If you are in search of a personal bank loan, then you probably already know that there are two such options available to you: the unsecured bank loan and the secured bank loan. In general, you will find that an unsecured bank loan has a higher interest rate as there is no collateral. On the other hand, a secured personal bank loan has collateral associated with it. With bad credit rating, you will face a little trouble in getting loan.
Do some shopping
When qualifying for a personal loan, you have to find one which suits you both in terms of need, as well as financially. The best way to do this is to perform some shopping. Look around for different lenders who offer worthwhile personal loans at affordable rates. Use different loan quotes, both online and locally to perform side-by-side comparisons to find the lender offering the best loan deals, as well as the best rate loans.
Filling out a loan application
After searching, proceed to fill out the respective loan application forms. You will need to fill out general information relating to your name, address, as well as date of birth. Moreover, when filling out the application, you will need to fill out your financial information. This includes your employment, monthly salary, relations with other banks, etc. Moreover, opt to pay the maximum amount as down payment due to bad credit score. If required, get a co-signer whose credit rating is high.
Obtaining financial documentation
As you have filled out your financial information on the loan application form, you will have to provide documentation to provide proof of your current situation. Different lenders have different requirements in this area. However, you can expect to be asked to provide a letter from your employer validating your monthly income, as well as job security and monthly statements from your local bank.
UK secured loans will require you to provide collateral. This has the benefit of lower repayment terms, as well as interest rate. You have to ensure that the collateral you provide has equal or more value than the loan you are applying for.
Cross-check application form and supporting documentation
Ensure that you crosscheck your application form and supporting documentation to ensure that there are no errors. To successfully qualify for a personal loan, whether secured or unsecured, your application form and supporting documentation need to be correct and thorough.