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What Is The Easiest Loan To Get Approved For?
September 9, 2022
A personal loan is one of the most versatile forms of credit available. You can use the funds to cover unexpected emergency expenses, large purchases or even to finance a vehicle. Although qualification requirements vary, you should be able to find a lender that will work with you even with a damaged credit score.
Qualifying will be significantly easier if you can find a lender with a lower credit score threshold that specializes in working with borrowers that have damaged credit.
The easiest loans to get approved for would probably be payday loans, car title loans, pawnshop loans, and personal installment loans. These are all short-term cash solutions for bad credit borrowers in need. Many of these options are designed to help borrowers who need fast cash in times of need.
Personal Installment Loans – These are unsecured personal loans for borrowers with less-than-perfect credit scores. You can usually get more money with a personal installment loan than you can with some of the other fast-cash options like payday loans. You’ll also have more time to repay it with a personal installment loan. Generally, borrowers have several months up to a couple of years in some cases to repay the loan and interest.
Payday Loans – These are also unsecured loans, but they offer smaller amounts of money and less time to repay the loan plus interest. Usually, borrowers have to repay these loans within two weeks, or by their next payday. The higher interest rates combined with the short repayment period can make them difficult to repay on time. Even if you need money now, consider them carefully before you take out this type of loan.
Car Title Loans – This is a secured loan which means you’ll need collateral to get one. The collateral would be the title to your vehicle. This means that if you can’t repay the loan by the due date, the lender can legally seize your vehicle and sell it. This makes these loans very risky if your vehicle is crucial to your everyday life.
Pawn Shop Loans – These are also secured loans. But the collateral, in this case, may be any valuable item you own that the lender will accept. It could be jewelry, electronics, musical equipment, or any other valuable item. The lender gives you cash based on the value of the item, then you get your item back when you return the loan and interest. But if you can’t pay it back they can keep your item and sell it.
Think very carefully, and do plenty of research before choosing any loan. Make sure you’re capable of paying it back on time to avoid any negative effects on your credit score.
How to Get an Easy Personal Loan
While the process varies by lender, follow these general steps to apply for an easy personal loan:
Check your credit score. It’s best to know your credit score before you apply for a loan. You can find your score through your bank or credit card provider, or through one of the many free sites that offer credit scores. Understanding your score can point you in the direction of a lender that can serve you best.
Take time to boost your score, if necessary. If your credit score is below the minimum threshold, take time to improve your score. As a good rule of thumb, make sure there are no errors on your credit report and pay down your balances.
Determine what you can afford to pay. You should understand what monthly payment you can afford before you apply for a loan. Go through your current expenses and income to calculate what you can manage. That will keep you from taking out a loan that you can’t pay back.
Prequalify with multiple lenders. Some lenders offer a prequalification process that lets you see what terms you may receive—if you’re eligible—without hurting your credit score. Prequalifying with multiple lenders is the easiest way to find the best offer for your specific situation.
Submit your application. Once you find and choose a lender that works for you, fill out the formal application. To complete the application form, you’ll have to provide your birth date, contact information, Social Security number (SSN), employment information and other relevant details.
Tips for Comparing the Easiest Personal Loans to Get
Consider these tips when comparing the easiest personal loans to get:
Look at their requirements beforehand. Before you start filling out loan applications, review the lender’s credit and income requirements to see if you’re a good candidate. Some lenders post their requirements publicly on their websites. If you don’t see it listed, you can call the customer service number and ask for the requirements over the phone.
Know how much you need to borrow. Many lenders have strict minimum and maximum loan limits. Before you apply for a loan, it’s important to understand if the amount you need to borrow fits within the lender’s limits.
Compare fees and APRs. The interest rate dictates how much interest you’ll pay during the loan term. The APR is the interest rate plus any fees you’ll be charged. Always make sure to compare lender APRs and not just interest rates.
Figure out how much you can afford to repay. When you apply for a personal loan, the lender typically offers a variety of repayment terms to choose from. Longer repayment terms have lower monthly payments and typically come with higher interest rates, while shorter repayment terms have higher monthly payments and typically come with lower interest rates. Decide what monthly payment you can afford and choose a repayment term based on that amount.