How Do I Qualify For A Personal Loan?

Understanding Personal Loans

When you need cash for expenses such as debt consolidation, vacations, weddings, or business needs, a personal loan can be a great option. If you have a good credit score and a solid credit history, you’re likely to qualify for one.

Types of Personal Loans

There are two main types of personal loans: secured and unsecured.

• Unsecured personal loans (or signature loans) don’t require collateral. The lender bases approval on your creditworthiness and signature. Because they pose more risk to the lender, these loans usually come with higher interest rates.
• Secured personal loans are backed by collateral, such as a car or property. These loans typically offer higher amounts and lower interest rates. However, if you fail to repay, the lender can claim the asset to recover losses.

Where to Apply for a Personal Loan

Start by contacting your bank or credit union. If you already have an account with them, they may be more likely to approve your loan request. Existing relationships can also help you qualify for better loan terms and lower rates.

Qualification Requirements

To qualify for a personal loan, lenders generally look for: 

• A steady, verifiable source of income 
• A good credit score (typically 640 or higher)
• A positive credit history

If your credit score is below 640, it may be challenging to qualify for an unsecured personal loan.

Alternative Option: Car Title Loans

If you don’t qualify for a personal loan due to poor credit, consider a car title loan instead. If you own your vehicle outright, you may be eligible for a loan using your car title as collateral.

Companies like Embassy Loans of Florida don’t require a credit check and process applications quickly. In most cases, borrowers can access their funds within 24 hours.

If you have good credit, you can likely qualify for a personal loan with ease. If not, a car title loan offers a fast and simple alternative to access the cash you need.

Call Embassy Loans today at (833) 839-2274 to learn more about your loan options.