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How To Get A Personal Loan Fast

How To Get A Personal Loan Fast

If an unexpected event occurs, such as medical emergency or automobile repair, it may be necessary to get a personal loan fast in order to deal with the situation. Many consumers can be caught off guard and will need access to money quickly but may not have enough available in an emergency fund or other type of account. There are a number of different options available, both secured and unsecured, to get a personal loan if you know where to look and how the process works.

Check Your Credit

All lenders will use your credit score and credit report to evaluate whether or not you're financially responsible and capable of repaying a personal loan. In order to see what the lender will use, get a copy of your credit report from one of the three credit reporting agencies. Federal law requires Experian, Equifax and TransUnion to provide one credit report for free to each consumer every 12 months. Black marks may prevent you from getting a personal loan quickly so make corrections and take other steps to repair your credit as soon as possible. If you aren't proactive now it may prevent you from getting a personal loan in the future when it's important.

Find a Lender

As with any other purchase, shop around and speak with multiple lenders. Obtain at least three different quotes from reputable organizations in your area. Repayment terms, fees, interest and penalties will be different depending on where you go when looking for a personal loan. Once you have enough quotes, pick the lender with the best deal. Take steps protect yourself by reading and receiving a copy of all documents and asking questions before signing on the dotted line.

Use Collateral

Standard personal loans normally have a long authorization process which can take days if not weeks. If you want to get a personal loan fast you will inevitably need to use collateral such as a home or automobile. Short term title loans are extremely popular and a good solution if you only need a few hundred dollars for a week or two. Home equity lines of credit are considered a more traditional type of personal loan often with better terms than short term loans. Keep in mind, loans backed by collateral are at risk of being repossessed if you default on repayment.

Get a Co-Signer

If you do not have collateral available or have questionable credit which cannot be fixed in time, then it can be beneficial to get a cosigner when seeking a fast personal loan. A cosigner is as legally responsible for the outstanding debt as the original borrower but if they have excellent credit then loan approval can be decreased substantially due to their credit worthiness. Significant trust is given by a cosigner when signing for a personal loan so be sure to make payments on time to prevent default and ruining the cosigner's credit.

Make Loan Payments

Once you apply for and receive a personal loan, it is important to continue making loan payments even after the emergency situation has been addressed. Your financial responsibility does not end at fixing the car or buying prescription medicine. Personal loans can only be processed quickly with collateral or a cosigner which creates added emphasis for making loan payments until the debt is paid in full. If you follow the above steps you should have no problem getting a personal loan fast.

Image by: Eisabeth Skene