Personal Loan FAQ’s

If you're thinking about getting a personal loan, you're in the right place. Personal loans are super convenient with many Online lenders available to help with your needs. Personal loans are very convenient, simple, and can be a good way to reduce high interest credit cards or fund a home project. At Squeeze.com you can compare multiple quotes. It’s super easy.

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Why would a personal loan be right for me?

Personal loans can be used for almost anything like debt consolidation, home improvements, medical/dental, business, large purchases, auto, taxes, baby & adoption. The two most common uses are paying down debt at a lower interest rate and making a purchase when you don’t have the money currently available. Many people use credit cards for these types of purchases, but fixed-rate loans will often help you save money. Squeeze.com can help you compare lenders so you get the best rate.

Who would be interested in personal loans?

Almost anyone. But different types of borrowers have different options available to them. Rates and loans are largely determined by a borrower’s credit history and credit score, limited history and low credit will reduce options and raise rates.

How do lenders decide whom to lend to?

Each lender has established a formula to determine whom to lend to and at what rate. This process is known as underwriting. Typically lenders will look at many factors including your credit history, your current debt-to-income ratio, and your expenses when deciding on who to loan to.

How are interest rates calculated?

Interest rates are proportionate to risk and credit profile. Based on each lenders underwriting policies, each lender assesses each borrower’s risk of defaulting. The lower the risk, the lower the rate the lender will offer. Lenders also look to make a profit on the loans they make, so the interest rate includes both the cost of the risk and the cost of servicing the loan.

Why is credit score so important?

Most lenders charge a origination fee. This fee is only charged once and is essentially to help the lender pay for the cost of issuing the loan. This fee is generally removed from the funds you receive, so if you take out a $10,000 loan with a 5% origination fee, you would receive $9,500 from the lender.

What is the cost of a personal loan?

Personal loans can be used for almost anything like debt consolidation, home improvements, medical/dental, business, large purchases, auto, taxes, baby & adoption. The two most common uses are paying down debt at a lower interest rate and making a purchase when you don’t have the money currently available. Many people use credit cards for these types of purchases, but fixed-rate loans will often help you save money. Squeeze.com can help you compare lenders so you get the best rate.

What is the difference between interest rate and an APR on a personal loan?

The interest rate of a loan is the amount of money you are charged for borrowing money but does not include the origination fee, or any other fees charged by your lender. The APR is a rate intended to include all fees, so you can more easily compare loan offers from different lenders who may have different fees for their loans.

Can I pay off my loan early?

One thing many borrowers don’t realize is that they can often pay their loans off early. When you make payments above your required monthly payment amount, you reduce your principal on your loan. This will reduce the interest you pay allowing you to pay your loan off faster and with less interest cost to you. We created this loan calculator to help you evaluate different loan offers and the benefits of increasing your monthly payments.