Ravi Chandran
Personal loan search should be done in a diligent way, and be mindful that applications made in an incomplete manner, will find it very difficult to secure loan.
By: Hitesh Khan/
Thousands of people are searching online for unsecured personal loans at any given time. Some of those doing personal loan search will find loans that charge very high interest rates or fees. Some will get great deals on personal loans with minimal hassle. It’s better to be part of this second group.
For personal loan search, here are three ways to stay on the affordable side of personal loans:
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1. Good Credit Score
Borrowers with a good credit score are at a great advantage in obtaining affordable personal loans. Borrowers with over good credit who need a personal loan for a good reason are a no-brainer for a wide range of lenders, from traditional banks to finance co-operatives and other non-bank lenders like licensed moneylenders. Unsecured personal loans repayments are often done through a personal bank account; if ten other lenders have claims to that bank account, an affordable unsecured personal loan is not happening.
2. Steady Job
The other main way to get an affordable personal loan is to hold down a steady job. Also, to be able to verify that this job has been steady over some time. If a borrower can look at bank statements and see that salary going in every month, approving a personal loan makes a lot of sense.
3. Easy File
Those doing personal loan search should not just throw out numbers on the application and hope for the best. Instead, be prepared and use accurate information.
Lenders are able to process “easy file” loan applications much faster and more satisfactorily than applications with missing information, incorrect bank account information, or unavailable contact numbers. Applying for an unsecured personal loan can be done the easy way, or it can be done the incomplete way, which then turns into the hard way.
When doing personal loan search be mindful that an affordable unsecured loan is often made available to highly qualified borrowers. Bad credit personal loans are available, too. But the best rates on personal loans are reserved for borrowers with good credit, verifiable income, and organised application information. Low APR, with fixed repayment schedules, with no collateral posted, are readily available to qualified borrowers, even in this still-restricted credit environment.
Sometimes personal loan applications get rejected because of poor credit score due to misreported bank finance charge. Given that your poor credit score might be caused due to something accidental and unexpected, like misreported bank finance charge, your first logical step should be to review your credit report and fix whatever is possible as this can really help in broadening your options for personal loans in the future. There are agencies which can help in repairing your credit score quite successfully and you should consider these as your first option when thinking of a personal loan with having bad credit.
Even with poor credit score, if you have held the same job for a number of years, for instance, you’re more likely to obtain the loan. However, if you’ve changed jobs several times over the past few years, you may be less likely to get the loan you want.
The application process for a personal loan from a licensed moneylender is usually relatively quick. Another advantage is that it does not require a formal closing. The application process consists of a written application, a promissory note, and a payment schedule. As a result, there is less paperwork and hassle involved in obtaining a personal loan than in obtaining a secured loan.
Personal loans can be a godsend when you face a huge medical bill, an unexpected repair bill, or another large expense. But you might be wondering if a personal loan is even possible if you have had the misfortune of having bad credit.
When personal loan shopping, take time to evaluate different lenders and loan packages. This will help you make the best decision about borrowing money. If several lenders refuse to loan you money or offer very high interest rates, you may need to put off borrowing money until you clean up your credit.
When you carefully analyse and do personal loan search, you will realise that to choose personal loan may be the most sensible option when you want to borrow a fixed amount over a short period of time.
Personal loans are a way to use tomorrow’s income today, and unlike other loan products like mortgage loans or education loans, the process involved to apply for best personal loan is relatively simple.
But you must note that the interest rates are much higher than, say, for a car loan. This is because personal loans are unsecured loans, which means that the personal loan is not backed by any asset. The loan amount and interest rate depend on different parameters such as your income, credit history, repayment capacity, and others.
As even the best personal loan comes with high interest rates, so defaulting loan payments will put you on a quick downward spiral. Personal loans are basically unsecured loans which typically from $1,000 – $100,000 with fixed or variable interest rates that can be used to make a large purchase or to consolidate debt. Borrowers can use personal loans for credit card debt consolidation, business expansions, home improvements, medical bills and other major life expenses.
