As the coronavirus pandemic forces the U.S. economy to recession, many families worry about covering their daily expenses.
If you need help paying your expenses now, purchase a Personal loan can provide you with the money you need. Personal loans generally charge lower interest rates than credit cards and you can use them for anything from home improvements to paying off credit cards to covering basic needs. And the good news is, if you’re a well-qualified borrower, there are options for getting your hands on cash fast from many personal lenders.
How fast can you get a personal loan?
Traditionally, obtaining personal loans could take weeks as banks looked at many aspects of your financial life and assessed the risk of lending to you. But online lenders have changed that by using automated tools to streamline the application process. With some online lenders it is now possible to get an instant decision on your application and get your funds from the day you apply.
You can visit Credible today to quickly compare rates and terms for personal loans ranging from $ 1,000 to $ 100,000 so you can find a lender who meets your needs within minutes.
What can I use a personal loan for?
If you’ve been approved for a personal loan, there is usually little to no limit on what you can do with it. You will be able to use the money for whatever purpose you want, which can come in handy in these tough economic times.
If you think you can find an affordable loan, you are sure you can repay the money and you should borrow, visit Credible today to explore your options and see if a personal loan is right for you.
But remember: before you borrow, you’ll want to make sure that the loan is really affordable for you. Beware of lenders who charge high origination fees or loans offered at a high interest rate as these could be very expensive and make your financial situation worse. You will also want to have a plan for making the payments on the loan, as the default could be harmful to your credit.
What do you need to get a personal loan?
The amount of loan you take can affect what lenders need to qualify you because the more money you borrow, the higher the risk. This means that it may be more difficult to get approval for a $ 100,000 personal loan that for a $ 1,000. If you want to see your available personal loan options, Credible can help you do it from the comfort of your own home..
Lenders generally want to see that you have a stable income with enough money to pay off the loan and that you have been responsible for paying off debts in the past. A good credit rating and proof of employment are therefore very important to obtain approval.
Lenders also want to make sure that you aren’t borrowing more than you can afford, so they can look at how much debt you already have. Your debt balance will be compared to your monthly income to determine your debt to income ratio. If your debt is too high compared to the monthly income, you could be turned down for a loan.
If you cannot qualify based on your own debt level or for some other reason, such as a low credit rating or with limited income, some lenders will allow you to apply for a co-signer to increase your chances of approval. In these situations, the financial credentials of the co-signer are also taken into account and the co-signer must share the legal responsibility for repayment of the loan.
What information is needed for a personal loan?
If you want to get a personal loan as quickly as possible, you’ll want to be ready to complete your application quickly without having to take a break to find the financial information you need. There are a few basic things you should have on hand when applying for a loan so that you can quickly deliver what lenders are looking for.
Although lender requirements may vary, some the most common items you will need for your application include:
- Your social security number
- A piece of identification, such as a driver’s license, passport, or other state-issued identification
- Proof of address, such as a rental agreement or mortgage or utility bill
- Pay slips, tax returns, W-2, 1099 or other documents to prove your income
- Contact details of your employer so the lender can verify your employment status
- Several months of bank statements
Not all lenders will request all of these documents. But all lenders will want to get a feel for your current financial situation. Most will also check your credit score to determine if you are a well qualified borrower. This score will help lenders determine if they should give you a personal loan and what interest rate to charge you.