How To Apply For A Personal Loan

How do I apply for a personal loan?

If you have decided a personal loan is the right kind of loan for your situation, you may be wondering how to apply. Most lenders will require a completed application to start the approval process. If the lender is going to do a hard credit pull, you may be hesitant to submit an application. In the back of your head you may be wondering if there are better offers available. But how will you check other offers if every lender has to do a hard credit pull?

Acorn Finance to the rescue! Acorn Finance allows you to check offers from multiple lenders with no impact to your credit score. To get started, complete the form at Acorn Finance and receive offers within 60 seconds or less. Once you have selected the offer you want to take advantage of you can complete the process with the lender of your choice.

What is the easiest way to get a personal loan?

While we all want to find the easiest way of doing things, securing a personal loan requires some due diligence on your behalf. First of all you want to make sure you find the best personal loan offer. Second, you want to ensure it makes financial sense. If you are looking for a time saving way to check offers, visit Acorn Finance.

What do you need to qualify for a personal loan?

If you have excellent credit, qualifying for a personal loan should be easy. Lenders typically look at your credit score and your payment history, current debts, and length of credit history. They may also take note of any red flags like previous bankruptcies, delinquent accounts, and accounts currently in collections.

Another thing you will likely need to qualify for a personal loan is income. Some lenders have a minimum income requirement where they will not even consider your application unless your yearly income is above a certain amount. In some cases, you may be requested to provide proof of income such as recent tax returns, monthly bank statements, pay stubs, and signed letters from employers.

Lenders may also look at your debt to income ratio. Your DTI is expressed as a percentage representing how much of your gross monthly income goes toward paying debts. If your DTI is below 36%, your chances of being approved for a personal loan are much higher.

To secure a personal loan, you should have a FICO of least 600. If your FICO is above 700, your chances of receiving a loan are exponentially higher. However, if you have bad credit or no credit at all, you may have a tough time getting a personal loan. While you can still apply, it may be recommended to rebuild your credit and apply at a later date.

What is a good reason to get a personal loan?

People have various reasons for why they seek a personal loan. Some of the best reasons for securing a personal loan are to avoid maxing out high-interest credit cards and to leave your rainy day fund untouched.

Here are a few situations where you may need a personal loan to cover some upfront expenses:

Emergency cash: Sometimes unfortunate events happen that create unexpected medical bills, funeral expenses, past-due mortgage payments, car repairs, etc. A personal loan is a great way to get cash fast and avoid payday loans.

Debt consolidation: If you have a few credit cards maxed out at a 24.99% APR, secure a personal loan and pay off those credit cards. Your new interest rate could be as low as 6.99%.

Home Improvement and Repairs: Remodeling projects and renovations are the perfect things to use a personal loan for.

Wedding Expenses: Pay for the florist, photographer, or caterer with a personal loan rather than a credit card. Pay cash as much as you can but use a low-interest loan to cover the rest.

There are hundreds of reasons to take out a personal loan. Do not take out a personal loan if you cannot afford it and if you do not need it.

How much can I borrow with a personal loan?

Some lenders offer personal loans up to $100,000, this includes some of Acorn Finance's lending partners. On the opposite side of the spectrum, some lenders may have a minimum personal loan amount of $1,000.

Why would I be denied a loan?

You could be denied a personal loan for a few different reasons.

The first and most obvious reason your loan application could be denied is that your credit score is too low to qualify for that particular lender. If you are denied through one lender, you can always try with a different lender. If you know your credit score is below average, you should research which lenders are willing to work with individuals with less than ideal credit.

The second reason is that your debt to income ratio is too high. If you have enough money in your savings account, try taking some of that to pay off some current debts, then reapply.

The last reason you could be denied a personal loan is that you requested too much money. If this happens to you, try reassessing your budget and see if you can cut down costs in some places to get the total request amount lower.

While these are a few reasons your loan may be denied, lenders can choose to deny a loan for just about any reason. If they are not willing to take the risk to loan you money, that is up to them.

What is the minimum income for a personal loan?

Often, there are different minimum income requirements for each lender, where some lenders are willing to work with lower-income borrowers, while others are not.

It is a general rule that you may need a minimum yearly income of $15,000 to $20,000 to even be considered.

Closing Thoughts

There are many good reasons to take out a personal loan. You can consolidate debt, finance a wedding, or remodel your kitchen, to name a few of the reasons. There are also many bad reasons to take out a personal loan as well. Remember to always borrow within your means. If you are ready to apply for a personal loan, you should start by checking offers at Acorn Finance.

Acorn Finance has trustworthy lending partners that can offer APRs as low as 6.99% depending on your credit score. Individuals can discover simple and competitive payment options through Acorn Finance. At Acorn Finance, you can submit one application and receive loan offers in 60 seconds or less with no impact to your credit score. Once you have claimed the best offer and finalized the loan, you can receive funds quickly.

Check personal loan offers with no impact to your credit score. . . apply online today!