Personal loan

How to get a personal loan

RICHMOND, Virginia (WWBT) – Whether you’re borrowing money to adopt, improve your home, or consolidate all of your credit cards – a personal loan may be your only option. Rachel DePompa explains the steps to get this loan in this On Your Side savings guide.

Most personal loans are unsecured, which means you don’t need collateral like a car or a house. If this is what you need, there are several steps to getting a loan like this.

Our partners at the Nerdwallet financial site helped us compile this list.

First of all, check your credit score. A high score gives you the best chance of not only qualifying but also getting a lower interest rate.

A good credit score is 690 or higher, and an excellent credit score is 720 or higher.

Second, determine how much to borrow. Don’t borrow more than you need. A higher amount adds more interest and higher monthly payments.

Third, do your research and compare the estimated rates. Calculate how much you owe each month and make sure it fits within your budget.

Then get pre-qualified if you can. This will give you an overview of the offers you may be receiving. You will need to be able to answer a few questions: the purpose of your loan, the amount of your loan, your income and how much you already owe.

Finally, shop around. Online lenders, banks and credit unions offer safe unsecured loans. Compare your pre-qualified offers with loan amounts, monthly payments, and interest rates from various lenders to get the best loan deal.

Finally, always read the fine print – so you know exactly what you signed up for.

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