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.
