Girl considering getting a loan

Being Prepared to Apply for a Personal Loan at a Bank

It is the Holiday season and many of us will once again watch the movie “Its a Wonderful Life” for the umpteenth time. We seem to never get tired of watching the life challenges that the James Stewart character goes through.

As the years have gone by, however, it has become more obvious how much the banking methods have changed in this country. Back in those days, a middle class person with good character could get a loan from any local bank. That was what we thought banks were meant for.

Today, it is really difficult to get a personal loan. Many large and regional banks have discontinued them. The financial institutions that are still offering personal loans require a top-rated credit history. They are quick to deny an application if all of their strict criteria is not completely met. Oh, and that good character thing – well that doesn’t matter anymore.

However, the need for a little cash to get over a slow period has not gone away. So, what do we do these days to give ourselves the best chance possible.

First, be prepared. When you do decide to apply for personal loan through a major financial institution, you do not want to be denied. In the Forbes article 5 Tips For Getting Your Bank Loan Approved, it states “It can be dangerous to your credit to continually apply for just any loan you think you may be able to get. Too many loan applications can ruin your credit and obliterate your chances of securing one in the near future.”

A key to not getting denied for a personal loan is to improve your credit history. One way to raise your credit rating is to acquire a secured credit card. Another way is to buy products on a payment plan that is easily within your ability to repay in a timely basis. For instance AddvantageUSA provides products that can be purchased online for a reasonable monthly payment. They then report your successful payment record to the major credit agencies. This is very effective.

These are a couple of ways to improve your credit rating in preparation of requesting a needed personal loan. Have you used other techniques? Share them with us.