Our Guides To Personal Loans (2024)

FAQs

What is the best thing to say to get a personal loan? ›

In general, people who have a FICO® Score 8 or FICO® Score 9 of at least 670 or a VantageScore 3.0 or VantageScore 4.0 of at least 661 are considered to have good credit or excellent credit, which means they may find it easier to qualify for a personal loan.

HDFC Bank offers pre-approved loans to customers in 10 seconds flat*. Non – HDFC Bank customers can get loans in 4 hours. If you've wondered how to get an instant loan, wonder no more.

The easiest types of loans to get approved for don't require a credit check and include payday loans, car title loans and pawnshop loans — but they're also highly predatory due to outrageously high interest rates and fees.

FAQ: $30,000 Personal Loans

Generally, a score of 670 or higher is recommended to access better interest rates and terms. However, some lenders may accept lower scores but will compensate for the increased risk with higher interest rates and less favorable terms.

What is one huge disadvantage of a personal loan? ›

Fees and penalties can be high

Personal loans may come with fees and penalties that can drive up the cost of borrowing. Some loans come with origination fees of 1 percent to 6 percent of the loan amount.

Personal loans often come with a slew of different charges. Some loans charge a prepayment penalty that impacts borrowers who plan to pay back their loans early. Others may charge an origination fee that's typically between 1% and 6% of the loan amount. There may also be fees for missed or late payments.

Does a personal loan hurt your credit score? Your credit score can dip a few points when you formally apply for a personal loan, but missed payments can cause a more significant drop. Getting a personal loan will also increase the amount of debt you owe, which is one of the factors that make up your credit score.

A personal loan will cause a slight hit to your credit score in the short term, but making on-time payments will bring it back up and can help improve your credit in the long run. A personal loan calculator can be a big help when it comes to determining the loan repayment term that's right for you.

When applying for a personal loan, you must provide personal and financial information, including proof of identity, income and address. Lenders generally request information about your credit score, loan purpose and monthly expenses to determine your eligibility and loan terms.

A good or excellent credit score gives you the best chance of getting a personal loan with attractive terms. If your credit score isn't up to par, try improving it or finding a co-signer to help boost your approval odds. The amount you borrow and your debt-to-income ratio also play a role in the lender's decision.

There are no magic words. You need to be open and truthful about why you are requesting the loan, and how you plan to pay it back. If you don't know the answer to a question say so, and then determine what you need to know to answer the question. Be polite and listen carefully to what the bank has to say.

The short and sweet answer

You should answer every question posed (whether it comes directly from a loan officer or via an online questionnaire) as thoroughly as possible. As the loan applicant, you owe it to a potential lender to give them a complete picture of your financial situation.