How to Borrow Money From a Bank

Banks have loan officers to help you with the loan process.

Banks lend money so consumers can fund items such as houses, cars, businesses and personal needs. Each bank has loan criteria that must be met and you must follow a specific loan procedure that will vary slightly from one bank to another. Borrowing money from a bank will require that you have income and are able to repay the loan.

Instructions

1. Contact the bank from which you wish to obtain a loan. Ask to speak to someone who handles loans. Inform the representative of the type of loan you wish to have and ask if the bank offers this type of loan. Not all banks handle all types of loans so it is important to know that the bank is capable of the type of loan you need. Ask how to begin the loan process. You may be able to do this online or in person.

2. Complete the loan application. The application will ask for your employment information and earnings. You will be asked to provide your Social Security number. The bank uses this number to check your past credit history. Submit the application as instructed by the bank representative. Additional documentation will be required depending on the type of loan. A car loan will require information on the vehicle, a mortgage will require a long list of specific information and a personal loan may only require you to prove your income and verify your credit history. The loan officer will list exactly what you need to complete the loan application.

3. Wait to hear from the bank on whether you are approved. Some banks may have the ability to approve loans immediately. This depends on the bank and the type of loan requested. A mortgage requires a long loan process and is not approved immediately, whereas a small personal loan may be approved and funded the same day.

4. Handle the account carefully. Make all payments on time. Failure to make your payments on time could lower your credit score and result in the bank being unwilling to loan to you in the future.

Tips & Warnings

• Resist the urge to lie on a loan application. Employment and earnings can be easily verified.

References

• Bank of America: Where to Borrow Money for College, Cars and Goals

Resources

• Read this Article in Spanish