We've all been there -- wanting to fund that overseas vacation since forever but can't seem to find the money for it. Here's where a personal loan comes in handy. Taking a personal loan could be a good option since it does not require you to have any collateral (e.g. car, house, etc.) that can be lost in case you default. But precisely because of that, lenders will charge a higher interest rate as a sort of guarantee.
To guide you in applying for a personal loan, here are five basic tips from The Cathford Group Credit Inc.:
Know your credit report. A primary factor in determining if your loan would get approved is your credit score. All lenders would definitely consult your credit report when deciding if you're worthy to borrow, and how much interest rate to charge you if so. It will benefit you to get an idea of your credit standing so you should request for your credit report and make sure it has accurate and complete information. This will prevent all kinds of hassles in the future and will also let you know just how much interest rate you can be eligible for.
Decide how much you need. Your chances of getting approved are higher if you apply for as little amount as possible (based on your income). For instance, if the amount you ask is significantly lower than your current income, your lender might be willing to make considerations even with a low credit score.