By: Raymond James
About the Author:
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.
In need of a quick cash fix? There are some simple steps to follow to get one. However, it would be best to consider the kind of loan you need; there are long and short term personal loans, debt consolidation loans, lines of credit and more. Many personal loans are secured, meaning the creditor uses an asset such as a car as collateral for loan recovery. There are many purposes for a loan, such as using it to consolidate your outstanding debt, clearing those bills, or using it to venture into a business. Read on to learn about how to apply. This process can vary from lender to lender.
1. The Amount Of Money You Need
Depending on the expenses in question, before applying, calculate your income and the loan size you can handle. Pick an amount below your income to ensure you can repay it and not be left empty-handed. Simultaneously, do not apply for a small amount that will leave you with unmet financial needs. Moreover, though tempting, avoid applying for a loan that is higher than your income and payment capability as you may be stuck in debt and end up paying more than you intended.
2. Choose your Preferred Lender
Today, the number of loan lenders has increased, from banks to online lenders. Banks have a more hands-on experience, and their loans might be at discounted rates; on the downside, these loans take longer to be processed, and their application is tedious. Once online lenders have approved your application for a secured loan, you may get your loan on the same day. When applying, it is also advisable to compare different lenders in the market and check on what each requires and go for the one that fits your loan requirement.
3. Credit Score
It is best to check your credit score before applying to gauge how much you can get.
What’s more, before borrowing, ensure that you have assets such as a mortgage, house, or car that you can use collateral in the case of loan payment defaulting. Use them to measure your net worth and assess your budget to ensure expected repayments are comfortable.
4. Lenders Terms And Conditions
Applying for fast personal loans has its risks in that failure to repay it may lead to you losing your property or asset. That is why it is essential even if in a difficult situation to read through the lender’s terms and conditions, check the requirement thoroughly, and ensure you meet all of them before clicking the apply button. The good thing with these online lenders is that their loan application is not a click and get affair; it requires one to fill out an online application form and, if approved, sign an agreement to all terms and conditions.
5. Make the Application
After considering each step, go ahead and apply for your loan; add each required information carefully and accurately. Ensure there are no errors as it could affect your future loan application with the same lender. Add any relevant documentation to support the information, such as government-issued ID and bank statements. Once done, re-check the application for confirmation that everything detail is correct.
If your current lender offers preapproval, apply for one. By preapproval, you can check your loan rate depending on the information you have provided, compare the different rates, and choose the one you prefer. It is good to remember that preapproval is not finalised as the lender may change the status once they review your details.
Conclusion
Applying for a secured personal loan can be easy and complicated simultaneously, which is why it is best to consider all the set requirements from the lender and take each step carefully. Compare different lenders available and ensure you have an asset you can use in the application. Of course, you’re best off if you repay on time without the need for the creditor to seize your assets or enter into hardship.
