How To Get Approved For A Personal Loan - YouTube

How to get approved for a personal loan.

Did you know that nearly half of all applications for personal loans are declined?

Yeah.

It's true.

Well, I'm going to tell you exactly what to put on your application, what they're looking

for, and how you can get approved for a personal loan.

Let's go.

I'm going to share with you a detailed step-by-step guide on exactly how to get approved for a

personal loan.

I'm going to share with you the biggest secret that I learned when I was just recently getting

approved for a personal loan for over $100,000.

And I'm going to share with you the number 1 thing that people put on their application

that gets them declined so you can avoid it.

So, let's talk about loans.

As many of you guys know, you will go to a bank a credit union to apply for a personal

loan.

They lend money.

And this is considered an unsecured loan.

So, let's talk about the difference in loans becuase there's 2 types of loans that banks

lend.

We have secrured loans.

Meaning it's secured or collateralized by something.

So, think of an auto loan or a car loan.

And then we have loans that are unsecured or uncollateralized such as a personal loan

or credit card.

Those are loans that are not secured by anything.

In other words, if you don't pay, they don't have anything that they can take back in order

to get from you.

So, when it comes from lending, banks are looking for low-risk loans.

And personal loans that are unsecured or uncollateralized are considered higher risk.

So, when we go to a bank and we're looking for funding and we're saying, "Okay, I'm going

get a loan.

They will lend you anywhere from 5,000 to 250,000 dollars in most cases, okay?

And they have these loans available.

You literally can go into almost any bank, credit union or lender and apply for a personal

loan.

Most of them offer it.

Now, here's the caveat that I said to you.

In many cases, the interest rate is going to be higher than a loan on a car or a house

because it is unsecured, it has no collateral.

So, you'll be looking at interest rates of about 9 all the way to about 3% on personal

loans depending on what state you're in.

If you have excellent credit and you have like 800 credit score, you're probably going

to be somewhere around 8 or 8 percent.

Even in today's world where we have really low-interest rates.

Now, yes, I have seen a few out there around 5 or 6 percent.

However, those are usually just for a certain amount of time and then the rate increases.

As I've mentioned before, I work in banking for over 18 years.

I literally was a VP at Chase so I can tell you, they are trying to make money when they

are lending.

So, personal loans are considered higher risk and they will have higher interest rates.

So, let's talk about how you get one.

Because personal loans are the highest-risk loans available, again, they're higher than

credit cards.

They are considered the highest risk type of loans that a bank will lend.

Literally, you will go in.

So, sign your name and they will hand you 10, 20, 50, 100 thousand dollars cash.

And you are able to do whatever it is that you want with that money.

Literally, I've gone to banks.

I've signed for a personal loan and they will ACH or wire the money directly into my checking

account and it's there in a matter of hours.

I've literally gone into the bank in the morning.

Got a personal loan and then a few hours later, all of that money was in my checking account.

So, it's an awesome thing to get and it is easy money if they will lend it to you.

But like I said earlier, most applications are declined because most people do not know

what to put on their personal loan application.

But you now know the biggest thing that you need to know about personal loans.

They are high risk.

So, what you're needing to do when you're filling out your application is think like

the bank.

What would lower the risk for the bank?

What would make them want to lend to you?

Let's talk about that.

So, on a personal loan application, there is one important question that is above all

of the other questions.

Now, of course, they are going to be looking at your name, your credit, your birthday.

You're going to have to fill out an application, give them all of your information.

They are going to pull your credit.

Your credit is going to be very, very important when it comes to personal loan because that

is the only thing that they have essentially to put the loan on.

How well you've paid other people is usually an indication of how well you'll pay them.

So, if you've paid all your other bills, you paid your credit cards, they will reasonably

assume, "Okay, if this person can afford this payment, they will pay me."

So, your credit is very, very important when it comes to a personal loan.

But even more important than the credit score...

Because again...

I can give you some tricks on how you can use other's people credit to get you this

loan.

The number 1 question on that personal loan that people answer very incorrectly is the

purpose of funds.

The purpose of the fund.

I want to say that again because I need you guys to hear this.

What are you using the money for?

That is the key answer, okay?

Because the thing with personal loans which makes them so great is they're not really

automated, alright?

So, I've worked in banking for many years.

Like I said, I worked at Wells Fargo, Bank Of America and Chase.

And in many of those cases, I had very high-level positions.

So, I know a lot of their inside information.

When it comes to auto loans, credit cards, and mortgages, in many cases, they have automated

systems, okay?

