Understand the importance of a healthy financial life when applying for personal credit. The first step in securing a personal loan is securely to have an organized financial life. We know this may sound pretty general, but it usually means that you have to keep up with your financial health, as you never know when an unforeseen event will arise and you will need a loan.
In such cases, the financial ones are relentless. So there is no middle way or shortcut: to avoid the risk that when you need it most, your credit will be denied, you need to keep up with a spending routine that lets you not have your entire budget compromised. . Learn how to plan!
1) Organize your finances and keep your financial life healthy.
Financial institutions take into account a number of factors when approving or disapproving a loan application, including clearly your movement with the bank (s), your score and, of course, whether or not you are in default.
This information you probably already knew, but what you didn’t know is that your personal credit proposal or loan application is also valued according to your financial life, income and spending organization. This means that there is no point in earning you $ 10,000 if your spending is equal to or greater than your income. That is, even if you have a high salary, it does not make you a “good payer” for financial institutions. It is more common than you might think to have your credit or loan proposal declined despite having a “clean name” and “making a good living”.
In Article 5 Tips for Saving Money and Keeping Your Financial Life Healthy, you learned how the financial pyramid works and how to break it down through spending. To recap: the greater the need, the more you will spend in that category of your life.
Now, you will 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 destined for basic needs: housing, food etc;
- A quarter of it will be split to fixed bills like internet and phone and other expenses (such as your short-term goal and girlfriend / wife gift);
- The remaining room you must invest.
2) Keep your Milasa Score up to date
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 Milasa. And this tip is simple and practical: follow the step by step we taught in the other article to update your score and you will get a good score, your loan or credit proposal will become more and more invaluable.
Why is Score important when applying for a loan?
As you already know, Score is your reputation as a payer, and of course this score influences directly when you apply for a loan, so keep your debts up to date, avoid getting new ones, and keep your score up to date.
3) Stop making excuses to start investing
“Ah, but I couldn’t save or invest this month for ‘N’ reasons.” Stop doing it right now!
Studies indicate that most borrowers have two goals: to pay off debt and to invest in some personal project. These are two very important reasons in anyone’s life and you can’t give them up. When applying for a loan, if it conforms to what was recommended. You have been saving, avoiding unnecessary expenses and maintaining a healthy financial life, all to improve the Score. Then you will have saved some of the money you need for your goal, thus lowering the loan amount and minimizing the possibility of default or late payments.
Today you are making a loan, but if you keep your financial health a priority you will soon be an investor and will be lending to people. Think like that and stay focused.