How To Get A Personal Loan: 4 Things To Ask Yourself Before You Apply

by Lauren Beichner

Marketing Specialist

11.15.2021
|
Articles

There's no doubt that deciding to get a loan is a big decision. That's why it's vital that you explore your options and figure out what makes the most sense for you.

If you are thinking about applying for a personal loan1, ask yourself these four questions to ensure that you are ready for this financial step and know what you are getting into. 

Explore Coastal's Personal Loan Options

1. What Exactly Is A Personal Loan? 

A personal loan is a loan that can be used for personal expenses such as consolidating debt, financing a vacation, or paying for an unexpected car repair.

The beauty of a personal loan is that they may not require collateral as security, unlike auto loans or home equity loans, making it the perfect option for financing anything from an expensive purchase to an unexpected emergency expense. 

2. How Do I Qualify? 

The application and approval for a personal loan is based on your credit history and your ability to repay the loan. Qualifying for a personal loan verifies that you have the means to make set payments and meet those payment deadlines. Remember, lenders are looking for people who they know will make their payments on time, so, it's critical that you can prove that you are dependable. 

Tips To Improve Your Credit Score

3. How Much Should I Borrow?

A good rule of thumb is to only borrow the amount that you need and nothing more. It can be enticing to borrow too much money, but don't forget that you'll have to pay the interest on the loan and it's wise to minimize the amount of money that you owe your lender. However, it's important to note that the amount you need to borrow is subject to your credit and income qualifications.

Once you have determined how much money you'll need for your personal loan, make sure it fits into your monthly budget so that you'll be able to pay it off in a reasonable amount of time. There's nothing worse than getting in over your head with a loan that you can't pay off in time. 

4. What Are My Lending Options? 

Last but not least, make sure you look around at your loan options before deciding upon the best one for you. You can apply for a personal loan at a bank, credit union, or an online lender. However, research thoroughly to make sure you are choosing the optimal lender for you. 

Coastal's Personal Loan Options

At Coastal Credit Union, we offer affordable personal loan options to help you get closer to your goals. Here's how a personal loan from Coastal could help you bank better:

  • Competitive rates could help you save money on interest
  • Various terms can be adjusted to fit your budget
  • Flexible financing can be applied to anything you need
  • Simple application and quick closing delivers your loan faster

Key Takeaways 

There's no doubt that determining if a personal loan is the right option for you is a big, often intimidating decision. However, we can assure you that asking yourself these four questions is a great way to check-in with yourself to make sure that you are making the right financial choice.  

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1. All loans are subject to approval.