5 mistakes to avoid when applying for a loan

If you are applying for a loan, on some occasions, represents a slightly complex operation, which is further complicated by some errors commonly committed by users. Here are the 5 mistakes to avoid when applying for a loan …

1 – Ask for a loan to pay off other loans

When a loan is requested, the installment to be paid may be high and therefore a user may find himself in the position of having to apply for a further loan to meet his obligations.

This is a big mistake, as banks hardly grant personal loans that allow a user to pay the installments of other loans.

The ideal solution instead takes the name of debt consolidation: this solution allows users to pay a single installment, which will cover the various loans that have been requested and that cannot be remedied.

To be able to request refinancing, a good start is to compare the different offers on where it is possible to enter data relating to one’s own loans and compare all the proposals coming from banks and financial institutions.

2 – Send multiple requests simultaneously

When a user needs a quick loan, he usually sends the request for a personal loan to several banks at the same time.

This is another mistake, as the banking institutions are all connected to each other, the database is unique and numerous requests to different bodies could lead managers to believe that the user is in a very complex economic situation.

Consequently the loan is not granted, as the banks do not take the risk of losing the money, also because the user is seen as a bad payer.

3 – Submit requests frequently

It could happen that a user sees the loan application rejected and that, being in an emergency situation, send the loan application again to the same financial institution. The result will absolutely not change. Indeed, the bank could rely on the right to refuse office.

This is for a simple fact: the loan application remains in the database for about a month, with the reason why the loan was not granted.

By sending the new loan request immediately, the user name will appear again in the database, as well as the previous application rejected by the bank.

We must have patience: when a question is refused, the user must wait at least one month, so that the request is deleted from the database and the user can have a greater chance of being able to obtain the loan.

4 – Forget about the release

A common mistake, the result of frustration on the part of the user, consists in not requesting the release when the loan application is refused. This document is very important, as the request for loan request will not remain in the “request” state but rather in the “rejected” state.

If the release is not requested by the user, the bank could automatically reject any other subsequent question, precisely because the first of them is in that state. On the contrary, instead, with the release form, the user can, after about a month, submit a new application for funding.

If this was not done in the past, to “unlock” document that will be released, the user can submit new loan applications without any problem.

5 – Choose a non-ideal guarantor

If the income of the user applying for a loan is low, the institutions could request a guarantor: the choice of this figure is fundamental since the acceptance of the application depends on this.

If the guarantor has ongoing debts or financing or is a bad payer or his income is low, the loan applicant will see his application almost automatically rejected.

The wrong guarantor must therefore be avoided: the user must focus on a person who has completely different characteristics than those that distinguish the non-ideal guarantor, that is, he must not have ongoing financing and must prove that he is able to meet the payment of the debt of the borrower.