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A personal loan is a great way to fund large purchases, like home renovations or a wedding. It’s also a good solution for consolidating your debt.
But not all loans are created equal. When analyzing several different interest rates, origination fees, loan terms and loan amounts, shopping for a loan can quickly become overwhelming.
It doesn’t have to be. Our 8-step guide walks you through the whole process of getting a personal loan, from researching to getting pre-qualified to securing approval.
What Information You’ll Need to Apply for a Loan
Before starting the personal loan application process, gather up a few important documents. No online lender, bank or credit union will approve a loan without proper documentation:
- Identification: You will need some form of ID. This can be your driver’s license (or state ID), passport or Social Security card.
- Proof of income: Lenders want to know that you are poised to make monthly payments on time. You can typically offer proof of income in the form of pay stubs, tax returns or even bank statements if you receive direct deposit.
- Proof of residence: Verify your address with a lease agreement or utility bill with your name and address on it.
- Employer info: Some lenders may want to verify employment, so have your employer’s phone number on hand, just in case.
While you will supply this documentation, lenders will also do a hard credit inquiry, meaning they will have full access to your credit history when making their decision. We’ll touch more on credit score and credit history — and the difference between hard and soft inquiries — below.
How to Get a Personal Loan: 8 Easy Steps
As long as you have good or excellent credit, getting a personal loan should be an easy process. Fair or bad credit borrowers may have to search a little harder to find a lender that will approve personal loans without unreasonable interest rates and repayment terms.
Regardless of your credit history, our 8-step…
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