Contrary to what many believe, having debt isn’t a sign of financial helplessness. In fact, you’d be hard-pressed to find someone that hasn’t incurred debt at some point in his or her life.
Personal loans are financial products that can actually help you in times of financial difficulty. Think of them as a quick answer to your prayers when you need funds for home repairs, tuition fees, or medial emergencies. When you need cash quick
, personal loans are one of the ways you can address this need—and fast!
Of course, you can’t just go to a bank or financial institution and expect them to just hand over the funds you need. When applying for a personal loan, there are certain requirements and standards that you must meet before a bank can “trust” you enough to let you borrow money.
Check out GoBear’s personal loan tips below to get you started on improving your chances of getting approved for personal loan.
Open your own savings account
This is one of the best and simplest ways to show lenders that you’re a financially responsible individual. Of course, it’s not enough to just open a savings account, you have to show that you’re a responsible saver by showing that you contribute regularly to your savings. If you can deposit a certain amount regularly, this shows that you’re more likely to afford regular personal loan repayments.
Establish a credit history
Your credit history will be your financial resumé; this will be used as basis for your financial behavior and will be reviewed by banks to see whether you’ve been a responsible payer in the past. Do you have unsettled debts? Did you ever issue bounced checks? All these and your other financial activities and transactions will be put under the microscope to help banks determine whether or not they should lend you money. You can establish and maintain a good credit standing by doing the following:
Pay your bills on time and in full.
Avoid going over your credit limit.
Don’t bury yourself in debt. A loan is good; too many of them, not so much.
Maintain old accounts.
Avoid external factors that can negatively impact your credit history, like bankruptcy and foreclosures.
Maintain an outstanding credit rating
A good credit history is, well, good, but an outstanding credit rating will complete the one-two punch of your financial background and help increase your chances of approval. To get and maintain an outstanding credit rating you must have a good account history with companies that have previously provided you credit, like telecommunication companies or financial institutions. An impeccable credit rating will also help speed up the process of personal loan application.
If you’re thinking of lying your way to a personal loan, you’ve got another think coming. Credit investigation is a vital part of the loan application process, which means that banks will check all the information you provide. Keep your line open because the bank will call you—and maybe even your neighbors—to verify everything you’ve indicated on your application form. If they can’t reach you after a number of tries, your personal loan application will be rejected immediately.
Don't settle for less
Whenever you’re trying to make a decision, it always pays to do your homework—especially when it comes to your finances. Before committing to a certain product and provider, consider the different aspects of a personal loan like the interest rate and payment terms. In short, pick a personal loan that you’re comfortable with and one you know you can repay within the set term. Check out the various products currently offered and see which one fits your needs best.
Compare personal loans with GoBear today and see personal loans side by side to make choosing the best one easier and hassle-free!