Lining up for a Loan – How to Secure a Good Loan


23 October 2018



Obtaining credit in its various forms is not a difficult feat. In fact, the online platform has laid the groundwork for many consumers to get the funding they need for any project. While online funding sources and traditional institutions have streamlined the application process, applying for a loan is a process requiring prospective borrowers organise their materials way before obtaining credit.

Whether you apply for a loan online or in a traditional bank, the institution requires applicants to submit information regarding your ability to pay the loan back. While you can find lenders who require no credit check and a quick process, these lenders increase the interest rate of the loan, in addition to other surprises that lurk in the details of the contract. To obtain the best loan, prospective borrowers should plan to submit an application, prove income, and have a good credit history.

Continue reading to learn more about what is involved in applying for a loan so you can secure the best loan possible.

The Application Process:

When applying for a loan, the first step is the application. While the easiest part of applying for a loan, the document asks you for all of the relevant information needed to determine risk. The document usually asks you for information related to your employment, assets, and debts. Furthermore, few applications ask you for a list of references. Whether applying online or in the institution itself, you essentially should be prepared to give the lending institution much of the information related to your current finances.

The Credit Report:

Of the documents to be submitted, your credit report is an account of all of the debts you have incurred as an adult. Before applying for any loan, the easiest way to secure funding is to make sure your credit report is in the best shape by obtaining a copy months before applying for the loan. Obtaining a copy beforehand gives you a chance to address any inaccuracies that appear on the file, and more importantly, any derogatory remarks that show up on the file.

Cleaning up your credit report is important for a few reasons. For one, your credit score directly affects your interest rate, but more significantly, it can affect the type of loan you are approved for and whether you are approved at all. Furthermore, those with derogatory remarks and delinquencies are required to have some type of collateral to qualify for a loan, in this case, a secured loan.

Proof Of Income And Assets:        

Lenders want to know how you are going to pay the loan off if you, for some unforeseeable reason, cannot fulfill the obligation. Before applying for a loan, figure out what your assets are and how much income you have to pay down the loan. Prospective borrowers with savings and other assets stand a greater chance of being approved for loans that can offer them competitive rates.

Furthermore, the lender can also determine your ability to pay by figuring out your debt-to-income ratio (DTI). This figure simply is the percentage of money that you spend on debt every month. Low DTIs are favourable because it means that you have more than enough to cover the loan and high DTIs mean the opposite. Each lender has a percentage that qualifies a person for a loan, and much of the time it depends on the type of loan. For example, the percentage might be higher for a home loan than a car loan.

Gaining The Advantage When Borrowing:

Much of what determines whether you get a great loan is in the preparation. If you have addressed many of the common ailments that plague the credit report, you increase the chance of getting a lower rate. Ultimately, it is the entire financial picture that determines whether or not you can actually afford to carry the loan.

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I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

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Payday Loan

4 Payday Loan Facts You Should Know Before You Borrow

Convenient, speedy, and available with bad credit. These are just some of the benefits of getting payday loans, but do these stats give you the whole story? Keep reading to find out more about this kind of small-dollar loan. 1. You Can Find Online Payday Loans People often lump in payday loan lenders with check-cashing businesses and pawnshops. And it makes sense — all three organizations provide small-dollar, short-term loans with high-interest rates. However, payday loan lenders are unique in that many of them operate online with no physical branch. Instead of walking through the doors of a brick-and-mortar store, you can fill out an online application for quick cash from your phone or laptop anywhere, anytime you have data. If approved, your borrowing experience unfolds entirely online, too — from collecting your funds as a direct deposit to arranging an automatic withdrawal to come out of your account. Check cashers and pawnshops, on the other hand, do all this the old-fashion way: in person. 2. Fewer People Used Payday Loans During the Pandemic According to the Pew Charitable Trusts, approximately 12 million Americans used at least one payday loan in 2010 — whether from a storefront or online payday lender. Now more than 10 years and a global pandemic later, you might think these numbers should have multiplied. But early reports suggest fewer people had to rely on payday loans. The Online Lenders Alliance, an industry association for payday loan lenders, told Bloomberg the demand for small-dollar loans fell by 67% during the lockdown. Instead of borrowing, many people took advantage of unemployment checks, rent moratoriums, and other COVID relief resources. 3. Most People Use Them Incorrectly If you take a look at any legit cash advance direct lender’s website, you’ll see they market payday loans as an emergency stopgap when your savings fall short of what you need. In other words, you should only turn to payday cash advances in unexpected emergencies, like when your furnace dies one winter morning, and you need help covering the repairs. But what cash advance direct lenders advise and how people borrow don’t always match up. According to the Pew Charitable Trusts, 69% of borrowers use payday loans for expected expenses, like rent, utilities, and groceries. 4. Fees Vs. APR The reason why cash advance direct lenders say their loans are for emergencies is because of the cost. Let’s face it — payday loans are an expensive way to borrow. But do you know just how expensive? A cash advance direct lender might charge anywhere between $10 and $30 for every $100 you borrow. This may not sound like too much upfront, but it’s another story when APR enters the mix. Calculated on the annual percentage rate, your APR is anywhere between 300 and 600%. This APR might be OK depending on your budget, but it may be a challenge for people living paycheck to paycheck. That’s why a list like this is so important—it gives you the facts you need to make an informed decision about your finances. What’s your opinion now that you know about triple-digit APRs due back in two weeks? If this doesn’t sound like a good fit, explore alternatives like lines of credit or installment loans for bad credit. These options give you more time to pay what you owe, so they might be easier to handle on a tight budget. Read Also: 5 Benefits of Car Title Loans and One Important Warning Using Short-Term Loans to Help Rebuild Your Credit Score  No Credit Rating Check Lendings Online split Second Authorization How to get a loan on a day with bad credit

