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Why Choose Jora Credit for Bad Credit Loans in Utah?
From stunning natural landscapes to bustling tech hubs like Silicon Slopes near Salt Lake City, Utah has much to offer. Utah has a moderate cost of living as the 31st most affordable state. However, with prices rising throughout the U.S., more people are relying on credit like personal loans.
If you are looking for personal loan options in Utah, there are plenty to consider – from traditional high street banks to online lenders specializing in poor credit loans.
The flexibility of personal loans means you can use them to cover anything from unexpected costs such as medical or car repair bills to funding home improvements, a wedding, a new baby, or a dream vacation.
Whatever your loan needs, if you live in Utah and need access to a loan quickly, you can apply today for a personal loan with Jora.
It takes just a few minutes, and all you need is some basic personal and financial information ready to hand. With no hidden fees and same-day funding (if you are approved and your cash advance is accepted by 10:30 a.m. Central time), you could get the cash you need in just a few hours.*
Types of Loans in Utah
With an estimated 3.4 million people, Utah has experienced rapid growth in its population thanks to its strong economy and growing technology sector. According to The Wall Street Journal, Salt Lake City has the fastest-growing job market in the country and one of the lowest unemployment rates.
As a result of population growth and inflation, Utah residents should be aware of potential rises in the cost of living. It’s worth knowing your loan options just in case you need to access cash fast.
These are the main loan types in Utah if you need fast credit:
- Personal loans: A personal loan is money you can borrow from a bank, credit union, or private online lender. These loans usually have a set repayment period, and you must make regular monthly payments until you repay the entire balance. You can use personal loans to fund various things, from medical emergencies to home improvements.
- Payday loan: A payday loan is usually a small unsecured loan with a short repayment period of 2-4 weeks in most cases. Most payday loans don’t require a credit check, making them very accessible. But they usually come with lender fees and higher interest rates than personal loans.
- Title loan: A title loan is another short-term loan with high-interest rates. Title loans usually have low eligibility criteria but use the borrower’s vehicle title as collateral. If you fail to make payments, the lender could seize the vehicle to recoup their money.
Why Jora Credit?
What to Consider When Looking for Loans
When looking for a loan in Utah, there are many things to consider if you want to find the best product. The loan requirements will depend on the loan type and the lender’s specific criteria – for example, some lenders in Utah will be more open to accepting people for bad credit loans, whereas other lenders are more strict.
Whatever the loan type, there are a few things you need to know about choosing a loan in Utah.
Credit Score and History
One of the most important things to consider when applying for a loan is your credit score. Most lenders will check your credit score during the approval process of a loan, as this is the best way to assess the likely payment behavior of the borrower. As a result, those with a higher credit score have a better chance of qualifying for a loan with low-interest rates and more favorable loan terms.
If you’re unsure of your credit score, contact the credit bureaus—Equifax, Experian, and TransUnion—to get a free copy. Review it for any errors that could be impacting your score. If you have a low score, you may want to consider working to improve it before applying for a loan to avoid high-interest rates.
Monthly Payments and Debts
Another critical thing to consider when applying for a loan is your current monthly expenses, including debt repayments. Sit down and review how much you currently pay for your rent or mortgage, energy bills, everyday expenses, credit card payments, and other loan repayments. It’s important that you can comfortably afford any new monthly payments before you apply. If you don’t do this, you could risk getting trapped in a cycle of debt.
The average household income in Utah is $94,452, which works out to $7,871 per month. Say you spend roughly $5,000 a month on household expenses. That leaves you with around $2,871.
If you cannot keep up with monthly repayments, you could risk damaging your credit score, making it much harder to get a good loan in the future. Those saving to purchase a house in Utah will need to contend with high house prices, so having a good credit score is very important to keep costs down.
Employment Status and Income
Your current employment status and income are other essential points – after all, they will affect your loan affordability the most.
Lenders want to see that you’re in stable employment or self-employment and have a sufficient monthly income to cover the cost of the loan. This means lenders will require documentation to prove your current employment status and income, including W2 forms, bank statements, tax returns, or a letter from your employer.
If you’re applying for a loan in Utah, calculate your total income and include all income sources—even child support payments, side hustle income, or investment income.
