Personal loans are the best source of cash to meet immediate cash requirements. They can be used to meet different kind of expenditures like emergency repairs to home or vehicle, medical expenditure, holiday plans with family or even meet shopping expenditure. They can be applied from a bank or from other money lending businesses. In both the case, the borrower must be prudent enough to select the right loan amount and not go overboard since cash is readily available. This can turn into a financial burden.
Apply For A Personal Loan
All personal loan lenders have basic document requirements that include
- Proof of Age and US citizenship in the form of social security number
- Valid Bank Account
- Bank Statement (different institutions ask for different terms, on an average for the past 3 months)
- Salary Statement (the term differs from previous 3 to 6 months)
In general any US citizen above the age of 21 years with a regular income can apply for a personal loan.
Features Of Personal Loans
These loans are readily available to people meeting the above criteria either from banks or other lending organizations. In the case of banks, the interest rate on these loans is comparatively lower, but the major drawback is the collateral requirement. Banks do not issue these loans without a physical collateral and the time taken for the approval of such loans is much longer than other players in the market. A very good credit history is required for the approval of such loans from banks.
On the other hands, other non-banking financial organizations are much faster in their approval rate. Although the same set of documents are required for the application, they generally approve these loans without any collateral and in a few days time. A good credit history is beneficial not just for the sake of the loan approvals, but also for the overall financial health of the person. You can use the personal loans, wisely in meeting certain expenditures and meet the liquidity crunch you are currently in and improve your credit score by repaying promptly into the loans. You may have other outstanding loans that are affecting your credit score, but your ability and willingness to repay into the loans only increases your score.
You can choose a good lender to meet your immediate requirements by simply browsing through the Internet and going through their terms and conditions regarding interest rates, repayment procedures and collateral requirments. Once you shortlist the right lender, you can complete the application process online, and wait for the approval of the loan. The lender credits the cash into your account to meet your expenditure.
James is a writer and blogger with 5 years experience.