When you’re looking for a personal loan, there are countless local and online lenders who’ll offer various amounts, terms and interest rates. Promise Financial might be a solution for some consumers because it’s an online entity that’s available to almost everyone. This lender does have some rules when it comes to funding a loan so get to know Promise Financial before you apply for any amount.
Appropriate Time for a Personal Loan
A personal loan is much different than a home or student loan. Funds from Promise Financial are meant to be used for special occasions. Major milestones, such as weddings or funerals, can be expensive. These loans can be funded in various amounts so that you can afford the event to take place. Pick a dream location, or stay local with an extremely lavish wedding. In contrast, remember your loved ones with a grand farewell during a funeral. The funds are yours to distribute and spend as necessary. You might even consolidate debt with the loan when you’re trying to streamline your finances. Smart borrowing should always be coupled with intelligent spending.
Promise Financial gives you a chance to explore your financial options, but there are initial requirements for any loan funding. If you’re an individual applying for the loan, you’ll need at least a 620 credit score. This value must be based on at least two years of credit history. A benefit to this lender is the lack of a minimum requirement on gross income. Any tax bracket is welcome to apply.
If you decide to add a co-signer to the contract, he or she needs a credit score of 660 or higher along with five years of consistent history. The individual can then have a lower credit score of 580 to apply. Don’t forget that the overall debt-to-income ratio can never exceed 35 percent for an individual loan. Add a co-signer, and this value increases to a maximum of 40 percent.
Promise Financial’s application process is relatively straightforward as you complete their online paperwork. You’ll fill in your name, address and Social Security number as a few basic items. Be aware that your credit history from TransUnion will be the information pulled instead of the other two credit bureaus.
Based on this credit history, you’ll be offered several options by Promise Financial. You’ll be able to pick between the options as the loan becomes assigned to a financial officer. Promise Financial also notifies you of any required co-signers at that time. The system sends a chosen person an invitation to start the application process so that no delays are involved.
Each personal loan will be customized to the borrower’s needs. Promise Financial has certain terms that they follow for all of their funding practices, however. You can borrow between $3,000 and $35,000 with a payback period of three years. The annual percentage rate is based on your credit score. In general, Promise Financial offers percentage values between 6.99 and 29.99 percent. This interest accumulates on the principal so that your ultimate payoff on the loan will be higher than your borrowed amount. You can save some money by trying to pay off the loan faster than the term length. Simply send the lender more money that’s allocated to the principal each month, and your loan length will significantly decrease.
Understanding Associated Fees
Lenders must cover their overhead with some fees that you pay during the loan’s lifespan. Be aware that there are always fees when a payment is returned, including a $15 fee. If you’re late on a payment, the penalty might be 5 percent of the payment or about $15. Every penalty is normally based on your loan amount and initial terms. When the loan is funded, an origination fee is common. Promise Financial has a range of fees, such as 1 to 6 percent. A few areas are free from fees, including personal-check processing and prepayment situations.
Promise Financial bases their funding practices on the fact that the money can be put towards a good cause. Create a life milestone without incurring too much debt. Consolidate debts into one payment so that you pay less interest over time. Research your own credit history before taking on any loans. You may want to clear up inconsistencies on the history before applying. Discover a lower interest rate when your history has no flaws or glaring omissions. Personal loans can be useful tools during those unexpected life events.
As you pay off the loan, always follow the rules set forth by the lender. Pay the monthly amount on time so that late charges aren’t incurred, and add any extra funds to the principal whenever possible. With smart borrowing, your Promise Financial personal loan will be a positive experience from start to finish.