Being a temporary resident doesn’t mean you can’t get a personal loan. Find out what your options are.
Whether you’re planning on making your stay in America permanent in the future or just here to work for a few years, you might find yourself in need of a personal loan. There are lenders that may consider you for a loan even if you aren’t a US citizen or permanent resident. However, it’s important to know what loans you’re eligible for and how to find the right one before you submit your application.
LendingClub Personal Loan
LendingClub offers loans up to $40,000 for a variety of purposes. APR based on your credit score.
- Min. Loan Amount: $1,000
- Max. Loan Amount: $40,000
- Loan Term:
- Turnaround Time: Up to 7 days
- Total Costs: Depends on your credit score.
- Consolidate loans or pay off high interest debt
- Confidential and secure online application!
How does a personal loan for a temporary resident work?
A personal loan is a sum of money that can be used for a variety of reasons such as bill payments or debt consolidation. You’ll pay the lender back with interest over a set amount of time, usually within several years. For a temporary resident, such as someone on a work visa, extra criteria need to be met in order to qualify.
Most lenders will need the details of your visa before you’re approved to ensure that the terms of the personal loan do not exceed the amount of time left on your visa. You may also need to meet higher minimum income criteria. One advantage of applying for a loan in America is that your overseas credit history isn’t a factor.
Personal loans temporary residents can apply for
There are a number of lenders in America who consider personal loan applications from people on a temporary resident visa. Be sure to check the lender’s website or call the lender’s customer service line to confirm the eligibility criteria.
How you can compare your personal loan options
When comparing your options, be sure to consider the following points:
- Interest rates. Interest rates can vary greatly between lenders. Make sure you study this carefully and understand how much your monthly repayments will be as well as how much you’ll pay in interest. A personal loan calculator can help you determine these numbers.
- Fees. Compare the fees between various lenders. Some may charge for processing the application while others could have a monthly charge.
- Eligibility requirements. Not all temporary visas are widely accepted. While a temporary worker visa is considered by most lenders, other types of visas may not be. Some banks will also require that you have a certain amount of time left on the visa. Investigate this thoroughly before filling out an application.
- Secured. In some instances, you can qualify for a secured personal loan. This is where an item of worth, such as a car, is used to guarantee the loan.
What are the benefits and drawbacks to consider?
- Overseas credit history not a factor. Any bad credit you hold overseas isn’t a determining factor when applying for a personal loan in America.
- Competitive rates. You can find competitive rates if you compare your options before applying.
- Flexibility. You can choose to pay the loan off over a term of one to several years, depending on what works best and when your visa ends.
- Higher rates. In comparison to a home loan or refinance, the rates for a personal loan are generally higher.
- Less choice. As not all personal loans are available to temporary residents, you have less to choose from.
- Required documents. As a temporary resident, you may have to show more documentation than a permanent resident or US citizen. A copy of your passport and visa will be required, along with details of your employment in America.
Is there anything to avoid?
- Applying for more than you need. Only apply for the amount of money you need to make your purchase or fund a trip. You want to make sure you’re not paying interest for something you could have paid for out of pocket.
- Submitting too many applications. Compare your options first and only apply with the lender that you find meets your individual needs and offers you the best rates. If you apply for too many loans, your credit history can be negatively impacted.
How to make sure you’re approved
There’s no way to guarantee you’re approved for a personal loan, but a way to give yourself the best chance is to ensure you meet all of the minimum eligibility criteria. Minimum criteria for personal loans usually stipulates:
- Age. You’ll need to be over the age of 18.
- Visa. Check if any specific visa types are excluded from the lender’s criteria, or if any other criteria is mentioned.
- Employment. You’ll need to have established employment.
- Financials. You’ll need a US bank account that is in good standing.
The right loan will depend on your needs and situation, so starting a comparison using the table above can help you narrow down your choices. Once you’ve found a loan you want to apply for, click the “Go to Site” button to being the application process.