How do I get a loan and then repay it?

Answer 1

To get a loan, one will want to use the following steps:

* Price shop the type of loan that you are looking for (use the Effective Annual Rate for price comparison; you may be able to get a better price with financial institutions that you already have an account with; also, if you agree to automatic payments from a checking/savings account, the rate will also be reduced).

* Apply for the loan, either online or at a branch of the financial institution you have selected (bring copies of pay stubs, bank records, etc. in order to speed the income verification process; be prepared with a good reason for getting the loan).

[If the loan is approved, skip to the next bullet]

* If the loan has been denied, a letter will be mailed to the address used as your home residence providing the key reasons as to why credit was denied. You may write back and get a copy of the credit report(s) that were used to make that decision.

* Upon approval, the loan will be disbursed either through electronic funds transfer (EFT) to a designated checking/savings account or through a check (rare).

* Within a week (unless one agreed to electronic communications) a welcome packet will be sent to the borrower, letting you know where to make your payments, when the payments are due, etc.

* On a monthly basis, five days before the payment is due (if using mail) or the day before the payment is due (if using EFT), pay the agreed amount. Some banks will send you a statement indicating that a payment is due 2-3 weeks prior to the payment date (others may give you a payment book that you need to keep track of yourself).

* After the term of the loan is complete (and you send in your last payment), you have successfully gotten and repaid your loan.