Applying for A Loan? Here’s How to Get Prepared Financially

Taking out a loan is a bit daunting, no matter how many times we’ve chosen that option. Interest rates, financing terms, and intimidating bank people in suits and ties can make us feel unsure about the entire process…not to mention the onus of paying it all back! Let’s face it, none of us do this every day, so we all need a little friendly guidance to get us going in the right direction.

Today, there are luckily many more routes to take in securing financing. You don’t have to even walk into a bank…unless that’s your thing. You can apply online or over the phone if you’re feeling like you have an endless number of questions. Plus, the internet is a super place to get familiar with the terminology and all those tips and tricks. Look at articles, FAQs, and reviews online to get the most info you can. Speaking of resources, Blue Trust Loans provides an easy-to-navigate site with helpful advice on what type of loan is best for you. They also have a variety of financing solutions from installment to personal loans. They are a Payday Loan Alternative. If you’re new to this, start here, and read, read, read! Oh, and we have a few ideas of our own on having a happily ever after loan experience.

stamping check book

Pay Your Bills on Time and In Full

Good credit. Are we right? If there’s one thing you should remember, remember that having an excellent credit score is key to being financially stable. According to Experian.com, a good FICO score ranges from 670-739, a VERY good score impresses at 740-799, and an EXCEPTIONAL score shines anywhere from 800-850

But how do we do this? First, make sure you have some established credit. This could be through your utility bill, wireless phone plan, or a credit card. Don’t have a credit card? So okay, if you can cross your heart and promise you’ll be responsible with one, we think it’s a smart idea when needing to establish credit. Just use it for something simple, like filling up your car with gas or only grocery shopping. Make sure you pay the entire balance off each month and pay it by the due date. Incorporate these healthy financial habits with ALL of your bills, and this will set you up for success.

Eliminate Other Debt (Or at Least Get It as Low as Possible)

If you do have credit card debt, you’re still paying on that cute coffee table you bought with zero interest for 12 months, or you’ve just got a little more left on your auto loan, try getting some of that superfluous debt paid off. Focus on the smallest balance, get it paid, then move to the next lowest outstanding amount. You’ll start checking off responsibilities and making room for more freedom in your life. It’s kind of like decluttering your closet…it feels like a huge relief to get that worrisome stuff out of the way.

Don’t Apply for Other Loans or Lines of Credit

Here’s another one to pay attention to. If you’re needing a loan, make sure you’re not running around town getting your credit pulled all over the place. For instance, don’t apply for a credit card at your favorite store just because it’s 10% off the entire purchase. This can wait! Also, don’t let any ole loan lunatic pull your credit on a whim. Stay alert and speak up, if you feel uneasy at any moment. Other industries that could pull your credit before you can say, “Help me, I’m poor,” are cell phone companies, appliance stores, and even doctor or dental offices when you need some assistance financing a mega-bill. You can do these things later. Especially if this loan is for a house, car, or another major necessity you’ve been planning for.

women on a tablet

Research Your Options

Again, use that wonderful world wide web! Check what people are saying about various financial institutions just like Blue Trust Loans, read articles from money managers like Suze Orman, and compare numbers, like APRs and the length of the loan. You’ve got this, smarty-pants!

Get Frugal

Now, if you’re anything like us, this may be the hardest part. At Promocodes.com, some of us just LOVE. TO. SHOP. It’s a real problem. BUT, it doesn’t have to be! While we love delicious deals, beautiful bargains, and sweet sales, we also know the importance of saving and being kind to our wallets. Cut out any expense that truly isn’t necessary, conserve energy at home and when you travel, and please, oh, please don’t buy all the pretty things. Tightening the tiny purse strings will be very beneficial for you in the long run, and short-term! More cash fluidity means you’ll get better at paying off those other debts faster, which will raise your credit score, which will get you that important, long-awaited loan. We know you can do it!

We hope you’re already prepping and coming up with your own personalized plan. For more tips, keep following our Promocodes.com blog.