Four Things You Need To Know Before Applying For A Loan
Friday, September 30, 2016, 6:00 AM | Leave Comment
A loan can help you with emergencies and some ventures that you may be considering. You can get the cash for some loans rather quickly.
However, you have to know four things about loans before you complete an application to get one.
You have to know these four things:
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Your Financial Situation
The first thing you have to know before you apply for a loan is whether or not you can afford one.
Any loan that you take will have a fee attached to it and some interest.
You should sit down and calculate the amount of money that you have left over after you pay your bills each month.
You want to avoid taking loans if your disposable income looks slim.
If you are capable of repaying an advance, then you can proceed with caution.
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The Qualifications
You have to know the qualifications for any loans that you may be considering.
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First, every loan has an age requirement because all of them involve contracts. No one who is under the age of 18 can sign a contract.
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Another qualification that you will need to know is a monthly income requirement. Some lenders want their borrowers to earn at least $1,500 a month, but not all of them do.
All lenders will want to have some sort of proof that you earn money. Some lenders want the source of funds to be regular employment, and they will take no substitutes in that regard.
Other lenders do allow their customers to have income from governmental assistance, unemployment compensation, child support, disability and the like.
Such companies are only concerned with whether the consumer pays the money back or not. They are not concerned with how the consumer pays the money back.
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One more qualification that a lender may have is a bank account qualification. Many lenders require that their customers have a bank account in the local area, and that account be open for at least 90 days before the person applies for a loan.
The lender deposits funds into the bank account and withdraws funds from the account, as well.
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Possible Interest Rates
The interest rates are another piece of information that you will want to be notified of before you take a loan.
The interest rates are what make you or break you in a loan situation. They can make a loan very burdensome for you, especially if you are struggling dearly.
The interest rates can be so ridiculously high that you no longer want to borrow the money, or they can be fair.
A lender may ask for a large amount of money for interest. Not all of them are like that, however. You have to shop around to get the right payday loan El Paso lender.
By taking the time to find a great professional to work with you will really be able to see a difference in your financial success.
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Repayment Terms
Another thing that you have to know before you apply for a loan are the repayment terms.
You need to know how long you have before you have to return the proceeds.
The repayment periods for loans last anywhere from 14 days to several years. The repayment schedule depends on what kind of loan you get and what your needs are.
Payday loans are short term loans that last about 14-30 days.
Installment loans are similar to payday loans, but they give you more time to repay the advances. Personal loans vary from lender to lender.
Make sure that you gather all the facts before you apply for a loan, and make sure you read all of the documentation before you sign a contract.
Once you sign the contract, you are obligated to adhere to its terms.
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Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max.
