When you’re looking to take out a loan to consolidate your credit card debt, a personal loan can be a great option to cover your expenses without needing to break the bank. Most personal loans are unsecured. This means you won’t need collateral to be approved. However, you will still need to meet some of the qualifications. Below are some tips on obtaining a good personal loan from a lender such as the one found at guaranteeloantexas.com.
Check Credit Score
Before applying for any type of loan, it is in your best interest to check your credit score. Most lenders will run a credit check when processing your application to see if you qualify for the loan and to determine what type of interest rate they can offer you. If your credit needs some work and you don’t need a loan right away, work on raising your credit score before applying.
Get Pre-Qualified
Instead of applying with the first lender you come across, search around for lenders that offer pre-qualification options. This will give you a sneak peek at what kind of offers you might be able to receive. Applying to get pre-qualified will only put a soft credit check on your report. This allows you to see what you may be able to qualify for without hurting your credit.
Compare Loan Options
If you are looking to get a good rate on a personal loan, it’s best to compare different lenders. Get at least three different pre-qualified offers to compare. Look closely at the interest rates to find which would fit best into your budget. Typically, credit unions offer the lowest interest rates with the most flexible terms.
These are just a few tips to take into consideration when comparing different lenders offering personal loans. Before accepting any loan terms, be sure you read the fine print. Watch out for things such as prepayment penalties, surprise interest rate fees and automatic withdrawals. Some lenders will report your payments to the credit bureaus. If you make on-time payments, paying off your personal loan could help your credit score.
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