Responsible Lending

PersonalLoans.com is providing the information on this page to help borrowers make responsible decisions regarding their loan process. Always keep in mind that we are not a lender or agent, representative or broker of any lender. We do not control any lender in our network or in any of the other third-party lender networks in our extended network. We are not responsible for the actions of any lender and we do not endorse any lender.

Lenders

PersonalLoans.com has lenders and lending partners of all types in our network and in the other third-party lender networks in our extended network. If you receive a loan offer, we strongly suggest that you look up the details on the lender so that you are aware of how to get in touch with them in case you have any concerns or questions. A potential lender or lending partner has their own terms and conditions regarding loan interest rates; the requirements for repayment; and the repercussions of being late on, missing or rolling over a payment. You should make sure you are aware of your lender or lending partner’s specific loan terms and conditions. You are encouraged to shop around and ensure that you are comfortable with the terms provided. If no lenders offer you a loan, you may be presented offers for debt relief, credit repair, credit monitoring or other related services. We may share limited contact information with a limited number of these other providers so they can offer their services to you. But don’t worry, we don’t share any of the sensitive information in your loan request with them. Carefully review these offers and compare them to all other options available to you before accepting. If you are not interested in the products or services offered, you should ignore the offer.

All lenders and lending partners in our network are required to comply with applicable federal, state and local laws. One of these laws is the federal Truth in Lending Act (TILA), which requires lenders and lending partners to provide you with the exact fees, interest rate and other information about your loan. This should be presented to you prior to you executing any loan agreement with the lender. You should keep an eye out for this disclosure and pay particular attention to it.

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 may 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 may 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 or lending partner that you are connected 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

As a borrower you need to understand the effect of making late payments on your loan. Although each lender has their own terms and conditions for the loans they offer and the repayment of such, there are some general late-payment repercussions that you should understand. First, there will likely be charges assessed if you make a late payment. Furthermore, if you extend a loan, the finance charge for the original loan needs to be paid on the original due date. Then your loan principal amount will be deferred with an extra finance charge. We advise that you pay as much as possible toward your original due date in order to further reduce the charges that you incur. Should you intend to deviate from your payment plan, make sure that you contact your lender or lending partner immediately to establish a new payment arrangement. If your loan payment is rejected for any reason by your banking institution, the lender or lending partner may initiate collection procedures and you will not be able to receive future loans from the lender or lending partner until all of your payment obligations are fully met. It is important to remember to read about the penalties and payment options for the specific lender or lending partner that you are connected with and to make sure that you completely understand their policies. Finally, keep in mind that personal loans are intended only to be used for short-term financial needs; they are not meant to be a long-term financial solution. In general you should always make sure to pay all of your outstanding loans/bills/debts in a timely fashion.

Missing a Payment

PersonalLoans.com recommends that you pay all of your outstanding loans/bills/debts when they are due and no later. By paying everything in a timely fashion, you will ensure that you have a positive payment record and will minimize negative repercussions. Each lender has their own terms and conditions regarding the specific implications of missing a payment with them. However, if a lender doesn’t receive a payment the likely result is that they will file collection procedures against you and you won’t be able to receive any more loans from the lender. Therefore, it is crucial for you to both understand the specific requirements when it comes to repayment and the repercussions of missing a payment. And again, we strongly urge you to pay all outstanding loans/bills/debts when they’re due.

Rolling Over a Payment

With some lenders, it may be possible to roll over payments if you find that you can’t make a scheduled payment date. However, please note that, as is the case with missing a payment or being late on a payment, rolling over a payment will negatively impact your credit score. Also, please understand that the interest you pay will be the same with the rolled-over payment as it is with the missed payment.

Types of Renewal Policies

PersonalLoans.com has a number of different types of lenders in our network and in the other third-party lender networks in our extended network. Each of these lenders has its own individual renewal policy. As a general rule, however, there are two different kinds of renewals, and they are as follows:

1. Unlimited renewals — These enable you to continuously renew and are the most risky for loan borrowers.
2. Automatic and borrower-initiated renewals — These renewal types are not unlimited and are subject to specified time limits.

It is important to understand that once a loan is no longer able to be renewed by a borrower, the lender or lending partner will have to begin a collection process to recoup the amount owed. Each lender or lending partner will have their own specific policy with regard to this, so it is important that you carefully read and understand your lender or lending partner’s policy.

Collection

In general, lenders will take payment directly from your bank account when it is due. However, each lender has its own terms and conditions, and you should make sure you understand these for your individual lender before you accept any loan offer. If you miss a payment on your loan and do not contact your lender to arrange other repayment options, your loan will likely be subject to collection. You will usually be contacted via telephone, email and regular mail. If you continue to not respond, the lender will most likely use an outside collection agency to collect the debt. These specifics will differ from one lender to another, so it’s important that you be sure to read and understand your particular lender’s disclosures and terms and conditions. Also, remember that it’s always in your best interest to pay back your loan on time whenever possible. All lenders and debt collectors are required by law to comply with the Fair Debt Collection Practices Act. All lenders are required by law to comply with applicable federal, state and local laws.