5 Easy Steps To Get a "Personal Loan"

Posted 3 years ago

by shakiez893

Getting a personal loan may be a great way to finance your way out of a pressing situation either to complete a project, settle a health bill or improve your business what ever reason it may be.

But before you are considered for a loan by any institution you should know what it takes before you apply

What you need for a personal loan 

  • Run the numbers.
  • Know your credit score 
  • Consider your options.
  • Choose your loan type.
  • Look for the best personal loan rates.

Whether you’re interested in borrowing from a bank, credit union or online lender, the process is mostly the same. 

How to apply for a personal loan.

What ever reason you have that has made you to go for a loan;

Here are the steps to follow

1. Run the numbers: All  lenders been it a friend or a financial institution,  all they want to know is your ability to repay the loan .                                                    When applying for a loan always indictaed the full amount you need, such that even if the institution lending you cuts out a percentage from the total amount you will still have enough for your budget.

Note: always know how much you will be remitting every month to avoid bankrupts and other financial challenges during your personal loan payment 

2. Know your credit score: Lenders normally check your credit history just to make sure you will are good at paying back or not

If you have a good repaymemt history you stand a good chance to get a personal loan anywhere, if you don't have a good record try to pay off your outstings before applying for a new one

3. Consider your loan options: Before getting a personal loan make you research and know the ones with the best interest rate l.

Secondly, know that if you have a bad repayment history you may need a co-signer but if don't have a co-signer you will be forced to get a secured loan–which involves collaterals in the agreement if you have a good repayble record you may need no co-signer and your chance for getting an unsecured loan's higher where you don't need collaterals 

4. Choose your loan type: some lenders won't grant your personal loan if you want to use it to grow a business while other will give you still no matter the reason so always try to know and go for the most flexible and suitable loan option.

5. Look for the best personal loan with best rates 

Don't ever be lazy on this, before getting a personal loan make sure you shop around to get a loan with the best repayment rate and do not settle for the first institution you applied with, explore all your options

Tips needed for a personal loan

First provide your neccessary documemtation (home address. phone number, ID i.e international passport SSN, National ID) repay your outstanding loans and have a good debt to income ratio

Other documemts needed for a personal loan are:

Proof of income ( paystubs or filed tax returns/Tax identification number).

Employer’s information (e.g., the company name, your manager’s name and the phone number company address).

Proof of residence (e.g. a utility bill with your name and address)


Comments ( 0 )

No comments yet