5 Tips to Help You Fill Out a Loan Application
April 09, 2019
Emergency medical bills, unexpected pay cuts at work, and a flat tire. What do all of these things have in common?
Financial stress.
Financial burdens, especially unexpected ones, can cause a great deal of distress.
Even though emergencies happen, life still goes on. Bills need to be paid.
A loan can be a lifesaver in situations like this, but applying for one can be confusing.
To make life easier during tough financial times, we’ve come up with our top five tips to fill out a loan application.
Tips On How to Fill Out A Loan Application for Financing
Documents You Need
Firstly, you’ll need your ID number, proof of income, and bank statements.
Make sure you have an accurate idea of your income. Have documentation of your bills, including housing payments, utilities, and others. Having your employer’s name and length of time at your current job handy is a good idea, too.
Lastly, you’ll need your current bank account info including your bank account number.
Check Your Credit Score
Qualifying for any kind of loan requires a good credit score.
Generally, a good credit score lies anywhere between 681 and 766.
You can check your credit score on websites like TransUnion.
Knowing your credit score beforehand can help narrow down your search for lenders, as most lenders will have a certain credit range that they lend money to.
This will also save you from a negative inquiry on your credit report if you submit a loan application out of your credit range.
Check With a Local Credit Union
If you need extra guidance on a loan application form and prefer to do it with an expert, you can find a local credit union to acquire a loan.
Research the Minimum Income Requirement
Some lenders require you to be earning an income within a specified threshold to approve your request for a loan.
Most times, lenders will display this on their website.
Figure Out What Kind of Loan You Need
Figuring out what kind of loan you need will be a determiner in where you borrow from.
Personal loans and payday loans are some of the most popular loans available.
Personal Loans
A personal loan is capital borrowed from a lender that can typically be used for any purpose.
This type of loan is good for unexpected payments or large bills that need to be paid immediately. They’re also a source of cash flow to start a new project such as renovating your house.
In contrast to payday loans, these can be paid out over an extended period.
Payday Loans
A payday loan is a loan that is given out between cheques.
Once the receiver of a loan receives their next cheque, the payday loan is paid out.
This loan is best for individuals who are in a funk and require money immediately.
Sometimes You Just Need Money Quickly
A loan is there as a solution for those who need money quickly or want to start a new project. Learning how to fill out an application is the first step in acquiring financing.
If you’re in a sticky situation, these five tips can help you find, apply for, and secure a loan quickly!
Living in South Africa and need help applying for a loan? Hoopla Loans can connect you to a variety of lenders to help you find the best loan for you.