Learn About the Loan Process

Learn About the Loan Process
By [http://ezinearticles.com/?expert=Michael_Redbourn]Michael Redbourn

The majority of people more than likely believe that the loan process is essentially a simple one and that there is fundamentally not much to learn about it. It is not simple however and knowing the ins and outs of the loans process will save the would be borrower lots of time and lots of money and will also help the loan processor to process the loan faster.

Let's Look At The Process Step By Step

The first thing the bank or loan company will require the loan applicant to do will be to complete a detailed application form and the first decision that the bank or loan company will make is to decide if the applicant is a high or low-risk borrower and will most likely add a credit score at that time.

The credit score will not only determine if you will get a loan but also the amount that you will be permitted to borrow and more than likely the interest rate too.

The size of the repayment then becomes a major factor along with the amount of time that you will be given to repay the loan and they both largely depend on whether the loan is to be a secured or unsecured one.

The credit process that is involved in getting an unsecured loan will generally be much quicker than for a secured one because the value of the collateral, be it real estate or an automobile will have to be checked by the loan officer.

The amount of money available to the lender will of course be much higher if the loan is secured and the interest will almost certainly be much lower, and in most cases someone with bad credit that has no collateral will not be offered more than a few thousand dollars which may of course be more than a little helpful if the person needs to make payments to prevent his credit rating from worsening even further or to pay for medical bills.

If you're turned down for a personal loan then the first thing you should check is your credit rating and a credit report can be easily obtained for just a few dollars from any one of a number of credit reference agencies.

Banks and loan companies seldom give a reason for declining a loan but it is generally because of a credit rating problem and if you see errors on your credit report then return to the bank and show them the discrepancies.

Check out the size of the early payment penalty that kicks in if you are able to pay the loan off early because it is often quite substantial and will vary from lender to lender.

Finally, the majority of loan applications can now be made and approved online so if you're in need of a loan then check some online companies and you should have the money you need within 24-48 hours.


The majority of people more than likely believe that the loan process is essentially a simple one and that there is fundamentally not much to learn about it. It is not simple however and knowing the ins and outs of the loans process will save the would be borrower lots of time and lots of money and will also help the loan processor to process the loan faster.







Check out http://get-financial-help.org/learn-about-the-loan-process and get access to a list of over 125 different banks and loan companies and you'll more than likely find a suitable one, but if you don't then please check out the sister sites because each one of them offers something a little different.

Article Source: http://EzineArticles.com/?expert=Michael_Redbourn http://EzineArticles.com/?Learn-About-the-Loan-Process&id=2007577

























Save This Page

No comments:

Custom Search

Finance content

About Finance Store are Welcome.