Having debt can steal your peace of mind, especially if it has been pending for too long. For borrowers without a stable source of income, taking out a loan is the surest way of clearing such a debt. However, qualifying for a loan when you already have a pending debt is not a walk in the park. This is because many banks scrutinize all loan applicants just to find an excuse that can justify their decision of denying the loan that you desire so much. Here is a list of tips that can help you in getting yourself out of the dilemma that’s caused by debts.
- Compare Different Banks
The bank is definitely your first stop when you desperately need a loan. This is because they can afford to lend you any amount of money if you have the credit that shows you will pay it back. However, you should never settle for the first bank that agrees to loan you. This is because they might exploit you when you could have gotten a better deal from another bank. It’s actually advisable that you take time to compare the loans that are offered by different banks. Ideally, you should shop for a loan that has a fixed, low interest rate and flexible payment duration. You should also confirm that there are no hidden charges. Remember, there are some banks that will sugarcoat their offer only for them to jump ship later after you have signed on the dotted line. If something is not clear, get clarification from the loans officer.
- Try Peer-to-Peer Lenders
In case your loan application is declined by the banks, you should consider working with peer-to-peer lenders. They are basically multiple lenders that are consolidated in one online platform. When you apply for a loan at Loanable.com, you can be sure that your request will be approved right away. This is because there are many lenders that are looking to make extra bucks by loaning out their money for profit. The advantage of dealing with such lenders is that you don’t need to go to the bank in person. You can also apply for a loan on any day of the week. And that’s not all. They also offer loans to applicants with poor credit history. This guarantees that you will not come out of the platform without a solution to your financial woes.
- Review Your Credit Score
Before you apply for a loan, it’s advisable you first find out where your credit score stands instead of waiting for the lender to break the bad news to you. In fact, you only need to visit the credit bureau to see your credit report. If it’s not impressive, you should try settling as many debts as possible. You should actually start with the debts that have a high interest rate. Remember, most lenders will be reluctant in giving you a loan if they realize that you have a history of differing in clearing debts. And if they approve your loan request, they will slap you with a high interest rate and a short repayment period. They do this to ensure that they safeguard their interests.
- Get a New Credit Card
Getting a new credit card is the last option when the other alternatives have failed. By applying for a credit card that offers zero percent on purchases for a given period of time. If you are lucky, you might find a credit card that provides you an exemption of up to 16 weeks. Once you get such a credit card, you should use it when shopping and direct the cash you normally spend on settling your debt. In fact, you should cut back on your expenses so that you can afford to make a higher payment than what you are supposed to pay every month.
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