How to request a personal loan for bad credit from the bank in 25 questions

Do you need a personal loan to finance a project? Discover what you should take into account to get it at the best price.

Requirements to get a personal loan

Before asking for personal loans for bad credit, it is important to analyze our own economic situation to know if we fulfill the conditions to access these products. The requirements that an entity may require may vary according to its risk policy and the amount of money we request, but in general, we will always have to comply with the ones listed below:

  • Be of legal age and resident in the USA. Additionally, it is possible that they demand a higher minimum age (of 21 or 25 years, for example) and that they do not allow us to access credit if we exceed 75 years at the end of the term. To demonstrate that we meet these two requirements we must present a photocopy of our identity document.
  • Enjoy a good level of income. No one will lend us money if we do not regularly charge a sufficient amount to pay the loan installments and meet the rest of our recurring expenses (utility bills, rent or mortgage receipts, etc.). In this sense, employees and pensioners are more likely to obtain financing, since their income is more stable.
  • Have a healthy credit history. Our possibilities for obtaining the requested personal loan will be greater if we do not have other credits in force and we have returned our previous loans without incident.
  • Do not appear in files of defaulters. No bank (or most alternative lenders) will approve our application if we have an unpaid debt recorded in a list of defaulters such as ASNEF, RAI or BADEXCUG.

In addition, if we go to a bank, it is likely that we will be required some seniority (usually a few months) and that we have to contract other related products, such as insurance or credit cards.

Alternatives to personal bank loans

The banks are not the only ones that can grant us a loan to finance a particular project. Below we show what other options we have available if we want to obtain a consumer credit:

  • P2P Loans: are the credits that are granted through crowdlending platforms. In this case, when requesting financing, the platform evaluates our project and, depending on our level of risk, assigns an interest rate to the loan. If we comply with the requirements, the project will be published on the website of the platform and investors attached to it can contribute the capital of the loan.
  • Private quick credits: they are financial products that are granted in a matter of a few hours, sometimes even in minutes. They are commercialized by private equity companies that do not receive supervision from the Bank of Spain and their access requirements are more flexible than those required by traditional banks, although they are also usually more expensive.
  • Financing granted by private establishments, concessionaires and department stores: if we want to buy a specific item or product, such as a car, a computer or a smartphone, we can go to the financial services of the company that sells the product. This will finance the purchase and allow us to pay it in several monthly installments.

Depending on our financial needs and our profile, we will pay more to go to the bank or we will have to resort to an alternative provider.

Compare loans and find the best

One of the keys to financing at the best price is to compare several personal loans to find the one that offers us more attractive conditions. These are the aspects that we must keep in mind:

  • The interest rate applied: interest is what determines the “price of the credits”, that is, how much money we will have to pay the bank in each installment and in total to repay the contracted loan. The indicator that shows us what the interest rate applied is the TIN.
  • The commissions are the management and study expenses that the bank can charge us for the procedures that must be done to put the money at our disposal.
  • The terms of connection: if we ask for a personal loan from a bank, it is very likely that we will only grant it if we fulfill certain conditions of connection, such as having a payroll registered or contracting other products (insurance, credit cards, etc.).

In addition to the factors that influence the price, we must also look at other characteristics, such as if the requested credit includes a grace period or if the concession process is fast.