- Instant online personal loans are divided among applicants with good, moderate and poor credit. Those applicants with a 650+ credit score can expect a lower interest rate and higher line of credit (loan amount) than those with a lesser credit score. The high risk nature of instant online personal loans lead many online companies to offer loan interest rates that are generally 1 to 10 percentage points higher than those offered by banks. To absorb the risk, many online loan companies require higher risk applicants that demonstrate a history of debt to accept exorbitant interest rates and processing fees. This practice is standard and is used in combination with checking account information to guarantee the loan is paid back in full.
- Instant online personal loans can be used for short term and unexpected expenses. When an accident happens or an applicant does not have the credit history to receive a line of credit from a financial institution like bank, he can easily obtain an online personal or pay day loan with as little as a valid driver's license and checking account. The immediate approval process and quick payment turn around of online personal loans are a great resource for people when money is low or a financial emergency requires immediate action. In some cases, the money can be deposited into a checking account in as little as five minutes, while others require up to 24 or 48 to deposit the money and complete the process.
- Online personal loans can be used for everything from debt and bill consolidation, car maintenance and repair, medical expenses and insurance payments, travel or vacation money, personal debt, Christmas or holiday money, funeral expenses, books and laboratory costs for university or last minute gifts. No matter the reason, online personal loans are a great way to get a line of credit fast for interest rates that can range from 6.15 percent (low), 10.45 percent (average) and 19.95 percent (high).
- Most online personal loan applications can be done online or by phone. With many online companies promising "Apply in seconds" or "Apply quick and easy online," online personal loans can be done very quickly. If an applicant is rejected, he can re-apply at a later time with a co-applicant. The applicant and co-applicant will need to provide their first name, last name, email address, state, desired loan amount, credit rating bracket (this will verified) and reason for the loan. This information will be processed against the loan amount and each applicant's credit score to determine if the loan can be approved.
- Companies like American General allow applicants to receive personal loan amounts for tens of thousands of dollars (see Resources below). For this type of personal loan an applicant would need to provide employer information, property and investment information, monthly income, retirement status and co-applicant information, if applicable. Online personal loans can range from $500 to $10,000 or more, depending on the lender and borrower. The greater the loan amount requested, the great the interest rate and required credit score would need to be.
