How to Get a Personal Loan
Orange County Personal Loan Company
Getting a personal loan requires several steps to ensure you get an approval
A personal loan can help cover your expenses without breaking the bank with high interest rates. Get funding for credit card debt or to fund a business expense with Peach Capital Funding and our loan programs available to help you get funding fast.
Peach Capital Funding is here to provide you with insight on personal loan programs and options available for you to receive the right personal loan to help you pay down debt or fund a business project as well.
The majority of personal loan options are unsecured, meaning they don’t require collateral such as a house or car. Loan amounts range from $1,000 to over $50,000 and are paid back in fixed payments, typically over two to five years. Rates and terms will vary based on your credit worthiness.
- Check your credit score
- Get pre-qualified for a loan
- Shop around for personal loans (check rates)
- Compare your offers with other credit options (low rate credit cards)
- Read the fine print (know your loan terms and conditions)
- Final approval
Check your credit score
A strong credit score with a good track record of paying debt gives you a better chance of qualifying for a personal loan and getting a lower interest rate.
Credit scores fall into the following ranges:
- 720 and higher: Excellent credit
- 690-719: Good credit
- 630-689: Fair or average credit
- 300-629: Bad credit
Do you have a not so great credit rating? Take steps to build it up before you apply. The biggest factors affecting your credit score are on-time payments and the amount of credit you use relative to credit limits.
Get pre-qualified for a personal loan
Getting pre-qualified for a loan gives you insight into the kind of offers you may receive. Many online lenders perform a soft credit check during pre-qualification that doesn’t affect your credit score, so checking it out ahead of time is a great option for you to do in advance.
Shop around for personal loan options
With your pre-qualified offers compare the amounts, monthly payments and interest rates.
Compare your offers with other credit/loan options
Before you choose a personal loan:
See if you qualify for a 0% credit card. If you have good credit, you can usually receive a credit card that has 0% interest on purchases for a year or more. If you can repay the loan in that time, a credit card is your best option.
Read the fine print
As with any loan you receive be sure to read the terms of the loan and get answers to your questions.
Things to look out for:
Prepayment penalties. Most lenders do not charge a fee for paying off the loan early, called a prepayment penalty.
Automatic withdrawals. If a lender requires payments be automatically withdrawn from your checking account.
APR. The total cost of your loan, including any origination fees, should be clearly disclosed and figured into the annual percentage rate of the loan and terms.
Once you’ve selected a lender that matches your personal loan needs, you’ll need to provide the following documents to formally apply for the personal loan:
- Identification: passport, driver’s license, state ID or Social Security card
- Verification of address: utility bills or copy of lease
- Proof of income: W-2 forms, pay stubs, bank statements or tax returns
The lender will run a hard credit check that may briefly knock a few points off your credit scores. Upon final approval, you’ll receive your funds according to the lender’s terms, typically within a week.
Taking out a personal loan can help you get rid of your debt and cover unexpected expenses. Find the lowest rates, borrow only what you need and be prompt with your repayments of your personal loan.