How to Apply for a Personal Loan

Personal loans are also known as “unsecured loans” since this type of loan is not backed by any kind of collateral. Credit companies that offer personal loans do not ask for the borrower’s home, car or any property to approve the loan. Oftentimes, lenders base their approval on the borrower’s credit score.

Personal loans are also one of the most expensive kinds of loans and therefore should only be used as a last resort if you are really in dire need of cash. Typically, personal loans can range from $1,000 to $50,000 and depending on your credit score; you may be eligible for an affordable interest rate. Usually, personal loans become more expensive and loan repayments rise when you have poor to no credit history.

What do you need to get a personal loan?

Applying for a personal loan is easy when you have the following documents updated and ready:

  • Identification cards – credit companies usually take passports, state IDs, Social Security cards or driver’s licenses as valid IDs.

  • Proof of income – in this case, you need to present any valid documents stating your income such as pay subs, bank statements, tax returns or W-2 forms.

  • Verification of address – this could be a copy of a recent mail, utility bills or copy of lease.

Credit companies may also ask for your Social Security Number, gross income, employer information like his name, business address and business phone number, your address, email and phone number, date of birth, mother’s maiden name and your educational background.

How to apply for a personal loan?

  • Find a suitable and well-rated lender. The best way to look for direct lenders that matches your needs is to visit a review site. A good lender has a lot of reviews from borrowers and products that meets your financial needs.

  • Once you’ve found a lender, visit their site and then fill out an application form. Most forms ask for the pieces of information mentioned and should there be additional things that need to be confirmed, you will be asked to fax these or send these to the company before your application may be considered.

  • If you have questions or you are still unsure as to the type of loan or the lender’s services, you may call their business number or send a message through the company’s contact page.

  • Wait for an approval. Usually, loan companies email or give borrowers a call back to inform them that their loan has been approved.

  • Study your contract really well. Take note of the rates, terms and payment schedules of your loan before you sign. Some lenders may allow borrowers to choose from different loan payment schedules so that they can successfully pay off their personal loans.

  • Once you sign, you can wait your cash to be deposited to your account. Usually it could take at least one to two business days.

Receive up to $3000 direct to your account, in as soon as the next business day
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