Whenever you are short on cash and need to urgently receive some transfer to cover up unexpected car repair expenses or finish up your home improvement project, a one-year personal loan can save you. With the sums varying from $5,000 and up to $35,000 for 12 months, you can literally do anything needed. Read about this short term loan, its approval process, and useful tips to find the right lender.
- 1 How does a 1-year personal loan work?
- 2 How much do one-year payday loans cost?
- 3 What do you need to look for when comparing 365-day loans?
- 4 How do I compare my twelve-month loan options?
- 5 What are the benefits of a 12-month personal loan?
- 6 Am I eligible for a 1-year payday loan?
- 7 How can I find the right 365-day short-term loan for me?
- 8 How do I apply for a 52-week payday loan?
How does a 1-year personal loan work?
One-year personal loans offer several possible options: traditional personal loans, installment loans, and payday loans. In the latter case keep in mind, that the loan sum would be lower than in the former two options. For any loan, you can apply in a bank or with a private lender but be ready that banks generally conduct more document checks hence the approval process takes more time.
If you go with a 365-day installment loan, you will be applying for a short term loan. This means that you will be able to get the money faster and under lower conditions. Depending on your state of residence, the particular requirements and processes for all personal loans vary.
How much do one-year payday loans cost?
There are several factors that may change the initial average cost of a 1-year personal loan. They are:
- Your current financial state
- Loan amount
- Rate and fees
- Additional charges and fines
Remember that the last two points heavily depend on the lender you select so there is no one-fits-all answer to this question. However, since loan interest rate would add the greater payments to your loan sum, you can at least know that payday loans require significantly higher interest (up to 1,500%) if compared to the installment and personal loans (from 5% to 300% of interest).
What do you need to look for when comparing 365-day loans?
Without any doubts, the cost of the loan needs to have a priority for you. Make sure that you learn about all the fees that will apply to your case as well as your interest rate. And under “fees” understand processing fees, any fines for the late payments, and closing fees.
The second point is your repayment terms. Some lenders offering 52-week personal loans would accept payments made weekly, biweekly, or monthly without any questions; but if you decide to go with the payday loans, be ready that your repayment schedule will be closely tied to your payday at work. At this point you need to also inquire about the flexibility of the repayment should you know that your salary might be delayed.
If the money is needed urgently, then approval period should also step into the game. Banks would have a longer approval period while individual lenders can transfer the money within a single business day.
How do I compare my twelve-month loan options?
To compare the offers on the table, you need to collect them. Visit several lenders in your area, write several online applications to learn about the fees, interest rates, and overall repayment terms different lenders have to offer. While surfing the web for the offers, remember to double-check the reputation and reliability of all your prospective lenders by simply reading online reviews at independent listings and forums. You should always search for the most reliable experts in the area.
What are the benefits of a 12-month personal loan?
There are two main and several supporting advantages a 1-year personal loan can offer:
- Longer loan terms. As a rule, you can expect such long-lasting loans to offer some flexibility in terms of repayments (weekly, biweekly or monthly repayments to fit your budget). This helps planning your budget more carefully and not miss any payments.
- Flexible loan amount. 12-month loans can go from $5,000 and up to $35,000 which can be a valuable addition to a car purchase or home renovation project.
- Lack of justification. Most short term lenders do not require borrowers to explain the reason they need the money. So even if initially, you were planning to build a pool in the backyard, you can always take out a loan and just go on a great vacation with the whole family.
- Fast repayment. 52 weeks is a relatively short period if compared to the mortgages, for instance. So whenever your credit history is bad, you can always take a one-year personal loan, repay it without any problems and improve your overall FICO score.
Am I eligible for a 1-year payday loan?
Just as the rest of personal loans, 12-month loans have universal legal requirements that bind throughout the country and additional ones set by every lender. Here are the universal requirements:
- You must be a United States citizen or have a permanent residence.
- You must be at least 18 years old in most states.
- You must provide proof of steady income for the past half a year.
Note: For the last point you can bring your employment contract with the information about your salary as well as your bank statement for the past six months.
Besides that, you might also need a checking account. Depending on your loan sum, particular 365-day loan lenders might need you to have an income of no less than $1,000 or $2,000 (sometimes even more).
How can I find the right 365-day short-term loan for me?
Remember at all times that the right one-year loan is the one you can repay without getting in deeper debt. So your budget is the most decisive factor when you are looking for the right personal loan. Carefully review your monthly income and spendings to allocate the sum of money you can easily spend on loan repayments. And try to stay within those numbers.
Besides that keep in mind that not all personal loans are legal throughout the country. For example, the state of Maine has very strict regulations for payday loans; Vermont completely prohibits them, and bad credit payday loans in Oregon are completely legal. Before you even begin researching your options, make sure that the type of loan you are considering is available in your state.
How do I apply for a 52-week payday loan?
Whenever you want to apply for a 52-week personal loan, all you need is your papers and a filled application form (remember that it is unique for every lender, so do not plan on using the same template everywhere). And do not apply to several places at a time; it is always better to go one by one rather than trying your luck at several places. With the tips from above, you will be able to apply for a 12-month loan and definitely get approved without any problems. However remember, that if you would like to lower your interest and feel that your budget allows you to repay the loan faster, you can always opt for an 11-month personal loan and even a 10-month payday loan.