Applying for a personal loan if you have bad credit is similar to what’s required for any other type of loan, including:
- Filling out an application: The first step you’ll need to complete is to submit a loan application that includes personally identifiable information. This includes such things as your name, Social Security Number, and birthdate, items needed by the lender to verify your identity. Plus, you’ll share why you need the loan, how much you want to borrow, and paydayloansohio.net hours any other information that’s required (e.g., your annual or monthly income).
- Review loan offers: Once you’ve submitted some basic information, many lenders will pull a soft credit check that doesn’t hurt your credit score to see if you qualify for a loan. (However, some don’t offer the option to pre-qualify with a soft credit check.) They’ll also provide you with information about the rates and terms you might receive if you decide to proceed. Carefully review the offer to ensure it fits your needs.
- Accept the terms and provide required documentation: If the offer is acceptable, then the next step is to accept the terms and formally apply for the loan. During this stage, the lender will pull a hard credit inquiry that will affect your credit score. Plus, it will evaluate your income and other items to make sure you qualify for the loan. You may be required to submit additional documentation, like bank statements and pay stubs during this phase of the application process.
- Receive funding and set up an online account: If your loan is formally approved, the lender will disburse the funds to you in the manner you specified in your application. This could be sending them electronically to your bank account, writing you a check, or distributing the funds directly to your creditors to pay off existing debt. You’ll also need to set up an online account with the lender so you can manage your loan. Continue Reading How to Apply for a Personal Loan if You Have Bad Credit