If you’re Hispanic or Latino in the United States Perhaps you have noticed that there are a large number of goods and services aimed exclusively at people like you. From live music in your language to restaurants with menus in Spanish. Likewise, financial entities offer specific services: money loans for hispanics and latinos as well as for other minorities. This is not something to be surprised as they are more than 60 million Latinos in the United States, being the largest and fastest growing ethnic group in the country.
Unlike other communities, Hispanics and Latinos, for the most part, do not use traditional lenders such as renowned banks and financial institutions to obtain their personal loans. However, tend to turn to non-traditional lenders because the latter are especially convenient for immigrants: acceptance criteria are more relaxed and costs are lower.
Whether you have to pay debts, renovate your car or your house or if you just want to give yourself an extra treat, money loans for hispanics they are a great tool Latino community in the United States can take advantage of.
First, should you ask for a personal loan?
The obvious and simple answer is: it depends. The personal loans for hispanics They can be very convenient, but if you are not organized with your finances or if you do not analyze all your options, it may be counterproductive. Everyone has their good reasons for needing quick money but there are many things to weigh in the balance before making a hasty decision that you may come to regret.
If you have a good credit score, you should be careful not to have it lowered for taking out a loan you can’t pay back. But if you still don’t have a credit history or want to improve it, a personal loan for Hispanics can be a very good way to get it.
The first thing you should know is how much you need that money, that is To what extent are you willing to go into debt for months to pay for that product or service you want? The next thing you should ask yourself is if you are aware of all the options available to get the money. Not only are money loans for Hispanics a good financing option; You can also use the following sources:
When you find the best deal, make sure that it does not affect your economy too much in general and that you do not have to generate extra income to be able to pay it. In general, if you have good credit, a personal loan is the best option, but it also has some not-so-positive points that you should consider.
Disadvantages of personal loans
The personal loans for hispanics and latinos They do not escape the following disadvantages and you should take them into account when making a decision:
- Higher rates than other loans. If you have good credit, personal loans for hispanics They usually offer lower interest rates than credit cards. But if your credit isn’t as good, a personal loan could cost as much as a credit card loan or more. Also, unsecured personal loans are generally more expensive than secured ones.
- Startup costs. In addition to interest, many personal loans for hispanics They come with an “arrangement fee” to cover the cost of processing the loan. This commission is usually between 1% and 6% of the amount borrowed and must be paid in full when applying for the loan.
- Prepayment penalties. Many banks charge you a prepayment penalty if you pay off your loan early so they can make up for the interest they’re missing out on.
- Scams are more frequent. When you see that the terms to take out a personal loan are too good to be true, they probably want to scam you. It is very common for them to charge a fee in advance to start the loan process and then run away with your money. Always make sure you know who the lender is.
Advantages of personal loans
Among the main Advantages of money loans for Hispanics and Latinos in the United States we can describe the following:
- They have many uses: Many types of loans, such as mortgages, auto loans, and student loans, can only be used for a specific purpose. A personal loan, on the other hand, can be used for whatever you want..
- You don’t need collateral. Depending on your credit score, most personal loans do not require any collateral. If you are not willing to risk losing any property, unsecured personal loans are your best option.
- You can ask for a lot of money. In general, personal loans are delivered for values ranging from $1,500 to $100,000. This is much more than you can get with a credit card.
- The rates are designed for employees. Personal loans are almost always cheaper than credit card loans. Money loans for Hispanics with a good credit score can have interest rates as low as 5% APR (annual interest rate) which is much better than the 13% APR charged by credit cards.
- You don’t need a perfect credit history. Some lenders are willing to offer personal loans customers with a credit score of 600 or even less. However, the cost of interest rates will be higher: up to 36% APR.
- You have plenty of time to pay. Unlike payday loans or other predatory loans, typically personal loans are paid off over a period of at least one year with monthly payments that make it more accessible for most workers.
Money loans for Hispanics and Latinos
This lender delivers personal loans that range from $300 to $9,000 and are focused almost exclusively on the Latino community. One of the most remarkable things is that your loan can be approved even if you have bad credit or if you don’t even have a credit history.
If you need fast money, Oportun assures you that you will have your money in just 24 hours or less. Borrowers have between 6 and 46 months to repay the loan, making Oportun a great option for short-term cash needs.
Aura is a lender that serves the middle and lower social classes, so the requirements to obtain a personal loan are not restrictive at all. You don’t have to worry about not having a social security number because you can start the application process by simply submitting your ITIN.
Aura’s main borrowers come from the Latino community and Aura emphasizes how simple it is to start building credit with your personal loans. One limitation of this company is that it only operates in the states of California, Texas, Illinois and Arizona.
Latino Credit Union
If you are a Latino Credit Union member, you can apply for an affordable personal loan with only one year of credit history. The minimum return period is 6 months and the maximum is 48 months. No prepayment fees or credit history required when you apply for less than $500.
Once you take out your loan with Latino Credit Union, you can check its status from your online account, as well as transfer money, pay bills and contact customer service. One thing against it is that its branches are only located in North Carolina.
Stilt offers personal loans up to $25,000 starting at 7.99% APR. They do not require a minimum credit score and are willing to help immigrants living on a visa in the US. There is no co-signer or SSN (social security number) needed and no prepayment penalty is charged. You just have to meet their simple eligibility criteria.
Keep reading: What is Stilt? loans for immigrants
together we move forward
Nearly 80 credit unions belong to a national program called “Juntos Avanzamos,” which asks participating credit unions to provide affordable and accessible banking products to Latinos. Practices vary by credit union, but all have bilingual documents, accept foreign IDs, provide educational resources, and are affordable. Here is a list of these institutions arranged territorially: