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Do You Have What It Takes to Get a Personal Loan? *Guest Post*

Maybe the car just broke down and your rent is due. Perhaps you found a leak in your roof or the basement flooded. Or worse, you had to go to the hospital and your insurance didn’t cover as much as you had hoped. Things happen in our lives that wreak havoc on our financial situation and they happen often. Sometimes it happens when we happen to have just enough in savings to cover it but many people experience a dire inconvenience when these things pop up. If something happened today, could you pay off the emergency? If you don’t have enough, could you get the money you needed?

There are Hoops Involved with a Personal Loan

If you have considered applying for a personal loan, there are a few things you need to know beforehand.

  • Do you have enough income and minimal debt to afford the loan?
  • Do you utilize your lines of credit at 35% or less than your income?
  • Is your credit score 650 – 850? Do you know what your score is?

Remember, loan officers want to ensure that you will pay your debt off so they look at a number of key points on your application and in your credit check. If you know your credit score and are feeling concerned, be aware that other people don’t have high scores either. The average credit score in America is 695 and that is considered “fair”. You can still apply if you are below 650 but your chances are slimmer and if approved, your interest rate will be higher. If you don’t want to try, there are other options!

Think Outside the Box

There are several options you can consider when trying to obtain a loan for financial relief. If you have a credit union nearby, you can try to open an account and apply for a loan with them. They have more flexibility on terms, interest rates, and qualifiers on the applications. Not all credit unions are open to the public so be advised that you may have to find another way.

Payday loans become attractive in emergencies but we advise against using them. It can create more financial issues later! Using alternative payday loans found online is a far better option to get you the money you need and have something paid off quick. You can often apply quickly and online, get approval within a few hours, have the money by the next morning, and you have up to 6 months to pay off the loan. The available amounts awarded are often higher than traditional payday loans as well. All you need to have is verifiable income statements and a bank account that meets certain financial requirements.

You Can Always Ask

When in doubt, you can always try to ask family and friends for help. That help might be limited based on their own financial situations but any help is going to be a bit of stress relieved from you. If that means they buy food or bring frozen meals, they pay your utility bills this month, help keep your phone from being turned off, or they pool money together for your rent, it all helps. If you are afraid to ask, remember that you just won’t know what they will say until you ask.

Once you get past this financial hurdle you are experiencing, it’s a great time to revisit the budget and do what you can to put money aside for emergencies. That way if you experience a hardship, it may be easier that next time around.

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