5 Reasons People Think They Don’t Qualify For Loans

There are people who would benefit from borrowing money, but they choose to not even apply? Why would they not seek out a lender who was willing to work with them? It’s because they think no lender will even consider approving their loan applications. The fact is that it’s possible to obtain a short term loan even if your circumstances are not what you think of as ideal. Take a look at the following reasons for not seeking a loan. If any of them apply to you, it’s time to set them aside.

They Think Their Incomes Are Too Low

Most lenders do require that applicants have monthly incomes that are at least over a certain amount. That amount varies from one lender to the next. It’s true that some lenders would likely look at your income level and decide that you were not a good risk. Others would look at the figure and consider it adequate. When seeking loans for personal needs, always look at the income requirements up front. That will help you identify a lender who is more likely to give your application every consideration.

Their Total Monthly Income Is From Sources Other Than Jobs

Some people think that only people who are employed can obtain loans. Taking things one step further, they may think that the money they make from freelance or independent contractor work automatically prevents them from receiving loans. Even people who have steady incomes from pension plans, federal or provincial programs, or alimony think they can’t get loans.

There are lenders who are less interested in where the money comes from. As long as the income source is reliable, your application will be considered. In fact, if you are willing to have the funds from any type of federal or provincial benefit deposit directly into an account and allow the lender to set up automatic drafts to cover the loan payments, your non-employment income source may become a plus rather than a minus.

They Don’t Believe The Monthly Installments Are Affordable

The amount of the loan payments may seem like an obstacle. In fact, it’s not unusual for people to overestimate what they will need to repay every month. Many lenders are willing to extend terms that are relatively easy to manage. Those terms make it all the easier to accomplish your goal and still pay off the loan in a timely manner.

They Believe Past Credit Issues Automatically Disqualifies Them

There are lenders who only work with people who have higher credit scores. If you’ve had some credit issues in the past, know there are lenders who are still interested in working with you. They’ll place more emphasis on where you are today rather than those problems from a few years back. In fact, they may have loan options that aid you in rebuilding your credit rating if all of your loan payments are made on time.

They Don’t Believe Lenders Will Accept Their Reasons

It’s true that some lenders require that the money be spent for a specific purpose. Other lenders are not concerned with how you spend the money. If you want to borrow funds for funding a second honeymoon, that’s fine with them. When you need cash to enjoy a vacation this summer, they are happy to help. Your ability to repay the loan according to the terms is what matters.

Whatever your present circumstances, don’t assume that no lender will work with you. There are high-risk lenders who have helped quite a few people get back on their feet and even improve their credit scores. If you believe that a loan would help you in some way, seek out those lenders and find out what can be done. You may be pleasantly surprised at the outcome.

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