What’s The Best Time Of Year To Get A Loan?

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[Photo Credit: Flickr/Till Westermayer]

When it comes to getting a loan, is there such a thing as the perfect season?

The short answer is that it depends. What does it depend on? There are several factors, such as your current financial situation, your credit scores and credit history, as well as the type of loan you’re looking for.

If you know the business cycle of the loan you’re looking for — meaning, if you learn a little information on how the auto industry or mortgage lenders work — you have a better chance of being approved for the loan you need at the amount and terms you want.

When Should You Apply For A Personal Loan?

While it can sometimes be a challenge to be approved for a personal loan, the good news is that there is no real best time of the year to apply for one. The bad news is that it will take some effort to make sure you’re in the best possible financial position to get the loan.

If you have good or excellent credit, much of the work has already been done. Your credit plays a large part in whether or not you’re approved for a loan or receive favorable terms on the loan. Most lenders will pull your credit report from each of the three major credit bureausExperian®, Equifax®, and TransUnion® — to determine your creditworthiness and whether you’re a good risk for them to lend to. By law, every 12 months you’re entitled to a free copy of your credit report from the www.AnnualCreditReport.com website. If you don’t know where your credit stands, you should start with getting your three reports.

If you have bad credit, you can either improve your credit scores or you can research your loan options. While traditional lenders like banks or other financial institutions may turn down your loan request, there are lenders available who specialize in providing secured loans and unsecured personal loans to people with less than perfect credit. There are also services available (such as AmOne’s free matching service) who can help you with finding these lenders and in researching additional loan options, as well as ways in which you can repair your credit if needed.

Does The Time Of Year Matter For A Loan?

A good example of timing affecting loan approvals is a mortgage loan. Your success in getting a mortgage or refinancing your mortgage can depend not only on your credit, but also on when you apply for the loan. This is where being familiar with business cycles might save you both time and money.

For the mortgage industry, it’s not so much the best time of year, which can vary based on how the economy affects interest rates, but on the time of month. If you’re able to time it, try applying for a mortgage loan or, if you need to, refinance your existing mortgage in the first week of the month. The reason for this is that the first week of the month is typically used for obtaining new loan applications.

If you apply at the end of the month, you might find that there are delays in obtaining financing. Most businesses, mortgage lenders included, tend to focus on the end of the month for sales. So, if you are a new applicant seeking a loan at the end of the month, you could experience a longer wait than applying at the start of the month.

Not everyone is able to time their mortgage loan request, however, and there are still ways that you can help to speed up the approval process as much as possible. Making a checklist is an important step. This will help to keep you organized and ensure that you have all of the documents you need and that your loan application is complete. It may sound simple, but having everything in order makes the process easier.

For over 14 years, AmOne has helped millions of consumers and small businesses find the lending they need. In addition to our blog articles on loans, we also have information on our website explaining your loan options. If you’re in need of live help, you can call AmOne toll-free at 1-800-781-5187. AmOne’s free service can help match you with the highest-rated loan providers in your market area and our financial search specialists are available Monday through Friday from 9:00 AM to 9:00 PM Eastern time, and on Saturdays from 10:00 AM to 5:00 PM Eastern, to answer your questions on what loan is right for your financial situation.