Getting approved for a personal unsecured loan is difficult. However, if you have an excellent credit history, several lenders will approve your loan request, of which you can use the cash to consolidate debts, start a business or plan a wedding. Unfortunately, because unsecured loans don’t involve collateral, they have higher interest rates. Thus, it’s important for everyone who applies for such loans to make rate comparisons.
Instructions
1. Improve your credit. To qualify for an unsecured personal loan, you need good credit. If you don’t have collateral or a co-signer, but you need to get a low rate on a personal loan, check your credit report and create a plan to boost your score. There are several ways to improve a low score quick. These include paying off debts, paying bills on time and settling judgment accounts.
2. Contact a loan broker. Comparing loan rates takes time and patience. And unfortunately, some people skip this step and don’t attempt to get the best rate on an unsecured personal loan. However, a loan broker can help you find the best rate possible. Brokers function as the “middle man.” They don’t lend money. Rather, they connect borrowers with lenders. You can submit one application with a broker, and he’ll obtain loan quotes from multiple lenders.
3. Complete a loan application. Submit your loan application to the loan broker. Be sure to complete all necessary fills and provide pertinent documentation. Loan applications generally request information on income and debts.
4. Compare different loan options. After reviewing your application, brokers provide you with several loan quotes from banks and other lenders. Your responsibility entails reviewing each quote and making loan comparisons. Quotes include information on estimated loan rate, terms and monthly payment.
5. Attend the closing. Once you’ve picked the best unsecured personal loan, it’s time to schedule the closing. This is where you sign the loan documents and obtain your money.
Tags: personal loan, loan broker, unsecured personal, best rate, loan application