Find the Best Personal Loan for Your Needs
Step 1: Know Your Credit Score
Although taking out a personal loan may seem like a helpful venture towards paying off your high-interest debt, complete home repairs, or even take a vacation, if you do not know your credit score, it can easily harm you.
Knowing your credit score is an important part of the process because ultimately, the lender will have to check your credit score before being approved. Therefore, checking your credit score ensures that everything is in order before applying for a personal loan. Most importantly, if you have any potential discrepancies, you can dispute them before you apply for a personal loan. The higher your credit score, the better chances you will have of being approved with a good interest rate.
Step 2: Calculate Your Debt-to-Income
Your debt-to-income ratio is calculated by taking the amount of debt you pay monthly including bills next to the income that comes in. With that said, it is always better to stay below a debt ratio of 30-40% to better qualify for a personal loan.
If you notice that you spend a lot of money on paying off your high-interest credit cards, taking out a personal loan at this time may not be the best option. However, the loan lender will also calculate your debt-to-income ratio and in the case that your debt is higher than a 40% average, they may give you a bit of insight as to what you can do next.
Step 3: Research and Read
The most important aspect of looking for a personal loan lender is to shop around for reputable lenders for your budget and credit score. There are credit loan lenders for all sorts income ratios and credit score, but always make sure you read the reviews and check their location. Applying online may seem like a beneficial option, but nothing is better than sitting down in person with a personal loan lender and asking them questions about the process. The questions below will you help you gain more knowledge about the personal loan process?
- Is there an origination fee?
- Why should you pick this financial institution to take out a personal loan?
- Do they work with your credit score?
- Are there late fees?
- Is the personal loan secured or non-secured?
- Is the interest rate fixed or non-fixed?
Are Payday and Title Loans the Same as Personal Loans?
No not really. A payday loan, or cash advance, is easier to get and has a shorter term(unless it’s a longer installment option) but higher fees and much higher interest than personal loans. The same is true for title loans with the addition of your car being used as collateral. Be very cautious with these types of loans.
Personal Loans in Seattle
1400 Madison St, Seattle, WA 98104, USA
4 / 5 Stars
9612 17th Ave SW, Seattle, WA 98106, USA
3.9 / 5 Stars
1630 Queen Anne Ave N, Seattle, WA 98109, USA
4.6 / 5 Stars
Qualstar Credit Union - Seattle/SODO Branch
1731 4th Ave S, Seattle, WA 98134, USA
4.9 / 5 Stars
Christine has a solid background in personal finance as she spent the last eight years working at one of the biggest banks in the US. She managed her own team of financial advisors that helped hundreds of people with their financing needs. Her innate understanding of different financial products and loans helped her move up the ranks quickly after graduating with a degree in Business Administration.