The first step to borrowing safely is to have an organized financial life. We know that this term may sound very generic, but in general it means that you must maintain a healthy financial condition, since you never know when an unforeseen one will arise and you will need a loan …
In such cases, financial institutions are relentless. Therefore, there is no “middle way” or shortcuts: in order not to take the risk of the time you need it the most, having your credit denied, you need to maintain a spending routine that will allow you not to have the entire budget compromised.
In this article, you will specifically understand the relevance of a healthy financial life when applying for a loan and how to make an irreproachable loan proposal. Check out:
1) Organize your Financial Life and Keep It Healthy:
Financial institutions take into account several factors when approving or disapproving a loan proposal, among which is clearly their movement in the bank (s), their Score and, of course, whether or not you are negative. This information you probably already knew, but …
What you did not know is that your loan or loan proposal is also valued according to your financial life, income and expense organization.
That means you can not win 10 thousand dollars if your expenses are equal to or higher than your income. That is, even if you have a high salary, this does not make you a “good payer” for financial institutions. It is more common than one imagines having the loan or loan proposal rejected despite having the “clean name” and “earning well” …
Now, you’ll use that same pyramid to separate your spending by percentage, come on:
- Think of your salary as a pie chart;
- Half of it should be aimed at basic needs: housing, food, transportation and etc;
- A quarter of it will be divided into fixed accounts like internet and phone and other expenses (such as your short-term goal and gift for girlfriend / wife);
- The remaining room you should invest.
2) Keep your Bank Score updated:
Already in the article Know what Score is and learn how to improve yours , we explain to you what it is and how to update your Score Bank , if you did not read or remember, reread the article linked right above …
So this tip is simple and practical: follow the step by step that we teach in the other article to update your Score and you will have a good score in the hands, that way, your loan or credit proposal will become more and more irrecusable.
Why is Score important when applying for a loan?
As you already know, Score is your reputation as a payer and it is clear that this score directly influences when it comes to borrowing, so keep your outstanding debts up to date, avoid getting new ones and keep your score up to date.
3) Stop making excuses:
“Ah, but I could not spare or invest this month for ‘N’ reasons …”
Stop right now to do this!
Studies indicate that most people applying for loans have two goals: to take out debt and invest in some personal project. These are two very important reasons in anyone’s life and you can not give them up.
At the time of applying for a loan, if you comply with what was recommended you have been spared, avoided unnecessary expenses and maintained a healthy financial life, all this to have a better Score … So you will have saved some of the money you need for your goal, thus reducing the value of the loan and minimizing the possibility of default or delays.
Today you are making a loan but if you keep your financial health as a priority soon you will be an investor and you will be lending to people. Think like this and stay focused.