7 Things You Need To Secure A Short Loan

Posted on: 30 July 2017

Securing a short cash loan is a desirable option if you find yourself in a sticky situation. These loans can help you consolidate debt, fix a car, take a vacation, or make an investment. When you need money fast, these loans can be helpful. There are seven things you need before approaching your next personal loan:

1. An Excellent Deal

Personal loans should always offer you a good deal, even if it is a small loan or short in duration. Ensure that you can afford the interest rate before signing papers. Understand what happens if you miss a payment and whether or not your payments will go up at any point.

2. A Trustworthy Lender

Working with lenders can be difficult, as loans can come from a variety of sources. Credit unions, banks, and online lenders each have different types of lending practices. Do your research to find a lender that you want to work with.

3. A Good Credit Score

Your credit score will have an impact on the interest rate you are given. With good credit, you can land a much better deal. Credit at 650 or higher tends to land better deals.

4. A Back-Up Plan

What happens if you run into problems making your loan payments? You need to consider other options before you are at the end of your rope. Who can you rely on for help? Do you have other sources of income?

5. (Maybe) a Co-Signer

If you have bad credit, you might need to find a co-signer to secure a personal loan. Talk to your lender about a co-signer to see if this can help your interest rate.

6. Identification

ID may come in the form of a driver's license, state-issued ID, or passport. You will also need to bring verification of your address in the form of recent mail or a utility bill.

7. Proof of Income

Most lenders will accept proof of past income in the form of a W-2 or pay stubs. You may also be able to bring tax returns from previous years or bank statements to prove how much money you have made in recent years.

Loans with terms that suit your needs can be difficult to find, but it's not impossible to choose a short loan that gets you the cash you need quickly. Whether you're just looking to get to the next payday or you need a six month cash loan, there are options. Speak with your lender about different terms and needs so that you can achieve your financial goals.