A personal loan often turns out to be life-saving when you land up in financial emergencies. These versatile products can provide you with the necessary financial control and liquidity to manage medical expenses, home renovation costs, travel or wedding expenses, or any other liabilities.
In this article, the experts have explained how you can apply for one of these loans in a few easy steps. If you are unsure which lender you should approach, you can get across to Alpine Credits. The professionals would assess your requirements and help you choose the right product.
8 steps to apply for a personal loan
Here is how you can apply for a personal loan in Edmonton:
1. Determine your needs
Understand that the loan you are taking should serve your financial requirement. So, you need to assess the amount you should borrow based on your needs. In case you apply for too little, the amount wouldn’t be sufficient to bail you out of your financial trouble. On the other hand, a massive personal loan would unnecessarily overburden you with liabilities.
So, you need to be practical with your financial requirements and consider your needs seriously. Accordingly, you need to look for financial institutions ready to provide you with the loan.
2. Choosing the loan type
You have different types of personal loans to choose from. Each of these products comes with its respective interest rates and tenures. So, you need to determine the type of personal loan that would suit your needs.
- In case you don’t want to provide the lender with security or collateral, you can go for an unsecured personal loan. Although the interest rate would be slightly higher, this is one of the most popular products for salaried individuals.
- If you want to borrow a higher value, the creditors would expect you to back your proposal with security. In the case of secured personal loans, the interest rate would be lower.
- You may get a debt consolidation loan to settle multiple credit debt accounts. This should lower your overall interest rate and monthly payments.
- Other types of personal loans include medical loans, wedding loans, or travel loans that serve their respective purposes.
3. Decide where to borrow from
To qualify for low-interest personal loans, you should first reach out to your chosen financial institution. In case you don’t have a shining credit score, they might not entertain your application. In these situations, you need to reach out to other financial institutions like credit unions and NBFCs.
Remember, applying at too many places would take a toll on your credit score. So, consult the experts at Alpine Credits, who would guide you regarding where to apply.
4. Check your credit score
Your financial health, available from your credit report, largely determines the maximum amount you can borrow under a personal loan. Also, it determines the rate of interest that the bank would charge. So, before you apply for a personal loan, work on improving your credit score.
- Credit scores above 740 are considered to be excellent
- If your credit score is between 670 and 739, it would be considered to be good
- A credit score between 580 and 669 would be considered fair
- A credit score under 579 turns out to be poor
5. Check your eligibility
It wouldn’t be wise to squander your time applying for multiple loans without knowing the lender’s criteria. So, you need to check the eligibility requirements at the outset. Here are some of the general requirements that most of the trusted lenders have rolled out.
- A credit score not lower than 640
- Credit history at least three years old
- An annual income of more than $25,000
- A debt-to-income ratio lower than 43%
6. Scan through the list of lenders
Now that you know the names of lenders that would provide you with the personal loan based on the criteria you fulfilled, start narrowing down your options. This would be the time to compare the processing charges, interest rates, late payment fees, foreclosure charges, and other payment terms. Make sure to read the fine print before you commit yourself to the loan.
Working with reputed organizations like Alpine Credits, you would be able to identify the red flags.
7. Carry out the documentation process
When it comes to documentation, the lenders might have different requirements. Besides, when you furnish your details, the creditor might look for additional documents. For instance, the creditor might request you to provide the latest copy of your pay slip or your proof of residence.
The faster you provide the lender with these documents, the earlier you can get your loan processed. To speed up the application, make sure to carry all relevant documents.
8. Receive the payment
Once you obtain approval for the personal loan in Edmonton, you must carry out the formalities. The bank would ask for your account details where they would transfer the amount. Usually, this process takes not more than a week. With some reputed creditors, you can get the money in a day or two.
Next, set up automatic payments of the EMI from your bank account. This ensures that you need not remember the payment date. Simply leave adequate funds in your bank account so that the creditor can automatically deduct the repayment amount each month.
Although applying for a personal loan in Edmonton is easy, it would be logical to dodge possible hiccups. For instance, if you are unsure about your credit health, you can reach out to the experts at Alpine Credits for help. The professionals would inspect your financial stature and recommend you the right lenders to approach.
Moreover, if your debt-to-income ratio is high, the experts might guide you on how you can lower it. In the process, you can boost your credit score and qualify for low-interest personal loans. Once you receive the personal loan, make sure to repay the amount promptly to further strengthen your credit score.