Applying For a Personal Loan: What You Need to Know

Personal loans are an excellent way of funding various projects that make your life more comfortable and convenient, like home remodeling projects, medical expenses, and more. They’re also great for big purchases, such as buying better appliances for your home. There are short-term personal loans and long-term ones, giving you more options that better fit your situation.

However, there are a few things you must consider when applying for a personal loan. In part 1, we gave you four tips on what you should prepare before sending out an application. In this article, we’ll tell you everything else you need to know about applying for small personal loans in Athens, AL.

Look around for the best personal loan rates

After you’ve compared lenders, it’s time to look around for the best interest rate possible, as this will significantly affect how much you’ll pay over the life’s loan. Understand the different loan types and compare the offers you receive to understand the loans you qualify for and which ones fit your financial situation best.

Some lenders offer prequalification with a soft credit check, which won’t impact your credit score while allowing you to view offers without committing to them. Avoid settling for the first offer you receive; instead, compare the quotes and check if they have a prequalification option, which will prevent changes to your credit score when applying for a loan.

Choose a lender

Now that you’ve done your research, it’s time to choose a lender with the offer that suits your needs the most. Then, begin the application process, which you can do online or in-person, depending on the lender. Each lender has different requirements regarding what they need on the application, so you’ll have to make sure to follow the instructions carefully. They usually ask for your name, address, contact information, income, employment information, and loan purpose.

You will also have to disclose how much you want to borrow, which may present you with a few options to mull over. You can also review the terms and conditions for the loan, which you’ll have to study carefully to avoid hidden fees.

Supply the required documents

You will probably have to supply some documentation once you submit your application, like a copy of your latest pay stub, identification like your driver’s license, and proof of residence. If your lender needs further information, they’ll let you know. The quicker you send them the required information, the sooner you’ll receive a decision. Additionally, having the necessary documentation readily available will cut down the time spent on your application, helping you get your loan even faster.

Accept the terms

When you hear back from your lender and receive the good news that your application has been approved, you’ll have to go through a few more steps before finally getting your loan. You’ll need to finalize loan documents, review the final terms and conditions and accept them, and a few other things, depending on what your lender requires. Once you take the loan, you’ll receive the funds within a week, with some lenders giving it to you within one to two business days.

Once you have your loan, take note of when the first payment is due. Consider enabling automatic payments from your account to ensure you pay your loan back. If your lender doesn’t have any prepayment penalties, consider repaying your loan early, which will save you on interest. Create a plan to pay your loan, and you’re good to go.

Conclusion

Personal loans have helped millions of people fund various ventures and projects without sacrificing other expenses, especially necessary ones. By following our guide, you’ll be ready to apply for personal loans.

Athens Finance is the leading provider of personal loans in Athens, AL, offering various sizes to suit your needs. We also provide same-day installment loans, making your life a little easier by giving you what you need without any delay. Contact us today to learn more about what we can do for you!