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:
Prime borrowers are the best customers so most likely, even the lenders with strict credit models, will approve your loan.
Applications from persons with prime credit score don't need many additional checks so their applications are processed faster.
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.
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.