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Throughout this book you have learned the basics of each type of loan. As you can see, every loan type is different in many ways; however, loans are also similar. Lenders will often use the same general criteria to qualify a person for a loan and the basic ideas of getting and managing a loan are the same, as well. You have almost learned everything you need to know to go out and get a loan successfully. There are just a few more points to cover before you take the first step to securing a loan.

Things To Remember About Securing A Loan

There are key points you must always keep in mind when considering a loan. By keeping these key points in mind you will ensure that you are getting the loan you need and that you really need the loan. In the end, considering these points will allow you to prevent future problems with a loan.

You should keep in mind the following:

  • Know which loan is the right loan
  • Make sure the loan is affordable
  • Understand the risks.


Sometimes you may have a need that could fall under different types of loans. You should really consider your needs and which loan can best meet your needs. You want to go with the loan that makes the most sense and the one that can give you the most for your investment. If you are unsure you may even want to discuss your options with the lender. They should be able to help you decide what type of loan will be the best choice.


As you have learned there are many costs associated with loans. You should make it a point to understand the costs upfront. You should go over your budget carefully to make sure that you can completely afford every cost associated with the loan. Do not get too wrapped up in down payments, interest and monthly payments that you forget about the other costs you may incur.


Every loan has a risk. You have learned the risks of several types of loans. Most of the time the biggest risk is damage to your credit and loss of collateral, but sometimes the risks can be even more severe. Make sure you always know the risks of a loan and that you are sure you are willing to take those risks.

These points may seem redundant, but they are too important not to mention again. You have to be responsible and smart when getting into a financial obligation as huge as a loan. No matter what type of loan you getting, these considerations are going to help you out with making sure you are doing the best you can to get the right loan that works for you.

Overcoming Obstacles

Getting a loan can be a difficult process. A lender ideally wants a perfect candidate. They want someone who meets the following criteria:

  • Excellent credit rating
  • Two years of steady employment
  • Stable finances
  • Sufficient collateral

However, most people are not so perfect and are lacking in one area or even all areas. Things that can hurt your chances for getting a loan are:

  • Bad credit
  • Unsteady employment
  • Financial issues
  • Lack of collateral

If you have any of these problems, then you will want to find a way to minimize the impact they have on your ability to secure a loan. You can always work to make yourself look as good as possible. Many times despite a less than perfect background you will find yourself able to secure a loan. All it takes is learning how to overcome these obstacles. Here are some tips you can use.


If you have bad credit a lender will know. One of the first steps in the loan process is a credit check. One of the greatest advantages you have is that you can get your credit report before going to the lender. You have the upper hand because you will know what is on it and what the lender may not approve of. You can take this opportunity to bring in proof that you are resolving issues or even proof that something is wrongly reported. The goal is to really show that you know the state of your credit and that you are responsible enough to be working on fixing it.

Bad credit is one of the biggest obstacles in getting a loan, but it should not stop you. There are many lenders who offer loans to people with bad credit. Bad credit should be looked at as something to overcome, not something that is in the way.

Lenders are starting to see more and more people with bad credit. In fact, the majority of people today have bad credit or at least credit with flaws. Lenders can not rule out every person based on credit alone. Overcoming credit problems has a lot to do with recognizing the problems, working to fix them and downplaying the fact of credit verses other qualifying factors.


If you have had a rocky employment history a lender will be wary of your ability to pay back a loan. Sometimes, an unstable employment history is no fault of yours. If you have worked for companies that have closed down or have been laid off then bring proof so you can explain the problems with your employment history. You should also bring proof that you currently have very stable and steady employment.


Having any current debt delinquent is not going to make the lender happy. Before applying for a loan the one thing you must do is bring all debts current. This means utilities or any debt that would reflect you may be having financial problems with day to day living. Lenders are going to expect credit card debt and the like, but if you can’t pay your electric bill they will know something is wrong with your financial stability.


Lack of collateral is a common issue. Many people simply do not own anything that is worth being used as collateral. This can be overcome, though. You can either come to the lender with a down payment or find a co-signer. Both should be able to satisfy the need for collateral, as long as the loan is for a reasonable amount.

How To Apply For A Loan

Now that you are armed with plenty of information about loans you are ready to start applying for one. When applying for loans it is smart to keep in mind the following tips:

  • Know requirements
  • Have documentation
  • Know where to go
  • Shop around


Each loan has different requirements. It is smart to learn what they are before applying. Each lender may be different, so be sure to check with the lender as to the loan requirements. When you are prepared it makes you look much better to the lender.


No matter what type of loan you getting you will need documentation. You should always find out ahead of time what documents you need. Not having the documents you need when applying for a loan can really slow down the application process and could end up with you not getting approved for the loan.


You should always know the best lender to go to for the type of loan you need. As outlined in this book, different lenders are better choices for different loans. Make sure you choose the right lender the first time. It will save you a lot of hassle.


Lastly, you need to shop around. The importance of going to different lenders can not be stressed enough. Shopping around and getting different offers from different lenders gives you an upper hand. You may even be able to negotiate with lenders so you get the best possible loan. You can save money and find a loan that truly is perfect for your needs by shopping around.

LOAN GUIDE – Everything You Always Wanted To Know About Loans

Part 1 – Getting An Auto Loan
Part 2 – Home Loans
Part 3 – Commercial Loans
Part 4 – Personal Loans
Part 5 – Student Loans
Part 6 – Securing A Loan
Part 7 – Loan Application

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