Taking out a personal loan isn’t typically a sign of financial trouble, despite what some might assume. A personal loan is a smart tool for managing various financial situations, from paying down debt to paying for a major unexpected expense.
Do You Qualify for a Personal Loan?
The thought of securing a personal loan may be intimidating if you’re unfamiliar with the process, and you may be wondering if you’re even eligible to receive a loan. You’re in luck, however. Finding out your personal loan eligibility is relatively simple.
Have Documentation Ready
Applying for a personal loan isn’t complicated, but it’s wise to prepare before submitting your application. Documentation you may want to have on-hand includes proof of address, date of birth, and Social Security number. Some lenders may ask for pay stubs and work history as well. Although you can apply for a personal loan online these days, you can also speak with your lender, multiple times if needed, to get guidance during the application process. Remember, each lender has its own requirements when it comes to documentation, so when in doubt, it may be a good idea to touch base with your lender’s customer service team. Submitting incomplete paperwork or failing to submit required documentation could lead to a denial of your personal loan application, so take the time to gather everything you might need before applying.
Review Your Credit Report
Your credit report is one of the factors considering personal loan eligibility. You’re entitled to a free copy of your credit report from the three major agencies once a year. You can also check your credit score for free with Discover’s Credit Scorecard. If you’re already have a good handle on your credit health, there are ways to check your personal loan rate without hurting your credit. Discover Personal Loans is one lender that lets you preview your interest rate before you officially apply for the personal loan, with no harm to your credit.
Don’t Apply for Every Loan
Every personal loan comes with its own terms. Be sure to do research before you make a final decision to apply for a personal loan. If you’re ready to apply for a personal loan, know that lenders are ready and willing to help you take control and get through life’s unexpected expenses.