Borrowing money is something that almost all of us will encounter at some point in our financial lives. Whether it is student loans, a mortgage, a car title pawn, or a loan from friends it will occur that we will need money for something that is financially out of our reach. Borrowing money is a big deal and it’s something that should be taken seriously. So many of us will encounter debt in our financial lives as well, but if you learn some basic tools and some borrowing fundamentals you may be able to avoid a financial meltdown.
So even though you need money and you think you are ready to handle the responsibility, check out the following information to make sure that you know what to expect when going in for your first loan.Okay so you’re on your way to the bank, to fill out your first credit or loan application, are you ready? Before you head out the door, check this list to make sure that you have everything that you need for a speedy process.You will need to have along with you a recent copy of your credit report. Your credit report is usually the first thing that lenders will look at to determine whether you can get the loan or not.
There are 3 main companies that handle these things in the U.S; they are Equifax, Trans Union, and Experian. You can call either of these companies to obtain a copy of your credit history.Next you will need to bring a long with you, your proof of income. Pay stubs, and W 2’s are usually the one’s the banks ask for.A copy of last years’ tax return should be next on your list. Personal loans, credit lines, mortgages all require that you bring in a copy of tax return.These are just some things that you might need to bring in to be accepted and approved by a bank. Keep in mind that the application requirements differ greatly depending on different lenders. Make sure to read the requirements carefully, and bring all the proper documentation so that you do not miss anything.
It’s better to safe than sorry.Now before going ahead and putting in your application for your credit card, or loan ask yourself these questions:Are you prepared to take on the responsibility of this loan? Don’t forget that when you borrow money, you have a legal obligation to it pay it back, and if you fail to do so, there will be repercussions. Before going ahead make sure that you are capable of paying back the loan and that you understand all it entails.Why are you borrowing this money? Do you need the money for school, are you buying a house? Is it for immediate gratification and enjoyment? Weigh out the pros and cons before making you r final decision. This will ensure that you know what you’re ready to go ahead and borrow money responsibly.