HOW TO GET A PERSONAL LOAN ?
SOME OF THE MOST COMMON REQUIREMENTS FOR A PERSONAL LOAN ARE:
MINIMUM CREDIT SCORE
MOST LENDERS REQUIRE THAT YOU HAVE AT LEAST FAIR OR GOOD CREDIT WHEN APPLYING FOR A PERSONAL LOAN. EACH LENDER SETS ITS OWN CUTOFF FOR WHAT IT CONSIDERS TO BE EXCELLENT, GOOD, FAIR OR BAD CREDIT. IN GENERAL, FAIR CREDIT IS A FICO SCORE BETWEEN 580 TO 669 AND GOOD CREDIT IS A SCORE BETWEEN 670 TO 739. MOST COMPANIES REQUIRE A SCORE OF AT LEAST 600, BUT SOME HAVE GREATER REQUIREMENTS. A HIGHER SCORE WILL INCREASE YOUR ABILITY TO BE APPROVED, AND THE HIGHER YOUR SCORE, THE LOWER INTEREST RATE YOU’LL QUALIFY FOR TOO.
CLEAN CREDIT HISTORY
LENDERS DON’T LIKE TO SEE DEFAULTS, COLLECTIONS OR BANKRUPTCIES. IF YOU HAVE ONE OR MORE OF THESE ON YOUR CREDIT REPORT, YOU MIGHT NOT BE APPROVED FOR A PERSONAL LOAN. IF YOU’RE APPROVED, YOU MAY HAVE TO PAY AN EXORBITANT INTEREST RATE.
STABLE EMPLOYMENT
A LENDER NEEDS TO KNOW THAT IF IT LENDS YOU MONEY, YOU’LL HAVE THE MEANS TO REPAY IT OVER TIME. WITHOUT A STABLE JOB, YOU COULD MISS PAYMENTS OR DEFAULT ON THE LOAN. PROOF OF EMPLOYMENT VALIDATES YOUR LOAN APPLICATION.
PROOF OF IDENTIFICATION
LENDERS USUALLY NEED TO SEE PROOF OF IDENTIFICATION, SUCH AS A COPY OF YOUR DRIVER’S LICENSE OR PASSPORT, BEFORE APPROVING YOUR LOAN. IDENTITY THEFT IS COMMON AND THEY WANT TO PREVENT THIEVES FROM TAKING OUT LOANS UNDER ANOTHER PERSON’S CREDIT.
