If you finally decided to for that loan for whatever reasons the whole process can be pretty scary in the beginning. But once you know the steps it’s a piece of cake. But if you credit score is not great then there can still be some nervousness related to the kind of offers you will be getting on your loan terms. but don’t worry, there is one way of checking the type of deals you will be getting and that is through pre-qualification. Another great thing about this is that fact that it won’t harm your credit score in any way so there is really nothing to lose here. But how to get a pre-qualification done? Let me walk you through the steps needed.
Pre qualified Personal Loans
Chances are that in the beginning when you were looking for installment loans near me you must have come across some results which offered to do pre-qualification for you. A lot of young kids who don’t know what this means get confused by the term. The thing is that when you are going for a personal loan from a bank then your credit history and score plays a big role in determining the kind of terms you will be getting. Unlike offers by lenders such as payday loans online no credit check instant approval and other types of no fax loans which don’t require a credit check, but they will offer you insanely high interest rates.
If you have been to some lender’s websites, then you must have come across options for getting a pre-qualification done. When you click on that option you will have to fill out a form. Usually, the form will require your personal details like name, address, phone number, previous addresses, employment history, current employer’s details, income and credit score.
After this you will be asked to give the amount you are looking to borrow and the preferred years for repayment. You might also need to give the reason for borrowing money. Once you fill all of this information you will get to know the estimate terms regarding the loan.
There are some websites which will show you the terms from different banks in one place so you can compare the different options.
Once the form is filled the lenders or the website will likely do a soft credit check. The reason why it is called soft Is that it doesn’t show up in your credit history. After this step the lender will show you the options.
There are two broad categories of personal loans, secured and unsecured. For the banks and institutions an unsecured loan is much riskier to give out and therefore you credit score plays a bigger role in determining the odds of you getting approved.
If you decide to go for a secured loan, then the chances of getting approved will also increase by a lot. This can be done if you think your credit score is not good enough.
Another way to increase your approval chances is to check if there is a provision to add a co-signer to your loan. What this does is that someone with a higher income or better credit score and vouch for you and state that in case you are unable to pay your loan amount then that person will.
This is the last step you need to take before finally getting your personal loan approved. If you are doing the pre-qualification online, and chances are that you will be, then you will be able to see the results within seconds. If you are satisfied with the results, then you can apply to the bank of your choosing.
You will need to upload the necessary financial documents. Some of these will include the tax returns, bank statements etc. once this is done and if you are approved you can have the funds ready within a few days. Some banks even get this done in one day.
