Home Money Management Malloy Lending Low Loan Rates Are Rubbish

Malloy Lending Low Loan Rates Are Rubbish

Malloy Lending Loan Review

Malloy Lending 3.03% APR Loan?

Who is Malloy Lending? Are you considering Malloy Lending to take out one of those too good to be true 3.03% APR credit card consolidation loans? That may not be the wisest decision. You may have received a direct mail from Malloy Lending, Polo Funding, Jackson Funding, Nickel Advisors, Coral Funding, Piper Funding, Saxton Associates, Credit9, Apply Credit 9, Hornet Partners, Polk Partners, Americor Funding, which have been flooding the market with unrealistically low-interest rate offers that promise a bit more than they can actually deliver. Best 2020 Reviews has been following Malloy Lending and its affiliated websites for some time. The unrealistic interest offered to consumers with less than perfect credit is simply ridiculous.

Malloy Lending Loan Review
Credit: DeawSS

How To Prequalify for a Personal Loan

Personal loans are an excellent option to finance various personal expenses, including but not limited to, consolidating debt, getting dental treatment, and buying things of value. Personal loans are much more convenient to manage than bank or credit cards. They offer better terms as well as lower interest rates.

Personal loans with low APRs are available through various lenders. The options include some local banks, credit unions, or online lenders. Depending on your situation and needs, you can choose to apply for a loan from any of the three sources. Each lender has their own particular requirements, based on which they offer loans.

Getting good rates and terms depend largely on your credit score and credit history. But even if you have fair or poor credit, you’ll have options of lenders that offer loans to such candidates. However, the terms and APRs may not be as flexible for borrowers with bad credit scores.

First of all, you need to pre-qualify for a personal loan. It is a preliminary step in the process of the approval of your loan. It provides lenders with the chance of going through your credit score and history, and it provides the borrower an overview of what type of term and rates to expect.

However, you must note that pre-qualifying doesn’t guarantee approval.  Lenders will still verify and double-check your information before approving your application.

If you’re worried about the pre-qualifying steps, we’ve got you covered. Let’s discuss them below.

Personal Loans and Coronavirus

A lot of Americans need help during coronavirus but the trouble is that they are largely oblivious of where to get this much-needed assistance to make it through such tough times. The bottom line is it is a lot tough tougher to qualify and bait and switch loan scams are everywhere.

Steps involved in pre-qualifying for a personal loan

The pre-qualifying steps are not complicated, and they include the following procedures:

  • First, you need to fill out a pre-qualification form, which will include your personal information and details about your income, profession, as well as existing debt.
  • Then, the lender does a soft credit check on your record and will assess your credit score and credit history. This determines the risk factor of lending the money to a certain borrower.
  • After the background check, the lender decides whether to deny or accept your pre-qualification. If you’re accepted, you’ll be notified and will be given information on terms. This information will generally include interest rates, amount, as well as the term.
  • You’ll have the right to either decline or accept the pre-qualified offer. If you choose to accept, you’ll be eligible to formally submit an application. You may be required to provide additional information for further verification.

Pre-qualification steps are not exclusive to personal lending. They are also quite common when you apply for other financing options like credit cards and mortgages.

What information is offered to you during the process of pre-qualification?

As the rates and terms offered vary from lender to lender. It would be best if you pre-qualify for multiple personal loans at once, so you can compare them and choose the best possible option.

In the pre-qualifying stage, you can access information on the terms of the loan, the amount offered in the loan, and the interest rate. Although they might change after the lender assesses your financial history and credit score, they mostly remain the same.

Is your credit score impacted by the pre-qualification process?

In the pre-qualifying stages of a loan, the credit score isn’t really impacted. The lenders perform a soft credit check to verify your credit information. However, that inquiry isn’t shown on your credit report. This provides you with the liberty to pre-qualify with several personal loan lenders simultaneously to find a loan option that works in your best interest.

If you’re accepted in the pre-qualifying round, the lender can later verify your financial record and can do a hard credit check. This would appear on your credit report for a maximum of two years and could subtract points off your credit score.

How to improve the chances of approval in the pre-qualifying stage?

Your credit score is the determining factor in the acceptance of your pre-qualification. It reflects the borrower’s financial record and stability. Therefore, building an excellent credit score is a sure way to pre-qualify for a personal loan. 

To improve your credit score, you must pay your bills on time. You must lower your balances, and pay your credit card and any other loan payments in full every month.

Is there a difference between pre-qualification and pre-approval?

When it comes to personal loans, there’s not much difference between pre-approval and pre-qualification. Most lenders use these terms interchangeably.

Pre-approval is the term most associated with large loans such as mortgages. It is also used for credit card offers from banks and other loans from different lenders.

What comes after pre-qualification?

Online personal lenders usually accept pre-qualifications within minutes of the application submission. You then proceed to the official process of the loan application. It usually includes submission of documents showing financial histories, such as bank statements and recent tax returns.

This information is used by the lender to verify your financial history and the details submitted by you in the pre-qualification stage.

What to do in the cases of adverse action?

Adverse action is the notification you receive in case your application is denied. This usually happens if you have a very bad credit history, or your income is not sufficient.

However, these notifications are only sent when your formal application is denied. They are not used in the pre-qualification stage. Lenders usually deliver the news of adverse action personally, or by writing or via a phone call. They provide you with information on why your loan was declined and all the factors that contributed to it. You are also told information on how to receive the full report on your application.

Conclusion

Pre-qualifying for personal loans is a fairly simple process, and you’re usually accepted or denied within minutes. Make sure to work on improving your credit score in case you get denied.

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