Other Assets
If you decide to apply for a secured loan, you must provide additional proof of assets to improve your chance of getting approved. It’s a method that those with a poor credit history or low incomes can use to improve their chances of getting a loan.
However, those assets will act as collateral if you fail to make repayments. If you can’t pay, the lender can potentially seize the asset to balance the loan.
Applying With a Cosigner
Sometimes, if you have bad credit and struggle to qualify on your own, you can apply with a cosigner. Cosigners with good credit or a high income can improve your chances of getting approved. However, not all lenders will accept this, so you’ll have to find one that offers joint or cosigned loans.
Rates and Terms
Besides the loan amount, interest rates and the loan term will influence how much your loan costs overall. While you might be able to see typical loan rates, terms, and amounts on a lender’s website, you may have to apply to learn your personalized rates.
Both the APR and loan term can determine your monthly payments and how much you’ll have to pay in interest. You can use our online calculator to understand what the loan will cost.
Generally, short-term loans often have a higher APR (annual percentage rate), making them an expensive form of fast credit. Some short-term loans—like payday loans—have very short terms and require full repayment by your next paycheck.
Other loans, such as those offered by Jora, can be repaid in set amounts over several months to spread out the cost of the loan.
Lender’s Reputation and Licensing
Finally, check the reputation and licensing status of any lender you’re interested in borrowing from. They should be licensed in your state to lend money. If they’re not, steer clear.
As for reputation, check sites like the Better Business Bureau (BBB) and Trustpilot to see what other customers are saying about them. Jora, for example, has an excellent rating on Trustpilot with more than 1,000 reviews. See if the lender has any online testimonials on their main website, too.
Knowing what others are saying can go a long way toward learning whether the lender is reputable and what you can expect as a customer.
Budget in Your Loan Payments
Before getting a personal loan in Utah, it’s important to determine whether it fits into your budget. After all, if you take on a loan that you cannot afford to pay back, it can lead to more debt or other financial – or credit – issues down the line.
Examining your budget is the first step to ensuring you can afford the loan. Consider your take-home income amount. This will give you a clearer, more accurate idea of how much money you have available each month.
Be sure to account for any changes that might occur in your income. When in doubt, err on the side of caution.
Say, for example, you plan to change jobs in the next few months. If your pay will increase, you should still use your current income when creating your budget. You can always adjust it later to account for the higher income amount.
Now, say you anticipate cutbacks at work in the next few months that will cause your income to drop. In that case, it’s a good idea to base your budget on the lower income rather than your current one. Worst case scenario, you’ll have more money than you thought – thus more financial security.
Once you know your total monthly income, add all fixed and variable monthly expenses. This might include things like rent/mortgage, utilities, gas, food, entertainment, and other debts.
Subtract your expenses from your income. The remainder is how much money you have left for unexpected expenses or a new loan payment.
Once this is done, it’s time to calculate the total cost of the loan. You’ll need to know the repayment term, interest rate, and other fees (if applicable) to determine how much you’ll be paying each installment – whether it’s weekly, biweekly, or monthly.
You can use an online calculator to help with this. Some calculators will give you a breakdown of your payments over time. Others will give you a basic idea of how much you can expect to pay. Either way, make sure you can reasonably afford any loan payments before taking on the new debt.
Loan Requirements
In addition to credit score and income requirements, many lenders require some or all of the following:
- Maximum debt-to-income ratio (DTI): The DTI ratio is the difference between all your monthly debts and your monthly income. The resulting percentage is your DTI. For example, if you pay $2,000 for all monthly debts and earn $3,000 a month, your DTI would be 66%. Most lenders won’t approve applicants with a DTI higher than 40% or 50% (excluding mortgage payments) because it signals affordability issues.
- Loan fees: Many lenders charge additional fees for their loans, such as admin fees, prepayment penalties, or origination fees. These fees are not always readily apparent until after you apply. Some lenders, like Jora, don’t charge any hidden fees like these.
- Proof of identity: All lenders require proof of identity when you apply for a loan, and you’ll usually need two or more forms. These could be your government-issued driver’s license or state ID, Social Security card, passport, or birth certificate. Be prepared to make copies so you don’t have to submit the originals.
