A personal loan can help cover any unforeseen expenses, such as medical bills or car repairs. It is something that many use to help make ends meet. But how do you go about getting one?

There are a number of companies that offer personal loans, and you can either apply for them in store or online. The dawn of modern technology means that you simply input your information and within a few minutes you know whether your application has been approved or denied.

The application

When it comes to applying there are a few things you will need on hand. A loans application will require your ID number, name and contact information, as well as your income and possibly your expenses. This income and expenses information is important to work out your affordability. If you are deemed unable to afford the monthly loan repayments, you loan application will be denied.

However, it is important to be truthful with your income and expenses information to avoid becoming over-indebted, which could lead to other financial problems.

Do you qualify?

Beside your income and expenses, a loans provider will also look at your credit record. They will look at how much credit you currently have, your payment history, any orders you may have against you, and other information regarding your credit history.

If you have a good credit record, you pay your debts on time, and are not financially stressed, you may very likely get granted your loan. However, it is important to be honest when applying, and not lie about your income or your monthly expenses, as this you see you defaulting on your loan.

A word of warning

It is important to make sure you choose a reputable loan provider when applying. There are companies claiming to offer personal loans to those who are blacklisted. If you are blacklisted, it essentially means your credit record is so bad you don’t qualify for credit and have defaulted on your debt repayments. A reputable loans provider would therefore not offer you a loan, so avoid companies making these claims.

You can apply through MoneyShop.co.za for a personal loan of up to R150, 000.

Until next time,
The MoneyShop.co.za Team