Online Loans for 17 Year Olds
The concept of online loans for 17 year olds may seem ridiculous to some older generations, but the reality is that there are a myriad of reasons why someone under the age of 18 might be interested in taking out a loan.
Some examples include getting a car to enter the workforce or travel to college, and then there are certain instances that cannot be avoided, such as medical debt, or the unexpected death of a family member.
It may seem like there are not many options available, and especially not online loans for 17 year olds, and that is generally with good reason.
Banks and other financial institutions need to protect themselves from financial as well as reputational loss.
Additionally, the minimum legal age throughout the US to get a loan is 18. But that does not mean that it is impossible to get an online loan as a 17 year old.
How to get Online Loans for 17 Year Olds:
1. Get Someone to Cosign
The reality is that if you have someone with a relatively good credit record, willing to cosign on your application, getting an online loan as a 17 year old is a lot easier. Most reputable institutions will require it, and will not even look at your application if this is not possible.
It is important to remember that even though most 17 year olds who are looking at online loans chose a family member to be their cosigner, it does not necessarily have to be the case. If you are trying to open a business, and you have a close friend and potential business partner only a few months older than you, this would also work.
The important thing to remember is that they need to have a good credit score, otherwise it is likely that the application would be denied, no matter how trustworthy you have proven to be with money in the past.
2. Beware of Scams
Even though it is better to have someone to cosign in order to give you more options, it is not always necessary.
In some cases, you would be able to get a loan without having someone cosign, but these will strictly be through online vendors, and not large institutions.
Getting an online loan as a 17 year old through some of these vendors might be more appealing due to the freedom and convenience provided, but the likelihood of falling prey to a fraudulent scheme of some sorts increases.
Remember that you are only starting on your credit journey, and you do not want to drastically decrease your credit score so soon, or you will handicap yourself financially for quite some time.
Make sure that you never release your details to anyone suspicious. It isn't worth it.
Be Clear About the Money's Purpose.
Most financial institutions will request to know the purpose of the loan before it is approved. Online loans for 17 year olds may be no different.
If it is requested of you, make sure that you are detailed about the intended use of the loan, and to the point. Remember, even if your application is online, this part will usually be reviewed by a person, not a computer.
It is safe to assume that this person would probably have seen and approved hundreds of loans before yours, so do not waste their time. Honesty is key.
Present Yourself Well
Just as you would not go into a bank dressed in your oldest, dirtiest pair of sweatpants if you were going to meet someone who would approve your loan in person, you want to present yourself well online.
If a photo is requested, make sure that you pay attention to your background and the clothing that you are wearing. Check your application, and then double check, and even triple check it, to make sure that there are no mistakes.
Additionally, you can provide a letter of recommendation. This is usually written by an employer or someone of higher rank than you in your workplace.
This would go a long way in illustrating your character, as well as confirming your position and a variety of other factors.
What to Know Before Getting an Online Loan as a 17 Year Old
It is important to know exactly how much interest you are going to be charged and how that interest is calculated, in order to determine if you would be able to repay your loan, even as a 17 year old.
You need to ensure that you are not going to be digging yourself into a hole of never ending debt because of the agreed upon payments.
The amount payable can vary, but the more traditional, and most popular, is to pay a set amount on a monthly basis.
It is important to know if that amount will be debited to your account automatically, or if you will need to set time aside to set up scheduled payments of some sorts.
Additionally, it is important to take note of the amount required, and to prepare for unexpected events by saving up a few months of repayments in advance.
This means that even if you lose your job, or an unexpected expense comes up, you will still be able to pay the amount, and your credit score will not be negatively affected.
A lot of people forget to look at the fees associated with an active loan.
These fees can range from a larger, one-time fee or deposit for the drawing down of the loan, to smaller amounts charged monthly for administrative purposes.
It is important to take into account the total amount charged for these fees, and add them to the amount that will be charged in interest, in order to ensure that you are fully aware of how much the loan is going to end up costing you by the time that it is paid up.
Keep in mind that taking out a loan can be a daunting process. And, although it is better to avoid higher interest loans, such as student loans and personal loans, it is sometimes unavoidable. Make sure that you do all the required research and that you choose the best loan for you.
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