Why make it personal? There are times in your life when, despite your best efforts, you fall short of the funds you need to achieve what you desire. Personal loans can provide a way to afford what you need in the present by allowing you to pay it off in the future.
What Is Your Reason?
According to Bankrate.com, there are six most popular reasons why people apply for a personal loan:
- Consolidate debt
- Alternative to a payday loan
- Finance home remodeling
- Money for moving expenses
- Unplanned emergency expenses
- Make a large purchase
Identifying your reason is vital so that you’ll know your capacity when you need to pay the money back. For example, in Europe, flexible credits, or also known as joustoluotto, are easy to get, but it has high interests. If you plan to use such money for consumption in the short term, you’ll end up paying more than necessary.
Have You Got All the Documents Ready?
The bank will want to know your relevant financial and other information, not just for their own security, but to make sure you’ll be able to pay off your debt comfortably and not get into any tricky situations down the track.
You may need to provide things like:
- Personal information – like if you’re a new or existing customer. If you’re a new customer, you’ll need to provide identification such as a passport, driver’s license, or birth certificate.
- Your loan details – this can include the reason for your loan, the amount you’d like to borrow, and your chosen loan term, which at Westpac will be between 1 and 7 years.
- Employment information – this needs to outline your current work situation and your salary, plus any extra income you receive. You may also need to provide proof of income, such as your most recent payslips or tax returns.
- Financial information – this can include whether you own your home or rent, how many children you have, plus details of your assets and expenses. You may need to provide proof of any savings with other banks.
- Any other debts you have – the bank will also want to know about any other debts you have to ensure you’re not over-extending yourself. This may mean providing credit card or loan statements.
- Extra information for car loans – if it’s a car loan, you’ll have to provide details of the car you’re buying as well as relevant documents including the tax invoice and comprehensive insurance policy for your new set of wheels.
Have You Considered Multiple Options?
Comparing personal loans doesn’t have to mean hours of leg work. Using RateCity, you can compare personal loan online. Simply select which options you would like to search for, such as low interest or debt consolidation personal loans, then add any information to filter the search results for you.
The results will show a list of products that best suit your criteria. You can then further filter your search by comparing the interest rates and fees, and once you find one that best meets your criteria, you can apply online. Your chosen lender will then be in touch with you to notify you of the status of your application.