Credit scores have always been perhaps one of the biggest, if not the biggest, factors that banks take into consideration when you want to apply for virtually any type of loan. From payday loans to secured loans to unsecured personal loans, a good credit score is a must. So given the importance of credit scores, what happens when you only have a fair number? Here’s how you can get approved for a personal loan.
What is a personal loan?
Personal loans are usually unsecured loans as opposed to mortgages or car loans where a collateral is needed to secure the loan. That said, personal loan can be more restrictive when it comes to requirements. Unlike the aforementioned, personal loans can also be used for anything, from debt consolidation loans to hospital bills to vacation expenses.
How to get approved for a personal loan with fair credit?
Give your credit scores a boost.
Before applying for a loan, it’s best to first evaluate your own credit report properly. Study the report well and analyze where your scores took a dive down. Spot some errors and have it fixed immediately. It also helps to pay off your debt and to keep your credit utilization under 30% of your limit. Be careful not to close a credit card account though as fewer accounts lead to lower credit scores.
Research lenders and loan options.
The next thing you must do is to research around options for getting a loan. Seek one that matches your financial situation. Are you better off with a credit union loan? Or is your financial situation in need of a heavier amount? If you won’t go down the traditional route of banks, make sure the lender is reputable.
Compare and contrast rates.
After you’ve narrowed down your options, you are going to need to narrow them down even more by evaluating the interest rates of your loan options. With a not so good credit, you may be stuck with a high interest rate.
Shopping for a loan could hurt your credit score even simple inquiries. Lenders usually pulls out your credit report and review it if you’re eligible to get the loan. To save your credit score, might as well have a research first and read reviews about your potential lenders. So this are some of the loans that known lenders offer.
Where To Find Direct Lenders for Loans
You could get the best deal from Marcus by golden sachs. Why? Because they offer loans from $3,500 to $40,000. They don’t charge origination fee, prepayment fee and late fees unlike other lenders who charge so many fees to borrowers that make them harder to repay. But of course you shouldn’t take advantage of it so always keep your repayments on time. They also offer low interest rates that range from 6.99 APR to 24.99 percent APR and loans and with terms from three years to six years. Isn’t it a great deal?
Lending Club is one of the best-known marketplace lenders that doesn’t offer traditional loans. They offer loans for up to $40,000. You can receive it in just early as three days which is a good thing because loans usually take 7 days or more to process. They offer interest rates that ranges from 6.95 to 35.89 percent APR. One of the disadvantage when you choose lending club is they charge origination fee which is 1% to 6% of the loan amount based on your credit score.
Earnest is best known for personal loans and for those who don’t have credit history but of course you would still be required to provide the other requirements such as your proof of income, debt-to-income ratio. Earnest offers loan up to $75,000 with fixed rates starting at 6.99% APR which is also good for those who will apply a loan for the first time.
It is quite hard these days to get a good deal. Lenders have competitive rates and offers all around and it’s getting harder to decide what loan should you get.
Apply to Borrow form
$100 to $25,0000*
- Apply for $50-$1,000
- Fast Payout
- No Fees
- Secure Application
- Available 24/7
- Bad Credit
How DO I Apply?
How Does It Work?
- SIMPLE AND FAST The approval of your loan will be granted in just a few minutes
- SECURE AND GUARANTEE Your details will be safe with us
- NO HIDDEN CHARGE We will never ask for any additional charges
- ONLINE TRANSACTION The transaction will be done online. There’s no need to go to the bank anymore.
Must I Have A Guarantor??
This is the kind of loan wherein you could get the cash help you need the same day upon application. It is the kind of loan preferred by most workers who are in need of cash to pay their bills on time.
How DO I Apply
You simply go tour site, find and fill up the application form and send it over to us. You will surely hear from us again in a matter of minutes. We will not ask for any complicated documents and such. Just make sure that you provide us with your updated details and info.
Must I Have A Guarantor??
Payday loans do not require any guarantor at all. Unlike other loans today that does need a guarantor, with online loans, you could get the cash help you need even without one. However, it is important that you have a job or have other means of income so the lender will be able to get an assurance that you will pay them back on time.
What Happens If I lie on My Application?
The lender will be able to trace your record and once found out about your false info, you will not be able to get the approval you need. If you will not provide accurate and updated details such as contact info and other important details regarding your application, you will get more serious issues in the future especially if you wish to apply for a new loan.
What Happens If I
There will be the increased rate on your present loan rate if you will miss paying the lender back on time. It will affect your credit score and this could result in further issues in the future. Having a bad record would affect your name and this will cause you troubles in applying for future loans.
You don’t have to worry about paying us back. We provide the most flexible repayment method that will surely help you out. Our offered repayment method will help you pay us back on time. You can choose the right plan that will match your financial status and needs. We will not charge you unless you forgot to pay on time. But you can always get in touch without lenders so you can arrange the repayment plan that will work best for you.