6/16/2022
Accessing a personal loan is something that most would like to be able to do, however the available alternatives are what determine its difficulty. Fee policy within traditional banking is standard throughout the world. Although today there are more credit options than before, we will review the common charges applied by US entities.
Bank personal loan fees
Before considering online loans and their flexible schemes, we will detail the banking institutions that many generations have grown up with. The reasons are several: they offer a lower interest rate, terms that suit your payment needs and, depending on your credit reputation and solvency, you can get more financing.
- Amount: between $ 7,500 and $ 100,000
- Term: between 4 years and 6 years
- Interest: 6.39%
- APR: 6.39%
- Amount: between $ 3,000 and $ 100,000
- Term: between 1 year and 7 years
- Interest: Ask
- APR: 5.74%
- Amount: between $ 7,000 and $ 50,000
- Term: between 3 years and 5 years
- Interest: 8.42%
- APR: 8.42%
- Amount: between $ 3,500 and $ 100,000
- Term: between 2 years and 5 years
- Interest: 8.19%
- APR: 8.19%
- Amount: between $ 2,500 and $ 40,000
- Term: between 3 years and 7 years
- Interest: 7.99%
- APR: 7.99%
The detail with the personal credits of traditional banking is not only the paperwork, but also the additional charges that they include to obtain them. That is why it is important to compare financial products, to make the decision that best benefits your personal finances. In the United States, the most common fees are usually:
- Opening fee or origination fee. Take into account the administrative process to give you the money you request. It is a small percentage (0.5 to 2.5%), but it can be significant if the sum is high. It varies according to the bank you choose and you have 2 options to pay it: have the fee deducted when the money is disbursed to you or pay the charge immediately.
- Verification or study fee. Also known as the investigation fee, it is the way that banks make sure that you can repay the borrowed capital. Before giving you the money, they turn to outside companies to check how good your credentials are. Since it is an additional cost for the person who grants you the financing, you have to assume it to complete the process.
Penalty prepayment. While some banks give you the opportunity to make prepayments or advance payments of installments, others are not interested in you paying off the personal loan ahead of time. The reason is very simple: this can generate losses that they are not willing to assume. Therefore, this action has a charge that ranges from 2 to 4% and varies from one institution to another.- Goods and Services Tax. The GST refers to a fee that banks apply to you for any additional service during the credit application or after its approval. It is a small fee whose percentage varies within traditional banking and that you must pay as part of the process.
- Penalty for late payment. In the purest style of installment financing, delinquency or lack of timely payment is usually punished with a fee. This percentage or fixed rate depends on the policies of each bank, since it is responsible for you to fulfill your part of the deal.
- Returned check fee. Less common than other payment methods, the amortization of a personal loan with a check has its drawbacks. In those cases that you do not have enough funds in the checking account or the deposit title shows some erasure, they will return it to you. Every time this happens, they apply a fine that is usually a fixed amount of around $35 dollars. In addition, this action can affect your credit score if you do not take the appropriate measures.
- Fee for modification of the contract. Usually associated with refinancing, there is a fee each time you want to change the terms of the agreement with the bank. It is something that you must keep in mind when you apply for a personal loan, being essential to know clearly what the contract says.
Differences with fast online loans
The popularity of online personal loans in the US continues to grow among the Latino population. Options such as crowdlending, P2P, quick loans and Payday loans abound so you can get money quickly and without much paperwork. On the subject of fees, they do not apply as many as traditional banking because it is a process that uses a digital platform.
The only charges with this modality are the penalty for late payments (daily percentage) and the advance payment if it is not included in the contract. The difference with banks is that they can finance you without income, with a low credit score, without the need for a guarantee, and they can approve it the same day.
When you are looking for a personal loan for an emergency, a major expense or to treat yourself, do not forget to investigate its conditions and fees well. Busconomico can help you, the comparator of banking products in the USA. We advise you and give you the best financial information.
En español: Comisiones de los préstamos personales en USA