When you think of Maine, you probably think of the state’s food staples like Maine lobster and blueberries. Or you may picture Maine’s rocky shores across the Atlantic coastline. With all the great food and scenery, it shouldn’t be too surprising that Maine is home to 1,372,247 people. And according to the U.S Census Bureau, most of these people share their homes with another person. Maine households average an income of $57,918, which can be adequate for a middle-class lifestyle. However, if you don’t have a good savings fund, an unexpected emergency can mean borrowing money to get by.
If you are looking for loan options, consider a personal loan. Keep reading for more information about these loans.
Maine Personal Loans
Personal loans are some of the most versatile loan options available. They can be for a small or relatively large amount, be a short or long-term loan, and come in various interest rates. Because of this versatility, you can use personal loans for many reasons! Below are some examples:
- Medical Bills — Medical bills can lead to Medical debt, which can be tough to pay off. The good news is that you can use personal loans to pay for any medical expenses.
- Home Repairs/ Home Improvements — Being a homeowner means taking on home improvements and repair costs. Although some of these costs can be planned for, newly bought homes can mean an array of unexpected expenses. A loan in Maine can help you take care of those emergencies.
- Car Repairs — Depending on the severity of damage and the number of cars involved, car repair and maintenance can add up to thousands of dollars, especially for luxury vehicles. If you don’t have the money upfront, borrowing through a loan can be a good option.
- Childcare — Daycare, private schools, essentials, and recreational expenses are just some of the categories of costs that come with a young child. The thing is, even with carefully planning your money with one income, an unexpected expense can derail your budget. And without adequate savings, you may need external assistance. Although there are many assistant programs for parents who need help, if you are a single parent or the sole breadwinner, you may need some immediate help. Personal loans can help take care of your financial needs while you take care of your family.
- Veterinary Bills — Pets can get sick and require a one-time treatment or years of treatment for a chronic condition. Let’s say you want to pay for all of this upfront; in that case, a personal loan could be a good solution.
- Rent or Mortgage Payments — personal loans can help rent or mortgage payments. These housing costs are usually the most expensive monthly costs for most households. A lot can happen in 30 days, and if you find yourself in need of some help, consider a personal loan.
- Groceries and Everyday Essentials — you can use these loans to take care of everyday necessities, like groceries, transportation, etc. Personal loans can mean relief while you figure out a long-term solution to get through a financial hurdle.
- Moving Expenses — Moving, especially long distances, can be a substantial financial burden. Whether it is the expenses of renting a moving truck, transporting a vehicle, or hiring movers, your costs can go up quickly. A loan option is an excellent way to ensure adequate funds for moving expenses even if they increase!
Benefits of Personal Loans for Residents of Maine
Curious about some of the benefits of personal loans, here are a few that residents of Maine can look forward to:
Get a Decent Interest Rate
The interest rate of a personal loan is a better option than many credit cards. And if you are working with Subprime lending, such as payday loans or title loans, whose interest rate can be extremely high, personal loans are always going to beat that APR!
Easier To Pay Off Than Credit Card Debt
Many people may turn to credit cards when they can’t use the funds from their primary bank accounts. However, with revolving credit such as credit card debt, having interest charged for every purchase and interest that can change means playing catch-up. When working with personal loans, you’ll find options that are installment loans—loans with steady monthly payments until you pay off the loan in full. This manageable payment option is why many borrowers consider personal loans for debt consolidation with credit card balances.
Flexibility With Credit Approval
Don’t have the best credit history? That may not be a huge issue when working with lenders that cater to bad credit! Although a financial institution like a bank or credit union may not be open to bad credit personal loan options for Maine residents, many private lenders will be.
Fast Funds Sent Straight to a Bank Account
The great thing about Maine personal loans is that they are fast and straightforward! In fact, in most cases, it only takes a few days for a lender to send approved funds sent straight into a bank account. From here, you can use the funds in your account for whatever you need right away!
Funding for Your Budget
As mentioned before, versatility is one of the most incredible benefits of these loans. These benefits also help a personal loan fit nicely into various budgets. If you are looking for a low monthly payment, a long-term personal loan option is a good start.
You Can Use Collateral To Improve Chances of Approval
Let’s say that you don’t have any credit history or have pretty rough credit. In that case, you may want to consider adding collateral to your loan. Collateral is defined as an asset used for a loan. When you take out a loan, the lender will legally own the asset being used as collateral. And, once you pay back the loan, the lender will give you back ownership rights.
Adding collateral to a loan is similar to adding a cosigner in the sense that both additions offer easier loan access, help with competitive rates, and can mean a higher loan amount. And so, when you can’t qualify for an unsecured loan, think about adding collateral; using a secured over an unsecured loan option.
Top 10 Cities in Maine
With so many people living in this New England state, you may be curious about what the top cities are. Below is a list of most populated Maine towns, structured in descending order:
- Portland
- Lewiston
- Bangor
- South Portland
- Auburn
- Biddeford
- Scarborough
- Sanford
- Brunswick
- Westbrook
The convenient thing about online lenders is that you can apply for a loan, find out approval, and get funding no matter where you are in the state. Just as fast as someone who lives in a busier part of Maine. Most in-person financial institutions also operate online, so borrowers in small towns will usually have the same resources as those living in the bigger cities or towns.
How To Take Out a Personal Loan in Maine
Before you take out a personal loan, it will be essential to consider your financial situation. Take a look at your budget and really factor in what you can afford. The great thing about these loans is that you can find a range of repayment options even when borrowing the exact amount. However, it is up to you to figure out what you are looking for from a lender beforehand.
When you are ready to apply for a loan, you should have the following documents, that help a lender verify your personal information:
- A state-issued photo ID (a driver’s license, passport, etc.)
- Proof of residency (bank statements, valid mail, copies of a utility bill, etc.)
- Proof of income (paystubs, bank statements, etc.)
Many lenders require you to have an active account with a bank (online banking is fine), credit union, or savings bank.
With these documents in hand, you are ready to apply. Whether you are applying for the loan in person or online, the application will be similar:
- Fill out the application form and send in documents.
- Approve a credit check and submit your application.
- Learn about final approval.
- If approved, go over the loan agreement (the APR/annual percentage rate, repayment terms, terms, conditions, and more).
- Decide whether you want to move forward with the loan and collect the funds.
And so, as you can see, the process of applying for a personal loan is pretty straightforward!