The various type of loan is offered mainly in the emphasis of the objective of the loan. The most popular types of loans include home loans, personal loans, auto loans, student loans, cash advance, financial obligation loan consolidation financing and so forth. The lenders have actually likewise introduced great deals of subtypes of these lending’s, to satisfy the requirement of a certain group of individuals. The factor basically needs to be kept in mind is that these loans have various prices and repayment term. Each type of financing will certainly be structured according to the requirements of the lenders. In case of a specific lending type such as a home mortgage, the repayment track will certainly be longer as well as the interest rates will certainly be fairly more affordable. Before getting personal loans, you have to know that there are 2 categories of personal loans:
Secured personal loans are easy to get vs. Unsecured Personal Loans. Today we are just talking about Unsecured Personal loan and there are some easy ways through which you can get your loan approved by lenders.
Check your credit score
A strong credit score gives you a better chance of qualifying for a personal loan and getting a lower interest rate. Assess your creditworthiness by checking your free credit score. In general, scores fall into the following categories:
720 and higher: Excellent credit
690-719: Good credit
630-689: Fair or average credit
300-629: Bad credit
Looking at a less than friendly score? Take steps to build it up before you apply. The biggest factors affecting your credit score are on-time payments and the amount of credit you use relative to credit limits. And make a stink if you have to — you can request your free credit report and dispute any errors it may contain.
Compare estimated rates
Knowing your credit score will give you a better idea of the interest rate and payment amounts you might receive on a personal loan. Call BitX Funding 800-824-2407 and speak with an agent to discuss your credit score, personal income as they will know where you would land on interest rates and terms. BitX has over 100 different lenders to choose from so they have the power of yes.
Get pre-qualified for a loan
Pre-qualifying for a loan gives you a sneak peek at the kind of offers you may receive. Many online lenders perform a soft credit check during pre-qualification that doesn’t affect your credit score, so checking it out ahead of time is a win-win.
During the pre-qualification process, you may be asked for this information:
1. Social Security number.
2. Monthly debt obligations (rent, student loans, etc.).
4. Employer’s name, work address, and phone number.
5. Address, email, phone number.
6. Previous addresses.
7. Date of birth.
8. Mother’s maiden name.
9. College name and major.
You may not pre-qualify for a loan. Besides a low credit score, reasons for being denied include:
1. Too little income.
2. Little or no work history.
3. A high debt-to-income ratio; above 40% may be considered risky.
4. Too many recent credit inquiries, such as credit card applications.
Shop around for personal loans
With your pre-qualified online offers in hand, compare the loan amounts, monthly payments, and interest rates. NerdWallet recommends shopping for loans from a local credit union or bank, too. Credit unions may offer lower interest rates and more flexible terms, especially to borrowers with bad credit. They’re also your best shot for a small loan — $2,500 or less.
Few big financial institutions offer unsecured personal loans; Citibank, Discover, and Wells Fargo are some that do. A local community bank may have better rates, especially if you have an existing relationship.
Compare your offers with other credit options
Before you choose a personal loan:
See if you qualify for a 0% credit card. If you have good credit, you can probably get a credit card that has 0% interest on purchases for a year or longer. If you can repay the loan at that time, a credit card is your cheapest option.
Consider a secured loan. If your credit isn’t great, you may get a better interest rate with a secured loan. You will need collateral, such as a car or savings account. If you own a house, a home equity loan or line of credit can be significantly cheaper than an unsecured loan.
Add a co-signer. A co-signed personal loan may be an option for borrowers who don’t qualify for a loan on their own. The lender considers the credit history and income of both the borrower and co-signer in approving a loan and may offer more favorable terms.