In today’s economy, our credit scores have become such important aspects of our overall financial health that you simply cannot afford to have the expense and stigma of bad credit hanging around your neck. It can affect everything from the interest rates on your credit cards and mortgage to whether bank is willing to loan you money at all. The scary part is, regardless of how good your credit is, you are never more than a few late payments away from watching your score plummet.
Improving a bad credit score can take years to accomplish, and it can seem like an unrelenting uphill battle. If you need the benefits of a signature installment loan during that period, you may be wondering what it takes to be approved. While the companies that offer these loans don’t offer any guarantees of approval, check out these handy tips to increase your chances of getting the signature installment loan you need.
The first thing to do when you’re looking to apply for a signature installment loan, or any other loan for that matter, is to check your credit score. Installment loan providers are generally more forgiving of credit blemishes than other types of traditional lenders, but the interest rate and amount you qualify for are still tied to the health of your credit, and it’s important that before you try to get one you know where you stand. Getting a credit check is easy and free, and it’ll only take a few minutes of your time.
One element that will factor into how large of a signature installment loan you’re eligible for is your current income. Generally, a signature installment loan company will ask for a pay stub or bank statement to make sure you have adequate income to successfully repay your loan. The higher your income, the more money you could qualify to borrow.
An installment loan is generally repaid over a number of prearranged payments, so your ability to generate income over the course of the loan is of great importance to the signature installment loan company.
This may seem like an obvious point to bring up, but you’d be surprised how many people visit a lender to apply for an installment loan and don’t have the required items. Before you visit a loan provider, be sure you have the following: your most recent pay stub, proof of an active bank account, valid photo I.D., a phone number you can be contacted at, and your social security number.
There are a lot of signature installment loan companies out there, but regardless of where you choose to take your business, it is important to do your due diligence and research the important aspects of choosing the right licensed provider for your needs.