Among the largest banks, JPMorgan Chase is rated highly for its loan products and financial services. It is only natural that borrowers will turn to it when they are under obligations to pay someone urgently. Reviews by existing Chase bank customers provide an insight into the way of bank’s dealings with borrowers and other users.
The financial services being provided by Chase include secured as well as unsecured loan options, such as home mortgages, home equity lines of credit, auto loans, credit cards and checking account overdraft facilities. Depending on your need and eligibility, you can choose a personal loan option and manage your financial liabilities.
The Rules and Requirements to get a personal loan from Chase Bank
Since big banks are not too much willing to offer a personal loan of high principal amount, you should try to borrow the least amount that you can manage. As a general rule of thumb, Chase would be willing to offer a loan amount up to $5,000 without requiring from you too many things.
In comparison, Wells Fargo and other banks can offer a much higher personal loan amount. While Wells Fargo can lend up to $100,000 in personal loans, others can easily let you borrow up to $25,000. Though Chase may offer less, you know you are dealing with the largest financial institution in the nation.
What Chase requires you to possess is a good credit score, and preferably a prior relationship with the bank. However, the exact requirements may vary depending on the type of loans you apply – auto loans, home equity lines of credit, and credit cards.
The things you need to apply for a personal loan
You are advised to keep ready the following documents while applying at a lender for a personal financing option.
- W-2s for the last 2 years
- Two most recent (preferably consecutive) pay stubs
- Bank statements for the last 2 months for all financial accounts that you have in any bank or financial institution
- Details of all debts, including mortgages, car loans and student loans
- Documents and details related to personal taxes.
The above are only a broad guideline and not all may be necessary at a particular personal loan lender. Most lenders need to see documents only to ascertain that you are capable of making payments and actually have a track record of paying loans on time.
Note that your credit report will be pulled and examined by all the lenders (that you apply) separately. It is generally not a good practice to apply at several lenders at once. This can have a negative impact on your credit report.
How an unsecured personal loan is helpful – Advantages of Chase Bank
Like any other financing option, an unsecured personal loan has advantages and disadvantages, too. The biggest advantage with it is that it doesn’t require collateral.
A secured loan, such as a mortgage or a vehicle loan, on the other hand, need suitable collateral, but can offer a better interest rate and APR, a higher loan amount, and a more flexible term.
Chase Bank offers some additional benefits with its personal loan products.
- Reliability of a reputed lender
- Competitive interest rates
- Multiple options to apply – online, mobile app, phone, and branch
- High-quality online loan resources, such as personal loan calculators and rate comparison tools
- Helpful customer service as reviewed and reported by existing borrowers and other clients.
The step-by-step process to apply for unsecured personal loans for bad credit
The seven steps to apply for an unsecured personal loan at Chase or any other bank may include the following.
- Get a copy of your credit report from all of the three credit reporting agencies – Equifax, TransUnion, and Experian. Examine your credit reports and get them corrected for any mistakes that are there for no reasons.
- Visit a website that allows you to see your credit score for free. Make a note of your score and see if it is not below 600. If it indeed is, then you fall in the group of bad credit borrowers.
- Take a moment to consider if you really need a loan now. Can you postpone and wait until your credit score improves?
- If you need the unsecured personal loan now despite a bad credit history, you can go shopping and find someone that can rely on you. If you found more than one, then you are strongly advised to compare rates and terms, and choose the one with best offers.
- If Chase happens to be your lender, then visit its nearby branch, if possible, or call its customer service number to inquire about the details of application process.
- Ensure that the rate is more or less the same as you noticed while preparing a shortlist of lenders at step four. Chase allows you to lock a chosen rate if you so wish. Consider if it is beneficial for you to lock the available interest rate.
- Complete the application form online or at a Chase Bank branch. Once you submit the application, wait until the underwriting process is over. The bank will notify you if your loan request gets approved. The usual time for a personal loan to get approved at most lenders may vary from a few minutes to a few days.
Why is it hard to get loans for bad credit?
Not all loans are as easily available. You need to qualify and meet the eligibility standards of your chosen bank. As far as Chase Bank is concerned, it is certainly a difficult thing to get approval for a personal loan request if you don’t have an excellent credit score, usually more than 700 on FICO.
Why is it so? Since the financial crisis of 2008, which happened primarily due to the subprime loan crisis, many large banks have shut down their doors for people with less-than-stellar credit histories. To define a subprime loan, it is a type of loan granted to people with poor credit scores (often below 600).
What are the tricks and techniques to get loans with bad credit history?
Does it mean no personal loans for people with bad credit scores?
Yes or no, depending on your situation.
For example, if you are an existing Chase Bank customer with good relationship with the bank staff, you might obtain a personal loan quite easily against the deposits you have in your savings or checking account.
Here are some simple tips that you can use. For complete information, refer to this guide.
- Call the customer service and talk to a loan representative, describing your financial conditions and asking for a favor.
- Use the branch locator of the bank to find the nearest Chase Bank branch and visit in person to see if a loan officer can solve your issue.
- Look for a credit union in your neighborhood, and search for an online loan provider or a peer-to-peer lender to find an alternate for bad credit loans.
- If you can wait, it may pay off in the long run to take some time and build your credit, and become eligible for a good credit personal loan from any bank of your choice.