Applying for a loan can seem like a complicated and slow process, especially if you want to get a payday loan quickly. Many borrowers fall prey to mistakes in the application process, which at least do not help in getting the loan, but on the contrary, they can even hinder the loan. We’ve put together the most common mistakes that borrowers fall into.
Do not submit multiple applications to the same loan provider
The waiting time is known to be long, and if a payday loan application is not answered quickly, it may seem like a good idea to send a new application to the same loan provider as a reminder. However, this is not worth doing; if the borrower already has an open loan application under consideration by the lender, the new application will be automatically rejected without further processing. Submitting a new application is therefore of no use and will only waste your time.
If a particular loan provider has previously rejected your loan application, submitting a new application will not change the loan decision, unless your financial situation has changed dramatically since your previous application. Changed cash conditions may mean, for example, a major salary increase at work or the payment of outstanding debts.
Also, submitting a new loan application for a smaller loan amount will not help if you have previously received a negative decision on your loan application. For example, if you apply for a loan of $ 5,000, but your loan provider can only grant you a loan of $ 2,500, they will send you an offer for that loan amount in response to your $ 5,000 loan application. If the loan provider does not offer a loan for a smaller loan amount, you will not be able to get a loan from that loan provider.
The application should not be fooled
The loan application information must be filled out carefully and truthfully. If you submit multiple applications to the same loan provider, and your income and expenditure information varies between applications, your applications may start to be considered scams.
When asking for a loan application to determine the cost of living for the borrower, it is worth remembering that the question only refers to the borrower’s share of the cost and not to the household as a whole. So, for example, if you are applying for a loan on your own and paying half your household expenses with your spouse, you only need to indicate your share of household expenses in your loan application. If you apply for a loan jointly with your spouse, each party will naturally inform expenditure in the application.
It is also good to remember that the loan provider does not ask the borrower about his income and expenses, but in order to reliably assess the borrower’s solvency. Thus, a declined loan decision is very likely a sign that you are not in a position to repay the loan amount you have applied for without any problems.
Also remember to compare
By following the instructions above, you are well on your way to applying for a loan. However, there is a common mistake that Finns still make when applying for loans: they do not remember to compare loans. However, comparisons are easy and quick, and comparing loans can easily save you thousands of euros in total costs.