In order to apply for an unsecured loan from Happy Money, you'll need to have a credit score of at least 640, a credit history of at least three years, a debt-to-income ratio of 50% or less, and no unresolved late payments. Lenders may have different qualification requirements, but there are some general factors that help you qualify for low rates. Borrowers with good, excellent credit (credit score of 690 or higher) typically get the lowest APR on a personal loan. Some lenders serve borrowers with fair and bad credit (credit scores of 689 or less), but the best terms and rates are reserved for those with high credit scores.
Lenders vary in terms of requirements for borrowers. A good credit score (a score of 690 or higher), a low debt-to-income ratio, and a credit history of at least a few years will help you qualify in most cases. Because you are not required to present any collateral, such as your home, car, or savings, unsecured loans pose no risk of losing your property if you default. However, there are still consequences, such as damage to your credit rating and the possibility of being sued if you don't make payments or don't repay your loan.
Take our 3-minute questionnaire and talk to an advisor today. Founded in 1976, Bankrate has a long history of helping people make smart financial decisions. We've maintained this reputation for more than four decades by demystifying the financial decision-making process and giving people confidence in the actions they should take next. Once you start the loan application process, the lender will analyze your credit rating, which will affect your credit.
While some lenders only lend to borrowers with high credit scores, others are lenient and willing to take risks with those with lower scores. Remember that if your credit rating is low, you may have to accept a higher interest rate. An unsecured personal loan is a type of loan that doesn't require you to promise the lender any collateral. These loans usually offer flexibility, since you can use the money in a variety of ways and choose payment terms.
However, there are advantages and disadvantages to consider before applying.