LoansPersonal Finance

What You Need To Secure A Personal Loan

What You Need To Secure A Personal Loan

Personal loans can be a great way of financing the purchase of items that are difficult to afford at a particular moment in time.

It may be that you need something quickly and don’t have the time to save for it, replacing a broken washing machine for example, or that you simply want to spread costs out over a period of time rather than stomping up a large chunk of money up front.

So, if you decide that a personal loan is the way ahead for you, then what do you need to secure one?

A Regular Income

What You Need To Secure A Personal Loan

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One of the things most lenders will be looking for is that you have a regular income. If you have a job and your bank statements show that money is paid into your account regularly and this has been the case for three months or more, then you should have no problems in this department.

A Trusted and Reliable Lender

With so many options around it is important that you find a trusted and reliable lender that suits you best, such as Secure Trust Bank. Before deciding which lender to use, always look at customer service and satisfaction ratings to find out which is best.

Check factors like the other range of products they offer and anything else that will prove useful to you as a borrower, as every lender will offer different incentives.

A Reasonable Request

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It may also be important to the lender that the money you are looking to borrow is for something sensible, a new car or holiday, and not for something that could be considered a folly, a racehorse for example!

Approaching the lender with a reasonable request goes a long way in helping you secure the loan you desire.

A Good Credit History

A good credit history is not essential in order to secure a personal loan, but for those with a good rating, the options for a loan with a competitive interest rate are far greater. So if you’re looking for a good deal, check your rating and if it isn’t very good, try to do something about it.

A Sensible Repayment Plan

What You Need To Secure A Personal Loan - Ford Focus

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How you will repay the loan is something you need to consider in advance of applying for one. The sensible way to go about this is to ensure that, firstly, you can afford the monthly repayment and secondly that the repayments aren’t going to impact too heavily on your budget month to month – no point buying a new family car only to realise that can’t afford to go anywhere in it. Using a loan calculator can be really helpful during this process.

A Conscientious Approach

Once you are ready to approach the lender, make sure in advance that you know exactly what documents you need to take with you or post on to them.

Proof of your name, address, bank statements, pay slips are among the things that the lender will generally want to see before the loan can be approved.

Getting a personal loan is, for the most part, a relatively simple process, as long as both parties are open and clear with each other and as long as you the borrower take a measured and organised approach.

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About author

Poppy loves personal finance almost as much as she loves her two cats, Tif and Taz.
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