Recipe For The Perfect Loan
- 25th September 2018
- Posted by: Loanable
- Category: Blog
When you decide to cook something, be it something new or something you have cooked for years, chances are there is a recipe for the dish.
It may be a brand new recipe for something you wish to try, or even if you have cooked it before, you know the recipe by memory.
The fact is with many things in life, we need a recipe or plan of a way to do things.
This includes getting a loan, and not just a loan, but the right loan for you, as just as everyone’s tastes may differ on how they like their foods, everyone’s situation and circumstance may differ in how they may get a loan.
Then there also so many different types of foods to cook, and there are many different types of loans in which to apply for.
So a “recipe” or plan on how to go about this is needed.
And when you think about it, you cook everyday, so cooking comes naturally, preparing and applying for a loan is not something we do everyday, we may not know the process, and the terms used, so having a recipe can help.
It can help avoid rejection, disappointment, financial worries, and just bad feelings in general.
Just as having a recipe for a meal can avoid bad taste, too much spices, undercooked, or overcooked.
So let’s look and compare a recipe for the perfect loan!
Decide on a Meal/What Type of Loan Do You Need
It is the age old question, what to have for tea? A question asked almost daily, we need to decide what to cook or our meals.
The same can be said for our loans, what type of loan are we looking to get?
If we want to have a roast dinner, we need to decide on the meat, lamb, chicken or beef, and all the sides, roast potatoes, the veg, etc.
If we want to buy a car, we need a car loan, or some form of car finance.
If we want to buy a house, we need a mortgage loan, a credit card requires a credit line, and personal loans for whatever reason, require a personal loan.
It may even be you are suddenly faced with friend and family dropping by, and you need to prepare a quick and fancy meal at the last minute.
Financial emergencies arise, and a loan may be needed at the last minute. So having a proven recipe can help.
Once you have decided on your meal, or the loan you need, then we can move on to the next step, what ingredients do you need, for the meal, and for the loan.
Gather the Ingredients/Review Your Credit Score
Once you decided on your meal to cook, or in this instance also the type of loan you are looking for, you need to gather all the ingredients needed for the meal, and in the instance of getting a loan, it is always wise to review your credit history and credit score.
You may search through the cupboards and shelves to see what foods you need for the recipe you already have in, but in the end you will probably need to go out shopping for some ingredients.
You will also need to get a copy of your credit history, and also your credit score.
Just like you wouldn’t leave a key spice or ingredient out of your recipe, you would not want to apply for a loan without knowing your credit score.
Credit scoring is how lenders determine not just who they will approve or reject for a loan, but also the interest rates they may charge for a loan.
A high credit score is good, and will get you a low interest rate.
A low credit score, may get your loan rejected, or if approved, a much higher credit score. Costing you money in the end.
Just as with a recipe you may need to substitute an ingredient, while there are no substitutions for a good credit score, you can look to increase or better your credit score.
There are ways to improve your credit score. Things such as:
* Checking your credit history for errors or omissions and having these corrected
* Getting on the electoral role as lenders use this to verify you and your address
* Closing any unused accounts and credit cards, but not if they are your oldest or older accounts
* Not applying for a lot of credit
* Paying your accounts on time
Prep Work/Research and Documentation
In preparing your meal according to the recipe, there will be prep work to be done. Things like chopping, cutting, dicing, marinating, and getting all the ingredients ready to be mixed together and cooked.
In seeking a loan, you also need to do some research and be ready to document your position for the loan you want.
This means being able to show affordability, and having the documents to prove it. A completed income and expenditure sheet is usually required when you apply for a loan, so having these figures at hand is helpful. You can gather them all up beforehand, and do your own income and expense sheet.
You know your credit score, so that is a help in itself.
If you can show a pattern of savings, this shows affordability as well. This can be documented by showing you have a savings account, and/or statements that show you make regular deposits into the account.
Now that we have all the prep work, and documentation ready to go for our loan, w next need to know, where to go to get our loan.
Mixing Things Together/Where to Apply For The Loan
We’re gathered our ingredients for our recipe, done our prep work, we now need to mix those ingredients together and get them ready to be cooked.
For our loan recipe, we are ready now to apply for our loan. We know what type of loan we need, we have checked our credit score, done our affordability checks, and now, where to apply?
Fortunately these days with the power of the Internet, researching where to apply for our loan is easier than many moons ago.
There are comparison web sites for banks and lenders, and also credit brokers, who can find you the loan you want. It makes it easy, you apply online, and can usually for many loans, be approved within 24 hours.
Even mortgage loans which took weeks in the past, can be done in principle within days.
We have all our components or ingredients ready and mixed together, we have the oven pre-heated to the set temperature, our research as to where to apply for our loan is complete, next is to actually apply for our loan.
You take your mixed ingredients in a pan, and place them in a stove to cook, setting a timer as to when the finished feats will be done.
For our loan recipe, you complete an application with a lender or credit broker, for your loan. You click on the submit button, your loan application goes off to loan cyberspace, and you wait.
Usually within minutes you will receive a notice or email, that your application for a loan has been received and is being reviewed.
As with some recipes for food, you may need to baste or turn the food, or add other ingredients as it is cooking.
The same is true with applying for a loan.
If a lender require any further details from you, they will let you know. And you will be ready, as you have done your research and have all your documents near to hand.
The Finished Meal/Loan Approval
The timer sounds off, you take your cooked meal out of the oven to cool, and to serve to your guests and family.
For your loan, you receive notification your loan has been approved, and once you provide your banking details, if you have already not done so, the money will be in your bank account, usually within hours.
The time-frame can depend on the type of loan, such as if the loan is a secured loan for a car, motorcycle, or other secured purchase.
But no matter what type of loan you have applied for, you now have a recipe that is been tried and tested, and proven to work.