To obtain a loan, investigate what type of loan is required, where to get it and apply for it. A potential borrower needs to research any requirements necessary to obtain the loan from the lender, such as a specific credit score required for approval. Before signing loan documents, the borrower should ensure he understands the stipulations contained in the documents.
The type of loan needed depends on what is being financed. Several types of loans exist, including auto loans, personal loans, business loans, home loans or mortgages and educational loans. There are several establishments where a loan may be obtained: banks, finance companies and credit unions are the most common. In some cases, a borrower can finance a purchase directly through the vendor on terms such as "90 days same as cash." Borrowers can also use short-term loans, sometimes referred to as payday loans, for smaller amounts, but these loans have higher interest rates than standard loans. Most lenders will require some sort of credit history. The borrower should check his current credit report before applying, to see what the lender will see and correct any errors on it.
The lender may approve or deny the loan. If a lender turns down the loan application, borrowers can look for other possibilities, such as applying for a loan with a credit-worthy cosigner.