You’re short in cash but you need the extra cash to pay something as soon as possible. You think of many ways in order to earn a few pesos. However, you also wouldn’t want to waste time in trying out any other process and risk yourself vulnerable to more problems. You think of borrowing money from friends, but you had already borrowed enough in the past and are feeling a bit embarrassed to do borrow again. No worries, you can always apply for a personal loan. The question now would be, “if I apply for a loan, what are the qualifications?” Here are just a few qualifications to get a loan:
1. What to use the loan for.
First things first, why would you like to apply for a loan? What is the purpose of your application? Once you have the money, where are you going to use it? These are important questions you may have to answer in order to qualify for a loan. Lending companies would definitely like to validate if the applicant is a trustworthy person, and an honest answer would be greatly appreciated.
2. Your credit history.
Your past does define your future, especially with your credit score. If you have a clean record when it comes to paying your debts, then you have a higher chance of receiving a loan approval. However, if you have a negative history when it comes to your past obligations, then you may have a lot of explaining to do in order to get your loan approved.
3. Your ability to pay back.
A loan is basically borrowed money, so it’s just natural for the lending company to analyze whether you would do well in paying money that you owe them, before even approving your loan application. While your credit history may give a glimpse of your characteristics as a borrower and a payer in the past, the current analysis of your present means of income would give them an idea whether or not you have improved your ways in paying your debt/s and are actually capable of repaying this borrowed amount.
4. Your payday loans are also checked in the process.
According to a recent report, “some lenders also check out your bank accounts and lines of credit that aren’t reported to the credit bureaus. Short-term loans, sometimes called ‘payday loans,’ are an example of a credit line that usually isn’t reported.” Hence, even though some lenders use alternative types of data to supplement their loan decision-making process, borrowers shouldn’t underestimate the value of their credit score.
5. Your financial paperwork.
Income tax returns, bank statements and college records are just a few examples of these. In some cases, the lender already knows a lot about your financial situation. A sample indicator would be the so-called signature loan, a lending vehicle that uses the borrower’s signature and promise to pay as collateral. With this type of personal loan, the lender doesn’t ask for or verify much information beyond your identity. In such case, it is better to give all of the needed information and answers when asked about your financial activities before, so it may match with the “investigation” done by the lending company.
If it’s a loan you’re looking for, then Cebuana Lhuillier’s Lucky Loans should definitely be your top choice. It is a multi-purpose loan offered to registered entities such as tricycle operators, credit cooperatives and other groups, as well as SMEs such as restaurant and mini groceries, among other businesses. Our network of more than 2,000 Cebuana Lhuillier outlets and online presence give customers unlimited access and utter convenience in applying for a loan.
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