Easy steps to get a personal loan.
Many families need a personal loan to get through a difficult time, or to take on additional expenses. A personal loan is a great way to consolidate debt or to pay for a home improvement project, as long as you have the income to repay the loan. Most personal loans are unsecured loans, which do not require collateral. The loan process is simple and requires only a few key steps.
The best way to get a personal loan is to get pre-qualified. Here are some easy steps to get a loan;
Check your credit score.
You credit score will have a significant effect on how much you can borrow, and the cost of a loan. In the USA, you are entitled by law to a free copy of your credit report once every 12 months from the key credit reporting agencies Equifax, Experian and TransUnion. You should review your report regularly to correct any errors, or to take action which can improve your credit rating.
These are the credit score categories;
Exceptional Credit Score: 800 to 850
Very Good Credit Score: 740 to 799
Good Credit Score: 670 to 739
Fair Credit Score: 580 to 669
Poor Credit Score: Under 580
Compare rates from different loan vendors.
It can be to your advantage to get a loan from a bank or credit union that you already have a relationship with. Start with your existing banker, ask about their loan opportunities and interest rates. Next, search online for lenders, and review their reputation to avoid scams. Contact lenders who interest you to obtain their loan rates and policies. Many of them will publish this information on their website.
Read the fine print.
Lenders can have significant penalties for late payment as well as paying off the loan early. Look for these stipulations and understand clearly your obligations.
Apply for a loan.
Each lender will have different requirements and ask different questions. Many lenders will have online application forms, to make the process easy for you. Carefully review the terms and conditions, and the loan repayment requirements before submitting your application. Once you are satisfied with the loan offer, submit your application and wait for the review and approval.