Need some money soon? The idea of borrowing money might be daunting. But, at the end of the day it can save you hundreds, if not thousands of dollars on late fees if you are using the loan to help refinance previously outstanding credit card or personal debt.
It can also help you mitigate financial hardship, or pay for medical bills your insurance company unexpectedly refused to cover. The best part? You may be able to get approved instantly online. Read ahead to learn the information required for obtaining the best rates and terms on a personal loan today.
One advantage of personal loans is the fast application and approval process. Before you can apply, however, it is best to do research on different loan options.
When applying for a personal loan it is advisable to do comparative research between multiple lending companies prior to submitting any application. Credit reporting agencies such as Experian, TransUnion and Equifax view too many credit inquiries in a short period of time as an irresponsible and possibly fraudulent attempt to obtain multiple sources of credit.
There are alternate credit ratings in addition to a FICO score, and some are lowered for too many inquiries in a fourteen to forty-five-day window depending on which bureau is reporting.
Information needed when applying for a personal loan includes your full name, date of birth, SSN, most recent year’s tax forms, proof of employment/residency and valid government-issued photo identification. Most personal loan applications can be approved or rejected within moments, while others can take twenty-four to forty-eight hours. Funding can also happen same-day or within twenty-four to forty-eight hours.
Understanding Your FICO Score
A FICO score is a three-digit number used to rate overall creditworthiness when applying for new credit. FICO scores range from 300 to 850, with 850 being the best possible rating available. Multiple correlating factors impact a FICO score. Overall payment history accounts for 35 percent of your total FICO score. The use of your credit, including amount of debt owed, amount of open balances and amount of open accounts at one time, factor as another 35 percent. Correlating factors affecting the remaining 30 percent of your FICO score include:
- Length of your credit history.
- Diversity of account types.
- Amount of new inquiries and recently-opened accounts.