While personal loans were traditionally provided by consumer banks and credit unions, things have changed over the past few years. There are now hundreds of personal loan providers that operate entirely online. It’s a great way to get the funding you need if you don’t want to work with a traditional lender. You can typically apply for these loans from the comfort of your own home, which makes it extremely easy to get the finance you’re looking for. In addition, you won’t have to fill out as much paperwork – it truly is a hassle-free experience for many borrowers.
In this personal loan review, we’re going to take a look at one of the major players in the personal loan game. LoanMe is an increasingly large online lender that provides personal loans to their customers. If you’ve been thinking about using LoanMe for your next personal loan, you might be wondering how you can get more information on the loans they provide – this review is the perfect resource for you!
The Company: LoanMe
LoanMe is a small online lender that provides personal loans and small business loans to their customers. They operate their business through an online application portal and telephone number. The company provides quick services to help their customers receive funding in a hurry. LoanMe is one of the many new online lenders that have brought added competition to the online personal loan market. The company is currently headquartered in California.
LoanMe Personal Loan Features
Each personal loan company has their own set of features. The features that are applicable to you will depend on your particular situation – it’s important that you know what you’re looking for in a loan. In this section of our review, we’ll take a look at all the features included in a LoanMe personal loan. Make sure to consider each feature carefully!
LoanMe Personal Loan APR: 16.68% to 35.16%
Minimum Loan Amount: $2,600
Maximum Loan Amount: $100,000
All LoanMe personal loans are unsecured personal loans.
LoanMe is an online lender which makes the entire process much easier than with traditional lenders. You can complete the entire lending process from the comfort of your own home. If you’re looking for an easy and quick application, LoanMe is a good option.
You can borrow up to $100,000, which is more than twice as much as many other online loan companies. If you’re looking for a large personal loan, LoanMe might be a good choice.
7-Day Guarantee (California Only)
If you live in California, you can change your mind about your loan in the first seven days. This is a feature that’s hard to find with almost any other lender. It gives you added peace-of-mind about the borrowing process if you’re unsure.
LoanMe claims to be able to get funds to you within 3-4 hours of approval. This is much better than other online personal loan companies. If you’re looking to get funds as quickly as possible, LoanMe might be a good chance.
No Prepayment Fees
If you want to pay back your loan early to save some money, you’ll be able to do so without any prepayment fees at LoanMe. Many online lenders and traditional lenders will have penalty fees for paying back your loan early – this way they can recuperate some of the lost interest money. You won’t run into this problem at LoanMe.
What is a Personal Loan?
A personal loan is a form of personal finance that provides you with capital to purchase goods or services. There is no requirement to spend the money on a specific purpose. This means that personal loans are one of the most flexible forms of finance available on the market. Unlike an auto-loan or mortgage, the lender does not dictate how you use the funds. This can make a variety of different things easier – you won’t have to get any approval from your lender.
There are two different forms of personal loans – unsecured personal loans and secured personal loans. If you want an unsecured personal loan, then you won’t have to tie the loan to any assets – this makes it less risky for you as a borrower, and you won’t need any collateral. The only downside is that this will increase your interest rate as the bank has to take on more risk. If you obtain a secured personal loan, you will need to secure the loan against the value of an asset. This makes your interest rate lower, but also means you need to have an asset to tie your loan to. The majority of personal loan companies that operate online provide unsecured loans only.
Uses for Personal Loans
If you need financing but you’re not sure if a personal loan is right for you, it’s a good idea to look at why other people use personal loans. There are a variety of different reasons that people obtain personal loans – you don’t have to fall into any specific category to get one. In this section of our article, we’re going to take a look at some of the most popular purposes people use personal loans for. Remember, if you don’t fall into one of these categories, it doesn’t mean that personal loans won’t work. Check them out below:
Consolidating High-Interest Debt
If you have credit card debt or any other form of high-interest debt, you might find that you struggle to keep up with payments. It can be next to impossible to get out of debt if you have a high interest rate that continues to increase the cost of the loan. Many student loans or other forms of personal loans also come with high interest rates. In a worst-case scenario, you might have a payday loan that is increasing rapidly.
If you obtain a personal loan at a lower interest rate than your current debt, you can pay off your debt and then pay back your current loan at the new interest rate. This is one of the most popular reasons people obtain personal loans.
