Whenever you find yourself standing at a crossroads of a financial emergency, the first solution that pops into your mind is a personal loan. An instant personal loan app has proven to be a blessing in disguise for many individuals who often face urgent financial emergencies. The reason behind their increased popularity is mainly because they are very versatile, easy to use, and provide quick approvals to your monetary needs.
However, no matter how easy and instantaneous these loan applications are, there are still certain tips that you should always keep in mind before you fill out an actual loan application:
- Figure Out Your Monetary Needs:
The very first thing that you need to decide on is the amount you need, or whether you even really need to take a loan. Assess your assets and financial standings carefully and figure out if taking a loan is actually of utmost importance, or if you can face the financial emergency without applying for one. Once you have assessed this and the answer comes out in favour of applying for a loan, then decide on a specific and concrete amount. It is always advisable to borrow what you require, nothing more, nothing less.
- Evaluate Your Existing Liabilities:
Now that you have decided that you absolutely need to apply for a loan, you need to evaluate your existing liabilities and ongoing EMIs. Note down how much of your monthly salary goes into repaying your loans every month and figure out how much more of your salary you are willing to devote to it. This will enable you to get a clearer picture of how much of an amount you are eligible to borrow and at what interest rate.
- Run A Credit Score Check:
The very first thing that a lender verifies before approving a loan is the borrowing applicant’s credit or CIBIL score. This is done to evaluate the creditworthiness of the borrower. You will be eligible for a fast personal loan only if your credit or CIBIL score fits the eligibility criteria laid out by the lenders.
- Compare Different Offers:
Applying for a loan on phone implies comparing multiple options available in the market. There are many banks, financial institutions, lenders, and NBFCs that have different varieties of loan offerings. Your job as a borrower is to evaluate and compare all of these offers thoroughly in order to avoid filling out the application for the wrong one.
- Avoid Multiple Loan Applications At Once:
Another important tip that you should always keep in mind is to never apply to more than one online loan application at once. You might think that multiple applications will only increase your chances of getting an approval, but they actually negatively affect your credit score because each loan application triggers a hard inquiry into your CIBIL.
An urgent loan app is definitely your blessing in disguise when it comes to unseen financial emergencies. However, you must always tread with caution. These tips are nothing major or difficult to remember, but keeping them in mind will help you in the long run, increase your chances of approvals and reduce your financial burdens.