How to Qualify for an Unsecured Line of Credit
In its most basic definition, an Unsecured Line of Credit is Unsecured Funding offered to an individual that does not require collateral. Different banks and lending institutions will often refer to an unsecured line of creditby different names, such as a “signature loan or personal loan”. The monetary limit of the line of credit will often be dictated by your annual income and your personal credit history. In order to qualify for your own unsecured line of credit, your first step will be to pull your credit report @ FreeScore 360. You will need to compare your credit history and personal credit score with the accepted standard for “good” credit. A personal credit score can range from 300 to 850, but most scores below 620 are considered rather poor. Banks associate individuals with low credit scores as being high risk, and therefore, they are unwilling to extend them lines of credit. If your credit score is beneath 680, it is recommended that you wait and apply for your unsecured line of credit until it has approved. Because these loans do not require collateral, it is highly difficult to be approved for one if you’re considered to be a high risk borrower. The next step in qualifying for an unsecured line of credit will be to resolve any delinquent debts on your credit report. These debts can be paid in one lump sum or by arranging payment plans with your creditors. A delinquent account is defined as one in which the payments are more than 60 days in arrears. You can also choose to dispute any errors you have believed to occur by filing a complaint with the credit bureau. You must also pay close attention to closed accounts or accounts that might have been sent to a collection agency to ensure that they have been paid in full. Once your credit has been adequately repaired, you will next need to compare the interest rates and fees on unsecured lines of credit by various lending institutions, including banks and credit unions. You will be able to fill out applications for these lines of credit by filling out an online application or speaking to a professional customer service representative. Finally, you should be prepared with all of the necessary requested information, including your Social Security number, annual income, and your total monthly debt. In general, it will take a lending institution 2-5 business days to process your information and issue you a response.
Presta Funding Group, Inc. 2014
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