You should also look at the type of loan each lender offers, as this will affect your eligibility. For example, some lenders only provide mortgage loans, while others offer a wide variety of other loan products. Finally, you should compare interest rates, taking into account both the initial rate and the annual percentage rate (APR), which includes both interest and other charges.
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Before applying, you should request quotes or risk-free preapprovals from several lenders. Some lender marketplace services do this for you, so you can compare rates without a hard credit inquiry. This will help you avoid paying unnecessary application or origination fees. When you apply for a personal loan, be prepared to provide a government-issued photo ID, proof of income and address verification. Most lenders will allow you to upload these documents via a secure portal on their website.
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A personal loan allows you to borrow a lump sum of cash and then make monthly payments on the amount borrowed. A personal loan can be used to finance a one-time expense, pay off credit card debt or cover an emergency expense. Most personal loans are unsecured, which means you don't need to put up any collateral to qualify. You can apply for a personal loan online, by phone or in person at your bank or credit union. Lenders typically consider your credit history and financial situation when determining if you qualify for a personal loan and what interest rate to offer.
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