Asked by: Kris Gleason | Last update: February 28, 2026 Score: 5/5
(50 votes)
9 reasons for personal loans
Debt consolidation. Debt consolidation is one of the most common reasons for taking out a personal loan. ...
Home improvement projects. ...
Emergency expenses. ...
Vehicle financing. ...
Alternative to payday loans. ...
Moving costs. ...
Large purchases. ...
Wedding expenses.
What is the best excuse to borrow money?
Unexpected Expenses : Explain that you have encountered an unforeseen expense, such as medical bills, car repairs, or home maintenance.
Educational Costs
Job Loss or Reduced Income
Emergency Situations
Starting a Business
Repaying a Loan
Support for a Cause
What is the best reason to say when applying for a loan?
Key takeaways
Most people borrow money to consolidate debt. Bills, home improvement projects and major expenses are other popular reasons to get a loan. You should only get a loan for necessary expenses and when you can afford the monthly payments.
What's the best thing to say to get a loan?
Ask them how the current high interest rates are affecting them. How do they make their purchases? (Credit card? Do they carry a balance?) Are they doing any home improvement? Do they have anything set up in case of an emergency? (No or if they don't want to use their cash a HELOC might be helpful).
What makes you more likely to get a loan?
Credit score
A good credit rating shows us that you have a track record of repaying loans on time. This means you are a lower risk. You are more likely to get a loan approved, sometimes at better rates.
$40,000. Loan With Bad Credit - no income verification - Soft Credit Pull
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How do I increase my chances of getting a loan?
Build and improve your credit score
It shows lenders how reliable you are at borrowing and repaying money. A good score can help you get approved for a loan, while a poor score can stop you from getting approved. Your credit score can also help lenders determine the amount they can offer you and the interest rate.
Does the reason for a loan matter?
The loan purpose matters because the lender needs to determine whether the money will be used for something it allows. Some lenders may have specific restrictions as to what funds can be used for. The purpose of your loan may also impact the amount, interest rate and terms you qualify for.
What not to say when getting a loan?
10 Things Not To Say To Your Mortgage Broker | Loan Approval
1) Anything untruthful.
2) What's the most I can borrow?
3) I forgot to pay that bill again.
4) Check out my new credit cards.
5) Which credit card ISN'T maxed out?
6) Changing jobs annually is my specialty.
Which bank gives a loan easily?
HDFC Bank customers can get Personal Loans with minimal or no documentation. In fact, if they are pre- approved for a Personal Loan, they can easily apply for it.
Which loan is easy to borrow?
Eazzy Loan is an easy loan to get, No guarantors, No forms, no branch visits. You receive the loan instantly on your phone, saving you valuable time. It offers a flexible repayment period of up to 24 months.
What to say when you want to borrow money?
Here are some tips for crafting a polite request for money:
Be transparent: Be open and honest about your financial situation and your need for money. ...
Be specific: Be clear about the amount of money you need and the repayment terms. ...
Show gratitude: ...
Follow-up: ...
Respectful:
Do I need to give a reason for a personal loan?
When you apply for a personal loan online, you are typically asked the reason for your loan. You'll usually pick from a list of options, such as debt consolidation, a wedding, or another large purchase.
What is considered a good credit score?
For a score with a range of 300 to 850, a credit score of 670 to 739 is considered good. Credit scores of 740 and above are very good while 800 and higher are excellent.
How do you respectfully borrow money?
Insist upon legitimate terms.
You should discuss repayment plans and charging interest if you're borrowing a large sum of money from a friend. Make it all clear upfront. ...
Pay interest. ...
Offer collateral. ...
Discuss missed payment options.
What are 2 things you should not do when borrowing money?
What are 2 things you should not do when borrowing money?
Borrow Without a Plan: Imagine trying to build a house without plans – it's bound to end up a chaotic mess. ...
Overextend Yourself: Just because you can borrow a huge sum doesn't mean you should.
How do rich people borrow against their money?
Instead, they can take loans against their shares. Securities based lending, securities based lines of credit, home equity lines of credit and structured lending are options for leveraging assets without selling them. These loans tend to have relatively low interest rates because they are collateralized.
Which bank has the easiest loan approval?
Easiest personal loans to get
Best overall: SoFi.
Best for good credit borrowers: LightStream.
Best for bad or low credit borrowers: Upstart.
Best for low rates: Discover.
Best for low or no fees: PenFed.
Best for fast funding: U.S. Bank.
What credit score do you need for a bank to give you a loan?
To qualify for a personal loan, you generally need a minimum credit score of at least 580 — though certain lenders have even lower requirements than that. However, your chances of getting a low interest personal loan rate are much higher if you have good to excellent credit, typically a score of 740 and above.
What will get me denied for a loan?
Although there are various reasons for getting denied when applying for a personal loan, five of those reasons include a low credit score, low income, a high debt-to-income ratio (DTI), an unstable work history, or an inability to meet basic requirements.
What can hurt your chances of getting a loan?
Here are the TOP 6 things that consumers do regularly that hurts their chances of getting a home loan:
Not disclosing debts/commitments. ...
A poor Credit Score. ...
Living expenses that are too high. ...
Bad account conduct. ...
Focusing on getting the lowest rate. ...
Failure to understand the current environment.
Does LendingTree require proof of income?
After you accept an offer, you will need to communicate with the Lender directly (via mail, email or phone) to complete the loan process. You will need to verify the information you provided through our site through W-2 forms, pay stubs, house appraisals etc.
How to convince a bank to give you a loan?
5 Tips for Creating a Convincing Forecast for the Bank
There is an old saying that banks only give money to companies that don't need it. ...
First, Build a Real Relationship. ...
Know the Numbers. ...
Explain How You Made Your Forecasts. ...
Show How They Get Their Money Back. ...
Personally Guarantee the Loan.
What should I say I'm using my personal loan for?
Generally, the only time you'll need to specify a purpose for your personal loan is if you're planning debt consolidation. In that case, your debt-to-income ratio may be assessed for what it would be after you pay off other debts (student loans, credit card balances, etc.) with the personal loan.
How can I get approved for a loan?
Here are seven steps to guide you through the process.