Information you need to know before taking a loan
After finding out your credit rating, you can then search for the best lender . This is a crucial decision as some banks will only lend money to those who have high salaries and good credit. Your chances of success can be enhanced if you seek out a bank that accepts applicants who may have had credit problems earlier. If you are in a good position and can choose between different lenders, it is important that you carefully examine the conditions to find the best interest rate. A fixed rate loan is much better than variable, as you can then plan your finances in the long term, knowing that the amount will remain the same every month until it is repaid.
Once you have found a loan that suits your needs and a suitable lender, it is a good idea to look more closely at the terms of the loan. Many lenders will offer payment protection as an additional service. It costs a small monthly fee, but this protection can be invaluable if you become ill or unemployed. Under these circumstances, this protection will take care of the payments. You should also study what happens if you miss a payment. What responsibilities do you have as a borrower in these circumstances and what is expected of you?
Finally, you should talk to the bank or adviser adviser before and after your credit application. They will give you advice tailored to your personal circumstances. If you are not granted a loan, they may still be able to provide advice or an alternative solution to how you can improve your credit rating so that you have better opportunities for future credit applications.
Increase the chance of getting a loan
It may be annoying to apply for a loan for the first time. Being exposed to an assessment is always difficult, especially regarding something personal as well as your own financial situation. It can be difficult to know how a financial institution assesses and weighs different tasks in an application and what importance they have for you and your chance to get a loan.
Fortunately, there are a number of things you can do in the lead and loan application process to make everything run as smoothly as possible and improve your chances of being approved.
Make a budget
For medium-sized and larger loans, many lenders attach importance to how the private economy looked during the last three months. For larger loans, it is always a good idea to be able to show off a budget. It shows in good order and whether bills are paid on time and if you can show how the budget has been seen in recent months. Compile all tasks in an Excel, print it out and bring it to the bank.
- Fixed expenses such as rent, electricity and telephone bill
- Possible savings
- Payment of other loans and credit cards
The longer the history can be presented, the better, but as long as it can show at least three months of orderly finances, it should be enough.
Check your credit rating
If you have any doubts about your creditworthiness, please provide yourself with a credit report. On some websites it is possible to get a report for free, but to get complete information it can cost a few tens.
Apply for the right loan
What is the purpose of the loan? What is it for, how fast do you want to pay back and how big does it need to be? There are small loans from a few thousand dollars and large loans up to SEK 500,000 that can be obtained online. There are loans of one year and loans with repayment periods of up to 14 years. Think about needs and wishes and then do research to see which loans are available and which ones are best for you. A well-balanced amount with a clear purpose shows that you are serious about the loan and you are not just looking for quick cash to set off.
Lenders are often more willing to lend cash if the money is to be used to pay for more expensive loans .