Applying for a loan requires patience and a lot of research, particularly if you are new to it. Here are a few steps to follow during the process.
Applying for a loan
- Do a credit check
Your credit score is a big indicator for getting approved for a loan. Lenders tend to put more trust in people with better credit scores. This means that if you have a good credit score, you will get better rates and an even bigger amount.
Make sure you know how much money you need. You don’t want to pay interest on money you don’t need, or ask for less money, because you will end up applying for other loans that might be more expensive.
Look for different lenders and see if you are eligible for their loans. Look for information like the minimum credit score required for the loan or certain length of credit history.
When you are choosing among different lenders, take a look at other details like APR, loan term, fees and type of interest.
After you are finished doing your research, you should apply for the loan that fits your needs. The timing depends a lot on the lender you choose. To apply, you can go to a bank, credit union or an online lender. The process can vary between each option, but typically when you are applying through an online lender, the application process tends to be faster than the more traditional options. Just be sure to have your important information accessible (ID, address and maybe some bank statements, depending on the lender).
Upstart Loans is an online platform that offers loans that are more accessible if you lack credit history or have bad credit. The amount of the loan goes from $1,000 up to $50,000 with a 6.45%-35.99% variable APR depending on your current situation. You can also get a 3 or 5 year loan.