A personal loan is truly the loan for any reason. From consolidating your debt to redecorating your home, taking a vacation, there are many reasons for which one might apply for a personal loan. A personal loan allows the borrower to borrow a certain amount of money without requiring any collateral, and pay it back through monthly installments.
The lender’s requirement for offering a personal loan is very simple. Most financial institutions ask for:
Social security number
Current employer information
Previous employer information
Gross income
Purpose of the loan
Co-applicant information, if applicable
Apart from traditional lenders, major credit card companies also offer personal loans. To avail this, you must be a pre-approved card holder. Your creditworthiness and other factors are taken into consideration to decide the APR and loan amount. Even though this process seems simpler and easy, not all customers might be pre-approved to procure a higher loan amount or a low APR. Major card companies offering personal loans also allow you to set up automatic payments, thus simplifying the monthly payment process.
It is imperative to have a good FICO score for being eligible for a personal loan from a traditional bank. Some borrowers perceive applying for a loan from a big nationalized bank as a hassle because of their many rules and paperwork. This leaves them with the option of applying to a credit union or a local back. Credit unions are usually smaller in size as compared to a nationalized bank and thus the attention a borrower gets is more personalized. It is recommended to open an account with a credit union and do some transactions with them for a continued period of time, thereby building a credit history. In the future, if the situation demands you seek a personal loan, your relationship with the credit union comes handy.
Availing a personal line of credit can be another option to securing a personal loan. A personal line of credit gives you a maximum amount of money that you can use over a period of time, and you can borrow against that amount as and when a financial need arises. The repayments are made only for the amount of money borrowed, not the entire amount of line of credit. Good credit is a prerequisite. Lines of credit tend to have higher interest rates and smaller minimum payment amounts. They have an immediate and larger impact on the borrower’s credit score. An easy personal loan helps you lead your life to the fullest.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.