How To Get Approved For A Small Personal Loan – How to get a personal loan in 5 simple steps.
How To Get Approved For A Small Personal Loan – Tips For Choosing The Best Company
Bankrate reporter Natalie Campisi explains how to get a personal loan in 5 simple steps.
A personal loan can be a great way to get the cash you need to consolidate debt, finance a home improvement project or make a large purchase. Getting a loan the smart way requires a little extra research and care to make sure you get the best offer available.
Here’s how to get a personal loan in five steps.
Step. 1: Run the numbers.
Start by determining how much cash you’ll need, keeping in mind that some lenders charge an origination fee, which they deduct from your loan proceeds. Make sure you borrow enough to get what you need after the fee.
Step. 2: Check your credit score.
Most lenders will run a credit check to determine how likely you are to repay your loan. While some online lenders have started to look at alternative credit data, they will still typically look at your credit score.
Most of the best personal loans require that you have at least fair credit, but good and excellent credit will give you the best chance of getting approved with a lowinterest rate.
Depending on your credit situation, you may or may not need a co-signer to get approved for a loan with a decent interest rate. If you can’t find a co-signer, you may have the option to get a secured personal loan instead of an unsecured one by putting down collateral.
Step. 3: Shop around for the best personal loan rates.
Compare several types of lenders and loan types to get an idea of what you qualify for. You can generally find personal loan offers from banks, credit unions and online lenders.
Depending on the type of lender, you may be able to do the entire application process online.
Step. 4: Provide the necessary documentation.
Talk to your lender about what paperwork you’ll need to submit; typically they’ll ask for things like pay stubs, tax documents and personal identification. Once you have your paperwork in order, you might be able to submit everything online as well as use electronic signatures to sign documents remotely. If your lender doesn’t have this technology in place, you might be able to fax or mail in the required documents.
Step. 5: Accept the loan and start making payments.
After the lender notifies you that you’ve been approved, you’ll need to finalize the loan documents and accept the terms. Once you do this, you’ll typically get the loan funds within a week — some online lenders get it to you within one or two business days.
Now that you have the loan, note when your first payment is due and consider setting up automatic payments from your checking account. Some lenders even offer interest rate discounts if you set your account to make autopayments.
Visit Bankrate.com to compare Personal Loan rates today!