Top 4 Things You Need to Consider
Before Applying for Your 1st Loan
Going to apply for your first
loan? It is a milestone that most of the adults go through in their life, so
good luck! However, before you go ahead with the proceedings, there are a few
things you need to know. You may probably know some of these things already.
However, since you are making an extremely important decision in your life, it
is good that you remind.
1. Credit Score/History
Before approving a loan, the bank
or financial institution which you apply to will do an intense background check
on your finances. Especially your credit history. If you have managed your
credit well so far, there should be no problem in your application. But if you
have any overdue payments, it is better if you delay the loan till you can pay
it off. If you cannot pay off the whole amount, try your best to pay off what
you can before you apply. This is because banks will not hesitate to reject
applications if they see the slightest risk of you not being able to pay it
off.
2. Income
The amount of loan that you can
apply depends on your income, as you may probably know. Therefore, before
applying for it, you need to make sure you have the needed documents in order
to prove your total income monthly/annually as demanded by the bank. This
usually means presenting your pay slips for a minimum of 3 months along with a
letter from your employer confirming your position in the company and the
salary amount. Keeping these ready will help your application and approval
process faster and easier.
3. Liabilities and Assets
Another important thing that your
bank will specifically look into will be your liabilities and assets. If your
liabilities overcome your assets, then the chances of securing a loan will be
low. However, if you are in a solid ground financially in order to comfortably
pay off your loan, this will not be an issue.
4. Obligations
While having a good income is
always a positive aspect, if you have many people depending on you and if you
have many obligations which cost money, then you may lower your chances of
getting a loan. Therefore, if you have any outstanding debts or payments, pay
them as much as you can before you apply. This is to reduce the chances of your
application being rejected.
Last but not least, never apply
for a loan out of convenience for your day to day life. Always make sure it is
an investment for a better financial situation. Otherwise, even if it is
approved, it will affect you negatively in your credit score if you will not be
able to pay it off on time.
Are you currently looking to take
a cash loan? If you are, always approach a licensed money lender. Be very wary
of people who offer you a loan without you having to sign any contract or going
down to their office. All licensed moneylender in Singapore operate from
an office. We are the best
money lender you can find in Singapore because of our long repayment
plans and low interest rates! Do not hesitate to drop us a message if you need
a loan. We will do our best to help you out! Contact us here or fill in a
simple application form to let us know more about you. Through the application
form, we will be able to do the basic assessment as to whether you will be able
to take a loan.
Thanks for sharing!
ReplyDeleteAero Credit is Singapore's #1 Licensed Moneylender. Get fast approval loan for personal, payday, property bridging loan at the lowest interest rate. Visit our website now.