The Boodle Blog

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17 December

What your financial health has to do with getting a loan

Staying in good financial health has many benefits – with less financial worries, and more financial freedom. This is important for a number of reasons, one of which is maintaining a good credit record can assist in getting that much needed loan.

Financial health ensuring that your bills are paid on time may sometimes be a difficult task with unexpected expenses popping up from time to time. Your trusted car may break down or the geyser may need sudden repairing.

Then, there are also plans made today for the future – such as finally renovating your home or starting a future with your partner with your dream wedding.

All of these need money, and whether you’ve been good with your money and have carefully planned for the unknown future will determine whether you’ll be able to do all these things.

In this case, a loan from a financial loan provider may be the answer. Now that you’ve decided to get financial assistance by applying for a loan to fulfil these plans – by keeping track of your expenses – you could have a good financial record that will allow you to get an unsecured long term loan.

With getting a “secured” loan on the other hand, you’ll need to put up your property up as collateral should you be unable to pay your loan back. While the interest rate for secured loans may be lower, they are lower than that of unsecured loans because of the collateral which you’ve had to put up, which may be your house.

“Unsecured” loans do not require that you put up collateral, but may as a result, they have higher interest rates. So before you get to this point, there are a few simple things you can continue to do to ensure you do to keep your finances in good shape, starting by with monthly habits that can go a long way.

1. Start with a budget. When you can’t make a payment on the due date, call the company you owe and make alternative arrangements.

2. Always pay the minimum amount that you owe on your statement or better yet, more when you can.

These are all important factors to consider, and how you handle your monthly finances may in the end influence which loan you’ll be able to qualify for, and ultimately, being able to achieve your goals.