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We know, applying for finance can be a daunting and stressful task, but fear not, we’re here to give you all those little things you need to know when it comes to the ins and outs of finance and loan applications...and since laughter is the best medicine, let’s sprinkle some throughout!
Great, ready? Cool. First and foremost, you need to know what type of loan you’re looking to apply for. Is it a small $1,000 loan for a cheeky car upgrade, or is it $500,000 to get your business off the ground? Yeah...it varies quite a bit! Either way, the all-important part is being prepared to justify why you need this loan to the loan officer/bank/anyone else in that space who might ask a few curly questions.
Alright, that’s the first step. Secondly, speaking of those who might be asking the curly questions...as much as we reckon you’re a legend, the assessors aren’t there to be your mate! They’re there to assess your creditworthiness and determine whether you’re a good risk for them to take on. So, it’s best to leave the jokes and small talk at home for this one, just come prepared to answer the questions they’ll have with confidence and that’s it!
Big important super thing to consider here now! The loan application legends will be after your credit history. What’s that you might ask? This is what the bank will be all over when it comes to the risk you pose if they loan you some cash. They’ll look at your credit cards, outstanding debts and other expense areas you might have to decide what rate they’ll stick your loan on.
That’s why it’s important to always be up to speed on things like bills and monthly repayments, to show the bank you’re able to meet your obligations (so don’t be late on that Afterpay item you grabbed earlier this week, because the bank will use this as well for assessment!)
Another key thing to know about when applying for a loan is your income. You need to be able to show you have a steady source of income and you’ll be able to pay back the loan. For example, if you have a job that sees your income fluctuate month to month, be sure to collate it all together to show the overall monthly average; your application will be far more likeable if it’s set up that way!
Finally, be prepared with every bit of documentation you can be. There are tons of different things that can help you show you’re not behind/can keep up with the payments (like rent, bills, other expenses monthly) that you can help use to put your case forward.
So there you have it, a few things to think about when it comes to finance and loans. Of course if you want to chat a bit more in depth around this, we’re always here to help. You know where to find us!
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