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How to Get a Personal Loan in Arizona

Arizona is a great place to live in. Aside from the sunny weather and fresh air, it has one of the fastest economic growth rates in the United States. This has created many job opportunities, a lower cost of living, and a higher average income.

However, life can bring personal financial challenges. Many people are already stretching their budgets because of the sudden rise in food, rent, and gas prices. Then suddenly, someone in the family gets sick, or the plumbing breaks down, and they now have to find emergency money ASAP.

Pay for Urgent Expenses with Personal Loans

A loan in Arizona can help you pay for any major personal financial need, from a medical bill to a backlog in rent. You can borrow from $300 to $2,000, depending on the type of loan and its eligibility requirements.

Here are the benefits of personal loans:

  • Raise emergency cash quickly. Some lenders allow online applications and can confirm eligibility right away. Processing the documents and releasing the funds will only take a few days.
  • Easier monthly payments. Unlike credit cards, where you must pay the total amount by the next due date, personal loans are paid in regular installments.
  • Clear, specific payment terms. Your loan package will describe how much you need to pay when it’s due and how many months it will take. You can now plan ahead and adjust your budget.
  • Simple requirements. While different loans will require their documents, in most cases, you already have them in the house (government ID, pay stub, etc.). A loan representative will also explain everything you need and walk you through the process.

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Myths about Personal Loans

Some people fear taking out a loan in Arizona because they feel they don’t meet the requirements, or they’re overwhelmed by the process. But personal loans are much simpler and faster than you think, especially with the right lender.

Myth # 1: I can’t apply for a personal loan if I have bad credit.

While some loans will require a credit check, there are some types of loans that you can get even with bad credit. For example, you offer collateral such as a vehicle title instead of basing your loan eligibility on your credit score or other financial information.

Myth # 2: I need to have a regular job.

Lenders will look at how you fund or pay off a loan. Banks have stricter criteria and will refuse a loan application if you are not a regular employee at a company, have had gaps in employment, or have not been at your current job for a long time.

However, other lenders are more flexible about your income source. For example, your loan can still be approved if you have funds from non-employment sources such as a pension, alimony, or non-traditional employment like freelancing or part-time jobs.

Myth # 3: It takes a long time to approve a loan.

It depends on the lender. Simple Fast Loans are reliable lenders, and the terms are clear and easy to understand with dependable and quick customer service. 

Types of Personal Loans

There are two major types of loans based: unsecured and secured.

Unsecured loans are loans that are based on your credit score and income. Lenders will look at your “financial track record” and determine the loan amount you qualify for. You don’t need a perfect credit score (how many people have that?), but you do have to present documents that prove your creditworthiness.

People who don't have collateral or want lower interest rates or more flexible funding like lines of credit can use unsecured loans.

Secured loans are based on your ability to present collateral for the loan. In a nutshell, collateral is anything of value that acts as the security. The most common type of secured loan is the vehicle title loan.

people reading over a document

You do not have to surrender your car to get a loan; a lien (or a legal claim) is placed on the title. You can continue to use it during the loan duration as long as you meet the payment agreements; once the loan is paid off, the lien is lifted.

Secured loans are a good option for people who do not have a good credit score or have non-traditional income sources.

Important Terms used in Personal Loans

Loans are financial contracts, so it’s essential to understand their terms. Many people who say they were “taken by surprise” by the payments, etc., did not properly go through the loan agreement.

  • Collateral. This is a valuable asset that you offer as security for the loan. The value of the collateral determines the loan amount you qualify for.
  • Lien. This legal claim is placed on the collateral during the duration of the loan and is lifted once the loan is paid off. When there is a lien on the collateral, you cannot sell it or use it to take out another loan.  
  • Credit score/credit report. Credit bureaus give this based on factors like payment history, debt-to-income ratio, credit mix, etc. You are entitled to a free copy of your credit report every year. Just go to AnnualCreditReport.com and fill up the online request form.  
  • Principal. This is the amount you borrow and does not include the interest rate.
  • Repayment period. This is when you must pay off the loan (e.g., three months, six months, or one year). The longer the payment period, the smaller the monthly payments will be.
  • Fixed interest rate. All loans, whether it is personal loans or credit cards, will charge interest rates. However, fixed interest is the same for the duration of the loan, so it’s easier to plan your budget.
  • Variable interest rate. Some loans, such as a home equity line of credit, will have more flexible interest rates that go up and down based on factors listed in the loan agreement.
  • Annual percentage rate (APR). This is the loan’s total yearly cost, including the interest rate and finance charges.

Tips for getting a Personal Loan

  • Calculate the amount you really need. Even if you qualify for the maximum loan amount, you should still base your loan on what you need, not what you want. Sit down, look at your situation, and list all the expenses. Then, estimate what you can pay with your income or other sources and what you can get through a loan. This exercise also helps you use the money you borrow responsibly and conscientiously—it goes straight to the most urgent and essential expenses and isn’t wasted along the way.
  • Know your credit score. You can request a credit report to know your credit score and the factors that affected it. This can help determine if you should apply for a secured or unsecured loan.
  • Look at different types of loans. Loans can also differ in terms of payment structure and requirements. For example, personal loans will let you borrow a specific amount, while lines of credit set a maximum loan limit, and you can borrow what you need at any given time.
  • Make sure you’re talking to a legitimate, efficient lender. A lender is legitimate if it is licensed and has good communication and customer service. Be wary of organizations that don't have transparent processes and try to delay payments. Even if they aren't scams, they aren't well organized or equipped to serve you. 

Find the best Personal Loan for You

Simple Fast Loans offers:

  • Personal loans both secured and unsecured loans for people of all kinds of credit histories (or even those who have not yet established a credit history).
  • Installment Loans with longer and more manageable payment terms.
  • Lines of Credit that allow you borrow money anytime, based on your needs, if it’s within the credit limit. You are only charged interest on what you borrow, and when you pay it off, the credit is “reset,” so you can borrow the total amount again.

If you need to raise emergency cash right away and would like to fast-track your loan, Simple Fast Loans can help. Contact us, and one of our loan representatives will help you through the process. You will find yourself in a flexible loan with a great repayment plan with Simple Fast Loans.

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