How to Get a Loan From a Bank
Whether you need cash to consolidate debts, make home improvements or pay for your child's college tuition, you can obtain funds with a bank loan. Not everyone qualifies for a bank loan, and banks have strict lending requirements. However, individuals who meet the bank's loan requirements are generally able to receive a loan with little hassle.
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Instructions
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Open a bank account. When deciding whether to approve a person's loan application, banks typically look for bank account information. If you don't have a bank account, visit your local bank or credit union and open a checking or savings account.
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Establish a credit history. To obtain a bank loan, lenders generally require an acceptable credit history. Maintain at least two credit accounts (credit card, auto loan, installment loan), and pay your creditors on time every month. Keep your debts low and limit your number of credit inquiries.
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Choose collateral for the loan. Individuals with a sizable income and excellent credit may qualify for an unsecured bank loan. However, these loans involve higher interest rates. To obtain a lower rate, apply for a secured bank loan, and secure the loan with a car title or other piece of property.
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Ask someone to co-sign the loan. If you can't qualify for a bank loan on your own, find someone (sibling, parent, spouse) with a good credit history and ask them to co-sign the bank loan. As a co-signer, they're obligated to repay the loan if you default.
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Shop around and compare loan rates. Because lenders vary, they charge different rates. Speak with at least three loan officers and request a free loan quote. Quotes estimate your interest rate and monthly payment. Compare the offers and pick the lowest quote.
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