Applying for personal loans in the United States, being Latino or Hispanic, is not an impossible mission. On the contrary, in recent years the requirements have become a bit more flexible.
In fact, right now there are many services and financing options that benefit the Hispanic population living in the USA.
If you are Latino or Hispanic, and you reside in this North American nation, you should know that you have many alternatives at your disposal to successfully apply for this type of personal credit online.
How a personal loan works in the USA
Before explaining how you can request this type of credit online, or what are its greatest advantages, risks or benefits, you must know exactly what a personal loan is.
In theory, it is a credit that can be granted by the bank, or any other financial entity, to face economic situations of various kinds.
These may vary, but you have some such as: Paying for services, financing studies abroad, making reforms in your home, etc.
The reality is that there are other possibilities, so you can also apply for personal loans in the USA to achieve more specific goals, such as:
- Acquire mass consumption goods or services.
- Take family vacations.
- Cover medical emergencies.
- Consolidate debts.
Also, you should know that there are two main types of personal loans: guaranteed and unsecured.
If you decide to apply for a guaranteed personal loan, you must assign some asset as collateral (it could be your home or your car).
In the event of defaulting on your payments, your lender may appropriate these guarantees to settle your debts.
For their part, unsecured personal loans do not put your assets or personal possessions at risk. However, accessing them is usually a bit more complex, or challenging, since the level of risk is higher.
Personal loan options for Hispanics in the United States
Currently there are many institutions willing to lend money to the Hispanic population. These are the most prominent:
1. Camino Financial
This entity created the loan solopreneur so that Hispanics can get between $1,500 and $7,500 approximately.
The requirements are very flexible. In fact, Latinos who only have ITINs can apply without problems.
This is because the mission of Financial Way is that all its clients have access to financial solutions (regardless of their immigration status).
This lender on-line it handles inflexible interest rates (ranging between 8% and 35%). However, it offers other benefits to Latinos by way of compensation.
For example, you don’t fine them or charge them an setup fee if they make advance payments.
Additionally, his process of Application for personal loans is friendly and simple.or, and the amounts to be financed can be up to $50,000 dollars.
This online lender is one of the fastest when it comes to approving or rejecting a loan application for Hispanics.
Today applicants can receive up to $35,000 at their personal discretion, and the best thing is that they do not need to grant security interests in their property or assets.
Upgrade It is also characterized by having low rates and by not making surcharges in case payments are issued in advance.
SoFi It is ideal for Latinos or Hispanics in the US who have a good credit score, because it offers excellent rates and the possibility of applying for long-term loans.
In fact, applicants can take anywhere from two to six years to repay the borrowed money. In addition, interest rates range from 5.99% to 18.72%, and the maximum amount to be financed is $100,000 dollars.
5. Citizens Bank
If you need to pay off large debts, this is a great option, because you can request between $5,000 and $50,000 dollars, and interest rates range from 6.79% to 20.89%
However, your minimum credit score must be 680 to complete a loan application before Citizens Bank.
Opportunity is a great alternative for Hispanics who have no credit history, or who have very poor credit scores.
Right now, Opportunity operates as an online loan financier that significantly supports the Latino and Hispanic community (to the point of accepting clients without NSS).
However, it should be noted that the amount of the loans is low (between $300 and $10,000 dollars).
ahead It is very popular because it also gives loans to Latino citizens who have low credit scores. Although they require a minimum of 580 points).
In addition, it is very flexible with payments and loan amounts range from $2,000 to $35,000.
On the other hand, you should know that one of the greatest advantages of ahead is that it liquidates the money in just 24 hours.
It is one of the best options for Latinos or Hispanics who only have ITIN. Their loan amounts range from $1,500 to $20,000, regardless of whether or not they offer collateral.
Their interest rates range from 18% to 35.99%, and their payment terms can be extended for 24 or 60 months.
The Hispanic community uses its services a lot to pay off debts, or to make large purchases, since its minimum annual interest rate does not reach 7%
As for their loan amounts, these can vary between $2,000 and $40,000. But this lender charges an origination fee equal to 1% or 5% of the total loan amount.
