It is not easy to access the right private funded loan whenever you need it, especially when you need to spot the right lender from the wrong one. Many borrowers seek for loan products online, but not everyone knows how to choose between multiple lending companies that can help them access the amount they need.
So, before you go out into the lending market, here are tips to keep in mind:
1) Determine whether getting a private funded loan is the most practical option
There is a huge difference between mainstream lenders like banks and public lenders that specialized lenders proving alternative financing. If you don’t qualify for traditional loans from banks, cooperatives and traditional financial companies, you can look for individuals or companies that directly loan money to borrowers like you. Mainstream lenders have lending requirement that you may not qualify for–such as tax returns for the past two years, payslip, and other proof of stable income. On the other hand, private lenders may look beyond your capacity to repay the loan. They may consider your relationship on trust basis. That’s why it is important to pay on time, so that you can boost your chances of getting approved again when you reapply for another loan.
Remember that a private funded personal loan is unlike other types of loans. It is flexible and you can use the money for whatever purpose. On the other hand, banks and public lenders often require you to reveal the purpose of the loan and the loans are categorized according to its type-such as car loan, mortgage loans and the like. You can secure a private loan with collateral or you can opt for unsecured personal loans or one that does not require security.
2) Explore Alternatives to Private Loans
- Wait till your income gets better. If you take out a loan today, will the end result outweigh the financial implications of getting a loan? Spend the borrowed money wisely, remembering that you are paying interests and fees for its use. Let’s say, you took out a$2000 private loan at 10% APR payable within 3 months. You used the money to pay for your treatment. That is a good way of spending money. While it may not provide immediate financial returns, you are increasing your ability to earn by making yourself healthy and fit for work. Health is one the most practical investments—because it is one of the most powerful tools to gain wealth.However if you take out a loan to pay for leisure spending like going on an unplanned get away vacation, it would provide you with 0% returns. But, if you plan a trip to refresh your mind, relax and to build memories with your significant others, it may be worth cost of using the loaned money.
- Use the borrowed money to boost your income or add value to your assets. If you want to make sure that the loaned money is out to good use, why not sue a portion of it to make the additional cost worthwhile? You can put some of it on your existing savings, stocks, or retirement funds. You can also start a part time business that can help you earn profits that can cover the monthly repayment of your borrowed money. Doing so would greatly reduce interest costs.
- Try opening a line of credit, getting a cash advance or using your credit cards to purchase goods or pay bills. It is still possible to get approved even with a bad credit; as long as you have established a solid relationship with your credit card provider. You can also turn to your credit card for small one-time expenses as long as you haven’t maxed out your cards yet. However, it may be difficult to do so, if you will open new accounts. Banks and credit providers are more lenient to their long-time customers than those who are just applying for new credit.
- Look for affordable personal loans with easy repayment conditions, specifically designed for people like you. Check the online lender’s website to get more details about their loan products, their terms and conditions and how it would fit your needs. Even if you have poor credit score, unstable income and other serious financial limitations, private financing companies may still look upon your application favourably. It is because banks are highly regulated, that’s why they cannot easily entertain application from people who may not qualify according to the country’s strict lending criteria.
- Study the full benefits of obtaining private funded loan so you can maximise its full potential. It is a valuable tool in meeting your short-term and long-term needs, augmenting your cash flow and investing for your future. It has fast approval process, even to those with poor credit ratings.