The economic crisis is biting everybody—including those who are perceived to be affluent. That’s why people are turning to loans to sort out different financial situations. So, if you find yourself in a financial crisis, worry no more. You can obtain a loan for that project of yours. Whether you want to renovate your home or purchase a new car, you can get a personal loan from Citrus Loans and let your money do the talking.

The following information contains personal loan basics—including qualifications, terms, and conditions, as well as how to secure the best on the market today.

The Basics

Unlike credit cards, most personal loans come with fixed interest rates. Plus, the repayment terms of personal loans are fixed. You can use personal loans to consolidate your debts or remodel a house project. According to research, a good number of personal loans are unsecured. This means that you don’t need to have collateral to access most personal loans. It’s also important to note that most personal loans come with relatively lower interest rates.

Why Personal Loans

Clients look for personal loans for a number of reasons. Common ones include:

♦ Car purchase

♦ Higher education fees

♦ Home repairs

♦ Hospital bills

Finding the Loan

When shopping around for a friendly personal loan, it’s advisable to compare different providers on the market. Look at the interest rates offered. Check the fees. What are the existing terms and conditions? Obviously, you should choose a loan that comes with the lowest interest rates. However, fees charged plays a key role.

For instance, some lenders will charge you original fees of between 1-8 percent. Also, you may be charged a one-time application fee. Thus, you should establish all the details before applying for your personal loan. Along those lines, here are tips to guide you get the best personal loan on the market:

Competitive Interest Rates—be sure to choose a personal loan from a lender with competitive interest rates.

Fees—Compare different lenders on the market. Go for a lender who charges zero fees. Alternatively, choose a lender with minimum fees.

Repayment Terms—choose a lender with flexible repayment terms. For instance, choose a lender that offers monthly repayment.

Qualification

Of course, you can qualify for a personal loan with a bad credit score. However, you might be required to bring collateral. Also, you might have to pay a higher interest rate. So, before choosing any lender, go to its website. Then check if your credit score allows you to secure a personal loan. It’s also important to note that a credit score of between 670 and 680 might deny you a personal loan.

Employment

Some companies may require proof of employment before advancing a personal loan to you. Alternatively, if you have a reliable source of income, it can be of great help. Plus, your debt-to-income ratio might also be checked before determining your eligibility to get a personal loan. With a debt-to-income ratio, your company will determine your feasibility to pay back.

Factors to Consider

Before approving your personal loan, your lender will focus on the following factors

Income

Normally, any lender will try to establish whether you have a steady income. This is aimed at ensuring that borrowers have the capacity to make monthly payments as clearly spelled in your loan contract.

Employment

You must show proof that you are employed to qualify for a loan. However, this differs from lender to lender. In particular, most employers will require you to work on a full-time basis to qualify for the personal loan. However, if you work on a part-time basis or self-employed, there are several loan options you can leverage on.

Job Title

Your job title can also play an important role when it comes to getting your loan approved. Thus, your lender might enquire about your job title. Cross-referencing your job title eliminates the possibility of fraud. Also, the cross-referencing with your job title helps lenders in assessing the possibility of default.

Credit History

Your lender will check your credit history before approving your personal loan. So, it’s important to ensure that your credit score is good. Clear all pending bills. Don’t make loan defaults—it can taint your credit score. However, if your credit score is already bad, look for loan options with a bad credit score. Note that such loans tend to attract high-interest rates.

Loan Security

Personal loans are divided into two categories:

♦ Secured loans

♦ Unsecured loans.

With a secured loan, you will need to have collateral. Loans that fall under this category include mortgages, car loans, etc. On the other hand, you don’t need to have collateral to apply for unsecured loans. It’s also important to note that your credit score will be used to approve an unsecured loan.

Assets, Debts, Expenses

Your lender will require you to document your assets, debts, as well as liabilities when applying for a personal loan. Your debts and assets will be used when it comes to the calculation of the debt-to-income ratio.

Additional Quick Tips

The following tips will help you get your personal loan approved.

Open an Account

Consider opening a checking account with your chosen lender. This will help you establish a strong history with your lender— which will boost your chances of securing a future loan.

Debt-to-Income Ratio

Lowering your debt-to-income ratio to at most 40 percent can help get your loan approved. Earn more money on a monthly basis. Then pay off those outstanding balances. It will lower your DTI.

Income

Having a steady income will increase your chances of securing a personal loan. Also, most lenders don’t like advancing loans to employees who are serving their 90-day probation period.

Unsecured Loans

The following are common characteristics of unsecured loans.

♦ The amount you can borrow is fixed

♦ Unsecured loans come with a fixed interest rate

♦ Also, you are given a fixed repayment period

♦ Unsecured loans are characterized by a fixed monthly repayment amount

The Bottom-Line

 Financial emergencies do happen. They can be frustrating. Plus, financial emergencies can really pin you down. That’s why you should have a financial partner to rescue you from any financial burden. The above information will help you secure your loan and continue living happily.

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