Know your credit score. If you don't know your credit score, you can purchase it for about $16 from FICO or any of the other three major credit bureaus. You can estimate your FICO score for free using Bankrate's FICO Score Estimator. You should also get a free copy of your credit report at AnnualCreditReport.com. If you see any discrepancies on your report, fix them before applying for any type of bank loans.
Shop around. It may seem like common sense, but you'd be surprised how many people settle for the first bank loan offered. Before you apply, shop around for the best possible interest rate and make sure you're getting the best deal possible for your individual needs.
Know your repayment terms. Before accepting a bank loan, know if your monthly payment is fixed or variable; you want it to be fixed. Make sure you ask about upfront fees and whether the loan is disbursed all at once or in installments.
Offer collateral. No one likes high interest rates. Offering collateral could help you get a lower interest rate on your personal bank loan and in turn save you a great deal of money.
Repay your loan according to the terms of the agreement. If you don't pay back your loan as outlined in your agreement with the bank, you could risk losing your good credit standing or the collateral you offered to get a secured bank loan.
Bottom line, when applying for personal bank loans, do your research, know your options and take the time to go through all the terms and conditions you and your lender have discussed before signing any official documents.