Borrowing FAQs

General FAQs

  • How can I improve my chances of loan approval?

    Improve your credit score, reduce existing debt, maintain stable employment, save for a down payment, and gather all required documentation before applying. Consider adding a co-signer or securing the loan with collateral.

  • Can I get a loan with bad credit?

    Yes, though options may be limited and interest rates higher. Consider secured loans, co-signers, or credit-builder loans. Some lenders specialize in bad credit loans, but carefully review terms as rates may be significantly higher.

  • What documents do I need to apply for a loan?

    Generally, you'll need government-issued ID, proof of income (pay stubs, W-2s, tax returns), bank statements, proof of address, and employment verification. Additional documents may be required based on loan type and lender requirements.

  • How long does the loan approval process take?

    The approval process typically takes 1-7 business days depending on the loan type. Personal loans may be approved within 24 hours, while mortgages can take 30-45 days for full processing and closing.

  • What factors affect my loan approval?

    Your credit score, income, debt-to-income ratio, employment history, and collateral (if applicable) are the main factors lenders consider when evaluating loan applications. A higher credit score and stable income typically lead to better approval odds and interest rates.

Personal Loans

  • How long do I have to repay a personal loan?

    Typical personal loan terms range from 12 to 84 months. Shorter terms mean higher monthly payments but less interest paid overall, while longer terms offer lower monthly payments but cost more in total interest.

  • Is collateral required for a personal loan?

    Most personal loans are unsecured and don't require collateral. However, secured personal loans are available and may offer lower interest rates. Secured loans require assets like a car or savings account as collateral.

  • What’s the typical interest rate on a personal loan?

    Interest rates generally range from 6% to 36% APR, depending on your credit score, income, and lender. Borrowers with excellent credit typically qualify for rates between 6-12%, while those with fair credit may see rates of 18% or higher.

  • How much can I borrow with a personal loan?

    Personal loan amounts typically range from $1,000 to $50,000, though some lenders offer up to $100,000. The amount you qualify for depends on your income, credit score, and existing debt obligations.

  • What can I use a personal loan for?

    Personal loans can be used for almost any legitimate purpose, including debt consolidation, home improvements, major purchases, medical expenses, weddings, or unexpected costs. Some lenders may have restrictions on certain uses.

Auto Loans

  • Should I get preapproved for an auto loan?

    Yes, getting preapproved before shopping helps you know your budget and strengthens your negotiating position. It also allows you to compare rates from multiple lenders to ensure you get the best deal.