HOW TO GET A PERSONAL LOAN

HOW TO GET A PERSONAL LOAN

Many of us would like to achieve our long term and short-term dreams but most of the time to achieve them we need money. How do you achieve those dreams or goals be it studying, start a business, wedding and vacation? Whatever you plan maybe you need money to get you there. You may consider taking a personal loan to get the cash you need to consolidate debt or finance a home improvement.

What are the steps to get a personal loan?

Whether you’re interested getting a loan form the bank. Credit union or online lender, the process is mostly the same.  The last thing you or lenders want is for you to take a loan and not be able to afford to pay it off. Typically, lenders do their due diligence to make sure you have the ability to repay the debt, its smart you run your own numbers to make sure it will work out.

1. Determine how much you need

Start by determining how much cash you’ll need and keep in mind that some lenders charge an origination fee, which they deduct from your loan proceeds. Make sure you get what you need after the fee. You can also use a personal loan calculator to find out your monthly payment will be. Just need to work it roughly since you don’t know what kind of rates and payment terms lenders will offer.

 

2. What is your credit score?

Check your credit score because most lenders will run a credit check to determine how likely you are to repay your loan. Well as online lenders have started to look at alternative credit data, typically they will still look at your credit score.

Best Personal loans require that you have at least fair credit but good and excellent credit will give you the best chance to getting you approved with a good interest rate. If your credit score is low, you may still have a chance to get a loan.

 

3. Choose where to get the loan

You’ll need to think about where to get a personal Loan. With traditional banks, for instance, you may have a hard time getting approved if you have a bad credit. Some online lenders, however, specialize in working with bad credit borrowers, and some tend to have short-term loans that server a cheap alternative to payday loans.

 

4. Loan Type

Choose your loan type once you know you know where your credit stands and after considering all your options. Determining the best loan type for your situation makes the application process and your loan approval easier since the money will be used for specific purposes.

For example, one lender might let you take out a personal loan to take vacation, yet a different lender might not allow you to use borrowed funds for your vacation at all. It’s generally smart to find a lender that is comfortable lending you the money for your exact reason.

Examples of loan types:

• Wedding Loans
• Medical loans
• Emergency loans
• Credit card refinancing loans
• Debit consolidation loans and home improvement loans.

 

5. Finding the best personal loan rates

You can generally find personal loan offers from banks, credit unions and online lenders. On this site we help you connect with some of the best possible interest rates lenders.  Some online lenders also allow you to get prequalified with a soft credit check. Which wont impact your credit score.

6. Start your application

Pick a lender and apply after you have done all your diligence. Depending on the type of lender, you may be able to do the entire process online. Start your application here. Every lender is different regarding the information it will need on the application. On this site you required your name, address and contact information and the reason for the loan, also you will state how much you need to borrow and have a chance to review the complete terms and condition for the loan, including fees and your repayment period. Read the fine print carefully.

 

7. Necessary Documentation

Depending on the lender and your credit situation, you may need to provide some documentation after you submit your application. Such as your proof of residence, a copy of your driver’s license or a copy of your latest pay stub. The Lender will let you know if it needs any documentation and the faster you provide information the sooner you will get a decision.

Tips to speed up your loan Process.

• Pay off your debt. If you don’t need loan funds urgently and you have debt, it better you pay it off. This can rise your credit score and lowers your debit-to-income ratio which increase your chances of qualifying and approval.
• Consider online lenders. Many online lenders offer next-day loan decisions just like on this site and funds are deposited into your bank account within a few days after verification.
• Talk to financial institution. Banks and credit unions might be more willing to consider a personal loan application from a customer with whom it’s had a positive, long-standing relationship.
• Check your credit report. Its better you check your credit report before applying this can help you spot and correct errors immediately to avoid issues when you’re applying.
• Collect loan funds in person. If your lender has a brick-and-mortar location, ask if you can pick up the money that way you get it faster.

Where Can I find the best personal loan rates?

totalfortunes.com was created to help consumers access money without the hassle and waste of time. We understand emergencies exist that may require access to cash. That’s why we simplified the process of finding a lender to get the money that you need. No need to visit hundreds of websites to fill in numerous paperwork.