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How to Prepare for an Online Personal Loan

[Oct 1, 2009.]

 

People looking for personal loans are smart to look online.

People who prepare for an online personal loan are smarter.

Step One: Regularize Banking Activity

One month before it is absolutely necessary to borrow short-term using an unsecured personal loan, attempt to regularize your banking activity as much as possible.

Applicants who are changing and closing bank accounts, overdrawing bank accounts, and enduring levies placed upon bank accounts, are not helping their chances of getting an unsecured personal loan.

Even if you have a bank account with no money in it, if a personal lender can at least look at your bank statement and not see a sea of red ink, that looks for a personal loan online application.

Step Two: Go Cash Basis

Now it's time to break out the cash. What's left of it, anyways.

By using cash, personal loan hopefuls can decrease "on the books" spending, which is another factor that a lender will use to determine personal loan eligibility. People who use cash are also often more wary of spending, and that's another positive side of this strategy.

Personal lenders like to lend to people who are frugal and value every dollar.

Step Three: Do Some Credit Work

These days, with foreclosures and bankruptcies taking place by the millions, it's not hard to imagine that many people don't even want to look at their credit report. Credit reports get ugly fast when bills go unpaid, and it's hard to keep bills paid when unemployment occurs.

Before applying for a personal loan, prepare the right way by doing some basic, relatively easy credit work. Pull up a credit report and contact each lender, attempting to work out some sort of arrangement. A forbearance due to unemployment is a strong choice here.

Don't overcommit to any payments right now, but just contact each lender. Ask the lender to communicate to the credit reporting bureaus, also, that efforts of this nature get recogntion.

If nothing else, the act of contacting creditors in good faith is good karma when it comes time to apply for an online personal loan.

Remember: an online personal loan consists of asking a stranger for money. When performing that feat, it's important to do it in the right way, with the best foot forward.

 

About Author:

Andrew Freiburghouse is a writer and businessman. He has worked as a magazine reporter, tax preparer, screenwriter, copywriter, and loan officer. He graduated from Santa Clara University in 1999 with a B.A. in English. Andrew was born and raised in the City of Los Angeles.

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