How To Apply For A Loan
People apply for loans for numerous reasons. In some cases it may be because they have had a boiler break down or need to repair their car, and it is a couple of months before payday. It may be in order to make purchases for a business. Whatever the reason, it is important to know how to apply for a loan.
What you need
When you apply for a loan you need to make sure that you have your bank details, employment information, contact details (including previous addresses) as well as personal information such as date of birth (you need to be at least 18 in order to make an application, though some lenders may make further age restrictions depending on the type of loan.)
In addition to this, it is worth checking your credit record before you apply. The reason this is important is because any inaccuracies could potentially negatively affect your application. You also need to check the terms of the loan itself, as it may have certain conditions (such as an age limit, the reasons you are applying for the loan and whether or not you make the minimum income requirement).
How to apply
It is possible to apply online, via the phone or in person. In each instance, the process is usually the same. You need to complete a form, saying how much you want to borrow and the period of repayment. After this the lender will then run a credit check and will then make offer, which you can choose to accept or reject. In some cases, a lender may offer what is known as a “soft quote”, meaning that you can apply without this marking your credit record.
Part of the application can include disclosing how much you earn each month. In some instances, certain forms of income can be excluded, such as sales commission, student loans and maintenance payments. It can vary depending on the lender and the list can change, so you should check this before making an application.
Things to be aware of
There are some issues you need to be aware of. For example, while it is possible to apply for more than one loan at a time, it can harm your credit record if you make too many in a short space of time.
You also do not necessarily be employed to get a loan, though you do need to show that you are capable of repaying. When you are successful, you then sign a credit agreement, after that the lender will transfer the money, which can take anything from a few hours to a couple of days.
With any loan, it is important to check the terms and conditions. For example, in some instances it can be more expensive to pay a loan early. Also some allow you to take a “payment holiday” if you have trouble making repayments (but again you should check how this will affect later repayments).
We can help
Larcomes Financial Services believes in providing specialist financial help, while at the same time offering receptive customer service. For more information or to discuss your issues in more detail please contact us today.