How to Get Personal Long-Term Loans

A personal long-term loan can be used to meet expenses or consolidate loans.

A personal loan is a loan issued by a bank to an individual. It may be used for any purpose, including meeting planned or unexpected expenses as well as debt consolidation. Long-term personal loans have a maturity of up to 20 years and carry tailored terms and conditions reflecting the creditworthiness of the borrower.

Difficulty:

Moderately Easy

Instructions

Things You'll Need

• Personal loan credit application
• Strong credit score

1. Request a credit report from one of the national consumer credit reporting companies: TransUnion, Experian or Equifax (see Resources). Ensure that all of your information is accurate and that there are no errors negatively impacting your credit history. If you encounter any mistakes, contact the national consumer credit reporting companies and request a rectification.

2. Determine your financial requirements. Before submitting an application, review your financial situation to determine the amount that you wish to borrow and the length of the loan. Further, evaluate your preference for a variable or fixed interest rate loan based on your risk aversion and perspective on the economy and possible interest rate movements.

3. Call your bank or visit its website to complete a personal loan application. The bank will request a variety of information, typically your first and last name, Social Security number, marital status, income and assets. A loan officer will determine your creditworthiness based on the information you provide. The bank may conduct a credit check at its discretion.

4. Wait for a response. Some banks approve personal loan credit applications instantly, while others may take a week or longer to make a decision. If approved, review the loan schedule and make interest and principal payments on time to avoid incurring penalties or damaging your credit history.

Tips & Warnings

• Carefully review the terms and conditions of the loan. If you are confused about any aspect of the loan, do not sign the documentation. Pay particular attention to origination fees, interest rate terms and penalties.

• Given the potentially high interest cost of a personal loan, borrow the lowest amount that you require to meet your obligations.

References

• The Loan Consolidation: Facts On Long-Term Personal Loans
• Rebuild.org: Taking Personal Loan for Debt Consolidation?

Resources

• AnnualCreditReport.com: Request your free annual credit report