There are so many things that can get in the way of you achieving your dreams. Sadly, for you and many others, the number one obstacle is usually not having enough money.
It can be incredibly hard to get ahead in life without being on stable ground when it comes to your personal finances. What can you do when times are tight? Consider applying for a personal loan.
We’ve already told you about some of the most common reasons why people need loans quickly. What are some of the best things you can do to make sure your loan is approved right away?
Come along as we teach you how to get a personal loan.
Find the Right Bank For You
The first thing that you should do is research on all of the banks and lenders that provide personal loans. Do your homework on which ones can offer the most money up front and provide the best interest rates.
The last thing that you need is to be in more debt than you can handle. Know what you are getting into before you start to fill out your application.
These lenders will also look at your finances and predict if an agreement won’t work out. Be realistic with yourself and what you’re looking to get out of your lender and you will have more of a chance of getting your loan approved.
Have a Clear Idea of What You Want
Banks and lenders have every right to deny you for a loan if they feel like you don’t deserve one. Make sure that you walk into your lender’s office with a concrete proposal.
It may help to take a step back and put yourself in their shoes. You’re asking for them to give you a large sum of money up front and taking you on your good will that you’ll pay them back over time through monthly installments.
In any other circumstance, this would seem like a tall order, right? So make sure you walk in knowing exactly what you want out of this transaction.
As we said before, lenders can be temperamental when it comes to approving loans. Make sure they can relate to your situation to give yourself a better chance of getting approved.
Make Sure to Get Your Credit Report
Knowing exactly where you stand when it comes to your credit is extremely important when it comes to getting a personal loan approved. Your credit score is something you can easily not pay attention to, so make sure there are no errors in your score before you apply for a loan.
In most cases, you are generally looking to get a loan to get you out of debt and improve your credit score. But if there’s something off with your score that you don’t know about, a lender can see that as a red flag and choose to deny you.
Make sure you take the time to get your credit score before you apply for a personal loan. Having any errors or unwanted surprises on your credit can be the easiest way to sink your chances of being approved by a lender.
Look For a Secured Loan
A great way to get your loan approved right away is if you choose a secured loan over an unsecured loan. With this option, you will be putting up something valuable that you already own as collateral to the bank if you are unable to meet your payments.
While it is never ideal to have something repossessed, by offering something of value to your lender up front they will have a sense that you will take paying them back seriously.
One of the most popular secured loans is a home equity loan. This loan will offer up a certain amount of your home’s total equity as collateral for the loan you get from your bank.
By offering up something of value in exchange for a secured loan, you will have a great chance of getting your loan right away.
Don’t Show Up Unprepared
Much like any other application process with a payout of this magnitude, you’ll have to provide a lot of information up front. Loan providers generally ask for a lot of documentation in order to prove that not only you are who you say you are but that your finances are in order.
They will likely ask you to provide the following information in order to move forward with your personal loan:
- A valid South African ID document or Smart card
- Proof of address such as a municipality or rates bill
- Latest three pay slips or latest three bank statements
So remember to take the time to find out what documents you need beforehand. We know how stressful it can be to get your affairs in order, but it can be extremely important in order for lenders to consider working with you.
Don’t Wait Until It’s Too Late
Finally, make sure you give yourself enough time to go through the process of applying for a loan with a level head. Don’t wait until the last minute in order to apply for a personal loan.
If you’re rushing to get through your application and gather all of your paperwork, chances are higher you’ll make a mistake simply because you weren’t thinking straight.
Give yourself a realistic timeline so you can make the best impression on your lender and turn in all of your paperwork without a problem.
What Are You Waiting For? Get a Personal Loan
With these helpful tips, you’ll be able to get the best personal loan with no problems at all. Rest easy. You can do this.
We know the struggle and are here to help. If you have any more questions about how to get a loan, feel free to send us a message through our contact form.
Make sure to check out some of the testimonials from our customers as well to see why applying for a loan through LittleLoans was right for them.