Home Finance What Is the Best Reason to Give Lenders When Applying for a Personal Loan

What Is the Best Reason to Give Lenders When Applying for a Personal Loan

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Honesty is a good quality to be identified with. It should be your bb aim to be faithful in all things, especially on financial matters. When applying for a loan, you need to be faithful not only to the lender but also to yourself. Why do you need to be faithful to yourself? For a simple reason, you don’t want to do something that will hurt yourself in the future. Among the things you should consider in this regard include whether you must borrow and the amount that you need.

Applying too much than what you need is one of the best ways of causing yourself financial problems. Besides, it will also be absolutely ridiculous to take a loan because you qualify for one and not because you need it. A loan is an obligation you have to respect. Remember there is the cost of borrowing and so you have to be careful in every decision you make. You also need to be honest when dealing with the lender. You have to give accurate information.

The Best Reasons to Give

Failure to give all the material information is unhealthy behavior. Many think lying is the best way of getting an application approved. This is fallacious reasoning and you should never go down that route. If you’re a foreigner and you want to borrow a quick cash. Check out different money lenders online. Who knows, you might even qualify for personal loan for foreigners in singapore provided you give accurate information, including the reasons why you are borrowing.

So, what are some of the best reasons to give when applying for a loan? Well, consider the following:

  • Settling medical bills

If you are plagued with medical bills to the extent of taking a personal loan, let the lender know that this is the reason why you are borrowing. There is nothing wrong with borrowing to settle medical bills. A recent study shows one of the main reasons why Americans go bankrupt is medical bills. While it may be argued that you have to save for emergencies and perhaps take an insurance cover, expensive surgeries and other therapies drive people to financial distress. In case you are drowning in hospital bills and you have explained your situation to the hospital authority, it may be wise to take a personal loan. You can even go with a medical report or an official statement of the bills to the lenders. While some doctors and medical centers offer to finance and charge their own rates, you can get a very good rate if you opt for a personal loan. Additionally, some individual considers taking personal loans to cover some specific medical aspects not provided by insurance, for instance, fertility treatment and LASIK. While physicians may offer attractive payment plans for such procedures, personal loans may have more appropriate deals. Remember a slight difference in the rates of interest counts when the amount to be settled is huge.

  • Home Remodeling

The costs of remodeling homes are often so high. If you are borrowing for this reason, then let the lender know and you can be given better rates. In many cases, homeowners occupy houses without knowing how much they may need for upkeep. Failure to have enough equity in the property may make it hard to get the necessary funds for renovation. You should consider personal loans if you are in this condition. While banks have their limits for personal loans, most of them lend up to $40,000. This amount is sufficient enough to cover all the remodeling costs. If everything is carried out correctly, a renovation using a personal loan can earn you money in the future. How is that possible? The improvements that you make to the home improves your property value. It can potentially increase your equity by up to 20%. With this, you can refinance the mortgage and perhaps eliminate private insurance, saving a lot of dollars in the process.

  • Debt consolidation

This is yet another good reason for borrowing. It is a convincing reason not only to you but also to the lenders. Consumers often take personal loans to settle all their outstanding loans and fine-tune the payment process. It can be so challenging to keep track of everything your obligation if you have a mix of debts. With a personal loan, you can combine them into one and simply have one regular payment. Depending on the rates of interest in your current loans, you may end up having a lower rate if you consolidate using personal loans. This is very beneficial in several ways. The interest savings you make can be used to repay more than the minimum requirement and doing so, you can accelerate the rate at which you pay off debt. Additionally, you can use the funds saved to supplement your emergency funds or save for retirement.

  • Buying a car

Buying a car is also a good reason to give when applying for a personal loan. And just like debt consolidation, you can get some considerable loan proceeds. But it is also good to consider the reason why you need a car. If it can actually add value to life, there is no problem. This is what we meant by saying you need to be honest to yourself as well. You can also borrow to fund the purchase of a motorcycle or boats.

  • To cover wedding costs

A wedding day is a special occasion and one of the most important days of your life. It makes sense to borrow to finance the costs associated with the occasion. For instance, think of the benefits you are going to get from wedding photography! Those photos will help you keep the memory of the big day and remind you of your wedding vows throughout. Many lenders offer wedding loans. You only need to compare loans online to get the one that best suits your condition.

Must Read:  Loan Against a Life Insurance Policy: Good or Bad?

There are so many reasons one can give when applying for a personal loan. We have considered some in this discussion. And as we mentioned earlier, you need to be honest. Other critical areas that require honesty from you include your income level, the amount you need, and the desired loan duration.

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