 TITLE: Step-By-Step Checklist to Getting a Personal Loan CONTENT: Get Ready to Apply for a Personal Loan\n--------------------------------------\n*   **Decide how much money you need.** Try not to borrow more than you need, since you'll be on the hook for the entire amount whether you use it all or not.\n*   **Check your credit score.** If your FICO® Score☉ is 670 or higher, you'll be able to choose from more lenders and get better loan terms and lower interest rates. If your credit score lower, take steps to improve it quickly:\n    *   Pay down credit card balances.\n    *   Pay any past-due amounts and make all payments on time going forward.\n    *   Don't apply for other new credit.\n    *   Sign up for Experian Boost™† for free to get credit for on-time telecom, utility and Netflix® payments.\n        If you can't improve your credit score quickly and need the loan fast, consider getting a cosigner (if the lender allows one).\n*   **Review your credit report.** Negative marks such as bankruptcy, collection accounts and late payments could make it harder to get a personal loan. If you believe any information on your credit report is incorrect, dispute it with the appropriate credit bureau. Even removing one incorrectly reported late payment could help your score.\n*   **Assess your DTI.** Your debt-to-income ratio (DTI) measures how much debt you're carrying relative to your income. The lower your DTI, the more attractive you are to lenders.\n    *   To calculate your DTI, divide your total recurring monthly debt (credit cards, mortgage, auto loan, student loan and so on) by your gross monthly income before taxes and withholding.\n    *   Lenders prefer a DTI of 36% or less, but may approve borrowers with higher ratios. If your DTI is too high, pay down some of your debt before applying for a personal loan.\n*   **Research personal loan interest rates.** The interest you'll pay on a personal loan is expressed as an APR (annual percentage rate) and includes fees and other costs. Lenders generally publish their current APRs as a range, such as 5.99% - 18.25%.\n*   **Estimate your monthly loan payments.** A personal loan calculator can help you calculate monthly payments as well as the total interest you'll pay over the life of a loan.\nPersonal Loan Calculator\n------------------------\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.\n*   **Decide what size loan payment you can afford.** Review your budget to see how much you can afford to pay each month.\n    *   You can reduce monthly payments by getting a longer-term loan, but you will pay more in interest over time.\n    *   You will save on interest by taking the shortest-term loan with payments you can afford. END