There are lots of reasons to take out a personal loan. Perhaps you’re hoping to buy a car or maybe you want to treat your family to a well-deserved holiday. Whatever your reason, finding the right loan for you is essential.
The last thing you want to do is agree to terms that don’t suit you. So, if you’re looking for a loan right now, here’s what you need to know.
Know Your Budget
Before borrowing money, it’s important to know how much you can afford to pay back. With any personal loan, you’re going to be paying back more than you borrow. Work out what your income is and what your outgoings are.
You should then be able to work out what disposable income you have left to manage a loan with. Never agree to pay more than you can afford.
Gather What You Need
Whatever loan you apply for, you’ll need to provide the lender with proof of who you are and what you earn. It will be difficult to apply for a personal loan without a payslip but not impossible. Some lenders are willing to lend money as long as you sign an agreement that the amount payable back to the lender is affordable.
Ask Your Bank First
You may be pre-approved for loans with your bank. Check with your bank to see what they’re willing to offer you before you go anywhere else. Banks often give their own customers priority and you could be eligible for special rates.