interest)
- Ask about how early you can repay and about prepayment penalties
- The minimum loan amount you must borrow
- The terms and conditions surrounding an asset if you are using an asset as collateral
How Soon Do I Have To Start Paying Back a Personal Installment Loan?
How soon you will have to repay your loan will vary based on the contract with whatever lender you choose. However, with most personal loans, repayment will begin 30 days after taking out the loan. As long as you make your monthly payments on time, installment loans will mean the same monthly payment until you pay it back. Your monthly payment will encompass both the outstanding principal balance and the loan’s interest rate.