Personal loans are an excellent way of using credit to consolidate high-interest debt, pay for an unexpected bill or expense, or cover the gap between pay periods. Going to your bank and getting a personal loan can seem like a daunting task, so follow these three steps to get the loan you need.
1. Make an appointment at your bank or credit union and gather the paperwork you need for your loan officer. At a minimum, you’ll probably need pay stubs from the last two months as well as bank statements. The bank simply wants to ensure that you have enough money coming in to support your current debts and a payment for your personal loan. You may also want to pull a free copy of your credit report; the bank will pull your credit report to determine whether or not they can give you a loan. Pulling your credit report ahead of time gives you a chance to fix any inaccuracies and ensure that everything on the report is true.
2. Determine how much money you need and how much of a monthly payment you can afford. Your bank most likely has a payment calculator that can use the loan amount and interest rate to determine how much you will have to pay every month for your personal loans. You don’t want to have too much of a monthly payment, so crunch the numbers and determine what you can comfortably pay. You may need to adjust this amount later if your credit report puts you in a higher interest rate group.
3. Go to your appointment with the loan officer, ensuring that you have all of your income paperwork. You should also bring several forms of identification and a reference list. Some banks do require personal references to ensure your trustworthiness. All you have to do then is let your loan officer run your information through the system and determine whether or not you qualify for their personal loans. Having the paperwork and information they need helps them speed the process along and get you the money you need.