Personal loan is a preferred loan type by consumers when they are in need of a huge cash inflow, as it offers a nominal interest rate. When compared to the rates on credit card loans, the personal loans offer a better choice especially in case of debt consolidation. Further the money can be used for any specific purpose including house renovation, car purchase, investments or vacation.
Granted personal loan cannot be ideal for all types of financial crunch situations, the flexibility it offers to meet your financial requirements is certainly a big selling point.
Chase Bank is the go to establishment, if you are looking to get a personal loan. With Chase online login site, you can address your most pressing financial need satisfactorily. The bank is a full service institution with services including mortgages, home refinancing, auto loans, home equity, car loans and more.
Being one among the largest banks in United States, you can find Chase bank locations nearby easily. And the process of applying and approval for the loan is also simple at Chase Bank. The procedures are simple and the approval chances are increased, if you have a savings or checking account with the bank.
Considerations for personal loan
Evaluate the loan amount
The first step in a personal loan application process is to check your credit report and score. This will help you identify whether your score can attract a lower interest rate. Contact the Chase bank location near you to know the interest rate offered. To assess the loan amount, you have to consider the following:
- Estimate your total annual income including the annual salary, investments and freelance work you are receiving income from.
- Find out your DTI (Debt to Income) ratio by adding all the recurring debt payments per month and dividing the amount by gross income per month.
- The DTI and annual income information should be included in the loan application along with other pertinent details required such as tax filings, pay stubs and bank statements.
- With a good DTI ratio and credit score, you stand to gain a faster loan approval and lesser interest rate on the auto loans, personal loans and any other loan you require.
Factors that favor loan approval
- Having a savings and checking accounts with a bank to which you are applying the loan gives you better advantage. This is because banks give preference for existing customers.
- For an unsecured loan at a reduced rate, it is important to have a high credit score. This shows your creditworthiness and lowers the interest rate on your loan amount.
- Debt payments should be less than 43% of your total annual income. If your DTI is high, your interest rate will also increase.
- Bad credit reduces chances of approval, especially a score that is lower than 630. You may need a cosigner for gaining the personal loan approval as the lower score indicates you are a risky money borrower.
Once you have applied for the loan, the application will be reviewed and you will receive notice on whether you are approved or the loan is denied. With Chase Bank, the processing is done within 24 hours. With a DTI ratio fewer than 43 and credit score above 630, the possibilities of getting faster approval is more.