There comes a time when you need to cover a large expense, repay high-interest debt, or fill gaps in your budget. Preparing yourself to take out a fast loan is the first step to securing the funds you need.
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8 Steps To Take Out Fast Loans
The steps to take out fast loans are pretty much similar regardless of which lender you choose. Here are the 8 steps to take out a My Quick Loan.
- Be Familiar With Your Numbers
- Check Your Credit Score
- Compare Lender Options
- Shop Around
- Select A Lender And Complete The Application
- Accept The Loan
- Start Making Repayments
1. Be Familiar With Your Numbers
Before taking out any kind of loan, you should know how much you need as well as how much you can afford to repay monthly. Borrow just as much is required to meet your financial goals. Keep in mind, lenders will take into consideration basic information such as your assets and income to determine repayment terms. This is why you must conduct a meticulous review of your financial situation.
2. Check Your Credit Score
It is customary practice for lenders to approve loans to borrowers with high credit scores. Individuals with high credit scores will often get more favourable terms like lower interest rates. Review your credit report with the three major credit bureaus: Equifax, Experian, and TransUnion before taking out any kind of loan. Immediately report any inaccuracies on your credit report, if there are any, to any one of the credit bureaus.
Borrowers with a low credit score should consider taking the necessary steps to improve their credit report before applying for a fast loan. This is recommended because borrowers with a low credit score may have to pay higher interest rates.
3. Compare Lender Options
There are many options for taking out fast loans. You can borrow from a peer-to-peer online lending market, credit union, or a brick-and-mortar bank. The right fast loan will depend on the amount of the loan and your finances. Each lender may have a different process to approve qualifying lenders and you must understand all of the terms and conditions before applying for a fast loan.
4. Shop Around
You need to compare APRs to help you choose the right lender. The term APR stands for Annual Percentage Rate and this refers to the total cost of your loan plus interest. The best lenders will not charge prepayment penalties or any hidden fees. Make sure you understand all of the terms and conditions and the fees which can apply in all contingencies.
Always remember to look at the complete package and the reviews of previous customers to help you make an informed decision.
5. Select A Lender And Complete The Application
Apply for a loan after you understand all of the terms and conditions and are completely satisfied with speaking to the lender’s customer support representatives. Some lenders might ask you to provide proof of income and the approval process varies from lender to lender. Some lenders will be able to approve your application within 24 hours.
6. Accept The Loan
Once your application is approved, the lender can send a cheque or transfer the funds directly into your bank account. Some lenders will be able to provide you with a loan in just two days.
7. Start Making Repayments
Remember to set a reminder on your calendar before your first repayment is due. It is highly recommended to set up an autopay or use an amortization method to make the repayments. Make sure you keep a record of all of the repayments you have made including the date and time. Paying off the loan earlier can also help you improve your credit score.
You may also read: How to Apply for a Debt Consolidation Loan?