There's all this software that automatically approve someone for a loan.

But in most cases, not all but in most cases with a personal loan, you literally get in

front of a person.

Okay?

They have underwriters, a physical person just like in mortgages and auto loans.

But immediately, they usually don't have an automated process at all for personal loans,

okay?

They realy want a human to look at the applications.

So, this is to your benefit.

So, when you are answering the question as to what you are going to do with the funds,

you probably should say something that's going to make them want to lend to you.

What are you going to use the funds for?

Now, again, I'm not going to teach you guys to do fraud.

And I'm not going to tell you anything.

But I'm going to tell you what I put on my applications and why I always get approved

for my personal loans.

And you can do what you want with this information.

I am always building a business.

Okay, guys?

I'm always expanding my business.

I'm always adding to staff.

I'm always buying inventory.

I'm always expanding my business.

I'm using this money that they're giving to me even if it's a personal loan.

Even if I got to pay it back myself.

I am using this money to make me money, alright?

And banks, that is what they do.

So that really resonates with them.

You know, they were business too.

And in fact, banks get loans from other banks.

If you did already know this in the federal government and all this other stuff.

So, they are very apt and they're very open to what you're going to do with the money

and if you're going to use it to build and expand your business.

Now, if you're a start-up and you have no business whatsoever, you probably want to

take a day and go get a business license, an EIN number and do the things that I teach

you.

I have a whole video teaching you exactly how to set up your business really quickly.

And then you have a business and you can say, "This is what I'm doing with the money."

Instead of more so than paying off your credit card debts, which is not a bad one.

This is probably the second-best reason, is debt consolidation.

Because if you can show that you consolidating these debts to have these payments...

You know, so, you add up all your credit cards and you at 1,000 a month.

And they're going to give you a loan now.

And that's only $600 a month.

If you're taking that 1,000 and you were able to pay the 1,000, you'll likely be able to

pay the 600, okay?

So, that's the second-best reason is debt consolidation.

They like that, okay?

They like that you're going to pay off your other debts and then just use this one loan

to pay.

So, that's the second-best reason.

But the number 1 is expanding your business.

Because that lets them know too you have another stream of income, alright?

So, as long you're not saying, "I'm quitting my job to go do this new venture", never tell

the bank that.

In many cases, they will lend you the money.

And this is a great way where people are able to fund their own business using their own

personal credit and instead of using your own savings or money that you saved, you literally

can use other people's money that you borrowed for your business.

Number 2.

This is another secret step, okay?

Number 2 hidden way if you are looking for a personal loan is instead of going to a bank

like Bank Of America, Wells Fargo, Chase.

You know, all of those big banks.

Don't get me wrong, big banks are fine.

But for most people that don't have a lot of money, you don't have hundreds of thousands

of dollars on deposit with them, you probably want to use a credit union.

Credit unions are a lot smaller and they're member-owned.

And remember as a member of a credit union, you are a part of the credit union.

You are not just a customer.

You're a member.

You've paid a membership fee and they are smaller.

So, yes, in many cases depending on the credit union, they may have stricter guidelines.

But oftentimes, they will go above and beyond for their members.

Additionally, they usually have a lot of unadvertised programs.

For example, one of the ways that I really got started in investing before I was able

to do all the things that I could do a business credit is I would get CDs at my credit union

and then I would borrow against the CD.

So, here's the trick.

Let's say I had $10,000 in my 401(k).

Take the money out of my 401(k), put it on a CD, a certificate of deposit.

They would do a loan against that CD.

Meaning, they gave me the money right back in my pocket.

So, I gave them the $10,000.

They gave me a CD and then I also sign a loan for that $10,000 and they hand me the money

right back.

Okay?

So, this improves your credit because now you have a tradeline on your credit report.

It's a secured loan.

So, essentially if you don't pay it back, they have that CD even though it's kind of

weird because you got the money right back.

So, this is a way where you can kind of cheat the system.

You can use credit unions and you can use secured CDs as saving as a way to get money

or a secured savings account.

So, remember, you just gave them the money and they gave it right back to you.

So, that's another hidden way.

Okay, I have a free gift for you.

Go to Noellesfreetraining.com.

I've created an entire course.

It's about an hour-long.

A complete training just for you.

It will teach you in detail my exact formula for investing without losing money.

And again, completely free.

Check it out at noellesfreetraining.com.

I want to make sure that you have all the tools, all of the knowledge, and all of the

resources that you need to be successful.

This is Noelle.

To your success.