Personal Loan Question?
Situation.
I am married, my husband and I have have ok credit, not real real bad but its not great. We need a personal loan, not to pay anyone back, but to purchase a car and a few needed household items. We have been banking at Bank Of America for 10 years now. We have 2 credit cards through them each with a limit of $500, which we are paying down. We also have a ford credit loan weve had it for 1 year and we never miss a payment. My husband is going to go to Bank Of America to apply for a personal loan, we only need $5000. We both have good paying jobs and a co-signer if needed. how likly are we to receive a personal loan with Bank Of America? Any help or suggestions?
Your credit seems to okay but banks also look at your debt to income ratio (debt payments divided by your income) and they like this to be @ 35% or less. The rule of thumb at my bank is an unsecured personal loan should be no more than 1 month’s income so you would need to make at least $5,000/month to qualify for an unsecured loan in that amount. However, if you have collateral, you could possibly qualify for the $5,000 with less income and you also receive a better interest rate with a secured loan versus an unsecured loan.
Good luck with whatever you decide to do and be careful to not get more debt than you can handle.