The process for finding the best personal loans for bad credit is slightly different
Assess your financial situation. Before you apply for a personal loan, look through your current finances. Are you in a position to pay back your debt before the repayment terms are up? Or will an additional source of income, such as a second job, get you the money you need without taking on a personal loan?
Decide how much money you need. Once you’ve established that you could use a financial supplement, figure out how much money you need. The more you borrow, the higher your monthly payments will be. But if your personal loan can pay off another high-interest debt, the application could be worth it.
Know your credit score. Your credit score is an important factor in the interest rates you’ll be quoted. Some banks offer free credit score checks for their customers, or you could use a third-party site, such as or .
Choose your lender type. You can fund your loan through traditional banks, credit unions, online lenders or peer-to-peer networks. Your credit history, how quickly you need your money, the interest rates you can repay and your ability to apply online or in person should all be factored into your decision.
Pull together prequalification documents. As with any loan, you will need to show lenders your full financial situation. Gather any paperwork such as identification, recent bank statements, any mortgage or existing loan documents, such as car repayments and credit card statements, to speed up your loan application.
Compare the best interest rates. Once you’ve determined your lender type, use online calculators and/or set up prequalification meetings with different lenders. Present your loan amount and the payment terms you want so lenders can quote you their best interest rates.
Check pros and cons. Once you’ve checked potential rates with several lenders, you may Tennessee quick cash locations want to put together a list of pros and cons outside of interest rates.