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Responsible Lending

PersonalLoans.com works hard to protect consumers like you from unfair and illegal practices in the personal loan industry. In an effort to assist us in this goal of protecting you and helping you make an informed decision regarding personal loans, we offer the following code of conduct.


Lenders

Here at PersonalLoans.com, we work only with responsible lenders who are licensed in their respective state(s) to lend cash to consumers in the form of personal / installment loans. Once you are matched with your lender, we recommend that you look up the specific details on that company so that you know how to get in contact with them in case you have any questions or concerns. Each lender also has their own terms and conditions in regards to interest rates, the requirements on repayment and the repercussions of being late on a payment, missing a payment or rolling over a payment. You should be sure to be aware of these specific terms and conditions.


Your Credit Score

One of the first and most important things to understand as a borrower is that being late on a payment, missing a payment or rolling over a payment will all negatively impact your credit score. Your credit score is a numerical expression of your credit worthiness based on an analysis of your credit files. A credit score is primarily based on credit report information typically sourced from credit bureaus. Failing to pay on time will negatively affect this score and make it harder for you to do things like take out a credit card or get a loan. While less than perfect credit will not necessarily prevent you from being able to receive a loan, all loans are subject to credit approval. As such, the lender that you are matched with may run a credit check with one or more credit agency. If you have had many credit checks in a given period of time, it is possible that this check may negatively affect your credit score. But, if you are able to make all of your payments on time, the process of taking out and repaying a loan may improve your credit score.


Late Payments

The most important thing that you must understand as a borrower is the repercussions of making late payments on your loan. Although each lender that we work with has its own terms and conditions for the loan and the repayment of the loan, there are some general repercussions that it is important for you to understand. There will likely be charges for making a late payment. Similarly, if you are extending a loan, the finance charge for the original loan must be paid on the original due date. Then your loan principal will be deferred with an additional finance charge. We recommend paying as much as possible towards your original due date in order to further reduce the charges you incur. If you plan to deviate from your payment plan, you should contact your lender immediately to setup a new payment arrangement. If your loan payment is rejected for any reason by your bank, the lender may initiate collection procedures and you will be prevented from receiving future loans from the lender until all of your payment obligations are met in full. The most important thing to remember is to read about the payment options and penalties for the specific lender that you are matched with and to make sure that you fully understand these policies. Lastly, remember that personal loans should be used only for short-term financial needs. They are not a long-term financial solution. In general you should always make sure to pay all of your outstanding loans/bills/debts on time.


Missing a Payment

PersonalLoans.com strongly recommends that you pay all of your outstanding debt/loans/bills when they are due. This will ensure that you will have a good payment record and minimize negative repercussions. Each lender that PersonalLoans.com works with has their own terms and conditions governing the specific implications of missing a payment. However, if the lender does not receive a payment the likely result is that the lender will begin collection procedures against you and you will no longer be able to receive any more loans from the lender. Therefore, it is important for you to both understand the specific requirements for repayment and the repercussions of missing a payment. And, again we strongly urge you to pay all outstanding debts/loans/bills on time.


Rolling Over a Payment

With some lenders, it may be possible to roll over payments if you are unable to make a payment date. However, please note that, just like missing a payment or being late on a payment, this will have a negative effect on your credit score. Also, it is important to know that the interest that you pay will be the same with the rolled-over payment as with the missed payment.


Types of Renewal Policies

PersonalLoans.com works with a number of different lenders, each of which has its own unique renewal policy. However, as a general rule there are two different kinds of renewals:

  1. Unlimited renewals. These allow you to continuously renew and are the most risky for borrowers.
  2. Automatic and borrower-initiated renewals. These forms of renewals are not unlimited and are subject to time limits.

It is important to understand that once a loan can no longer be renewed by a borrower, the lender will have to begin a collection process to recover the amount owed. Each lender will have its own specific policy, so it is important that you read and understand your lender's policy.


Collection

If you miss a payment on your loan and do not contact the lender to discuss other repayment options, it is likely that your loan will be subject to collections. You will normally be contacted via phone, email and regular mail. If you continue to not respond, they will most likely use an external collections agency to collect the debt. These specifics will vary by the specific lender, so it is important that you be sure to read and understand your specific lender's terms and conditions. You may be able to have funds are withdrawn automatically from your bank account on the date agreed upon with your lender. Be sure that you read and fully understand all of your lender's policies regarding repayment and understand what you will have to do as a borrower to repay the loan. Your loan can not be conditioned upon repayment by electronic funds transfer or automatic withdrawal. Consult your lender for more details.