A Step-By-Step Guide To Personal Loan!
When you need cash for multiple operations or for some extra cash to go with another loan, personal loan comes to your rescue. But do you know how to get a personal loan and what is the procedure involved? Don’t worry! Here’s a step-by-step guide to personal loan.
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- 1 A Step-By-Step Guide To Personal Loan!
A Step-By-Step Guide To Personal Loan!
Why you need a personal loan?
Before you look for the right loan, you need to determine why you need a personal loan at the first place? And what is your current financial situation? If you have successfully managed to keep a good credit score, a personal loan might provide you with a lower annual percentage rate (APR). But, in case, you have a bad credit score, a cosigner is what you might need if you wish to qualify. A bad credit might also not get a decent APR. Do you know How To Improve Credit Score Immediately?
Other things to consider are the amount you need to borrow, the time-period between which you will repay your loan and the payments that you can afford. Further, you might want to check for added features like the ability to pay off the loan early.
What kind of personal loan do you want?
Personal loans are of four types: Secured Personal Loans, Unsecured Personal Loans, Fixed Rate and Variable Rate. Other loan options for bad credit holders are payday loans, auto title loans and installment loans. After following the first step, take a look at all the loan types and choose the one that caters to your needs. Check out LendUp Reviews if you are looking for payday loans.
Also, compare the maximum loan amounts that various lenders are offering to make sure all your needs are covered.
Check the lenders for their offers
Not every lender will offer all types of loan. Different lenders offer different loan types for different APRs. Such as a bank can and will offer a variety of personal loan and credit card products but may not have an answer for your needs if you have a bad credit. The only thing they can offer in this case is a loan with high APR. Other lenders might only offer loan products for bad credit borrowers like installment and payday loans. Check out the OneMain Financial Reviews for some of the best offers.
What are the eligibility criteria and APR?
All the lenders list general loan eligibility criteria that must be met to get a successful loan. Check for these criteria with different lenders and see which ones you fulfill. Some lender also lists an APR range for the personal loans.
When it comes to bad credit loans like payday loans, they generally come with a standard APR offered to all borrowers. Before getting a loan, it is helpful to know your credit score and get a decent idea of what APR to expect.
Stack your options side-to-side
Want the best personal loan? Determine what you want and then compare all your options to choose the best one. It will be an added bonus to check the additional facilities offered by the different lenders. Keep in mind the above steps to get the best out of your personal loan.
Make sure you have all the necessary documents
Gather all the necessary documents that you will require in order to apply for a personal loan. Generally, most of the loans will ask for your identity proof, address proof, your income verification and other financial details. Plus, you will also need details related to your employment. In case you are applying for a secured personal loan, the lender will ask you to submit additional documents regarding the collateral.
Submitting the application
After you have decided your needs, loan amount, selected the loan types and have the general idea of the APR to expect, it’s time to apply. For the majority of lenders, you can apply through online applications, but for some, you may have to visit their branch or through the phone.