10. Best Egg
Latinos with strong credit histories can take advantage of loans from Best Eggs. Their annual interest rates are low (ranging from 5.99% to 29.99%) and loans range from $2,000 to $35,000.
Requirements to obtain a loan being Latino or Hispanic
Below we will share some requirements that you must meet if you are Latino and need to apply for personal loans in the United States:
- Credit history (in most cases the minimum score must be 600 points).
- Certification of your sources of income.
- The ratio of your debts to income must be less than 50%
- Social Security Number (SSN). Although some banking entities accept the Personal Taxpayer Identification Number (ITIN).
- Assets that guarantee the payment of the loan (This requirement only applies to guaranteed personal loans, such as credit to buy a house).
Similarly, you should keep in mind that each banking company has its own requirements and policies.
Additionally, there are determining factors that can play for or against your request for personal loans. These would be some of them:
- Migratory situation.
- Visa type.
- Not have SNN or ITIN.
As for the amount of money that they could lend you, you must understand that this will depend, mainly, on your credit history.
However, as a guide we will share the referential figures of certain financial entities:
- OneMain Financial: can award between $1,500 and $20,000 to applicants.
- ahead: Financing can range from $2,000 to $35,000.
- Upgrade: between $1,000 and $35,000 dollars.
- Rocket Mortgage: between $2,000 and $45,000 dollars.
- Upstart: between $1,000 and $50,000 dollars.
How to request personal loans in the United States?
The application for personal loans in the United States, when you are Latino, must be done very carefully. Especially if you have an unstable immigration position. That is why we advise you to follow these steps:
1. Organize your budget
Define the objective of that loan and do not deviate from it. Learn to manage your finances well so that the money obtained does not become a big headache.
2. Find out what your credit score is
This is really the starting point. Without a doubt, you need to know your credit score accurately and clearly, because the approval of the loan will depend on it, as well as the interest rate.
According to a report from USA GovIn the United States, you can pay a credit reporting agency to access this information reliably and effectively.
Although you can also request more information through the bank that has issued your credit cards.
3. Research the requirements of various financial institutions
Each financial entity has different characteristics and requirements. That is why you should look for the one that best suits your current situation and your payment possibilities.
Try to locate one that has a good reputation, and that also offers you a long-term personal loan, as well as an interest rate that does not choke your finances.
4. Organize the documentation
Once the lender or the appropriate institution is located, you must gather the physical and digital documents. Some of them are:
- Driver’s license.
- Social Security Number (SSN) or ITIN.
- Income guarantees.
5. Request your loan
At this point you must access online banking, or go personally to the financial institution that will settle your loan.
6. Wait for the results
Most banks usually take several weeks to respond. However, online lenders can approve or reject an application in as little as a couple of days.
Advantages of applying for a personal loan in the United States
The Hispanic community has many advantages when applying for a personal loan in the United States. These are some of them:
Diversity of uses
You can request personal loans in the United States to meet multiple commitments. From remodeling your home, to consolidating a debt.
You can request credits without guarantees
If you have a good credit score, it is very likely that you can apply for unsecured personal loans.
Freedom to ask for large amounts of money
Personal loan amounts range from $1,500 to $100,000. Therefore, they are usually higher than those offered by credit cards.
Attractive interest rates
Interest rates are often attractive to Hispanics with good credit. In fact, they can be 5%
You can pay in a minimum period of one year. However, you must negotiate these fees with your bank, or lender, to prevent them from suffocating you financially.
Disadvantages that you should also take into account:
Applying for personal loans in this country also has some disadvantages, such as:
high interest rates
If you don’t have a good credit score, the interest rate on your loan could be the same, or higher, than a loan linked to a credit card.
Hispanics must pay an “opening commission”, equivalent to 1% or 6% of the total amount of the loan.
Penalties if you pay in advance
Banks usually charge a penalty when you pay in advance, since in this way they compensate for that interest margin that they would have lost.
Apply for personal loans with confidence
In general, you should keep in mind that the amount of a personal loan in the United States will depend on several important factors.
Some of them would be the policies of each institution, your immigration status, and of course, your credit history.
In conclusion, if you are Latino and want to apply for personal loans in the United States, you can do so with confidence and optimism, since there are many institutions that could lend you a helping hand.
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