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Tips for First Time Borrowers

  • July 7, 2017
  • By Nick Vincent
Tips for First Time Borrowers

If you are in a spot where you need to borrow money from a lender for the first time ever, you might find yourself to be a little worried. You might not know about the process, what to expect, how you can increase your odds of being approved and the mistakes that you need to avoid making. It is understandable for you to be a little concerned and that is why you are reading this now. With the following information, you will be able to be well prepared for when you go to get your first installment loan.

Finding the Right Lender

You might want to shift your focus to a lender that is able to provide you with a fast payday loan alternative online direct deposited once approved. Payday loans are simply too costly and many people find that they actually end up in worse financial shape after getting one of those, versus being better off financially – which is the entire point of applying for a small loan.

If you want a loan that is fairly easy to get approved for and that you will have the cash in hand quickly, you will want to apply for a small personal loan. With those types of cash loans, you should be able to become qualified to receive up to $1,250. Of course, if you do not actually need that much, you may not want to ask for the highest amount the lender can offer. It is important to make sure that you are only borrowing what you really need, as you have to repay the loan on time and with interest included. The last thing you want to do is to set yourself up for any more financial trouble.

How to Qualify

Gather everything you will need for the application process for the payday alternative loan. This will include proof of your income, your social security number, and proof of your active checking account. It is important to make sure that you are giving the lender all of the information they need in order to verify the information you provide. For example, just looking at your paystubs may not be enough. They may have to call to verify that you are still employed and did not just lose your job the other day. This is to ensure that you will be able to repay the personal loan as agreed upon.

What to Do After You Get the Loan

First, make sure that you are putting the money you were given as a loan to the problem that you needed to solve in the first place. Even though it might be tempting to have some fun with the money – don’t do it. You do not want to try to have more than one personal loan out at one time, even if you were to use different companies.  The additional payments could set you further back financially. Make sure that you are reworking your budget to ensure that your monthly payments to the lender will be in on time. This will help you avoid penalties and it can increase your credit score.

You will also want to start working on creating an emergency fund in a savings account. Purchase insurance policies for everything you can. This way, should you need to pay for a funeral heaven forbid or repair a vehicle, you will be able to get assistance with that.

With those points in mind, you should find that you are going to be much more prepared to contact a lender for your very first personal installment loan. This will be a great learning lesson for you so once you are ready for larger loans to purchase a home or a brand new vehicle, you will have a better idea of what to expect and what you need to do.

By Nick Vincent, July 7, 2017