5 Things You Should Know About When Getting A Personal Loan

Jan 29, 2018Reading Time: 4 min

Getting a personal loan can be quite a challenge, but if you’re in need of one then don’t let that deter you. Some lenders - such as Blue Trust Loans - will happily lend you money as long as you fulfill specific criteria.

Unless you live in Georgia, Connecticut, Arkansas, Massachusetts, Minnesota, New York, Pennsylvania, Vermont, Wisconsin, West Virginia and Washington, you are eligible for the loan as long as you:

  • Are over the age of 18
  • Have a verifiable source of income, and meet the minimum income requirements
  • Have an open checking account (this is where your money will be deposited)
  • Have not filed for bankruptcy

Even if you don’t or can’t fulfill the requirements of obtaining a personal loan, some lenders such as Blue Trust Loans are flexible and can be tailored to your requirements. Here are some tips to help you get the loan you need.

1. Check your credit history

Before you opt to apply for a loan, it’s very important to check your credit history first. If your credit score is low - or you haven’t got any credit - then you are more likely to be rejected. If you’ve got any outstanding debts or credit cards, pay those off first. Don’t just make the minimum repayments - always aim to overpay or pay off the debt in full. If you don’t have any credit but you need to take out a loan, then you still have options:

  • Get a guarantor to back you up and sign on the loan alongside yourself.
  • See if you can borrow from friends or family members (make sure you come to an agreement regarding repayment.)
  • See if you can borrow from a credit union. Credit unions are not-for-profit organizations that tend to offer low cost and flexible options.
  • Work on building up your credit. Simple things like paying bills on time and registering for the electoral register can increase your credit score.

2. Look for the best deal

Don’t just sign up for the first loan. Shop around and see what’s available, you might be able to get a good deal. You can check out exclusive offers on Blue Trust Loans, so have a look at that first before applying for a loan.

3. Think: is it necessary and affordable?

Before seeking out a personal loan, you need to be realistic and pragmatic. Do you really need the loan? Could you afford to pay it back? The last thing you’d want to do is take out a loan that you don’t need and can’t afford to pay back because you could incur penalty charges and that could ruin your credit score. When taking out a loan, you don’t have to take out the maximum you can receive: just take out what you need and what you can pay back. Blue Trust Loans can lend a minimum of $100 and a maximum of $2,000 and the standard loan term is six months. If you need money ASAP then Blue Trust Loans can approve your loan as soon as the next business day.

4. Watch out for those interest rates

Personal loans are not secured, so they incur high-interest rates. Personal loans don’t require any assets as collateral, meaning that for lenders who give those out, there is no complete guarantee of repayment. Because of this, personal loans are harder to obtain and lenders tend to have strict rules regarding giving the loan and how much they are willing to give. To avoid high and eye-watering interest rates, try to find a personal loan with a fixed or variable rate.

5. Banks aren’t the only financial institutions to offer personal loans

There are many places that will offer a personal loan, such as credit unions - as previously mentioned - and peer-to-peer lending sites. Explore various options, but be sure to avoid payday lenders and loan sharks.