STEP-BY-STEP GUIDE TO OBTAIN A PERSONAL LOAN

 From a family vacation to a home renovation, there are countless situations where you may need additional funds. When you are faced with an unexpected expense, consider getting a personal loan. The process of obtaining a personal loan can be intimidating at first: it involves a serious commitment on your part, but it can also make your life easier if you know how to handle it properly. In this article, we will tell you everything you need to know about applying for, using and paying for a personal loan. click here to Get More Info.

In what situations may you need a personal loan?The first thing you should do is ask yourself if you really need a personal loan. There are an infinity of possible scenarios that justify it, but, whatever your case, you must be aware that obtaining and paying a personal loan is a serious commitment. Before taking any steps, it is important that you have a definite purpose.

Here are 3 very specific situations in which a personal loan would be appropriate:

1.Consolidate your debts: If you already have other loans, such as one for your car, a mortgage or a student loan, you can request a personal loan that consolidates all your debts into a single loan . Debt consolidation has a number of advantages, such as not having to keep track of multiple payments and the ability to earn a single interest rate.

2.Home renovations: It is often necessary to do home projects that require a substantial amount of funds. A personal loan can be of great help to add a new room, make reforms of all kinds or even install a pool. It is recommended that you obtain a personal loan for this purpose only if the reform is going to increase the value of your home; Consider it a long-term investment.

3.Business expenses: if you have a small business and you were not approved for a business loan (since the requirements are usually more demanding), you can obtain the funds that your business needs through a personal loan . Personal loans often don't have stipulations on how they should be used, so as long as you meet the lender's requirements, you can use one for your business. Keep in mind, however, that personal loans often carry smaller amounts than business loans.

How to get a personal loan

At first, obtaining a personal loan can be intimidating, but with proper planning it is something perfectly doable. Here we will see what you should do before applying for the loan, during the application process and even once you receive the funds.

1. Prepare properly to apply for a personal loan

Take these steps before turning to a lender:

Know your credit score: Your credit score is one of the main factors in being approved for a personal loan and in determining your interest rate. You must know your credit score and adjust your expectations accordingly, because if your score is low, it will be very difficult for you to obtain a personal loan. But don't forget that you can always take steps to increase your credit score if you are not satisfied.

Make the necessary calculations: you must make sure that you can pay your loan within the established term, without forgetting the interest. When you study your loan options, consider interest rates and other added fees (like the closing fee) and use a loan calculator to find out exactly how much your monthly payments will be. To guide you on how much your monthly payments should be without straining your finances, you can use the same rule that is often used for a mortgage: do not allocate more than 28% of your monthly income to the monthly payment of your 

personal loan.

Find a Lender - Take some time to find the right lender. Obviously a reputable lender is in your best interest, but also one that offers you a loan duration and interest rate that suits your needs. At this point, the vital thing is that your lender offers fair interest rates (more on that later). Some lenders may also provide you with guidance and other unique benefits.

Not sure which lender to turn to? Here you can choose from the 15 best personal loans in the US .

2. Gather your documents

Once you decide which lender to turn to, you will have to meet a series of requirements and present a series of documents. This is the information that may be requested, but keep in mind that this list can be longer depending on the lender you choose:

Identity documents: your lenders will want to make sure that you are who you say you are. For this, most personal loans require you to present one or more of the following documents :

i) Driver's license

ii) Social Security number

iii) Passport

iv) State ID

v) Military identification

vi) Certificate of citizenship

vii ) Other type of government issued ID

Proof of Address : You don't just need to provide your address to your lenders; You may also be asked to prove that your address is correct by providing one of the following documents:

i) Utility bills (water, electricity, cable, etc.)

ii) Rental contract

iii) Voter ID

iv) Insurance of home or rental insurance

Income statements: your lenders will want to ensure that you are able to pay the loan, so they will need to know your financial situation. You may need to provide some of the following documents to show the current status of your finances:

i) Bank statements

ii) Pay stubs

iii) W2 forms

iv) Tax returns

v) Employment verification

Also, if you currently have other active loans, you will likely need to include this information in your application.

3. What to do once you receive your loan

If you have a good credit score and have provided proof that your income is stable, hopefully your loan will be approved. If so, there are still a few things to keep in mind:

1.Make your payments on time - you always have to. Otherwise, your credit score will be negatively affected. If you think that you will not be able to continue making your payments, contact your lender as soon as possible to reach an agreement.

2.Be aware of prepayment penalties: Many borrowers want to pay off their loan in full as soon as possible to save money on long-term interest. Keep in mind that some lenders have prepayment penalties that will prevent you from paying off your debt before the established limit, so be sure to fully understand the rules established for your loan.

3.Take steps to lower your interest rate: Another way that lenders avoid losing money when a prepayment is made is by using tiered interest. This means that you pay more interest for the first few months and less interest as time goes on. This won't make any difference if you pay off the loan according to the established payment schedule, but if you pay off the loan early, you will end up paying more than if the interest rate were fixed or simple. Here you can find some good tips to reduce your interest rate .

Camino Financial personal loan

1.Instant Loan Quote - After completing your online application , you will receive an 2.instant loan quote so you can determine if your monthly payments are in line with your current income.

3.The best interest rates and terms available: we strive to find for you the financing solution with the best possible terms and interest rates. Also, after spending a few months making your monthly payments on time, you may qualify for a second loan with better terms.

4.Minimal Documentation - Our application is fast, easy, and is done entirely online, so you don't need to visit a branch or spend hours gathering documents. Also, if you don't have a Social Security Number, no problem: we accept applicants with just one ITIN.

5.Excellent Customer Service - Our loan specialists are bilingual and will work with you personally to find the financing solution that best suits your goals.