Who is OpenLoans?
We are a funding request service that helps consumers look for providers. On
OpenLoans, that extends to personal loans, business funding, and mortgages. Our service is free and will not affect your credit score.
Is it Free to Apply for a Loan?
It is very rare for personal funding to have an application fee, which is more common with mortgages. A personal loan may have an origination fee or processing fee, usually charged after receiving the money. Please note that we are not a lender, and so we do not set fees like this. You can use our free service to try to connect with a lender.
What Documents Do I Need to Apply for a Loan?
Your lender will likely require you to meet basic lending requirements. Please note that we are not a lender. You should be a legal U.S. resident who is at least 18 years of age. You have to present a government-issued ID, proof of income, and an active bank account. Some lenders may ask for additional documents. Some may also require a minimum monthly income and a minimum credit score.
How Long Will I Wait to Get a Decision?
The decision-making period highly depends on the lender that you are working with. If you are approved by a lender, you may receive the funds in as little as one business day.
How Much Will I Need to Pay Each Month?
How much you have to pay each month depends on the amount you borrow, the terms of the debt, and the interest rate. Suppose a person has borrowed a $20,000 personal loan over the course of three years and the interest rate is 5%. In this case, the borrower has to pay back around $600 every month. It's important to look over your expenses and determine the amount of a credit payment you can afford with your provider.
How Much Can I Borrow?
The amount of money you can borrow may depend on factors such as your credit history and annual income. Typically, applicants can request up to $40,000 in personal loans, $350,000 in small business funding, and a $625,000 mortgage. Kindly keep in mind that we are a funding request service that helps consumers look for cash providers. It is not up to OpenLoans to determine how much you can borrow.
Can I Apply Online?
Yes, many lenders let you apply online. Keep in mind that we are not a loan provider. To request money from OpenLoans.com, you have to complete our form and answer a short set of questions about your credit rating, the amount you would like to borrow, the reason why you want to borrow money, etc.
How Are Interest Rates Determined?
OpenLoans is not a lender and does not determine interest rates. It's our job to try to find you a lender. If you are connected with a lender and approved, they will set your interest rate. The lenders we work with offer personal loan products with interest rates ranging from 4.84% to 35.99%.
How Do Lenders Make Decisions?
Typically, before making a decision, lenders consider several factors. Typically, the applicant\’s annual income and credit history are considered when determining their eligibility for a loan. Depending on the type of loan you want to borrow, the factors may change.
What Is the Interest Rate?
The percentage that your lender charges for lending you money is called an interest rate. The providers we work with offer personal loan products with interest rates ranging from 4.84% to 35.99%. Interest rates vary by product, and the ranges are different for mortgage and student borrowing.
What Is the APR?
The annual percentage rate (APR) is the interest rate for a whole year. It is a finance charge expressed as an annual rate. The APR represents the interest rate and additional fees you paid directly to the cash provider, like an origination fee if applicable.
What Is a Floating Rate Loan?
A floating-rate loan is a debt where the interest rate varies over time. A floating interest rate is an interest rate that rises or falls as per the market dynamics, in contrast with a fixed interest rate. As a result, the equated monthly installments fluctuate too. A floating-rate is beneficial when the interest rate decreases over time.
What Is a Credit Score?
A credit score reflects the creditworthiness of an individual. It is based on a credit report, information typically sourced from the three credit bureaus: Equifax, Experian, and TransUnion. To determine an applicant's credit score, the credit bureaus consider the number and type of accounts that the individual holds, their used and available credit, the length of their credit history, payment history, and other factors.
Why Do Credit Scores Matter So Much?
Credit scores matter because they present the applicant's likelihood to pay back their debt on time successfully. When someone has a good credit score, they have always made their credit payments on time. If a person has a bad credit score, it likely means that they have failed to pay back the borrowed money in the past. That's why some lenders may not want to work with a person who has a bad credit score, fearing that they will not pay back the borrowed amount on time.
What Happens if I Can't Repay?
When you can't make a payment, you will eventually default on your loan. Consequently, your credit score will fall, and you will owe the provider more money as penalties, additional fees, and built up interest charges on your account.
Can I Get a Loan if I Already Have One?
Whether or not you can borrow more than one depends on your provider. Please note that we are not a lender, and it is not up to us to determine if you can get a loan if you already have one. Typically, lenders do not automatically decline applicants if they already have debt. However, some may reject a loan application if the applicant has too much existing debt already.
Can I Change My Payment Due Date?
Whether or not you can change your payment due date entirely depends on your provider. Some lenders may accept to change the payment due date, and some may not. It is best to contact your lender to see if this option is available. If yes, the terms of the funding and the monthly payment amount will remain the same.
Is It Hard to Improve Your Credit Score?
Improving your credit score may not be as hard as it is time-consuming. Building your credit score can take anywhere from a few months up to a few years. On the bright side, you can speed up the process by making payments on time and using less of your credit limits.
What Am I Unable to Use My Loan For?
When taking out business funding, you have to use the money to finance your business. Similarly, a mortgage loan is meant to be used toward home financing. However, you may use your personal funds to finance anything that you may need. Usually, providers don't impose restrictions on how the money should be spent as long as the borrower can pay it back. However, providers may ask their applicants in what ways they will use the funding. In this case, it's best to be honest and tell the provider the truth.
Why Do People Get Personal Loans?
People get personal funding for various reasons such as car repair, debt consolidation, home improvement, travel, and weddings.
Who Needs Personal Loans?
Personal loans may be an option for anyone who is short on cash and needs money for financing. One of the most important factors to consider to determine if any financial product is right for you is whether you can afford to make the monthly payments.
How Can I Apply for a Personal Loan?
You can use our free service to try to connect with a lender. Begin by completing a request form. If you are connected with a lender, you may need to fill out the lender's application form. In addition to the application, you may need to present proof of identity, income, and an active bank account. Some lenders may ask for additional documents.
How Will I Receive My Personal Loan?
Most of the time, lenders transfer the money into the applicant's active bank account. However, those who don't have a bank account may still be eligible.
How Long Do I Have to Pay Back My Personal Loan?
The term depends on the borrowed amount and your financier. Your provider will help you calculate your term and amount according to your situation.