Whether you want to start a personal blog or another type of website, it takes time and money to set one up that’s visually appealing and fully functional.
It’s true that you can set up a decent website without spending a lot of cash.
But, if you really want to bring in lots of traffic to your website, you’re going to have to fork over some additional dough.
Don’t have the money to build or revamp your website? Don’t worry.
Keep reading for some tips that will teach you how to get approved for a personal loan to build (or improve) your website.
How to Get Approved for a Personal Loan to Build Your Website
A personal loan can give you the funds you need to get your website up and running (or make it run more efficiently).
Keep these eight tips in mind to ensure you get approved for your loan.
1. Learn Your Credit Score
It doesn’t matter if you need a personal loan for help paying guest bloggers or paying for your web development needs. Either way, it’s important to know your credit score before you start applying for personal loans to build your website.
It’s true that, when you apply for a loan, the bank or credit union will check your credit score. But, it’s still a good idea to know roughly what it is before you apply. That way, there won’t be any surprises.
What constitutes a good credit score? Most banks and credit unions will rely on your FICO score, which is based on the following ranges:
- 350-579: Very poor
- 580-669: Fair
- 670-739: Good
- 740-799: Very good
- 800-850: Excellent
In addition to checking your credit score, you may also want to evaluate your credit report and make sure there aren’t any errors that could hold you back from getting approved for your personal loan.
2. Get Pre-Qualified
You can also try getting pre-qualified for a specific amount. This gives you an idea of how much money you can receive, and it won’t affect your credit score.
In order to get pre-qualified, you’ll likely need to provide the following pieces of information:
- Social Security number
- Address, email address, and phone number
- Previous addresses
- Date of birth
- Employment information
- Monthly financial obligations (rent, student loan payments, etc.)
After you’ve been pre-qualified, you can take that information to other lenders and see if they will offer you comparable rates.
3. Reach out to Your Bank or Credit Union
Once you’ve learned your credit score and/or been pre-qualified, reach out to banks or credit unions in your area to learn their minimum credit score requirements.
Start by reaching out to the bank or credit union you are currently using. They already understand your financial profile and may be more likely to approve your application. This is especially true if you’ve been working with them for several years.
Keep in mind, too, that credit unions tend to have more flexible standards than banks. Even if your credit score is not ideal, you may still be able to get approved for a small personal loan from a credit union.
4. Consider Getting a Co-Signer
If you can’t get pre-qualified for a loan, or if you get rejected by multiple lenders, you might want to look into having someone co-sign your loan.
A co-signer agrees to take over the payments in the event that you cannot. Working with a cosigner can also help you get better loan terms since the lender will use their credit score instead of yours.
If you make all your payments on time and pay off the loan, you’ll be able to improve your own credit score, too.
5. Consider Getting a Co-Signer
Online lenders often have better interest rates and loan terms than other, traditional lenders.
They are also more likely to approve personal loans for people who have sub-par credit scores.
In addition to using an online lender for a personal loan, you can also work with them to obtain cash loans, credit cards, and lines of credit.
6. Read the Fine Print
Don’t forget to read the fine print of your loan prior to agreeing to the terms. Some specific terms to look out for include:
- Prepayment penalties (fees you’re charged if you pay the loan off early)
- Automatic withdrawal requirements
- Fixed/variable interest rates
- Flexible payment features (ability to change the payment debt, occasional late fee forgiveness, etc.)
You should also be sure to find out whether or not your loan payments are reported to credit bureaus. If they are, this will help to build your credit score.
7. Consider Peer-to-Peer Lending
If you can’t get approved for a traditional loan and can’t find anyone to co-sign for you, consider peer-to-peer lending instead. Peer-to-peer lending allows you to borrow money directly from an investor without having to go through a financial institution.
Peer-to-peer lending platforms are often more flexible and are willing to work with all individuals, even those with sub-par credit scores.
8. Beware of Personal Loan Scams
Finally, be wary of loan offers that seem to be too good to be true. You should also be on the lookout for various signs of loan scams, including the following:
- Having to pay a fee before you can be approved
- The lender isn’t registered in your state
- The lender doesn’t require information about your credit history
- Loan offers that come by phone or email
If you’re concerned about the legitimacy of a particular lender, contact your state’s Department of Financial Regulation or Department of Banking to find out if they are registered in your state.
You can also check with the Better Business Bureau to see if there are any complaints against the lender.
Start Building Your Website Today
Now that you know how to get approved for a personal loan to build your website, it’s time to go out and get the money you need.
While you’re waiting for your loan approval, you can start planning out how you want your website to look and function.
Start by looking at different WordPress themes or plug-ins that will help improve its appearance and make sure it runs as efficiently as possible.