Whether or not a personal loan application is approved may be determined by several factors. If you’ve practiced safe and responsible financial habits in the past, like paying bills on time, those practices are likely to be rewarded during the application process. When you apply for a personal loan, a lender is assessing your ability to pay the loan back in full. And while you haven’t been perfect, you’ve displayed the consistent financial stability that proves you’re a reliable borrower.
Nonetheless, don’t take your loan approvability for granted and begin an application unprepared. Take a few minutes to give yourself the best chance to get approved. Here are our five steps to getting approved for a personal loan.
1. Check Your Credit Score
There are a few ways to check your credit score. You can find your credit score by checking a credit card statement, talking to a credit counselor, using a credit score service or paying a credit reporting company directly.
Don’t worry if you receive slightly different scores from different agencies. This is common. Your credit score is determined by looking at your credit report. If one consumer reporting agency has different information from another reporting agency, they will have different credit scores for you. So take a close look at your credit report to make sure your information is accurate and up-to-date.
2. Look for the Right Lender
Choosing the right lender for your situation and needs might be one of the most overlooked aspects of getting a personal loan. When it comes to your personal finances, you should feel confident that the people you’re working with have your best interests in mind. So do the research.
First, read the online reviews of the lender. Reviews can clue you in on potential issues or help a reputable lender stand out from the crowd. Before you move forward with a personal loan, ensure you’re comfortable that the lender you’re working with is reliable.
3. Gather Personal Information
Before you apply for a personal loan, you will need to gather a few documents verifying your personal information. Start with the basics, including proof of address, date of birth and Social Security number. After those are secured, move on to employment verification documents, including pay stubs and work history. Lenders will need to know your income and job stability to approve a personal loan. Some lenders require tax information, so to be on the safe side, have all of these documents readily available when you apply for a personal loan. If you apply for a personal loan online, you may also need your bank account information if you can receive loan funds by direct deposit.
4. Fill Out Application
If you have gathered all of the required documents, applying for a personal loan should be relatively stress-free. Take your time, and make sure all of the required fields are filled out accurately. Failing to submit a clean application won’t disqualify you from getting approved for a loan, but it can’t hurt to display a high level of competence and responsibility. If you apply for a personal loan online, the application process is usually more efficient than working with a local bank or credit union. Check out Discover’s application to get started now.
5. Review Terms and Accept
The online loan process is an efficient one that could move quickly once you’ve supplied all of the details. In some cases, you can get a decision within minutes. If your loan application is approved, take a close look at the terms. Ask a trusted friend or professional to give it a look as well. If you’re comfortable with the proposed terms, accept and be on your way.
That’s it! At Discover Personal Loans, we’re happy to help guide you through the loan application steps to make it as easy as possible. Give us a call at 1-866-248-1255 to talk to a loan specialist who can talk you through each step, or even get an online loan application started today. Good luck!