5 Questions To Answer Before Applying For A Loan
posted on Oct 2, 2018 | 97 likes
A personal loan is, in essence, an unsecured loan that you get on the basis of your credit and income
Dreaming of a new car? Or you need a little extra money for your fairy-tale wedding or you are planning to start a family? A personal loan could be the exact financial solution you need to meet your desires.
A personal loan is, in essence, an unsecured loan that you get on the basis of your credit and income — unlike secured loans which require collateral. Taking out a personal loan can be a big decision to make, so we have comprised a list of 5 things to consider before applying – to make sure you are getting closer towards your dream
1. Do I meet the requirements to qualify for a personal loan?
· You are between the ages of 22 - 55
· You are employed and have a regular income
· You are a permanent resident of Lagos
· Accessible details of your current financial situation
2. What is my Credit History?
Before applying for the loan, you should check to confirm that you have a good credit score in order to know the likely prospects of getting the loan sanctioned.
3. Why do I need this loan?
This refers to the intention for which you are applying for the loan. Personal loans are made available for genuine needs like marriage, travel, buying a car, hospitalization and other personal needs. But if you wish to obtain the amount and invest it in stocks or commodities in order to generate a higher return by speculating, then it is highly not recommended. Rather invest your already existing income so you are not using your interest to repay a loan.
4. What are the terms of my loan?
Some loans come with specific terms in case you miss or default on the loan. It is important that you fully understand these terms and follow through with them. Abiding by the terms of your loan agreement improves your credit score and encourages the lender to trust you. This means that you can return to reapply for a loan at a better rate.
5. How quickly can I repay my loan?
When taking a loan, always factor in your repayment amount and duration. Ensure that the tenor of your loan is convenient for you to still be able to make your repayments and meet other financial obligations. If you overstretch yourself with a short tenor and higher repayment amounts, this might lead to a default which in turn damages your credit score.
Ready to apply for a loan? Get a quick loan in Lagos with Page Financials, click here to start.