Looking for Personal loan?
When it comes to personal loan, you need to do your homework very well if you don’t want your application rejected. If you have ever been turned down when you applied for personal loan, you will understand the pain involved. Before anyone will apply for a personal loan, he must have set his mind to do one thing or the other with the money. This is what is being referred to as expectation. What happens when the loan is not granted? You will not only be unable to do what you have planned to do with the proceeds. Any time you apply for loan or credit, it is reported to the credit bureaus. This is a hard inquiry of course which is capable to reducing your credit score with small points. The situation is made worse if the application for the personal loan is declined. However, if you know what to do, you can as well get your personal loan application approved quickly. If you desire quick personal loan, no one will deny you if you meet the requirements. Below are some practical anybody that desire quick personal loan can take.
- Be specific about your reason for the personal loan you want to take: People use personal loans for various reasons. I may not know why you need personal loan but it is likely that you need it for car purchase, holiday, home renovations, wedding, debt consolidation, medical, furniture and appliance replacement. You should be able to understand your preferences. Once you can determine why you need a personal loan, you can take it a step further by finding out the cost estimate of what you want to do. The best way to achieve this is by requesting for quotes from various suppliers or vendors. In fact, this singular step will let the lender know that you have done your homework. This will let the lender to know that you understand what you needs.
- Check your credit score: Your credit score is one of the factors any lender will consider before your application can be considered at all. You can request for your credit report from the credit bureau. You may not need to pay for this as you are entitled to one credit report in a year. When you receive the report, ensure that you study it. If you notice any error or any transaction you didn’t approve, you can bring this to the attention of the credit bureau for correction. If your credit score is too low for the personal loan you want to you want to obtain, you don’t need to bother yourself with the application for now. Your primary responsibility at this point is to ensure you improve your credit score. Don’t apply for a loan that is beyond your limitation. It will be nice if you can create a checklist of what to do in order to improve your credit score.
Read Also: Bad Credit and How to avoid or Fix it
- Shop around: If you want a personal loan at a good deal, you can consider shopping With online shopping, you can secure different quotes with just one application. Another beauty of this is that if you do all your online shopping within a very short interval, credit bureaus will treat the inquiries for your credit coming from different lenders as a single transaction. Therefore, your credit score will not necessarily be negatively affected.
- Select the lender that is right for you: Each lender will require a particular credit score for a specific credit limit. From the quotes you receive, you may find the one that matches your situation. If you apply for such, there is a possibility that the application may be granted.
- Other factors: Other things you may need to pay attention to include your debt to income ratio and the possibility of providing collateral. It is not uncommon to see a situation when a person applies for a particular amount and the approved amount will be lower. If your debt to income ratio is quite high, you will be increase the risk exposure of the lender. There is a tendency that you may not be able to pay back the loan or there may be incidence of missed or delayed payments. Nevertheless, if you can provide collateral, it will increase your chance of getting the loan fast.
As part of the requirements for the personal loan, you need to provide your accurate personal information such as your full name, address and telephone number. As mentioned, lenders will request for your income information and any existing loans. This will help them to determine your debt to income ratio and your ability to repay the loan if granted. Also, they will be able to figure out the best repayment plan for the loan. Additional information such as utility bills, W-2s or tax return will also be helpful.