Loans (2024)

FAQs

What is the best thing to say when asking for a loan? ›

The key is to get as specific as possible. For instance, if you need $700 for a car repair, tell your lender that the money is for that reason. You should also map out a repayment plan, like paying them back $70 a month for the next 10 months.

While most reasons won't stop you from obtaining a personal loan, you'll need to explain why you need the money you're borrowing. You can generally use the loan proceeds however you see fit, but some lenders have restrictions. Plus, the loan purpose could impact the loan terms you receive.

In general, lenders extend $30,000 loans to borrowers with good to excellent credit, which is typically 670 and higher. But there may be lenders who lend to borrowers with bad credit. If you're having difficulty qualifying, you may consider getting a cosigner or co-borrower to help you get approved for the loan.

The easiest types of loans to get approved for don't require a credit check and include payday loans, car title loans and pawnshop loans — but they're also highly predatory due to outrageously high interest rates and fees.

Your reason for getting a personal loan not only helps determine whether or not you'll be approved, but can have an influence on the type of loan you can get, as well as the loan amount, and even the interest rate.

Show deference and gratitude toward the friend who is being generous enough to offer you assistance, and you'll reduce the risk of bitterness later. Be clear about the amount of money you need, but present a range of loan options, and take what they offer (or leave it).

The most common reason to take out a personal loan is to consolidate debt. Fast funding turn times make personal loans a good choice for emergency expenses.

Some common emergency reasons for borrowing money include debt consolidation, medical bills, and vet bills. Jerry Brown is a personal finance writer, owner of the Peerless Money Mentor blog, and a contributor to Credible.

Lying on a personal loan may lead to rejection or worse

Knowingly providing false information on a loan application is considered fraud and is a crime.

Can You Apply for a Loan and Not Accept It? Yes. If a lender has approved your application for a personal loan, you're not required to take it. This is an important distinction from credit cards, where your account is opened immediately upon approval.

Can you decline a loan after accepting it? ›

If your loan has disbursed, you should complete the Loan Decrease/Cancel Request form no later than 14 days after you receive the disbursem*nt notification. After 14 days, you can contact your lender to make arrangements to return some or part of the loan and reduce your overall student loan debt.

In general, people who have a FICO® Score 8 or FICO® Score 9 of at least 670 or a VantageScore 3.0 or VantageScore 4.0 of at least 661 are considered to have good credit or excellent credit, which means they may find it easier to qualify for a personal loan.