By Raymond James
About the Author:
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.
Are you feeling overwhelmed by a seemingly unreachable goal or the need for a lump sum quickly? Worry no more since we are here to guide you in getting a personal loan. Getting a loan can be overwhelming at times if you have a bad credit score or don’t have security. The first step is to look for an alternative lender who may be able to accommodate your situation.
Simply put, the idea of a personal loan gives you the freedom to do things that might not have been possible otherwise. A personal loan is a money you borrow for almost any purpose, such as debt consolidation, an unanticipated medical bill; need to purchase a new appliance or emergency repairs. You usually pay the money back with specified interest through monthly installments for some time, usually two to five years. Additionally, some lenders do not need collateral for approval.
Whether you need long or short term loans online, it is no longer a hassle today. Many companies have specialised in offering a lending space to all the potential clients that meet their given criteria.
If you need a personal loan, then you are in luck. The internet’s significant progress only makes it easier, exciting, and convenient, as you can apply online from just about anywhere. Usually, you need to follow simple steps, followed by a trouble-free application process on your website of choice. The procedure is time-conscious, and upon successful approval, you get back on your feet sooner than expected. The following are the 3 step procedures to apply for a personal loan, though this can vary from lender to lender:
1. Pre-qualification and comparing offers
Qualifying for a personal loan is the first step before the loan approval process.
First you will fill out an application form with details of your income, employment details, and any current debt. Some of the details you may have to provide are:
- Confirmation of personal address.
- Proof of employment status.
- Your education history
- Financial details
The lender then performs a credit check and assesses your credit history. It helps to determine the risk factor of the borrower.
- Depending on the discoveries, the lender might either grant or deny your pre-qualification. In case you pre-qualify, you obtain information about the loan you qualify to receive
You have the option to either accept or reject the pre-qualified offer. In the case of acceptance, you officially start the settlement process.
2. Selecting and gathering loan documents
If approved, you will be sent a contract with all of the details of your loan. It is essential to know the rate, terms, and features that merge within your budget and your borrowing necessities. Make sure you read your contract carefully and look for any additional documents the lender has requested.
3. Submit your signed contract and get funded
After going through the terms and conditions of the loan, you can then submit. If the whole process checks out, you are likely to be funded that same day. At times it takes longer if you need to provide extra documents to the lender.
Apart from having the money to offset your needs, personal loans can change your credit rating image once you comply with the conditions from the lender. Credit agencies usually check on the consistency of loan repayment. If your credit score is impressive, it means you qualify for significant growth in your score, giving you the added benefit of accessing another loan in the future.