How to Qualify for a Personal Loan (Without Putting Up Collateral
- Check your credit score. Your credit score is a major factor when qualifying for an unsecured personal loan.
- Order a copy of your credit report.
- Pay your bills on time.
- Pay down your debt.
- Show you have a stable income.
- Submit a joint application with a creditworthy cosigner.
- Find the right lender.
How do I know if I qualify for a personal loan?
The minimum age limit to apply for loan should be 21 years. Maximum age can go up to 60 years (salaried employees) and 65 years (self employed) at the time of loan maturity. However, age varies from bank to bank. Your monthly income to get personal loan should be at least Rs. 25,000.
What is the best reason to give when applying for a personal loan?
- Consolidate debt. One of the most common uses for personal loans is to consolidate debt.
- Pay off credit cards.
- Finance home remodeling.
- Pay for a wedding.
- Money for moving expenses.
- Finance funeral expenses.
- Pay medical bills.
- Buy a car, boat or RV.
Do I qualify for a bank loan?
Personal loans from banks
You’ll likely need good credit to qualify for a personal loan at a bank. If you’re already a bank’s customer, you might get benefits such as applying without visiting a branch or qualifying for a larger loan amount. Some large banks offer free credit scores or loans with no origination fee.
How much loan do I qualify for?
Most lenders require that you’ll spend less than 28% of your pretax income on housing and 36% on total debt payments. If you spend 25% of your income on housing and 40% on total debt payments, they’ll consider the higher number and qualify you for a smaller amount as a result.