Shopping for a personal loan can be an overwhelming experience, especially if you don’t have good credit. Many lenders won’t even deal with high-risk borrowers leaving you without many options to secure financing for debt consolidation or other unexpected expenses. That’s why you need to consider your options carefully when you do find lenders that will work with you.
iLoan is one such lender that works with high-risk borrowers. You can obtain a small loan, online, for $2550 up to $25000, even with a blemished credit history.
If you’re not familiar with online loans and you’re in need of fast cash, then you’ve come to the right place. In this article, we’re performing a detailed iLoan review so that you can gain a better understanding of the process involved and determine if this is the right type of loan for your financial situation. Keep reading to learn more.
iLoan is an online lender that serves customers in the following 12 states:
- New Mexico
- South Carolina
They are a division of OneMain Financial that serves all 50 states. The major difference between obtaining a loan from OneMain Financial and iLoan is the ability to avoid going to a branch location in order to secure a loan.
iLoan deals exclusively online with consumers to provide an alternative option for lending purposes in lieu of banks, credit unions, peer-to-peer lenders, and payday lenders. You may include a co-borrower and/or use your automobile as collateral, which may increase the likelihood that you’ll be approved for a loan. Perhaps most importantly, this lender has loose borrowing requirements that make it easier for people that otherwise may not be eligible for a personal loan to acquire one.
Minimum Borrowing Requirements
This lender boasts no minimum requirements for your credit score, credit history, and income. That means you can obtain a loan even if you don’t have any credit, or your score is below average. Typically, however, you’ll need a credit score of 600 or above in order to secure better rates.
In regard to your income, there is no minimum required. Although you shouldn’t exceed approximately 65% of your income in terms of borrowing, your debt to income ratio may be as high as 85%.
All you have to do is request a loan online and wait for the underwriters to review your information. The application process is quick and easy and your lender will consider all the factors of your financial health before making a final decision. And, if you’re approved for a loan, you could secure funds in as little as one business day.
Terms and Conditions
APR for these loans ranges from 17.59% to 35.99% with a minimum loan amount of $2550 and a maximum loan amount of $25000. Loan durations are from three to five years depending on your loan amount and income.
The shorter your term, the less you’ll pay overall, but your monthly payments will be higher. Of course, you can opt for a lower payment over a longer term, but you’ll pay far more in interest over the life of the loan which means you’ll pay significantly more than what you borrowed. You’ll need to assess your finances prior to securing a loan in order to confirm what you can afford.
Fees and Penalties
You can expect a 5% origination fee for your loan. This fee will be included in your loan amount so there is no need to access funds to pay for it up front. There are also some various administration fees involved so it’s important to read through all of your loan documents to be sure you understand where your payments are going.
Late fees vary by state and there is also a payment failure fee, however, there is no prepayment penalty associated with paying your loan off early. If you are using a vehicle for collateral on your loan, you may need to pay a collateral inspection fee and DMV title fee in some states.
Is iLoan Right for You?
If you’ve been denied a loan with a traditional lender and you’re not comfortable borrowing from a payday lender, iLoan may be a good fit for your financial situation. The annual rates are considerably better than those offered by payday lenders and the terms are fair. Not to mention that even if you have a high debt to income ratio, you could still qualify.
The major drawback to this lender is that they only operate in 12 states. If you live outside of these 12 states, you may consider OneMain Financial as your loan source instead.
iLoan may very well be one of the best personal loans available for those with less than stellar credit. Although the interest rates are higher than you’ll find with a traditional lender, they’re still competitive in comparison to other lenders in this same realm. And, you’ll have a chance to improve your credit with on-time monthly payments.
It’s important to remember that iLoan will perform a hard credit check before proceeding with the loan process. This could impact your credit score negatively so it’s a good idea to shop around with lenders that only perform a soft pull on your credit before deciding on a loan that’s right for you.
If you’re in the market for a personal loan and you’re not sure that iLoan is for you, check out our options. We strive to make personal finance more understandable so that you can make informed decisions about your future.