Commercial Banks – Commercial banks make loans mostly for commercial ventures and small businesses. Smaller loans, especially if you're a long-time customer, are also available.

Credit Unions – Credit Unions offer fewer fees and lower interest rates, but are only available through affiliated membership.

Government Agencies – Both the US and the UK offer special loans for investments, low income, or many other special standards. These rates are often locked in, and always reliable.

Online Lenders – Very often low cost options are available to online consumers in order for online lenders to be competitive. Consumers may benefit from these loans due to the increased efficiency of online lending. Most communications can be sent via email for added convenience.

What to Do Before You Apply for a Loan

Clean up your credit report.

Be sure to clear up any credit problems before you apply for a loan. If any problems turn up later, a lender won't want to hear your explanations. You can get help on cleaning up your report.

Provide all the requested information quickly.

If the loan officer asks you for a pay stub, get the pay stub as quickly as possible. Holding up the process never goes well, and can even cost you the loan if the lender fears that you'll be as slow to make your payments. Try to have as much information available for the lender as possible so as to speed up the loan process.

Keep in Touch

Call your loan officer periodically to check on the progress of your loan processing. If there are any problems, you'll want to know immediate. You should always make sure that you are not responsible for holding up your own loan.

Don't Make Any Big Purchases

If you go out and buy a new car right before you apply for a loan, that debt is going to appear on your record. If you buy this car after you apply then the debt my also show up because some lenders run two credit checks: one when you apply and one just before closing. So if you're contemplating a big purchase, wait until after your loan is closed.

How to Apply for a Loan

Applying for a loan is as easy as filling out a form and talking to your lender. First, though, you'll need a little information about yourself. Exactly what you'll need depends on the type of loan you're seeking and where you're applying. Here are a few examples, but be sure to check with your lender to make sure you have all your information available.

Most Loans Will Require:

Name and phone number of nearest relative not living with you

Length of time at your current address, and monthly mortgage/rent payment amount

Employer name, address and phone number (if applicable)

Length of employment (if applicable)

Amount of yearly salary

Any other annual income that should be considered

Other loans may also require information about your vehicle or home, a Lease, Franchise Agreement, Purchase Agreement, Letters of Intent, Plans, Copies of Licenses, or Letters of Reference. Regardless, you should always be sure to consult your lender as much as possible to be sure you're getting the best loan possible for your circumstances.

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