If you want to borrow some money, you may just think that you fill out the form and wait and see. However, there are a number of things that you should think about before applying to make sure that you have the best chance of being accepted and have the best deal that you can.
Every time you apply for a loan it is put on your credit record. Every time you apply the lender will look at your credit record and see what loans you have applied for and whether you have been turned down or not. If you have been turned down then this could put off other lenders as they may feel that if another lender did not want to risk lending to you, then they do not want to risk it either. This means that you want to be really careful before you apply to make sure that you have the best chance of being accepted.
A good start is to check your own credit record. You can do this for free and it will enable you to see whether all of the information on there is correct. You should also be able to find out what chance you have of being accepted for a loan. If the chances are low, then it could be worth finding out what you can do to increase your chances. This could include paying off some debts, making sure you are on top of bill payments and things like this.
It is also worth thinking hard about which loan you take out. Sometimes, it is obvious which loan you will need, for example if you are buying a house then a mortgage is the only loan that will work but sometimes you do have options. You may be able to choose between a personal loan, credit card and overdraft, for example and it is not always easy to work out which to go for. It can be worth comparing prices as some types of lending tend to generally be dearer than others. An overdraft can be one of the dearest with regards to the interest percentage and fees charged along with a payday loan and a credit card can often be dearer than a personal loan with regards to interest. However, a personal loan has to be paid back in instalments over time, whereas you can repay a credit card whenever you wish as long as you cover the small minimum repayment. This is more flexible but means that the loan can potentially be outstanding for a much longer time period and this can mean that it is more expensive as you will be charged interest for longer. Therefore it is worth finding out about different loan options so that you pick the one which is the best for you.
It is also worth thinking about which lender to use, once you have decided on which type of lending to go for. Lenders vary a lot in what they charge. You can compare their interest rates to get an idea of the differences, but it is worth digging a bit deeper than this. Some may have fees for setting up the loan, for paying it off early and they will all charge if you miss a repayment. Make sure that you are aware of these fees as they will not be in their advertised rates but in their terms and conditions somewhere. Or find a lender such as Emu Payday Loans who charge no fees whatsoever. It is also worth calculating what your monthly repayments will be. This will allow you to work out whether you think that you can afford to take out the loan. Consider whether you usually have enough spare money to be able to manage these repayments or if not, how you will be able to.
Once you have gone through all of this process then you will be ready to apply for your loan. It could be worth speaking to someone in a branch, if you have one, to see whether they can check if you are likely to be accepted for the loan without it showing on your credit record. If you cannot do this, then just go ahead and apply. Only apply for one loan though, some people do several and then choose between the ones that they are offered. This would not look good on your credit record so it is better to apply for the one that you think will be the best and wait for the result.