How to get a personal loan in 5steps

 

A personal loan can be a great way to get the cash you need to consolidate debt to finance a big home improvement project or to make a large purchase in order to get the best rate in terms. It's important to plan ahead. Here's how to get a personal loan in five easy 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 low interest rate. Depending on your credit situation you may or may not need a cosigner to get approved for a loan with a decent interest rate. if you can't find a cosigner 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 our email the required documents. Step 5 Accept the loan and start making peanuts. 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 will even 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 auto payments. You can compare personal loan rates on bank rate.com. Thank you.