There are many different reasons for needing to apply for a personal loan. You may need a car loan, a loan for home improvements, a holiday loan or a loan to cover some educational expenses or an emergency. Applying for a loan can sometimes feel quite daunting, so here are a few tips to help you get on your way to getting the personal loan you need;
Work out how much you need
Once you have decided that a personal loan is right for you, take the time to work out how much you need to borrow to cover what you need. Try not to borrow more than you need as this may result in you paying more interest in the long run. Don’t be tempted to bump-up the loan amount for “just in case” as you will end up paying more in interest.
Work out how much you can afford to repay
Work out a budget before you apply so that you are aware of how much you can afford to repay without putting you into financial hardship. It is easy to feel tempted to borrow more and put it over a longer period, but the longer you pay the loan off, the more interest you pay. Check with your loan provider whether they allow additional repayments over the term of the loan so that you can try to pay the loan off faster to save on interest charges. At Quick Loans the more you pay the more you save interest and we don’t have an early settlement fee if you want pay us off from your Lotto earnings.
Shop around for the best deal
Visit a few personal loans websites to see which lender has the best deal for you. Most lenders display their interest rates and fees on their website or provide a calculator. Check out Quick Loans NZ calculator here. If you know that you have bad credit, you may need to shop around to find a lender that is best able to help you in your current situation. If your credit history isn’t great, you may need security such as a vehicle to use against a loan.
Be prepared to answer questions
A loan provider may need to ask you a few questions with regards to your current financial position. In New Zealand, all lenders are bound by the responsible lending code of practice and are required to ensure that they are not putting you into financial hardship by advancing you a loan. It is important to be upfront and honest about your current financial situation. If you know that your financial situation is going to change dramatically soon, it is your responsibility to inform the lender.
Make sure your finances are tidy
A money lender is on the lookout for someone who can show that they are able to repay a loan. Make sure that you are paying all your bills on time to show a potential lender that you are good at managing your finances. A bank statement that has dishonoured payments and lots of gambling will be a deterrent to most lenders, so be sure to keep on top of your bills. If you have never borrowed money before, you may need to try and build up some credit history before applying for a larger loan. Once you have established some repayment history, a lender may be more likely to help you out with a larger loan.
If you want to talk to us about applying for a loan please call Quick Loans on 0800 200 275 or simply apply online.
This is not legal advice.