Private Personal Loans + Your Best Options in 2019
Bank loans and other institutional forms of credit can be hard to get. They have long lists of requirements and documents and the application process simply takes ages. For visa holders and immigrants, this process can be virtually impossible to conquer.
The good news is there is a solution – private personal loans. Below we take a look at private lender personal loans and how it can help you!
Benefits of Private Loans
Private loans are here to make your life easier. It is offered by companies who don’t operate like normal banks and credit institutions. Their eligibility requirements are more often than not lower when compared to traditional banks. Plus they don’t have the same lengthy application processes and slow service.
Here are three general benefits of private personal loans:
- Shorter Application Process: Institutional loan applications usually take very long due to the amount of paperwork involved and processes not being streamlined. Private lender personal loans, on the other hand, have shorter application processes. Many private lenders exist for the sole purpose of lending money to customers. Plus they have online application options with less paperwork. They are streamlined to make your application happen quickly.
- Easier Eligibility Criteria: Private lenders are not as stringent with their requirements as banks. So, it’s easier to be eligible for private lender personal loans. Many private lenders are focused on helping visa holders and many private lenders don’t even look at credit scores. They want to make it possible so that even international students can get loans.
- Faster Decision-Making: Private lenders know how important your time is. They don’t take long to make their decisions. Feedback may even reach you within 24 hours of your application. They also disburse funds much faster than banks. With some lenders, your funds reflect in your account as fast as 2-3 business days.
Why Personal Loans are Good for Immigrants
Private personal loans are a great solution for anyone. But they are especially so for immigrants. The more lenient eligibility criteria makes it easier for visa holders to get a loan. Especially since most traditional banks require borrowers to be U.S. citizens or permanent residents.
Private personal loans are also a great way to build your credit in the U.S. As an immigrant, you most likely don’t have the best credit score and you need an opportunity to build it up so you have access to better financial services and loans. Since you’ll more likely qualify for a private personal loan, it is a great option to start building your U.S. credit history.
What Kind of Interest Rates Should You Expect?
If you choose to apply for a private loan it is important to know what to expect. Interest rates on loans are based on the risk profile of the applicant. Lenders take a risk to loan you money. This means the interest rate you get offered will depend on your specific circumstances. Generally speaking, however, as of December 2018, you can expect an interest rate between 7% and 35.99% APR.
What Are the Requirements for a Private Loan?
The eligibility criteria for private loans will differ from lender to lender. Some private lenders may have more requirements than others.
Here is a list of the basic requirements for most private lenders:
- Must be 18 years of age or older
- Must have a valid visa or residency status
- Must have a U.S. bank account in the name of the applicant
- Proof of a living address in the U.S.
Additional factors private lenders may take into consideration:
- Any cosigners
- Your income
- Your debt-to-income ratio
- Any cases of bankruptcy or foreclosure
- Your employability or written job offers
- Any extra documentation like work permits
Where to get a Private Personal Loan
There are mainly three types of private loans available to prospective borrowers. Let’s take a look.
Most peer-to-peer lending (P2P) takes place over the internet. P2P lenders establish online marketplaces. Investors supply the money which is then loaned to borrowers. Borrowers then repay their loans with interest to the investors. These types of loans bypass banks and can help people who might not qualify for normal loans.
Unlike banks, credit unions don’t generate profits for their shareholders. The profits are used to supply better services to its customers. Credit unions generally operate in specific areas. Or they only supply services to specific groups of people. It can be hard to be eligible to apply at credit unions for private personal loans.
Online lenders don’t work like banks. They don’t usually have location-specific branches across different states. Their services are predominantly offered over electronic forms of communication. The eligibility criteria for online lenders are typically much easier than that of banks. Online lenders are great options for visa holders in the U.S.
Top Online Lenders for Private Loans
Convinced that a private personal loan is the way to go? Let’s look at a few online private lender personal loan options.
Stilt is one of the few companies who specifically help immigrants and visa holders with private personal loans. Their eligibility requirements are some of the lowest in the industry due to their specific focus point.
They have helped countless internationals like yourself. They offer the following:
- APR between 7.99% and 15.99%
- Loan terms of 6 months to 2 years
- Loan amounts between $1,000 to $25,000
- No origination fees, prepayment penalties or administration fees apply
- Do not require a green card or social security number
They are headquartered in Palo Alto, California. Founded in April of 2012, they have helped thousands of people with loans up to date. Immigrants may find it difficult to apply to them though.
They offer the following:
- Loans ranging between $1,000 and $50,000
- Rates from 7,98% to 35,99%
- Terms from 3 to 5 years.
- No prepayment penalties.
This is a peer-to-peer financial services company. So, their solutions are available online. Even though they are a peer-to-peer platform, they still have a minimum credit score requirements. This may make it challenging for immigrants to apply.
With LendingClub, you can expect:
- Loan term of 3 to 5 years
- APR from 6.95% to 35.85%
- Loan amounts of $1,000 to $40,000
- Minimum credit score requirement of 600
- Origination fees of up to 6%
- No prepayment penalties
- Late payment penalty of the greater of $15 or 5% of the late payment amount (but a grace period of 15 days is allowed)
- Cosigners are allowed
Lendingtree provides an online marketplace. They don’t offer the loans. They rather market loans offered by other lenders. The specific loan terms for your offers may, therefore, differ depending on which lender you are connected to.
This is what you can expect from them:
- Loan amounts from $1,000 to $50,000
- APR between 3.34% and 35,99%
- Loan terms stretching between 24 and 144 months
- Minimum credit scores starting at 500 (it may be higher for other offers)
- Origination fees will vary between offers
Private personal loans are a great solution for immigrants. They are accessible and an easy way to build your credit score. Not all lenders will offer the same terms, however, so make sure you do your homework well. Getting a private personal loan today might just be the first step to a better financial future tomorrow.