How do I apply for a loan?

Some people shy away from applying for loans because they either don't understand the process, or feel that it is too much hassle. Well, many years ago the process was a great deal more complex, and was a lot of hassle. However, the onset of technology and customer relationship management has actually made the process much smoother now.

The first and most traditional way to apply for loans is to make an appointment with your bank or building society. Many years ago it was your bank manager who would decide whether or not you could get a loan, but nowadays the bank is likely to have a loan specialist who should be able to ascertain your needs and help you with the application process. The loans specialist may be authorised to give you a decision on behalf of the bank as well, although that depends on the amount you want to borrow and is normally subject to a credit check. An advantage of using your own bank is that they might have your credit history and details on their systems, so you could be pre-approved for certain amounts and types of loan.

Whatever happens, you should expect to have to fill in some forms, and this should be true of any reputable loans provider. You will have to fill in personal details such as your name and age, and then there are your address details. This can get slightly complicated, as the application form will not only ask for your current address, but your addresses going back the last 3 years. The reason for this is that when your application is credit scored, your credit history is not just held against your name, but your address also. With some application forms, you will also be asked for your career history over the last 3 years. This is so that the lender can see how reliable your income stream will be.

Of course, nowadays you don't just have to apply for loans on a face-to-face basis. You can also get them sorted out over the phone or on the web. When making a phone or online application, make sure that you have all of your information handy, so that you can give the lender all of your details. They might then give you a decision over the phone, but more likely will need you to fill out a form that they send you. Until the advent of electronic signatures you will always have to sign something, so you can expect to be sent something.

However you apply, make sure you tell the truth during the application process. You'll have to repay the loan immediately should the lender uncover any lies.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

© AskFinancially.com 2008

Loans

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