If you want to consolidate your credit card debt, move to another part of the country or something else that requires a significant amount of cash, it is important that you look into getting a personal loan.
There are two types of loans—secured and unsecured. A secured personal loan will require that you put up some sort of collateral in the event that you cannot pay back the loan (typically your house or vehicle), while an unsecured loan requires no collateral. You will want to take the time to learn about unsecured personal loans and how to go about getting one.
Your Credit Score Matters
One of the most important things that you will need to keep in mind when it comes to getting an unsecured personal loan is that your credit score is going to be very important. Your credit score is going to be a huge determining factor when it comes to whether or not you are going to get approved for one of these loans. While it’s true that people with low credit scores do sometimes get approved, it is fairly uncommon. If you do get approved for one of these loans despite poor credit, you can definitely expect to pay a higher interest rate.
What you need to Apply
There are going to be some things that you will need to have when applying for an unsecured personal loan, and you will definitely want to know what they are.
Some of the information you will need to submit with your loan application include:
- Identification (passport, driver’s license, etc.)
- Verification of address
- Proof of past income
- Monthly debt obligations (rent, student loans, etc.)
- Gross income
- Address, email, phone number
- Previous addresses
- Date of birth
- Mother’s maiden name
It is definitely a good idea for you to have these things at the ready when filling out an online application for the loan you want so that you can get through the process as quickly as possible. You are also going to need to specify exactly how much you want to borrow. The lender will take a look at your proof of income to see if you are actually able to pay back the full amount of the loan on time.
Finding the lowest rates on personal loans
If you want to get the absolute lowest rates on a personal loan, it is important that you know how to do so. The first thing that you will want to do is to see if you qualify for a 0% credit card, which is essentially just a credit card that comes with zero interest on purchases for a year or more. You will need to keep in mind that not everyone qualifies for this sort of card, but it is definitely still worth trying.
You should also consider getting a secured loan so you don’t have to pay quite so much money in interest. While it’s true that a secured loan will in fact require you to put up collateral, such as your house or car, it is much easier to pay back because of the lower interest rate.
Make sure that you pay off as much of your credit card balance as you can before applying for an unsecured loan. Most lenders do not want to give a loan to someone who still has a significant balance on their credit card. Take care of your outstanding debt before you submit one of these applications.
Read the fine print
Another very important thing that you will need to do when it comes to getting an unsecured personal loan is to read the fine print of the contract that you are required to sign with your lender. By taking the time to do this, you will be able to see the specific date that your loan must be paid back by, as well as any fees and other crucial things. It is imperative that you get all of this information before signing anything. The last thing you want is to realize you made a mistake with your loan after signing it because you didn’t read through everything carefully enough.