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» Loan Requirements: What Does it Take to Get a Loan Nowadays?

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Loan Application

Loan Application

There are many types of loans, ranging from personal loans to mortgages to automobile financing to credit cards. Each type of loan has its own process and requirements. In today’s lending environment, getting approved for a loan is more difficult, but depending on your needs can be accomplished.

The newest type of loan that has gained popularity in the market is called a Payday Loan. These loans are for small amounts and for short terms, but can hold you over in a crisis or if you are only paid on a monthly basis can keep you going until your payday. These are relatively easy to get, you will need valid identification, several prior paycheck stubs and a contact at your employers. These loans are also fairly expensive, but if this is your only choice, it is there when you need it.

In a similar vein are car title loans, these loans are not available in all states but where they are they are easy to get if you hold the title to your car, you keep your car and just pledge the title, this is not a car loan, it is a personal short term loan with the car pledged as collateral. If you do not make your payment or pay off the loan as specified, they will take your car and are legally entitled to sell it immediately. These loans are also expensive.

An old fashion bank loan commonly known as an unsecured loan is virtually impossible to get these days. These were sometimes called signature loans, you just sign on the dotted line and you received the funds and make payments to pay back the loan. These have been replaced with secured loans where you pledge all of your assets or a particular asset as security against the loan. In today’s credit world these also are difficult to get.

Automobile loans have gotten a bit more difficult, but if you have good credit there is no problem, if you have less than stellar credit as long as you have a down payment or a trade in with value you should be able to get financed. The dealers and car manufacturers have agreements with the banks and lenders. What interest you pay is effected by your credit rating and down payment.

Mortgages are available, just the requirements have gotten tighter and your earning to debt ratios are important again as well as your credit score the appraisal on the property, your down payment and your income. As long as you are buying within your means and have a down payment mortgages are being approved. Interest rates are low and this could be a good time to look at property.

Credit Cards are a form a loan or a line of credit. The requirements for credit cards have tightened up and the amount of credit being offered has been reduced and the interest rates have climbed. If your credit score is average or above you will have no problem being approved. You will have noticed that all those preapproved and constant offers for cards may become less and this is not such a bad thing at this time.

If you have a decent credit score, manage your money properly and aren’t spending more then you are earning you can still get the credit you need.

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