This is a loan for the Christmas holiday season. The applicant is living in the Houston area of Texas and wants to borrow somewhere in the neighborhood of 4-5 thousand dollars apparently to pay for the Christmas gifts he wants to purchase for his family this season.
This loan application comes with no collateral for the loan, which is really an unsecured loan guarantee. These types of unsecured loans are pretty hard to find without some form of collateral. Sometimes the Feds will back the note up. However, we understand that this loan does not fall into this situation here. This is a relatively small personal loan that will be unsecured for the amount of 4-5 grand.
The applicant was turned down by the banks and anyone else he has applied to because of his credit rating and his past defaults experienced by other creditors he has applied to. He apparently has had loans in the recent last few years and not managed them very well.
We see many of these kinds of applications come through and consumers do not always include all of their financial information. Always make sure you fully disclose all of your financial responsibilities when applying for a loan. This will enhance your creditability with the lender and speed the entire process up. If there is missing information, there will be delay in processing the loan until that information is provided. If there is something that is missing that refers to a past credit issue, it also leaves the lender wondering what else the applicant did not include and leaves them with a negative feeling about the applicant and loan.
The details of this applicant’s information follow, however no personal information is included here to protect the privacy of the applicant:
Loan Type :: Personal Cash Loan with no collateral or security to guarantee the loan
Loan purpose :: For Christmas time and holiday season expenses for gifts and celebrations
Loan Amount :: Around $4000 to $5000 dollar loan, he was flexible on the amount
Loan Speed :: Fast please, at least within the next week, so that he could plan what he is going to do at Christmas for the holidays.
Employment :: Works at a Bakery as front clerk, manager in Houston Tx. and has worked at this company and location for the past five years.
Residence :: Houston Texas
Time at Address :: seven years this January
Age :: 34
Credit Score :: Bad credit but not horrible though.
It is really difficult to process a loan application such as this one with the information provided. The applicant did not provide information about how much he or she makes on his job. The income level is used to determine if they make enough to carry the payments.
They admitted to the bad credit situation, however did not explain why they have bad credit and what the situation was that lead them into this situation. What other loans do they currently have and how much do they pay each month? This is also critical in figuring out if they can afford to make the payments on this new loan. Also how quickly did they plan to repay this loan? A short term will drive up the monthly payments and make it very expensive from a cash flow perspective to be able to meet the requirements.
Since this is really a seasonal type loan i.e. for Christmas, presumably they will want to be able to repay the loan in one year’s time, which will mean that these payments may be higher than what he or she can afford at this time. Again if they had included their income, this calculation and assessment could have been completed.
Finally most lenders want to take a look at the bank statement to assess the track record of the applicant in terms of checks passed with insufficient funds in their account. This is an indicator of financial difficulty and inability to manage their cash flow.
It is inevitable that this application will be delayed until the additional information is provided, which most applicants just do not want to hear about. They want their loan applications process as quickly as possible, which is the situation our current applicant is in.