There is a parade of reasons why one might be interested in taking out a personal loan. However, some requirements are needed for one to be able to get approved for a personal loan. This is why it is a big deal when one gets pre-qualified for a personal loan.
Getting pre-qualified for a personal loan is part of the preliminary process of getting approved. Although it doesn’t completely guarantee that your loan will eventually get approved, it is helpful as it gives lenders a preview of what lenders can expect of you as a borrower. You also get a look into what you might receive in terms of the loan.
This blog post will shed some light on some valuable tips on pre-qualifying for a personal loan.
Essential Steps to Pre-Qualify for a Personal Loan
Before applying for a personal loan, you need to be ready. The good news is that there are fundamental ways to help boost your chances of getting pre-qualified with some of the lenders in your area.
1 - Fill Out a Pre-Qualification Form
One of the best ways to get pre-qualified for a loan is to show lenders that you intend to take out a loan. Many different lenders offer the option of filling out a pre-qualifying form on their website. You will be required to provide your personal information, income information, details on your employment, and contact information, among other things.
2 - Have a Soft Credit Check Done
Once your application catches the eye of lenders, they may do a soft credit check on you. This check will not appear on your credit report, but if you do decide to push through with the loan application, later on, a hard credit check will appear on your credit report for up to two years and may lower your score by a few points temporarily.
3 - Build Your Credit Score
However, while waiting for lenders to notice your pre-qualifying application, it helps to practice good habits regarding your credit. Building good credit will help you a great deal when it comes to applying for various loan products, including personal loans. Making sure that you do what you can to lower your outstanding debt and pay all your bills on time will be worthwhile efforts to helping you better your credit score.
What If You Don’t Get Pre-Qualified?
If you don’t get the message that tells you that you have pre-qualified for a loan, you may still apply for one just the same. Remember that being pre-qualified is not a prerequisite for approval since lenders will still pull your credit score and check your information if you apply for a loan without getting pre-qualified. The key to getting approved is to work on getting a stable job and build your credit. Ironically, the more money you have, the more lenders will be inclined to approve your loan.
If you are in a bind and need a little bit of extra cash, other options are available to help you get your hands on the money you need. Going to a reliable lender that has lenient lending qualifications may give you higher chances of getting approved.
At Magnolia Finance we understand the time-sensitive need for help when short on funds. We are not a payday or title lender. Whether you are looking to build or rebuild credit, consolidate a few bills, or are simply caught in a bind, we try to make the borrowing process quick and straightforward. Our staff is available five days a week, both in-person and by phone. Get personal loans in Memphis, TN, from our office today!