If you qualify, a personal loan can be a great way to get cash quickly with low-interest rates and a fixed monthly payment. You can improve your chances if you do the following before putting in your application.
Larger personal loans mean higher monthly payments and more interest over time. Lenders know this, and it makes them nervous, especially when you have other bills to pay. Show you are a good financial planner; calculate exactly what you need.
Check Your Credit
Many major credit card companies will give you your credit score for free—some don’t even require you to be a cardholder. Once per year, you can request a free copy of your credit report from each of the major credit bureaus: Experian, Equifax, and Transunion. Review any problems or clean up any errors before applying for personal loans.
Consider Your Options
Do your homework. Check potential lenders’ minimum requirements in advance. Compare interest rates and terms as well to help find what would work best for you.
Consider a Secured Loan
If you have any assets, such as a CD or savings account, look into getting a secured loan. By using your assets as collateral, you may be able to obtain a larger personal loan with better interest rates.
Look for a Co-signer
If you’re worried about qualifying for a loan and don’t have any collateral, try to find a willing, suitable co-signer. If you can find a co-signer with a higher credit score who is willing to take the risk, it may help increase your chances of getting a personal loan.