In this day and age it seems near impossible to get a loan approval from your bank. Since the global financial crisis of 2008, it’s become difficult for people who really need a loan to actually secure one. Because of this, there are a number of alternate options that have sprung up in recent years. Securing yourself a personal loan can help you get yourself out of an unwanted financial bind, or it can even help you invest in a new business. Whatever the need, there is a loan that’s right for you. Here are five helpful tips for getting a personal loan approved.
- Know your credit score. A big determining factor for securing a loan is your credit score or credit rating. The lower your credit score is, the higher the interest rate will be when paying the loan back. In some cases of course, you’ll be flat out rejected if your credit score is too low. So knowing your credit score is extremely important when looking for the right loan. The most popular credit report agencies are Experian, Equifax and TransUnion. Your creditor will most likely be receiving your credit information from one or all of these three companies. You can do the same, and the more you understand about your credit score, the better your chances of understanding what sort of interest rate you’ll be paying back.
- Double check your credit reports. Your credit report is a more in depth look at your credit score. In fact a credit report determines what your credit score will be. It’ll examine any unpaid debts and what your track record is like when it comes to paying things off. When you’re examining your credit report, be sure that all the information is correct as discrepancies can and do frequently occur, which can affect your score for the worse. Make sure you file any corrections for these discrepancies well before you apply for your loan as it can take up to three months for these changes to be made to your report and therefore change your credit score.
- Weigh your options. It’s important to shop around and do your research when looking for the perfect personal loan. A bank loan isn’t the be all and end all. Be sure to check out the right kind of lending company for your specific needs. For example, if you’re looking for car title loans, then you might want to consider TitleBucks, who specializes in this kind of loan.
- What can you really afford? The longer you have a loan, the more interest you inevitably pay. It’s very important to do the math and weigh whether it is going to be of any real benefit to you to jump into a long term commitment, if you’re going to be paying so much interest on top of your loan repayments. Make a very clear budget of what you can afford to pay each month and stick to it.
- Know about the fees. Almost any loan you decide on will have hidden fees on top of the repayments and interest. It’s very important to get an understanding of these fees before you sign on the dotted line. Don’t be lured by a lower interest rate as some lenders will make up for it in fees.