Whether you need some financial help buying a car, a home, or you just need a little money to help take care of an unexpected expense, there’s a good chance you can apply for a loan online.
Filling out a personal online loan application is usually pretty straightforward, but there’s a bit more to it than doing a quick Google search and going with the first option you see. Whenever you borrow money, it’s important that you do your research and take the right steps along the road. After all, this is your money we’re talking about, and you need to be careful any time you make a big decision that could affect your finances down the road.
Today, we’re going to walk you through some of the important steps that you’ll want to go through when you’re looking for online loans.
1. Check your Credit Score and Credit Report
Before you start looking for an online loan, you’ll want to get your personal information in order. The first step is to check up on your credit score.
Your credit score is one of the most important things that a financial institution can look at when assessing your application. This three-digit number summarizes your borrowing history into an easy-to-understand metric that can have an effect on your ability to get approved, and can also impact the rates and terms of the online loans that may be available to you. You’ll want to know what this number is so you might get a better idea of what loans and rates you may qualify for.
To check your credit score, you can:
- Buy it from a major credit bureau – Experian, Equifax, or TransUnion – or a provider like FICO[1].
- Find it on a recent loan or bank statement, as certain financial institutions provide this information for their customers.
- Look online for a free or paid credit score subscription service[2].
You should also check your credit report, which you can do once a year for free with each of the three major credit bureaus mentioned above[3]. Look over your report and see if you can spot anything that looks out of the ordinary. Why? Well, from time to time, errors may crop up on your report that could be damaging to your credit score or could even be a sign of identity theft.
If you spot any faulty marks on your credit report, take a look here to see how to go about getting them removed from your report.
If you spot any faulty marks on your credit report, take a look here to see how to go about getting them removed from your report.
2. Research and Compare Financial Institutions
Now that you have your credit score in hand, it’s time to dive into important research. You’ll want to get a good idea of what your potential options are, so it’s time to head online and see what’s out there. We suggest you look at multiple financial institutions offering personal online loans that are suited to your particular needs and that are offered in your state.
When evaluating different loans and lenders, there are a few important factors you’re going to want to take into consideration. These include:
If you want to compare and contrast different potential personal loan options, you can use a loan comparison aggregator to get a side-by-side look.
3. Submit Your Online Loan Application
Once you’ve done some thorough research, you’ll hopefully have been able to narrow in on a particular loan that you’d like to apply for. So, the next step is to finally submit an online personal loan application.
Like we’ve mentioned, a financial institution might request different things when assessing your application. This could include things like:
- Proof of employment
- Proof of your sources of income
- Driver’s license
- Social Security number
- Pay stubs
- Bank account information
- Housing costs
The financial institution may use some of this information along with your credit score to figure out your creditworthiness. Try to have this stuff ready ahead of time. The more you prepare in advance, the faster this process can go.
Receive Your Funds
Now that you’ve submitted your online loan application, it’s up to the financial institution to lend to you or not. In some cases, they may be able to get back to you fairly quickly. If you’re approved for a loan, you should get an offer with specific terms, rates, fees, and other information laid out in your loan agreement. Read over everything carefully, and if the loan meets your needs and you can comfortably afford to repay it, accept the offer! The amount of time it takes to receive your funds can vary between financial institutions.
Disclaimer: The information contained herein is provided for free and is to be used for educational and informational purposes only. We are not a credit repair organization as defined under federal or state law and we do not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit. Articles provided in connection with this blog are general in nature, provided for informational purposes only, and are not a substitute for individualized professional advice. We make no representation that we will improve or attempt to improve your credit record, history, or rating through the use of the resources provided through FreshStart Blog or CreditFresh website.
[1] https://www.equifax.com/personal/education/credit/score/articles/-/learn/how-to-check-credit-score/
