Why take a personal loan when I have a good or excellent credit score?
First of all, let be sure we know what is a good or excellent credit score.
There are a couple of different ways to establish the ranges of credit scores: excellent, good, fair, poor, very poor or bad. The most used models are Fico Score, Vantage Score – version 3 (both with a range from 300 up to 850 points), Experian National Equivalency Score (360 – 840), Plus Score (330 – 830), TransUnion (100 – 900), Equifax (280 – 850) and CreditXpert (300 – 900).
When is about FICO Score, there is also another classification of the borrowers: super prime, prime, near-prime and subprime. Super-prime and prime can be considered like equivalents for excellent respectively good credit score. The scale can vary by credit agency but, in average, a prime borrower has a credit score from 680 to 750, a near-prime falls somewhere between 630 and 680 and a subprime is below 630.
As expected, the prime borrowers have access to unsecured loans, with friendly APR. But sub-prime borrowers usually qualify only for secured loans which require another person in guaranties or pledge over personal assets (car, motorbike, boat, land etc).
How credit scores affect personal loans
Credit scores affect personal loans in two ways. First is the chance of approval. Borrowers with perfect credit scores will be considered as the perfect borrowers and will get the loan almost all of the times but borrowers with less than perfect scores can still be approved, however their chances are greatly reduced.
The second way in which credit scores affect personal loans is by affecting the interest rate of the loan. Lenders interest rates are not fixed, they can vary from borrower to borrower, with the lower rates being offered to those with good credit scores. If you want to get a personal loan with a bad credit, expect to get a higher interest rate, because the lenders have to cover the risk.
Application process for personal loan with good and excellent credit score
People with good or excellent credit score usually have a strong credit history, which means that they already paid some credits. And in this case, the first temptation is to apply, when is the case, to the same lender because the application process is supposed to go quicker and also the borrower already knows some contacts like credit officers or other employees there. But this does not necessarily mean that the financial conditions are the best. Another option is to look for better lenders by searching directly online. Or, in order to save time, a smart move is to apply on specialized websites, like 36MonthLoans.com, because your application will be sent automatically to a panel of good lenders. So finally, you can choose the offer that fits better your needs. Anyway, at least you can try this before going to the last credit agency you have applied to, because the financial market is quite dynamic.
How to apply online for a personal loan with good or excellent credit:
Fill out the form and let the lender know how much you need to borrow.
With a prime credit score, your chances to get approved are high and the approval process quick.
Get the Loan.
If approved the funds will be wired or will need to be picked up personally.
How to take advantage of your good or excellent credit score
It is about humankind that any lender will try to persuade you that it has the best conditions for you. But a specialized site, which is, in fact, a loan matching service, only helps you to get in contact with a series of good lenders and guides you how to select the best credit offer, as well. Of course, our site is quite interested to gain the trust and respect of the people with good or excellent credit score, also because this kind of clients assure a very good cooperation, even with the lenders.
So we are keen to emphasize for you some of the aspects which matters when applying to a personal loan and you have a trustful credit score:
Access to the best lenders on the market
Prime borrowers are the best customers so most likely, even the lenders with strict credit models, will approve your loan.
Shorter processing time
Applications from persons with prime credit score don't need many additional checks so their applications are processed faster.
Higher loan amount
Prime borrowers represent the lowest risk for the lender so qualify for higher loan amount.
The higher credit score you have, the lower the APR for the loan program you are approved for.
Flexible loan terms
Loan repayment in up to 36 monthly installments. Flexible loan duration for clients with good/excellent credit score.
Online personal loans are most of all unsecured so there is no need to provide any collateral. That means there is no risk of losing any personal belongings.