- Proof of address: Another thing you’ll have to submit is proof of address. This could be a rental agreement, a property lease, or utility bills with your current address. Some lenders are only licensed in specific states, so this is an important step.
- Citizenship and residency: There are sometimes residency status restrictions when applying for a loan. So if you’re not a U.S. citizen, check the lender’s residency and citizenship requirements to see if they only accept permanent residents or U.S. citizens.
- Loan purpose: Some lenders offering installment or personal loans in Utah might ask why you need the money. This could be to fund home improvements, medical bills, a wedding, or vacation expenses. Not all lenders will ask this, but it’s worth being prepared.
How to Get a Personal Loan in Utah
Getting a loan in Utah, whether it’s a payday loan, bad credit loan, or installment loan is pretty straightforward. You can apply for a loan in two main ways: via an online lender or the traditional way.
The traditional way of getting a loan is through your bank or credit union. You may need to go in person, but you can also apply online with most modern banks.
The alternative that’s growing in popularity is to use an online lender like Jora, which involves a simple application process you can do online.
The first step is to ask yourself a few questions, such as:
- How much do you need and why? Never take out more than you need and can comfortably afford.
- What will a loan help you with? Do you need the funds for an emergency or something else?
- Can you afford to repay it on time? Factor the estimated payments into your monthly budget. Missing even one payment could harm your credit score and chances of qualifying for future forms of financing.
- What are my other options? Do you qualify for another form of financing? Can you wait to take out a loan?
The next step is to find a reputable lender licensed in Utah. You could use an online marketplace to compare different online lenders in your area or ask for recommendations from friends or family.
Once you have found a couple of lenders you like the look of, compare what each lender offers and make sure it’s suitable for your needs. Look at their typical APRs, repayment terms, loan fees, and customer reviews.
Also, check the lender’s requirements to make sure you’re eligible. Now is also a good time to get your credit report to ensure you can meet the lender's requirements. If your credit score isn’t the best, you might want to narrow your search to bad credit lenders like Jora.
Here’s a look at the simple application process if you take out an installment loan with Jora:
- Create an account and complete the online application. The application process takes just a few minutes and requires some basic personal and identification information (e.g., name, SSN, email address, birthday, and state of residence).
- Provide additional information. This may include your bank’s routing number and your checking account number. It could also include your driver’s license or state-issued ID number.
- Submit the application. Once you’re happy with your application, submit it. It usually takes a minute or less for Jora to make a credit decision.
- Accept the offer and receive funds. If you are approved and your cash advance is accepted by 10:30 a.m. Central time (Monday through Friday), you could receive funds that same business banking day.
One thing to note is that some lenders will perform only a soft inquiry into your credit history. This won’t affect your credit score, but it can give you a clearer example of the type of loan terms and interest rates you’re likely to be offered.
Other lenders will perform a hard credit inquiry when you apply, which can cause your score to dip slightly. If your application is rejected, avoid applying for more credit immediately as your score could be even worse. And multiple credit inquiries look bad to lenders.
Beware of Predatory or Aggressive Personal Loan Companies
There are many lenders with predatory fees and refinance cycles that can make you much worse off. That’s why it’s a good idea to carefully vet any lender you’re considering before agreeing to anything. Here are some of the best ways to avoid scams:
- Research the lender. Make sure the lender you’re dealing with is licensed in your state. Check their online reviews to see what people say about them and how many complaints they have – especially unresolved ones. Sites like the Better Business Bureau (BBB) can also give you an idea of whether the lender is reputable.
- Be wary of guaranteed approval. Even lenders with lenient requirements will still have some kind of screening and approval process. In many cases, this will include a credit check or income verification. If a lender offers a loan without any information or documentation, it might be a scam.
- Never pay any money upfront. Scammers often request money upfront in exchange for a loan later. If a lender asks for payment before sending you the loan funds, chances are it’s a scam.
- Avoid overly persistent lenders. A reputable lender may contact you, but they should not spam you with phone calls, emails, or texts. If a lender starts sending unsolicited loan offers or frequently contacts you, it’s probably best to avoid them.
