How To Get Your Personal Loan

19 February of 2015

You need money and you need it fast. Well, maybe not by today, but certainly within the next two weeks. If that is the case, then applying for a personal loan is the way to go. Here’s how to get your personal loan as quickly as possible.

1. Check your credit. Ideally, you would have some time to optimize your credit before you applied for a loan. Because you need money and you need it fast, then you won’t have time to check your three major credit reports. However, it is important that you review your credit score, a three-digit number that may determine whether you get a loan or not and if you do, what rate you will pay. Obtain your credit score from MyFico.com or from the credit bureaus.

2. Assemble your documents. Lenders want documentation that you qualify for a loan. You will submit proof by sharing information about your employer and your work history. Typically, a lender will want to see your last two or three pay stubs and your last tax return. Bank statements, such as savings and checking accounts, may also be required. Begin to assemble those documents now.

3. Discover your options. There are essentially two loan types available to you: secured and unsecured loans. A secured loan is backed by an asset you own, such as a home, a car, money or collectibles. An unsecured loan is not backed by assets. Rates for secured loans are lower than unsecured loans. Moreover, you can typically borrow more money if your debt is secured explains InstaLoan.com.

4. Borrow what you need. How much money do you need? And for what purpose? Lenders want to know what you will be using your money for and will accordingly ask that information. It is important that you state a reason and the amount you need. Calculate the funds that you would like to borrow and list that amount on your loan application.

5. Shop for a loan. You have many options available to you when you shop for a personal loan. Your current bank or credit union is a logical place to stop. With them, you have a proven track record that can be followed. You can also contact other financial institutions, including community banks, financing companies and other credit unions. Friends and family members may be able to help you as well.

6. Apply for a loan. When you have found the loan option that is right for you and from a lender you are comfortable with, then make application. Ensure that the terms are right for you. Await the lender’s response.

7. The loan decision. Your loan may be approved or rejected. If it is approved, then decide it the terms are to your liking. If not, ask for the terms to be modified, otherwise you will have to go with those terms or walk away. If you are turned down for the loan, ask the lender why. Learn from the rejection and figure out ways to improve your financial position.

Loan Matters

Borrowing money is a responsibility that requires you to make monthly payments back to the lender. Keep up with your payments and you will also improve your credit rating.

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