When your financial situation has become dire you may find yourself in immediate need of a substantial amount of money. You may need it for living expenses, emergency repairs or unexpected bills. Whatever the reason, there are a few things you can do to improve your chances of being approved for a cash loan.
What type of loan are you seeking?
There are three common loans – secured and unsecured personal loans, and home equity loans. Secured loans generally require some form of collateral. Unsecured loans are harder to get for people with lower credit scores. Home equity loans are available to homeowners and the money is “borrowed” against the “owned” value (equity) of the home.
Try a credit union first (or after checking with a bank).
Credit unions are member-owned non-profit institutions and occasionally have less strict loan requirements, lower rates and better customer service than banks.
Have a bank account, whether it is checking, savings, or both.
Having a bank account indicates some financial stability to lenders, and they may be more likely to consider you for a loan.
Explore peer-to-peer lending options.
This type of loan enables you to borrow money directly from an individual rather than a financial institution and can be found and applied for online. You apply and state your needs (amount and reason), and private lenders examine the request to decide if they want to extend an offer.
Ask friends or family members (who have good credit) if they will co-sign.
Co-signing means they will be responsible if you default on the loan, so make sure you can provide solid assurance of your ability to repay the loan.
Improving your chances of being approved for a loan can be done with a few simple steps, and there are a variety of lending institutions available for you to seek a loan from. A final piece of advice is to make sure you shop around for the best rates and don’t just accept the first loan that someone is willing to extend your way, and always read the fine print!