What Happens After Applying For A Loan?

What Happens After Applying For A Loan?

Acquiring knowledge about loans, the kinds of loans and the pros & cons of loans are easily found on the internet. It’s easy reading articles all about loans, but little do we know that we also want to know what other people has to say about it. You can ask other people how they feel about loans and how they got through it. After going through hell and back just to get the requirements needed for applying loans, what really happens after that? Are loans really a financial trap like they say it is? Does it give you more problems than you already have? I’ve read an article about someone’s experience in getting her first bank loan to be able to live in Korea, and gathered what she learned and how she felt. Maybe you could learn a thing or two for your own experience.

 

Here’s what you should do best before going for it:

 

  1. Think about it thoroughly. Write down its pros and cons and weigh them properly. Don’t make a rash decision like this overnight. This isn’t a shopping problem where you can’t decide if you should buy the white shirt or the black one. This is an adulting commitment that involves a big amount of money and possible legal issues.
  2. Put math skills to the test. Compute the possible amounts that you will be able to borrow, pay, include the interest and other fees. This is so that you can foresee ahead how much money you will have to gather by the end of each month for a year or so. Knowing this ahead will help you in your decision making process.
  3. Get ready to monitor your expenses. Keep your financial status at bay and keep your records clean. Should you decide to apply for a loan, practice writing down your expenses and other necessities so you’d know approximately how much you spend every month.
  4. Pass the requirements. Once completed, submit what you have and wait for the approval of your loan.

 

After submitting all requirements, what’s next?

 

  1. You’ll get your money. After getting a go signal for you to claim your money, you might get overwhelmed with the wad of cash on your hand. Just like Ginyn (from the article linked above), you might feel rich and paranoid at the same time. You have to always watch your back while you go and deposit the money to your savings account. Keep it safe!
  2. Feel at Ease. The fact that you have enough to cover what you need to pay, you can’t deny the feeling of being at ease. You don’t have to worry about where to get the money because the loan will cover it for you. Like Ginyn, she felt comfortable knowing that her Korea trip expenses are already covered.
  3. Resist temptations. Having a lot of money can be very challenging. The universe will test you and let you see the world “SALE” or hear people saying that there’s a promo fare to Osaka or Singapore or somewhere else. Practice self-control and take responsibility of the amount of money you have. Remember, you loaned for a reason, and it is not to splurge on clothes and unnecessary trips outside the country. Stick to the reason you applied for a loan so you won’t add trouble.
  4. Get organized. Think ahead and manage your finances wisely. You could also follow Ginyn and create an Excel file to help you monitor the due dates and the exact amount you will pay.
  5. Work harder and pay your debts on time. Applying for a loan means that you commit to paying the monthly dues. Be responsible and own up to that. Don’t stain your name by paying late.

 

Getting a loan for a fashion start up or a lifestyle upgrade is no problem, as long as you stay disciplined. Be careful not to go in over your head or else you will get in trouble. Make sure to borrow just what you need and be aware of the interest rates & other fees and all is well! If you’re responsible enough, getting a loan would be worth it.