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How to Get an Application for Installment Loans Right

27 April 2015 No Comment

canstockphoto15972889One of the reasons why people choose installment loans is because they offer affordable repayment options. Also, it is reasonably easy to find a lender willing to borrow you money, even if you have bad credit. One of the considerations that is made is your personal debt to income ratio, which means they work out whether you are able to live your life and still meet the repayments. So how do you make sure your application is successful?

Budget!

Before you apply for installment loans, you need to know what your personal financial situation is. Check your credit score and make a budget so that you know where you stand, and so that you know what lenders see about you. Once you have budgeted, work out how much of what you have left could be spent on your installments.

Choose Your Lenders

Never appear desperate when you approach a lender. If they know you really want – or need – their product, they are more likely to give you a bad deal. Move on from any lender that makes you feel as if they are doing you a favor.

Two Types of Installment Loans

There are basically two types of installment loans, which are the secured and unsecured types. Unsecured loans are harder to get if you have bad credit. This is why most will suggest you choose a secured loan, offering some type of property as collateral. This will also help you to bring the interest rate down.

Start on the High Street

In most cases, you will struggle to obtain a loan from traditional lenders if you have bad credit. However, if you have had a bank account for a long time and you have used this properly, the bank may be more favorable. Additionally, you will actually get to speak to somebody to explain the reasons behind your bad credit, which means the decision will be personalized.

Apply for Small Loans First

If you can, try to apply for a few small loans and pay them off. This will help you to rebuild your credit very rapidly. Do make sure these are with lenders that report back to credit bureaus, however. This will make you look more credible, meaning you will have a bigger chance of getting a bigger loan later on.

Try Applying Online

There are also a number of very good online lenders, and you should take these into consideration. Do make sure, however, that the online lenders you find are properly regulated and that they are actually lenders and not brokers. Brokers will charge you a fee and look for loans for you, often in the knowledge that they will never be able to find you a loan at all. Check out Ecashwindow for personal loans. They provide several options.

Keep Your Integrity

Always remember that you are a human being with rights. This means that you do not have to accept a bad deal or made to feel inferior because you have bad credit. Be persistent, and you will find the loan you need.

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