Your Consumer Loan Doesn’t Need To Be Stressful

consumer loan

The world we live in as we know it is getting, unfortunately, more expensive, and things are essentially costing more. Sure we are working hard and putting in the hours, but sometimes we need things in the home and in our life that will make our everyday activities that much easier, but buying them straight out in one lump sum is almost impossible for the average worker.

Moving into a new home, or needing to buy a new fridge as yours has decided to retire over the weekend, all cost money and not a small amount at that either. You could ask your friends or family members to help out with financial aid but it is not so easy to lend money to someone when you are trying to keep the two ends of the strings attached come month-end.

So what do you do? Sell other items that are not necessarily as important as a fridge to get some funds, or eat day-to-day meals till you figure something out? Thankfully, there is an easier option. You could apply for a consumer loan.

What it is.

The word consumer loan has been heard in passing conversations when standing in line at the bank, or on the train commute to and from work, and if this is not an industry you are familiar with it can be like trying to understand a foreign language.

But we will try to explain and break it down into simple jargon that we mere mortals are familiar with and can comprehend and take a look at why this option could be the answer you have been looking for as a helping hand in your financial situation.

So what is a consumer loan? In a nutshell, it is a loan or sum of money that the bank offers its customers to purchase appliances, or household goods, or for whatever they see the reason for. There are, like with any financial agreement, a few criteria that need to be matched and verified, but for the most part, the application process is simple and quick. And if you have been a long-time customer of your particular bank it could be even more favorable due to your loyalty, this shows their appreciation of your commitment to them over the years.

Before taking on a loan of this size be sure to go through your finances meticulously, to ensure you can repay and afford the forecasted installments without putting yourself in more financial strain, and to repay it promptly.

Looking at the criteria, what would you need? Are you eligible and how much would you be likely to get? Let’s take a look at the top few points bank lenders and loan merchants have commented on would present the customer or client as favorable.

  • Identity. Bringing in all and any documents that show you are who you say you are will give the lender the confidence that they are dealing with a reliable person. Showing your address details and bills you pay which come to this address shows you are trusted to keep up with regular payments from big companies.

Sure the lender will do background checks and speak to the various companies with which you have contracts and agreements to verify any payment plans and your efficacy in doing so, and this will help solidify your case for application of the loan.

  • Salary. Your proof of income is most probably one of the most important elements of the process other than your identity. You need to show that you have a stable income, have been employed for a reasonable length of time, and are essentially earning enough to cover installments without being strained each month and eventually faulting on your loan.
  • Expenses. This goes hand in hand with your salary by stating how much of your earnings already goes to household or lifestyle expenses, is there enough for another loan repayment?
  • Credit score. If you have taken a loan before and have repaid it or had credit cards you pay on time and have done so for years you are likely to have a good credit score, showing you are reliable in your repayments. This too will work in your favor. If you don’t have a credit score, fear not, you can still apply and if everything else is in check you can be accepted.
  • Purpose. Lastly, while it may not necessarily be any of the lender’s business as to why you want the loan, they will ask vague questions to have a general idea of the loan’s purpose. Sure most answers refer to home purchasing or large appliances in the house, or even paying for your child’s tertiary education, but if it is more about buying the latest pair of diamond-encrusted sneakers it may not work as much in your favor.

To understand more about what would be good to say or which answers aren’t as recommended, take a look here at this interesting article. Sure you are the one repaying it and it is your money to do with as you please, there are still standards that need to be met and kept to.

All about the cost.

So you have decided to apply for a consumer loan to refit the new kitchen the wife has been nagging about, and to be honest, if it means more gourmet dinners and experimental baked goods then what have you got to lose am I right? But you don’t want to be paying an arm and a leg just to be accepted, you want something, ideally cheap, and is cost-effective on your monthly budget.

But do you get cheap loans? Yes, thankfully so, but there are features to look at and consider before simply saying yes. While the interest rates may seem to your liking you will most likely need to put down some form of collateral in case you are unable to make the repayments. These are usually your home or your new car, and if you are happy to take on that commitment then the choice is yours.

What if you could do it without having that added stress on your plate, and be accepted for a loan without the strings attached of collateral, well now you can. There are plenty of companies out there who understand the struggles of life and trying to essentially keep up with the Joneses and want to help those who need a loan to get back up on their feet or make life a little bit better for their families.

If this type of loan sounds like something that will suit you, one that is Billig but still gets the job done then you may have found the answer to your prayers. Applying for a collateral-free loan could improve your quality of living, and is manageable to repay without sacrificing other elements of your life.

You can enjoy life the way you have always wanted to and deserve to, we work hard, and knowing lending businesses or loan agencies are taking this on board shows that the world is headed for a better living environment.

A final thought.

We are not all fortunate enough to have rich parents or grandparents that carve the road ahead for us. Some are brought up in single-parent homes, others in orphanages, and some in what is considered a ‘normal’ upbringing where both parents work and life is ok, not bad but not extravagant either. So when we want something or strive to live a particular type of lifestyle we have to work for it every step of the way, and this is not a bad thing, it makes us stronger and molds us into the people we were always meant to be.

Taking care of a family comes with its ups and downs like with everything, and if needing that extra financial help can be achieved with a loan that doesn’t require you to put your home (that you have worked too hard to buy) on the line then you have won. There is help out there, take that initial step to a better life.