Lexington is known as the “Horse Capital of the World” with its world-famous horse breeding that has been going on for generations. Horses are one central part of the state’s identity. So much so that city has the nation’s first urban growth boundary—which restricts new development to a metropolitan service area. Thanks to these rules, you are likely to see farmland with horse paddocks no matter where you go within Lexington. In addition to the various horse farms, horse museums, and horse racing venues, visitors can check out Fort Boonesborough State Park, Raven Run Nature Sanctuary, several historic sites, fine dining, unique movie theaters, and more!
Lexington’s cost of living is 4% lower than the national average overall. These lower costs include housing, utilities, groceries, and transportation. This low cost of living, coupled with so much to do, shouldn’t be surprising that there has been steady population growth year after year for decades. The average annual income for residents is about $58,356, and most households have two or more people. Households living with one income can expect an average annual income of $39,119. Although the employment rate is high, in 2020, there was a 5.1% unemployment rate.
Regardless of your employment status, an emergency can mean needing some extra cash to tide you over until your next check. If that is the case, a personal loan could be an excellent solution for your personal financial challenges. Below is everything you need to know about these loans.
What Are Personal Loans in Lexington, KY?
A personal loan is typically an unsecured loan option that you can inquire about at a bank, credit union, or a private lender. You can expect to repay a personal loan in monthly installments. Interest rates and repayment terms will depend on your lender, credit score, and income.
What Do I Need for a Personal Loan in Lexington, KY?
The requirements for personal loans are relatively simple. You have to provide basic information that helps your lender verify essential details, such as your identity and income. Here are some of the commonly asked documents personal loan lenders will ask for:
- A Valid Government Issued State Identification and Other Identifying Documents — A social security card, driver’s license, passport, military ID, etc.
- Proof of Income — Bank statements, pay stubs, letters of income, etc.
- Proof of Residency — Lease agreements, bank statements, valid mail, etc.
In addition to these documents, most lenders require borrowers to have a bank account or Checking account and be okay with a credit check. The flexible thing about these loans is that, with the right lender, you could get funding even with a bad credit score.
Different Types of Personal Loans Available for Residents of Lexington, KY?
There are various types of personal loans that you can look into; here are some of the fundamental differences that you can choose between when deciding on a personal loan:
- Bad Credit vs. Good Credit Loans — Bad credit personal loans are usually only available from a handful of financial institutions, typically private or online lenders. Loans for people with bad credit will come with higher interest rates when compared to good credit loans.
- Fixed-Rate vs. Variable Rate Loans — Fixed interest rates will stay the same throughout repayment. In contrast, variable interest rates can change depending on factors such as the market. You could score a low-interest rate with variable rates, but there is no guarantee that it will last or that the rate won’t go higher than the average. However, for some people, that risk is worthwhile if it means the possibility of saving on interest.
- Long-term vs. Short-term Loans — Long-term loans are a few months up to a few years, while long-term loans can go up to a few years. Having a short-term loan can mean higher monthly payments but more money going towards your loan balance. In comparison, a long-term loan can mean a lower monthly cost, but more interest paid overtime. Using a loan amortization calculator can help you figure out the best option for your needs once you have some estimates.
- Secured vs. Unsecured Loan — Secured loans use collateral, while unsecured loans do not. In some cases, you may want to or have to add collateral if your credit score is low, or you don’t meet the income requirements.
What To Review Before Taking Out a Personal Loan?
Before taking out a loan, it is crucial to pay attention to a few things about it:
- The Interest Rate —This will be the most expensive part of a loan. So before getting one, it is essential to consider what the interest rate will cost on a specific loan.
- The Repayment Terms — The repayment terms will let a borrower know how long the loan will be, along with the necessary monthly payment. Review this to make sure it is affordable and factor in the loan length with the monthly interest.
- Default Terms — Pay close attention to what specific actions can cause a loan to default so that you can avoid them.
- The Lender — before you choose a lender to work with, make sure you research them. Check out past customer reviews and whether they are legitimate.
Personal Loan Benefits in Lexington, KY
Curious about the benefits of these loans? Below are some of the most common benefits you will see with a personal loan:
Competitive Interest Rates in Lexington, KY
The interest rates for personal loans are lower than most other loan options like credit cards. You’ll find this especially apparent when applying for other bad credit loan options whose interest rates can be extremely high.
Works Well for Debt Consolidation
Suppose you have a ton of credit card debt or loan options that you are trying to pay off—called outstanding debt. In that case, debt consolidation can help make those payments more manageable and more affordable. Personal loans can work well to take care of debt payment obligations because they range in repayment options and interest rates. And they often have lower costs with finance charges such as origination fees. Before seeking out this method of debt repayment, be sure to know all the ins and outs of the debt consolidation process.
Approval With a Bad Credit Score in Lexington, KY
Even if you have a bad credit history or a low credit score, you could borrow money from one of these loans. Although not all applicants will be approved for the same amount of money or interest, do not hesitate to apply with bad credit.
Find Out About Loan Approval Quickly
Once you submit your application and send in the necessary documentation, you will quickly find out about approval! In fact, in most cases, you could find out approval in as little as 24 hours.
Don’t Always Require Collateral in Lexington, KY
Although a lender may ask for collateral in some cases, in most scenarios, you won’t need to have collateral involved with a personal loan in Lexington, KY.
Get the Loan Proceeds Quickly Once You Qualify
Once you receive loan approval, the money can be quickly made available. Once the lender sends out the funds, they will go straight to a bank account via direct deposit.
A Predictable Repayment Schedule
Your repayment schedule with these loans will be steady and predictable throughout the loan period. And so, all you have to worry about is paying back your loan without any surprises. Keep in mind that your monthly payment can change if you get a variable interest rate loan.
A Reasonable Time to Repay Your Loan
Whether you need a few months or longer to repay a loan, you may be able to find a lender that can personalize repayment with. While other loans, especially bad credit loan options like payday loans, have an extremely short and fixed window for repayment.
You Can Use a Personal Loan for Multiple Purposes
The flexible thing about personal loans is that you can use them for all kinds of expenses and emergencies. Whether you need a loan amount of a few hundred dollars or a few thousand, a personal loan can help—more on that below.
What Can I Use a Personal Loan For?
Below are some of the expenses that you can use the money you get from one of these loans in Lexington:
- Home improvements
- Medical bills
- Childcare expenses
- Veterinary care
- Paying off credit cards
- Car repairs
- Wedding costs
- Utilities
- Rent or mortgage payments
- Funeral expenses
- Groceries, transportation, everyday expenses, etc.
- Family planning