In a perfect world, no one would need loans, because everyone would have the money they need to buy homes, cars, boats and anything else they desire. Unfortunately, for most of us, that isn’t the case. In fact, many people live paycheck to paycheck and it’s all they can do to pay their bills each month. To make matters worse, it can be extremely difficult to get a traditional loan if you are low on cash. In fact, traditional lenders can make you jump through hoops in order to qualify for a loan. Here a just a few factors that will be considered when going for a loan or mortgage:

• Your current employment status (if you’re self-employed, it can be almost impossible to qualify for a loan)
• Your credit history (do you pay your bills on time)
• Your credit score
• Whether you own your own home or not
• Other assets
• Debt load (do you have outstanding balances on credit cards, loans, etc)?

Lenders will also look at things like your bank balance and how long you’ve been doing business with that financial institution.

Many people can find it difficult to go through traditional lending channels to get a loan; that’s why unsecured personal loans are becoming a more viable choice. Whether you need help paying your bills this month or you need to repair your furnace in a hurry, these personal loans can be a lifesaver. Here are just some of the benefits of these types of loans:

• Minimum eligibility requirements – Often times, all these lenders need is assurance that you are employed and have a bank balance that is in good standing (no overdraft or bounced checks in the last 6 months).
• Social Security Number – Applicants must have a social security number in order to be eligible.
• Flexible repayment – These lenders will work with you to create a repayment schedule that works for you and your budget.
• Fast-funding: Once approved, you’ll normally have your money within 24 hours, directly deposited into your bank account. Now that’s convenience!

We all go through hard times at one point or another in our lives; it doesn’t make you a bad person, but it can be a great learning experience. While you’re learning how to better manage your money, or working on getting a higher-paying job, it’s nice to know that there are traditional lending alternatives for you to count on.

That doesn’t mean you shouldn’t work on your financial health, though. You’ll have peace of mind knowing that you can qualify for a mortgage or car loan, and pay less interest. Here are some steps you can take today to ensure you are good financial health:

• Check your credit: Not just your credit history, but your credit score. Traditional lenders rely on this number to give them a glimpse into your credit worthiness. There are several websites that allow you to check your history for free. Look at it carefully to make sure there are no mistakes. You can also sign up for a credit monitoring service.
• Pay your bills on time: Credit cards, utility bills, etc. should all be paid on time, even if it’s just a minimum balance.
• Don’t max out: Ideally, you want your credit card debt to be only 30% maxed out. So, if your credit limit is $1000, always have a balance of $300 or less.
• Curb those impulse buys: Think carefully before purchasing anything on a whim; give yourself 24 hours to think twice about those new golf clubs or that fancy new suit.

Make sure that a low credit score doesn’t stop you from living your dream – home ownership, a new car, and even a college degree could be out of your reach if you are not responsible with your finances.

This entry was posted on Tuesday, May 15th, 2018 at 6:22 pm and is filed under Loan. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.