- Cross-reference communications. If a lender contacts you, especially if you’ve never contacted them, confirm that they’re legitimate before responding. Things like their email domain, physical address, and phone number should all match with a real company.
- Check for transparency. While not necessarily a scam, it’s generally good to go with lenders that are transparent about things like their rates, terms, and fees. This makes it easier for you to make an informed decision, and it’s a good sign that the lender is reputable.
Secured vs. Unsecured
There are two main types of personal loans: secured and unsecured.
- Secured personal loan: Secured loans are typically easy to get as they don’t always require good credit to qualify. The catch is that they require collateral—usually an asset like a car or house—in exchange for funds. This collateral acts as a security deposit that the lender can use if you fail to make payments. However, if you can get a secured loan, you might find you’re more likely to get approved with more favorable interest rates, thanks to the safety blanket of the collateral.
- Unsecured personal loan: Unlike secured loans, an unsecured loan doesn’t require collateral. Instead, lenders assess the borrower’s default risk by looking at their credit score, income, monthly expenses, and other factors in their approval process. While credit scores are essential, it’s still possible to get an unsecured loan with bad credit with online lenders like Jora.
As with any type of credit, there’s a level of risk. It’s easy to fall behind on payments if your financial circumstances change – but doing so can harm your credit score, cost more in interest, and even result in late fees or legal fees.
That’s why it’s so important to understand the risks of taking out a loan to ensure you can meet the monthly repayments before applying.
How Credit Plays Into Loans
Your credit score plays a huge role in your ability to acquire credit – and the cost of that credit. Credit scores range from 300 to 850. Anything 670 and above qualifies as “good” credit.
Some lenders are strict and will want to see scores of 620 and above, whereas others will approve much lower scores. Borrowers with good credit are more likely to have their applications approved than those with bad credit. This is because lenders check credit to see how likely the individual is to repay what they owe on time.
Bad credit can make it more challenging to qualify for loans or lines of credit. And because lenders need to mitigate their risk of approving someone with low credit, they usually offer high-interest rates and shorter loan terms. Several factors make up your credit score, including:
- Payment history: Making up 35% of your FICO score, payment history shows your ability to repay your debts on time. This is the biggest indicator of future payment behavior.
- Credit history length: 15% of your score is affected by how long you’ve had credit. And on the average age of all your open accounts.
- Credit utilization: This is the percentage of credit you’re currently using vs. how much you have access to across all open accounts (loans and lines of credit). It makes up 30% of your FICO score.
- Credit mix: 10% of your credit score depends on how many different types of open accounts you have.
- New Credit: Hard inquiries (made when a lender checks your credit report) and new accounts make up 10% of your credit score. Lots of hard inquiries for new credit can be a bad sign and suggests to lenders that you rely too much on credit.
Two other factors that play into credit are negative marks and errors. Negative marks include things like bankruptcies or foreclosure. A bankruptcy can stay on your credit report for seven to ten years.
Errors on your credit report can also lower your score and prevent you from qualifying for financing. Common errors include a misspelled name, wrong address, duplicate accounts, or incorrectly reported missed payments. Around 5% of consumers have a mistake on their credit reports. If you find an error, make sure you dispute it with the reporting credit bureau as soon as you spot it.
If you’re a first-time borrower, you can take out a Jora loan for $500 to $4,000. The exact amount depends on a few factors, such as your state of residence (and the available loan offerings) and credit score.
You could receive funds the same day you apply if your application is approved before 10:30 a.m. CT on a business day. If you apply after this, funding is typically available the business banking day.
Jora offers installment loans for people with bad credit. You must provide proof of income and some basic financial and personal details to apply. Depending on this information, you will get a loan decision within minutes.
More State Info
From installment loans and personal loans to bad credit loans, there are several options available if you need funds quickly in Utah. These loans can help you in an emergency or if you’re short on cash before payday. They can help you fund home improvements, tech upgrades, or a special occasion like a vacation or a wedding.
Before you apply for a personal loan in Utah, remember to check the lender’s requirements to see if you’re likely to be accepted. To get started with Jora, you can learn more about our installment loans, check out our resource center or apply directly today to get access to cash fast.