Lenders reject a personal loan application mainly due to poor credit scores, high Debt-to-Income ratio (DTI), inaccurate or, incomplete documents, and inadequate income proof. Here are several steps that an applicant can consider in case of any loan denial: Why…
For a personal loan, a borrower needs to submit certain documents such as proof of identity, proof of address, proof of income, employment details, loan application forms, and photographs. On top of these, a lender will check the borrower’s credit…
A good credit score is generally 670 to 740 on a scale of 300-850 per the FICO score and VantageScore. A borrower can consider a credit score as good if it provides confidence in his creditworthiness to the lenders which…
Collateral can be any of your valuable assets that can be used as a security against a loan. Certain types of assets such as personal clothes, household appliances, electric items, future earnings, social security benefits, retirement funds, intangible assets, assets…
Debt-to-Income (DTI) ratio measures what proportion of your total income you use for your loan. Usually, the DTI ratio is used to measure borrowers’ ability to repay the loan. A higher DTI represents that most of your income you spend…
The annual Percentage Rate (APR) represents the annual cost of your loan in percentage. Any personal loan would cost you interest, processing charges, and any other associated fees. APR accounts for every costs and tells you what is your actual…
An unsecured loan is borrowing without any collateral. The borrower does not need to place any of his/her assets as a security (collateral) for the personal loan. Such loans are approved per the creditworthiness of the borrower which is measured…
A secured loan is a type of personal loan that requires a security (collateral) from the borrower’s side. In easy words, a loan becomes secured when the lender has the right to take over any of the borrower’s assets as…
A personal loan is a monetary support from the lender in return for interest payment that requires to pay the entire debt within a stipulated time farme. But navigating the world of personal loans can feel like traveling a complex…
