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Dec 13

How to Find the Right Personal Loan for Your Financial Needs

Reading Time: 3 mins

If you need money to pay off debt, handle an emergency, or buy something before you get paid, finding the right personal loan is necessary. Choosing the right type of personal loan can be hard, so you need to do your research and shop around. Here is an overview of how to get this type of loan without income verification, the two basic types of loans available, and why you should consider getting a financial advisor if you need a personal loan just to meet your basic needs.

The Best Way to Get a Personal Loan Without Income Verification

Non-traditional lenders, such as online lending networks, offer income-based personal loans without requiring credit checks. They typically require proof of employment and recent bank statements to verify the applicant’s ability to repay the loan.

However, getting a personal loan with no income verification is also possible. If you have collateral that the lender can take as your loan payment or good credit, you may be able to get a personal loan without having to submit proof of income. 

A co-signer with a good credit score can also help you get approved. However, if you have bad credit or too many negatives on your credit report, you’ll need to improve your credit score before you apply.

Remember that even if lenders do not require proof of income, they still may ask for other information, such as bank statements and asset documents. It’s essential to review the loan terms and conditions carefully before applying. It’s also necessary to feel confident that you can afford the monthly payments on your loan without stretching yourself too thin financially.

The 2 Basic Types of Personal Loans

Taking out a personal loan is an excellent way to cover unexpected expenses or make purchases you couldn’t otherwise afford. Banks, credit unions, and online lenders offer these loans.

A secured loan requires the borrower to provide collateral, and the collateral can be anything from a car to a house. Defaulting on the loan means the lender has the right to seize the collateral. Fear of loss can be a motivating factor in paying off the loan.

Unsecured loans don’t require collateral but carry higher interest rates and fees, and they also need borrowers to make regular monthly payments. However, if you have a low credit score, you may be able to get an unsecured personal loan still.

The best personal loan fits your needs and is least likely to hurt your credit history. 

Should You Hire a Financial Advisor, too?

While getting a personal loan may temporarily solve a financial problem, a long-term solution, if you’re frequently short on money, is to choose a financial advisor to help you organize your finances. 

Before hiring an advisor, ask about credentials. You can quickly search on the SEC’s IADP website to find registered investment advisors. You can also check with your state securities regulator, who will have information on reputable advisors.

When deciding on a financial advisor, be careful about their fees. Some advisors charge a flat or hourly rate. Only work with advisors with an investment policy statement outlining the goals, time horizon, risk tolerance, asset allocation, and other essential legal information. The advisor should also have filed this document with the SEC.

A Personal Loan is Simple to Obtain

Whether you’re looking to consolidate your debt or pay off a big-ticket purchase, it’s essential to find the right personal loan. Since there are many types of lenders offering personal loans, you’ll need to do quite a bit of research to find the right one for your needs and financial situation.

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

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