If you thought getting a loan as a non-US citizen was impossible, then you’ve got another thing coming.
Moving into the US can prove expensive. And, getting your way around the financial system can prove even harder.
So what do you do when you need to buy air tickets, pay for medical bills, or just sustain yourself? Personal loans for non-US citizens can prove helpful. What are they? Can you qualify? Stick here for more.
Yes, most of which come after a fairly long process but it’s all worth the effort. The process will also involve lots of paperwork.
Please note that you’re only more likely to access these loans if you intend to stay in the US three years after getting the loan.
Lenders will check if you are a legal US resident. That entails checking if your Visa is valid and the possibility of renewal if it’s one that expires soon.
Different banks will check on different things before they offer you a loan. Please note that the decision of whether or not to offer you a loan solely lies on the bank. As such, the bank will put in measures they feel are appropriate to determine if you should get a loan.
Just like in other loans, requirements vary from one lender to another. However, the universal requirements are;
Other factors such as your credit history will also determine whether or not you’re offered a loan.
Other lenders may decide to deny you a loan. Such lenders consider lending a non-US resident risky since you might decide to leave the country before repaying your loan. And, that’s a risk they may not want to take.
However, there are still other lenders who’ll be ready to offer you a loan.
As a non-resident, the following types of loans can help cushion you through your stay. You can use them for all sorts of payments including rent, food, and other basics.
If you intend to stay longer in the US, you can also use them to build a good credit profile so you can access even better loan products.
You don’t need any collateral to apply for unsecured personal loans. That makes them easier, and safer to apply.
They are also highly versatile. You can use them to buy household items, pay rent, offset medical bills, or take care of any personal expenses.
However, they are known to carry fairly higher interest rates. The maximum you can borrow for this type of loan is $100,000.
These are the exact opposite of unsecured loans. For secured loans, you use your property as your collateral. That can be your home, car, or any other assets.
The property acts as security to the lender so when you are unable to pay back the loan, the lender sells it to recover the money.
In these types of loans, repayments are scheduled and equally spread for weekly or monthly payments.
It’s easier to build a good credit report with installment loans since the lender updates your profile every time you make payments.
Their flexibility of payment is what makes them stand out. You’ll have lots of time to repay your loan.
However, they often attract higher interest rates compared to payday loans.
These are typically small sums of money. You can borrow from $50 to $1000.
You can borrow these if you have a bad credit report. They carry very high-interest rates and their repayment mostly ranges between 2 to 4 weeks.
Here’s a quick summary of the basic things you should know about personal loans for non-US citizens;
As you find a suitable lender, be sure to check out the terms of their loans and ensure you’re comfortable with them before applying.
Also, check out their interest rates. Only go for payday loans if you have an urgent need for cash and are sure to repay within the agreed timeframe.
Personal loans for non-US citizens range from $100 to $100,000.
For payday loans, the highest most of them can go is $1000 with a repayment of up to 4 weeks and a fairly high-interest rate.
Unsecured, secured, and installment loans can fetch up to $100,000. Their repayment terms are also more flexible.
The most effective way to qualify for higher loans would be to improve your credit score. That entails repaying other debts on time and being financially disciplined to avoid falling into a recurrent debt cycle.
Alternatively, you can get a co-signer with a stellar credit score to guarantee your loan.
You should also consider borrowing from institutions meant especially for immigrants. They are more likely to have better loan terms. They also understand immigrant challenges and therefore will be more lenient in such matters as credit scores.
But all this boils down to the need to find a financial institution with better loan products and terms.
Loans will come in handy in sorting out your financial needs. However, choosing the right loan product is crucial. Here are some of the things you should consider;
Navigating the loan systems can be hard, especially for non-residents. Most institutions will require that you have a 2-year credit history and stellar credit score.
However, you can still get a loan without a credit history. Here’s how to get around it;
You can borrow up to $100,000 for most long-term and even higher for mortgages.
Yes. Depending on the lender, you can choose to verify your credit history from another country, use your ITIN number, or get a co-signer.
Yes. Several lenders are willing to offer you loans. The most common ones are secured, unsecured, payday, and installment loans.
Yes. Several institutions are willing to finance your education. The easiest way would be to get a co-signer.
Yes. However, you’ll need to provide such documents as a valid visa, proof of income, Valid SSN, and good credit history.