How to Apply for a Personal Loan

Whether or not you qualify for a personal loan and what
interest rate you will be charged if approved for the loan
depends on your credit.


That's why checking your
credit score is the first step
you should take when
applying for a personal
loan. You can pay one of
the major bureaus to see
one of your credit scores,
or you can use a free tool
like the Credit Report Card,
which updates your credit
scores every month.

And if you haven't checked your credit reports recently,
you can request free copies of your credit reports from
the three major credit bureaus. Review the content of
your reports carefully and correct errors before shopping
for a loan.

Research Before You Apply

Every time you apply for a personal loan triggers an inquiry into your
credit and this nudges down your credit score a little bit. So be
selective about the loans that you apply for.
Ask lenders in advance about the minimum credit score that they
require for personal loans. Some lenders will even list this
information on their websites. Only apply for loans with credit
standards that you meet.

Start Local

A good place to begin your
search for a personal loan
is with your local bank or
credit union. Be sure to
research the credit criteria
required for personal
loans before you apply.
Check your bank or credit
union's website, or call
customer service. You may
even wish to make an
appointment with a loan
officer.

Some online lenders are options as well. You can find
loans on credit.com anytime.

What's in a Loan Application?

In addition to checking your credit score, a potential
lender will want to ascertain your annual income as well
as your debt-to-income ratio.
Other questions you are likely to find on a loan
application include: your monthly housing payment,
whether you rent or own your primary residence, your
employer and the years worked at your employer.

Being prepared with this information will speed up the
process of applying for a personal loan.

Source- Credit.com