At some point in their life, everyone will need to ask for a little money to get from A to B. There is no shame in needing a little help and although it can be difficult to ask for the help that you need, it is important to remember that everyone has been there before… and with a few hints, you can ensure that your request for borrowing money is met with a successful reply.
- Know your credit score
Knowing your credit score ahead of time can really help you to have a leg up on receiving secured loans or unsecured loans alike. Most banks will check your credit score before deciding whether they can lend you the money that you are asking for. This score gives the bank an inside look at whether you can be trusted to pay off your debts.
If your credit score is low, you may find that you may not be able to borrow from a large bank without a co-signer available. However, if you cannot find a co-signer to help you out, you may be able to find a lender who specialises in working with those with less than stellar credit scores. While you may pay a larger interest rate, you still may be able to obtain the loan that you need.
- Start out with your own bank or credit union
Your first place to look for a loan should always be your very own bank or credit union. This is especially true if you have a long and upstanding history with them. Without a bank account, it can be a little more difficult to secure a loan, but even then, there are many online financial institutes who may be able to help you borrow the money that you need. Going this route can even help you to better compare interest rates and obtain the best deal on your loan.
- Apply in person if you are borrowing from a bank
While many bank branches allow you to apply online using a special form, applying in person allows you to ask questions that you cannot ask on a form alone. This also gives you a chance to make a good impression, better ensuring that your loan is approved.
When you do go in to meet with a loan officer, be sure that you bring along all the proper documentation. Not only will this save you time, but it also makes you appear prepared and responsible – both attributes can only increase your chances of approval. It is also important to note that most people dress as though they are going in for a job interview when they attempt to obtain a loan. This is because, just like with a job interview, you want to portray your best, responsible self.
- Make sure you understand the terms of your loan
Once you are approved for a loan, it can be easy to overlook the fine print. However, you will be living with the fine print for quite some time, so it is very important that you understand what will be required of you. You may wish to have a lawyer go over the loan papers before you sign them. This ensures that there are no surprises down the road.
- If you are having trouble obtaining a loan, ask about a pay day advance
If you work for a larger company, they may have a programme called a “pay day advance”. Most companies have a limit on what they will lend out as a pay day advance, but nonetheless, this programme can be very beneficial when you need money quickly. If your company has a website, look there first.
If you cannot find any guidelines there, go directly to human resources. It is usually best not to bring your boss in on the request. It is really of no concern to your boss unless you work for a smaller company and there is no one else to reach out to for help.
Borrowing money is just a fact of life and when you use these 5 hints you will ensure that your attempts to borrow money are successful.