Being prepared when you apply for a consumer loan is the most important step. This means that you should have or take with you, your most recent pay check stubs, your last Federal Income Tax return, household bills, and identification.
Fill out the application as much as possible. Also remember that you must prove you can pay back the loan. In other words you have to show you don't need the money in order to get it.
A consumer loan is normally only for a few hundred or thousand dollars. These types of loans may be used to purchase goods and services, such as automobiles or large appliances.
You can also apply online for a consumer loan. Most banks and loan companies offer an online application and many of them will also give you an instant answer.
If you are approved for the loan, further instructions will be given to you by the loan company or bank. While a lot of the loan process can be completed online, they may still be required to send you documents to be signed.
The proceeds from the consumer loan can be deposited directly into your account or you may request that a check be sent to you. You could also pick up the check if the bank is local.
A credit check will be run by the lender. If you have a good or medium credit history your chance of getting the loan at reasonable rates are excellent. If your credit history is not good, then your chances are much less or possibly even zero. The interest rates on a poor credit loan will be much higher than a good credit loan.
In getting a consumer loan for an automobile or large ticket item, the item purchased may be considered the collateral for the loan. In this case, if there is a default in payments , then the item will be repossessed.
If the loan company or bank feels the risk is too high, they may require a co-signer.
If in the end you were unsuccessful in getting approved for the loan, you have one consolation. Since you have applied for credit and have been denied, you can get a copy of your credit reports from the credit bureaus at no charge. This will give you the opportunity to see what needs to be done to clean up your report so that you may apply again in the future.