Do you qualify for a personal loan? Learn more about what you need to get the best rates.
Personal loans can be a great solution in borrowing money when working toward debt consolidation or to cover a significant expense. They typically have a lower interest rate than credit cards and offer the convenience of fixed monthly payments.
If https://loansolution.com/payday-loans-ia/ you’re interested in getting a personal loan, understanding how you qualify for a loan and the best way to get, the lowest rates could save you time and money.
Research is critical when choosing a personal loan – and it’s important to know the different types of personal loans. The five to choose from are unsecured loans, secured loans, cosigned loans, debt consolidation loans and a personal line of credit.
Make sure to visit Credible to compare rates and lenders, and consider the following factors during the personal loan application process in order to achieve loan approval.
Your credit score
One of the first things a lender will look at after you fill out a loan application is your credit score. Your credit score is a three-digit number that represents your risk to lenders. If you have a poor credit score, a lender will see you as more likely to default or miss payments.
While credit scores can vary slightly depending on the scoring company, having a basic idea of a good credit score can help you set goals.
The FICO credit score metric is as follows:
- Poor: 300-579
- Fair: 580-669
- Good: 670-739
- Very Good: 740-799
- Exceptional: 800-850
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