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Factors That Influence Your Chances Of Receiving A Signature Loan

When taking out a loan, you will most often need to put money down or offer something as collateral to be able to secure a loan. However, if you have done an excellent job maintaining a great credit score and if you do not want to put up collateral, you may be able to obtain a signature loan with the right qualifications. 

Your Credit Score

You will need at least fair credit to receive a signature loan. You should have a great credit report that does not have any late or missing payments for at least two years. If you have defaulted on debt or declared bankruptcy, you will need to wait even longer before you are able to take on a signature loan. A great credit score will give you a lower APR.

Your Bank Account Information

In some cases, you must have a bank account that has been open for at least a month. This is not necessarily to make payments from, but simply to verify financial information.

Your Debt-To-Income Ratio

Your income is also essential. This allows the creditor to determine your debt-to-income ratio, which can allow the creditor to determine how much debt you are able to take on. If you have a very high income, this may encourage a lender to raise the cap on how much you are able to loan.

Whether You Have A Permanent Address

You will need a permanent address. Otherwise, a lender may feel that he or she may have a difficult time contacting you if you default on your debt. If you have obligations in the area, such as children in a school system or a role in the community, these will increase the chances that creditors will want to lend to you. 

Whether You Are An Established Customer

One of the best places to get a signature loan is through your personal bank. Typically, the amount that would be loaned is $3,000 to $5,000. This is loaned to those who have been a customer with the bank for a long time and who have a great credit score.

The penalty for failing to pay off a signature loan is that you will receive a poor mark on your credit history. This can have an impact on your ability to take on debt in the future. However, even if you have a delinquent signature loan, paying it off will look much better.Contact a lender, like Las Vegas Finance, for more help.