Create an Effective Budget

6 Tips for Newly-Wed Couples to Create an Effective Budget

Before entering into marriage, you and your soon-to-be lifetime partner should talk about finances. Both of you might have different ways of handling your finances. Settling down and starting to grow a family is one big responsibility that both of you will share. One may be frugal and minimalist, while the other is the opposite. Your differences, if not taken seriously, like by discussing it, might cause a collision. Just let me share one fact about what happens in marriage nowadays. Few are getting married. Many are getting divorced. And according to Forbes, one of the factors why couples end up divorcing is money issues. Unsettled issues! It's not the main factor, but somehow, it contributes tension to the couple. And we don't want to let that happen to you. This article aims to help you understand what a couple should do in creating your budget. Take this opportunity to know what couples should do in handling money. These best-picked tips will guide you in building your budget. Vital Tips For an Effective Budget- Communicate at all times: Discussing financial matters is vital, and it's the only way to know each other, especially in handling money. Let's face reality. Not all couples have the same spending habits. One might want to save more and choose to live a simple lifestyle, while the other might want the opposite. As you can see, managing your finances contrasts with the other. With that scenario, both of you might encounter some financial struggles while building your budget goals. Through proper communication, you can set things up with an open mind. But both should adjust each other's expectations. This way, you can organize everything and meet one's goal. Remember, this isn't a simple game to win. It's a real-life game that both should work together as one. Categorize your budget: If both of you feel like your goals are somewhat overwhelming, you have to remember that you can only eat an elephant one bite at a time. By simply categorizing your budget, you can have a more exact path to follow. You can see which to prioritize and which is more necessary. Do it one step at a time. As you continue to discuss things, one should jot down everything. This way, you won't miss or forget some information or idea. Identify your household needs: Both should identify your household needs. This way, it will become easy for you to categorize them. List them down. Afterward, you order them to either mandatory expenses, significant, nice, or unnecessary. Don't forget to include your existing debts on your list. May it be a mortgage loan, credit card, other outstanding debts, car loans, utility bills, food, and other different personal needs. After listing things, you can now identify which category it is. Mandatory expenses and significant ones should be your top priority. The rest will be considered as your minor focus. You might be wondering what mandatory expense is? In layman's terms, mandatory means something that obliges you to perform. That means "mandatory expenses" are something that obliges you to settle. For instance, debts that should be settled fall to mandatory expenses. Whatever type of debt it is, it will be considered mandatory spending. Settling debts might be overwhelming. Why not consider paying your debts in full using a personal loan from a licensed money lender Tampines? It's a form of debt consolidation. It merely means combining your debts into one. For example, you consolidate all your credit card debts and pay them using a loan from moneylender woodlands. You settle your debts in total, with lower interest and one monthly payment. If there's something you are paying because you need it, you can categorize it as a pressing need. Important or significant things refer to your basic needs. Foods, clothing, water, electricity, internet connection, and the likes are your basic needs. Nice things give you fun and convenience, but not that important. For example, car accessories, upgrading or changing phones, buying too many dresses. Everything's look nice but not necessary. Unnecessary things are simply those that don't have value. For instance, you purchased an online subscription that you seldom use for leisure. It's a total expense that you don't benefit anything. And it only cost you money. Spending money to buy trendy things, eat at a restaurant, and travel around is not bad. As long as you know to discipline yourself. You can never deprive your happiness in reaching your goals. But if you want to achieve your financial goals faster successfully, you have to be patient. Always remember that it takes strong commitment and determination to do it. Saving more, spending less will help you a lot. Set money goals: Setting goals means taking in-depth planning. It is about creating a path towards your goal, guiding you on how to achieve it. Achieving your money goals is not impossible as long as you make a well-thought plan. To make it happen, both of you must cooperate with your plan. Visualize what both of you want to have. Both should be specific. Let’s say you are dreaming of buying a condominium property. In what location? How big should it be? Would it be a two-bedroom or three-bedroom unit? Such questions show what particular property you dream of having. Aside from being specific, you evaluate whether it is realistic and achievable in your current state. Your partner dreams of having a sports car. The question is, is it realistic to get such a thing based on both financial capabilities? The next thing you must consider is the time-frame. Home property is expensive and needs a considerable amount of money. If you aim to buy one, you have to set a timeline. Just say, after two to three years, you will buy your dream property for your family. Within those three years, both will have to work hard and commit to saving a part of your income until you reach your specific goal. The mentioned tips above will be the most thoughtful way to start building your budget goals. Otherwise, the case can probably push you to sacrifice valuable things. You and your partner should evaluate your money flow before you decide. Determine how much you earn: The next thing you do after setting your goals is to determine how much earning you have. There are types of income that we make - gross and net income. Among these two, net income is what you are going to use in creating a budget. Gross income is a sum of money before your taxes and deductions. In contrast, the net income is your take-home pay. The question is, are both of you work as a salaried employee or not? If you are an employee paid hourly, your income would likely be stable. But if you work seasonally, or you are self-employed, that means you earn irregularly. That said, you have to track your income section monthly. Track your spendings by having a meeting: You both need to track your spendings. You can do it daily, weekly, or monthly. But for couples who have just begun to create their budget goals, it is recommended to do it every day. You can eventually do it weekly or monthly. You talk about where your progress is towards your budget goals. You check every spending you take on different categories and manage what's left. You can do less work by using some financial apps exclusively designed for couples to organize and track finances. It gives convenience and, at the same time, can make your meetings shorter and more effective. Are you ready to begin your financial journey? Creating a budget has to be undergone through in-depth planning. Start-ups aren't easy. Both of you might face financial challenges along the way. But with concrete planning, if both are committed to achieving the goals, nothing is impossible. Follow what you should do, focus, and get it one by one. Read Also: Make Your Savings Goals Come True with Gold Eight Essential Tips For Getting Out Of Debt The Importance Of Saving: The Bedrock of a Bright Financial Future

