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How To Get A Personal Loan Quickly

How To Get A Personal Loan Quickly

It will sometimes be necessary to get a personal loan quickly to pay for unexpected expenses like an auto repair or medical bill. There are a number of different types of personal loans available for consumers but which type of loan you get and at what interest rate will depend on a few different factors. If you qualify for a personal loan, either from a bank or credit union or from a lending company, approval normally only takes a few days at which point you will be issued a check or the funds will be directly deposited in to your bank account.

Repair Your Credit

Key to obtaining a personal loan quickly is having a good credit score and credit history showing responsible financial decision-making and good judgment. Financial institutions only want to extend loans to consumers who have a high likelihood to repay the borrowed amount plus interest. To see where you stand, request a copy of your credit report from www.annualcreditreport.com or by calling 1-877-322-8228. The three major credit reporting agencies, Experian, Equifax and TransUnion, are required to provide one free credit report to each consumer every 12 months. If you have poor credit, take steps to repair your credit first before applying for a personal loan.

Compare Options

When it comes to personal loans, there are two different types which are most commonly issued to consumers. These loans are normally either secured or unsecured in nature. Secured loans are easier to obtain because the loan amount is backed by collateral like home equity or a vehicle title. Unsecured loans have no corresponding collateral which often means lower amounts are issued at higher interest rates. A best case scenario would be a home equity line of credit from your current lender at a low interest rate. A worst-case scenario would be a title loan at an exorbitant interest rate from a shady loan company which risks you losing your car.

Obtain Loan Quotes

Once you know where you stand with regards to your credit history and what loan options are available to you as a consumer, you can start obtaining loan quotes. Shopping around for the best loan is an important step to prevent paying excessive fees and high interest rates. Many online resources aggregate personal loan options which makes it fairly painless when you are trying to get a personal loan quickly. Filling out a brief questionnaire will often return personal loan options from a number of lenders making it easy to compare interest rates and other loan terms.

Consider Short-Term Loans

If worse comes to worse and you are unable to get a personal loan quickly but still need fast cash in an emergency, you might consider a short-term loan. The most common type of short-term loan is a payday or cash advance loan but it is not ideal and should be avoided if possible. Payday loans normally have durations of two weeks or less with an upfront application fee and incredibly high annual percentage rate. If you have no collateral, no well-established banking relationship and are virtually guaranteed to be able to pay off the loan in full when it is due then a short-term loan is still a viable option for some consumers in emergency situations.

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