When you buy a car, buy a home or apply for student loans, you are applying for an installment loan. Personal loans are also an example of installment loans that are available to most people. However, how do you know for sure that your application would be approved?
What Type of Loan Do You Want?
Only those with good to excellent credit will be given an unsecured loan at the lowest interest rates or with other top terms. If you have average credit, you may be approved for an unsecured loan at a higher interest rate or for an amount that is less than what you asked for. However, almost anyone can apply for and get approved for a secured loan even if you have bad credit. Another option is to go to a site such as MaxLend.com where it may be possible to get reasonable terms even if you have no credit.
How Much Money Do You Want?
Lenders are loathe to give out more than a few hundred dollars to those who have poor or no credit. Therefore, you may need to have at least a 640 credit score to qualify through a traditional lender if you want to buy a car or otherwise borrow a large sum of money. Those who wouldn’t qualify for a loan of any kind through a traditional lender would need to go to an online no or bad credit lender such as MaxLend.com for likely approval.
How Can You Improve the Odds of Approval?
The best way to improve your odds of getting a loan application approved is to provide adequate assurance to the lender that you will repay the loan. This could mean that you add a cosigner who guarantees to pay any remaining balance in the event that you fail to do so. It may also be possible to put up your home or car as collateral. However, collateral could be anything of value such as a rare gold coin or a painting that is valued at equal to or more than the loan amount.
Whether you believe it or not, the odds that you can get an installment loan are relatively high. Even if you have a checkered past when it comes to paying back debt, lenders are still available who will work to get your application approved. This may make it possible to consolidate debt, make a big purchase or even take that vacation that you have been dreaming about for so long.