investing in gold or silver

Investors Agree: Gold And Silver Is The Way To Go

Ever since precious metals were discovered, they were used as currency. Gold and silver, in particular, have always been the most popular form of currency throughout the world, and, while one country may use francs while another may use pounds, both currencies are backed up by gold and silver. Gold and silver are always a sure bet in an unpredictable market, as they’re both stable, virtually impervious to the unrest in the world’s conventional markets. The value of a country's currency is liable to change drastically, but the gold that backs in it up – even here in Canada – remains valuable and more stable. There are options when you decide to invest in gold and silver, but one thing you might consider doing to get started is getting an Exchange-Traded Fund (ETF). The main attraction to ETFs is that they are a safe bet, with very little risk, so as a long-term investment, you can pretty much ensure at least some sort of profit. For riskier investors, you can invest in an actual gold or silver mining company – the possible reward here is great, but it comes with a little more of a risk. Many of these companies are unable to mine the precious metals that they are looking for; however, if they do literally strike gold, so did you. Lastly – and this is an option recommended by a number of top investors – you can always just buy physical gold or silver bars. This is always a solid investment in an unpredictable market. Whether you’ve been stocking your portfolio for years with precious metals, or you’ve just started learning about investing in gold or silver to increase your wealth, the first thing to do is speak with an expert, whether that’s a financial advisor or an accredited gold dealer. Gold and silver generally come in the forms of bars or coins, and you can find an accredited dealer in Canada by looking online and checking reviews – just make sure that you go to an authorized dealer. Also remember that there may be other factors involved in buying the precious metals, for example, the fact that coins could have historical value as well as the value of the actual gold or silver in the coin. Also, gold and silver bars are large, and storing them can get quite expensive depending on how much space you need. Many people forget to incorporate these secondary costs to investing. Don't make that mistake. While gold is stable, there are still important things to know about investing in precious metals. It can still be a risky business, if you buy at the wrong time – albeit, the risk here is far less severe than the risk in traditional investments. Just like stocks and bonds, the value of gold goes up and down with the economy, but unlike stocks, those swings aren’t quite as large. While generally a safe bet, do your research to know whether you want to buy right now or hold off for a little bit. In general, gold and silver increase with value, so if you're not sure, buy! Read More: Get A Return On Investment With Your SEO Why Invest In Belleek Pottery? 7 Big Myths About Small Business Growth Top Apps To Help You Manage Your Money Oh, Crop! Killer E-Commerce Mistakes You Need To Conquer What You Need To Be A Successful Entrepreneur