Get a loan for personal use
Personal loans are financial products that are designed to provide customers of banks and credit unions with significant amounts of cash. This money can be used however you see fit; you can use it to refurbish or renovate your house, buy new furniture, take a vacation, invest in the stock market, or any other way you wish.
The personal loan application process takes many different factors into account, and decisions are based on criteria specific to each lender. While you should always consult your bank or financial institution for specific loan information, there are a few principles common to virtually all lenders that you should keep in mind before you fill out a loan application.
Apply for a Loan
When you fill out a loan application, the bank will consider a number of factors, including:
- Employment -- how long you have held your present job is an indicator of stability and ability to repay the loan
- Earnings -- the bank will consider how much money you make annually
- Credit history -- your credit score will be retrieved and your past loan history (if any) will be reviewed
- Duration of relationship -- if you have been with a particular bank for a long time, you usually stand a better chance of getting a loan from them
The amount of money you'll be able to borrow will depend on these factors, and if the bank decides against extending you the amount you've asked for, they may offer you a lower sum or a loan with different interest or repayment rates. There are also many providers of personal loans online, so if your regular bank rejects you, alternative lenders are worth considering.
If you only need a small loan of a few hundred dollars, a payday loan may be a better option. While you need to be prompt about repaying a payday loan, as they come with very high interest rates, the application process is simple and approval is usually immediate -- all you need to do is present proof of employment to qualify (in most cases). Payday loans are a good option if you need to get a loan quickly and don't need a whole lot of money.