Applying for a Personal Loan
When applying for a personal loan the following requirements are typically required:
- A credit score above 640: Good credit is one of the ways to help secure a personal loan. Those who have a credit score of least 640 are generally deemed to fall within the “good score” crowd. If your score is lower than a 640, options may still be available.
- A low debt-to-income ratio: If your income exceeds your debt, you may be in luck. The lower your debt-to-income ratio, the better the chance you have to secure a personal loan.
- A Source of Income: Applicants who get approved for a personal loan often generate enough income to repay their loan.
Securing a personal loan is a great way to pay for items with a lower interest rate than those of credit cards. Having a reliable source of income, a low debt-to-income ratio and practicing good credit habits are the best steps you can take when applying for a personal loan.
How to Qualify for A Personal Loan
So, how hard is it to qualify for a personal loan anyway? These four steps may help you on your road to understanding how to qualify for a personal loan:
- Get a copy of your credit report: Staying up-to-date on the happenings on your credit report is important; it may help you get an idea on where to apply for a personal loan.
- Be timely with your payments: Your creditworthiness is a big factor in whether you may qualify for a personal loan or not. If you have a history of opening several credit cards/credit accounts and not making any of your payments on time, you may be at risk of not qualifying.
- Pay those debts down: Remember, your debt-to-income ratio is a factor when applying for a personal loan. If you pay down some of your existing credit cards, this will help reduce your debt and lower your debt-to-income ratio.
- Supply proof of income: It’s important to show that you have a steady stream of income coming in to make sure you can make each loan payment on time.
What Do I Need to Apply for A Personal Loan from Best Egg?
Our list of documents required for a personal loan isn’t as long as you may think, but it’s important to be prepared!
Securing a personal loan, specifically one from Best Egg, may include the following:
- Verification of your identity
- Verification of a credit score of at least 640
- Evaluation of your debt-to-income ratio
- Verification of your income
- After submitting the required documentation that’s needed to apply for a personal loan, it could just take minutes to hear back! At Best Egg, we pride ourselves on helping customers find out if they qualify quickly!