Managing Your Money: The Comprehensive Step-by-Step Guide to Applying for a Loan Successfully

by | Jan 20, 2019 | Financial Featured

There may be times in your life where you will need some extra cash whether it be to buy a home, purchase a car, or even just to pay a few bills when money is tight. This is where a loan can be most useful for you. A loan can help put money in your pocket today and allow you to pay off the loan in increments that are most suited for your income level. This can help get your bills paid, a car purchased, or even home improved without having to worry about saving up for the full payment.

Figure Out How Much Money You Will Need

The first step in getting a loan is figuring out just how much money you are actually going to need. To do this, you need to make a list of all of the things that you are looking to pay for with this loan. Take your time and think of every little thing that may cost you money and ensure that you include it. The last thing you want to do is have everything planned to be paid, only to find out you have something you forget and now your project is held up. As a rule of thumb, you may want to look at applying for a little more than you need for cushion in case these problems arise. If anything, you can apply it back to your loan if it goes unused.

Find The Right Loan

Now that you have figured out just how much money you will need, it is time to look for a loan. Gone are the days of having to go by a bank or credit union to talk to a loan officer. Online lenders are becoming more and more popular and are allowing loan seekers to find no credit check loans from the comfort of their computer or even their smartphone. This allows for those with a busy schedule to easily get the cash that they need without having to miss work. An online lender will give you a quick questionnaire to fill out to get the required information to find the best loan for you. From here, they will give you a list of lenders that pair up perfectly for your situation.

See What Your Options Are From The Lenders

Once you have gotten your information submitted, your loan officer or the website you are using will give you many different options of lenders to choose from to get your loan from. You are going to quickly notice that many of these offers differ from each other based on the type of business they are. For banks, you are going to find most personal loans and credit card offers available for those with higher credit scores. For those with lower credit scores, you can check out some of the payday loan options that allow you to pay off your loan in installments each time that you get paid. These usually carry a higher APR but this is in protection for the lender as lower credit scores indicate a poor history of credit.

Check Over Requirement & APR

After you have found the ideal lender and the loan that you want, it is time to take a closer look at the requirements and APR of the loan itself. This is where some people make the mistake of rushing through their loan and not realizing that the APR is going to make the payoff of the loan unattainable for their income. Scrutinize every last detail of the loan offer to find out exactly how much you will be paying back and at what kind of increments to make sure that you can adequately pay off the loan without putting yourself further into debt. This will keep you in check of your finances and keep the monthly or weekly payments much more bearable. This is the most important step to any loan application.

Compare A Few Lenders

If you think that the loan you are looking at seems a bit off or just want to see what else is out there, it is highly suggested that you check with a few different lenders to see what the loans look like side by side. One may be offering more than the other, but the payoff amount is going to be much greater. You will want to look at things like total amount, installment payments, APR, and the reputation of the business to make sure that you are going to be in business with someone who is trustworthy. This also allows you to see if you can get a much better offer through another lender that you may not have seen before.

Get Together All Of Your Documents

Once you have found the loan that you want and have compared it against the others, it is time to gather all of your documents and get them ready to apply for your loan. This is going to include, but not limited to your employer information, bank account number, bank account routing number, your address, phone number, and debit card number. Make sure to have all of this information readily available as it will help make the loan application process much easier for both you and your lender. It is always a good idea to be near a computer in case you have to look up any additional information.

Submit Your Application

Now that you have all of your information together, it is time to submit your application. Gather all of your documents with you and either go to your bank of choice or submit your application online with the lender you choose to go with. With most loans, you will get instant approval or denial which could put money in your bank account the same day. This is where they will check your credit score, employment history, or income to make a decision on whether or not they feel comfortable lending you the amount of money that you are trying to get.

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