If you’re in need of some extra cash in a hurry, a personal loan may be able to help. It’s a flexible borrowing option that you can use for nearly anything – unexpected bills, vacations, essentials and more. And the best part? Taking out a personal loan can actually save you money in the long run, depending on what you need it for.
Personal loans can even help you lower the amount you pay in interest on other types of debt, like credit card debt or student loans. And, depending on the lender, you may be able to receive instant online approval. Continue reading below to learn more about personal loans and how to apply for one today.
Getting a personal loan is easier than ever. Most lenders have quick and easy application processes that get you the money you need in no time. Before you apply for a personal loan, though, be sure you understand all of your options, so you make the right decision for your financial situation.
It is always best to seek out multiple lenders and compare rates before submitting an application. If you apply to several lenders in a short period of time, you could risk damaging your credit score. Some credit monitoring companies might even flag your account as fraudulent due to multiple inquiries.
Your credit score is an important factor in your ability to get approved. Also known as a FICO score, this three-digit number represents your creditworthiness. It can range between 300 and 850, with 850 being the best possible rating available.
Your FICO score is impacted by a variety of factors, including:
- Payment history.
- Amount of debt.
- Length of your credit history.
- Diversity of your accounts.
- Number of new inquiries.
- Number of open accounts.
Aside from protecting your credit score, comparing personal loan offers can help you find the best rates and loan terms available. Lenders tend to use the same qualification factors, though some companies may cater to certain types of borrowers, such as those with poor credit or high debt.
Ready to submit an application for a personal loan? You will need the following information:
- Your full name
- Your date of birth
- Your Social Security number (SSN)
- Your most recent tax return forms
- Proof of employment
- Proof of residency
- A valid government-issued ID