In a lot of Instances, a personal loan is desirable.
You may want to start a home business, or you may want to borrow for a vacation, or you might have some other use for the money. Whatever the reason is, getting a personal loan can give you the money you need. A personal loan — usually unsecured — can provide you with a little extra cash to help you meet your goals.
Actually securing that personal loan can be a bit difficult, though. Many people find the process scary, and they don’t know where to begin.
But I can help you navigate the process and offer a few ways on how to get your personal loan approved.
And if that doesn’t work, there are some other options, too.
Compare Loans Easily:
There are plenty of places where you can get rates for personal loans. The easiest one of them in my opinion is LendingTree. Their form is quick and easy to fill out, and you’ll be comparing loan rates in no time. You only have to input what type of loan you want, the amount, your zip code, and a bit of other basic loan information, and then they provide dozens of loan options near you.
Lending Tree has been around since 1996, and has excellent customer reviews. They also work with many different lenders, allowing you to not only get the best rates, but to also skip the salesmanship that you might get through a local bank.
Through Your Bank Or Credit Union Qualification:
It’s becoming increasing difficult to qualify for a personal loan through your bank or credit union, especially if you want a larger amount.
If you are a good customer and have good credit, you can usually get what is called a “signature” loan for $3,000 to $5,000. These loans are also called “character loans” or “good character loans”, because these loans don’t require any collateral. Instead, the lender will usually look for an income and a decent credit history.
Because these loans aren’t backed by anything, they will typically have higher interest rates than other loans. However, the interest rate on a personal loan at a bank that values you as a customer is usually quite low compared to some alternatives.
Check with your bank or credit union to find out whether they offer these loans, and what the application process is.
If you want a bigger loan, though, you will need to jump through some hoops. You will need to fill out a loan application, and you might even need to designate collateral. (Collateral is something of value that can be taken from you and sold to pay off the loan if you can’t pay it back.)
You will need to have a relatively high credit score (above 700 if you want to even be considered for an unsecured personal loan), and you may not be approved for as much as you would like.
What You Need To Know Before Getting A Personal Loan:
Getting a personal loan isn’t easy. There are a lot of things you need to consider before you apply for a personal loan.
The first, and most obvious, is to decide how large a loan you actually need. This might seem like a ridiculous tip to include, but it’s important enough to reiterate. Before you apply for your loan, sit down and calculate how much money you will need.
Next, we need to make sure you understand how personal loans work. First of all, there are two main types of personal loans, secured and unsecured.
A secured loan will usually give you lower interest rates, but you have to put something up as collateral for the loan, which means that if you don’t pay back the loan, they take your collateral.
Unsecured loans, as you can guess, don’t require any collateral, but will have higher interest rates.
You will also need employment information, like your work history and pay stubs to verify your income. You will need to provide other sources of income like alimony.
There are several different ways to get a personal loan, and not every type will be a good fit for your situation. Fully understand the type of loan you are getting, the loan period, the payment methods, payment amounts, and any other important information.
Quick cash without a loan:
Before you make the decision to borrow, see if you can delay paying for the emergency expense or find interest-free sources of cash:
If you’re facing a large medical bill, review the charges and try negotiating instead of taking the bill at face value.
If you have a job, ask your employer for an advance on your next paycheck; some employers have assistance programs for their employees.
Also consider using an app like Earnin that lets you draw from your own paycheck before payday.
Ask family or friends for help, using a contract that details your plan to pay them back.