How to Apply for a Personal Loan
Are you ready to apply for a personal loan? If so, there are some necessary steps you should take:
- Decide how much you want or need to borrow: Consider your financial goals to determine how much you need or want to borrow. For example, how much do you need to borrow to pay off that credit card? Or, how much will you need to borrow to finish the kitchen remodel? Understanding the amount you need will make the loan shopping and pre-approval processes simpler.
- Find the right lender: You can typically obtain a personal loan through any bank or credit union. While the personal loan products may be similar, credit unions typically charge fewer fees which can help you get the most bang for your buck. We recommend reaching out to your local banks and credit unions to discuss your options.
- Learn more about the loans offered to you: Once you receive pre-approval from the lender you choose, read the fine print. For example, are there any fees or penalties for paying off the loan early? What’s the interest rate? Is the rate fixed or variable? Make sure you’re comfortable with all aspects of the loan before moving forward.
- Send in your application: The final step is to send in your application. Some institutions may allow you to do this online and others will require you to sit down with a loan officer to complete the process.
How Hard Is It to Apply for a Personal Loan?
Filling out and sending the application takes no time at all and is fairly simple. However, deciding how much you want to borrow and finding the right lender and loan options for you can be tricky. We recommend reaching out to your bank or our team to help guide you through the decision-making process.
What Do I Need to Apply for a Personal Loan?
The basic requirements for obtaining a personal loan include credit history, income, proof of your identity (such as a birth certificate or passport), income verification and proof of address. However, some lenders will ask for additional items depending on the type of loan you choose and their unique requirements.
How Long Does It Take to Get a Personal Loan?
After you complete the application process, it’s possible to be approved and receive access to your loan funds in a matter of days. Of course, this depends greatly on your lender.