In times of financial troubles, who do you ask for help? Families and friends are the first people we ask for help. Most are willing to help whenever they can, however, there are those who are hesitant. When this happens, to whom shall you run to? There is another solution and that is applying for a loan. Here are some tips on how to make a successful loan application.
1. Eligibility requirements and Legal documents
There are different kinds of loan and each loan sets requirements needed. Make sure you know what kind of loan you are applying to and check all the necessary requirements needed. Some lenders only provide loans to a certain field. If you fit within their criteria, then you may proceed but if not, better look for a lender to whom you will fit.
Also, there will be documents needed, and these must be all legal and not falsified. After you have completed all your documents, the data will be checked. Once proven fake, you’ll have a slim chance of having your loan approved or a legal action might be filed against you. Be sure you have submitted the correct ones.
2. Fixed Address and active contact numbers
The lender will require both current and permanent address with a billing statement to validate where you live. This is needed during collections and the due has not been paid, collector officers are then sent to where exactly you live, to make sure payment is done. If you will be able to provide both addresses, it will prove that you will stay in your location and pay your dues and a good chance of settling your balance.
Also, some lenders require references with their active contact number. It must be provided so they can communicate with you anytime Make sure that your references are aware since it is needed for verification.
3. Stable job
A stable job means a stable income. It means you can settle your dues on time, and it will give you a higher chance of getting your loan approved. However, if you are unemployed, there is no need to worry. You still can apply for a loan if you can present a bank statement that shows six months to one-year income.
4. Loan Calculator
You will be needing a loan calculator to know how much the monthly payment will be and how long it will take to repay the borrowed amount. With this, you will able to reflect on your finances and allot a budget. At the same time, prove to the lender that you can handle the payments needed.
5. Good credit report
Banks and moneylenders check your credit history to know your paying habits. If you have missed payments from your previous loan or unsettled bill, your lender will be alerted. Thus, this will affect your application.
So, make sure you have settled previous transactions before proceeding. Once your history is clear, you have to ask for the certification that you have already managed your unsettled bill because your records with the credit bureau will take some time to be deleted.
If you think you have all of this, apply for a loan that fits your needs to solve your financial dilemma.