If you have an emergency cost that is unforeseen, you might be in a bit of a pickle. A personal loan can help you get the funds you need to pay off your costs and spread out the charges over a prolonged period of time. Many people that have unexpected medical costs or charges sometimes use personal loans to cover the costs. The same goes for emergency house repair or damages.
If you’re going to purchase a large product or service, you might not want to pay for the entire thing upfront. If this is the case, you can use a personal loan to pay for the item and then spread the cost out over the term of your loan. Make sure that you can afford a large purchase before you make one – your payments should be factored into your budget when you make your buying decision.
Pros and Cons of LoanMe Personal Loans
There are advantages and disadvantages of working with any type of lender. Each lender will have things you enjoy about their features and services, as well as things you will dislike. That’s why it’s important to have a look at the pros and cons of each lender before you make any final decisions. We’ve prepared a brief overview to help you make a better decision when you consider LoanMe as your next personal loan company. Check them out below!
- Quick Funding – With some customers receiving funding in 3-4 hours, LoanMe is one of the quickest lenders on the market.
- No Prepayment Fees – With no prepayment fees, you can save money by paying your loan off early.
- Online Application – LoanMe’s online application can make the entire borrowing experience much more enjoyable and convenient.
- 7-Day Guarantee – If you live in California, you won’t have to worry about regretting your decision. You can return your loan in the first 7-days if you change your mind.
- High Loan Maximum – With many personal loan companies only offering small loans, you can rest assured that you can get up to $100,000 of funding with LoanMe.
- High Interest Rates – LoanMe has much higher minimum interest rates than many other loan providers. If you’re looking to save money through a good credit score, this might not be a good choice.
- Not as Prominent as Other Lenders – LoanMe is one of the smaller online lenders when compared to many of the newcomers. This might not be desirable for some borrowers.
Preparing Your Application for LoanMe
If you’re going to obtain a loan from LoanMe, you should approach the process as seriously as possible. It’s important not to underestimate how much you should ensure your credit score is in order before you apply. If you don’t get accepted for a loan, it can damage your future chances of obtaining a personal loan. Once you narrow down what lending company you will be using, you should always make sure that you also get your credit file in order. In this section, we’ll take a look at a couple tips to ensure your credit score is perfect before you proceed.
Check Your Report for Errors
While it might seem unlikely, there are more mistakes on people’s reports than you think. For this reason, it’s very important to check your credit report before you decide to apply for a loan. You are able to receive one free credit report from each credit reporting body every year. If you do find mistakes, they could be dragging your score down – you can request that they be removed immediately. If the reporting body does not comply, you can use a credit repair company to put the pressure on. These credit repair companies can sometimes help remove other items as well.
Pay Down Credit Card Debt
If you have credit card debt, it might be preventing you from having a high score. If you can afford to pay down some of the debt before you apply for a loan, it can help you improve your score massively.
The reputation of the company that you decide to work with is an extremely key indicator of how your experience will be. For this reason, it’s important to look at consumer watchdog groups before you decide to work with a company. In this section of our review, we’ll take a look at what some of the top consumer watchdog groups think of LoanMe – it’s a great way to gauge how your experience will be. Check it out below:
Better Business Bureau (BBB)
The BBB provides a platform for customers to review companies. They also provide their own ratings of companies from independent research. The BBB provide LoanMe with a rating of A – their second highest rating. This being said, the majority of consumer reviews on the BBB about LoanMe are negative. You can find LoanMe reviews on the BBB website.
Consumer Affairs is another top watchdog groups that provides a platform for people to review companies. Customers on Consumer Affairs have given LoanMe very good ratings. With over 400 review submissions, LoanMe has a 4.5/5 rating. Indicating the company has very good feedback.
As you can see, there are plenty of reasons that you might want to choose LoanMe. They have developed a solid reputation in the personal loan industry. This being said, if you’re looking for a very low interest rate, LoanMe might not be the best option.
If you want to have a look at other personal loan lenders, we have plenty of reviews on our site!
Christine has a solid background in personal finance as she spent the last eight years working at one of the biggest banks in the US. She managed her own team of financial advisors that helped hundreds of people with their financing needs. Her innate understanding of different financial products and loans helped her move up the ranks quickly after graduating with a degree in Business Administration.