Quick personal loans are used for a variety of reasons. From unexpected medical expenses to home renovations or financing a vacation, you can do just about anything with the amount once it is transferred into your account.
Before you break into a dance and start planning your vacation, we suggest that you do thorough research to ensure that the numbers you come up with make the loan affordable
after checking your financials.
If you don’t meet the eligibility criteria, you will probably face a couple of setbacks, but that does not mean you won’t get a loan. You need to be prepared with the right documents so that if the lender does ask for additional information, you will have everything at hand.
How Quick Loans Turn Your Life Around
The name itself is the biggest giveaway as to why this loan is great for you. A personal loan is processed within a couple of days, and when your loan application is approved, you get the amount in your account in 60 seconds. Another thing that makes this loan popular is that you are not required to put down your reason for borrowing money on the application.
You can use your quick loan for:
- Medical expenses
- Dental surgeries
- Rental bonds
- Buying furniture and appliances
- Vet bill
- Car repairs
- Travel expenses
- Home improvement
Now that you know the basics of quick personal loans, let’s take a look at how to apply for them:
Maintain Your Credit Score
|Credit Rating||FICO Score Range|
|Very Poor||300 – 580|
|Fair||580 – 669|
|Good||670 – 739|
|Very Good||740 – 799|
If your credit score is below 580, you need to start paying down your debts. We are not saying that you need to eliminate your debts but paying some will increase your credit score and push it into the “Fair” category, which is good enough for a quick loan. This brings us to our second tip:
Improve Your Credit History
Your efforts to improve your credit score will show on your credit history. It will tell the lender how good you are with your finances. As a result, he will be more open to giving you a high loan amount, despite your low credit score.
Establish Your Debt-to-Income (DTI) Ratio
Let’s say you are drowning in debt and you are still looking for a loan. You find a lender willing to give you the money even on a bad credit score but with a high-interest rate. Right now, you need the money for important things, and therefore, you are applying for a loan. When the monthly payments start, you cannot keep up with them, and as a result, you fall deeper into debt.
Therefore, we recommend that you first opt for a debt consolidation loan to clear your debts and then a quick loan to meet your personal needs.
Calculate Your EMI
Applying for a loan is the easy part. It’s making the monthly payments that sometimes form a noose around your neck. Before filling out that loan application, use an online EMI calculator to determine how much you can afford. Upfront, the loan might seem small, but with a high interest rate, the payments increase. Along with your other expenses, you might find it difficult to keep up with them.
Consider Loan Insurance
This might seem an additional expense to you on top of the loan, but it offers a great benefit. If you have the budget to fit in the insurance payments, you won’t have to worry about falling into debt. For example, let’s say you get into an accident and pass away before repaying the loan. The monthly payments now fall on your next of kin. Leaving them with such a burden is a responsibility they won’t be able to meet.
Loan insurance comes in handy in such cases. In the case of your untimely death, the insurance company will make sure that your loan is paid back in full.
Quick personal loans prove to be beneficial when they are availed at the right time. As long as you keep up with the monthly payments, you won’t face any problems. Timely payments can improve your credit score and give you the chance to renegotiate the terms of your loan. Just make sure that the loan is used for the intended purposes, and you will be easily able to maintain your finances.