What Not to Say on a Personal Loan Application

WHAT NOT TO SAY on a PERSONAL LOAN APPLICATION You need to say something in your loan reasoning. Applications that lack clarity in the description field or in the subject line do not indicate what the money is for and will seldom be considered. Don't mention that a good portion of the money is to pay your debt to your therapist. At best, it looks like you may be allowing someone to take advantage of you by putting you that much in debt. At worst, it makes you look like you might be unstable. Don't mention that you are not going to change your free spending ways and will continue to spend money that you don't have. "$3,000 to pay off credit cards with insanely high rates, and $2,000 just so I can go on vacation with my friends." Do not mention that it is for a down payment on an item without mentioning how you are going to pay for Don't beg for the money. Don't mention that your parents will not cosign on the loan for you Desperation for the personal loan makes you sound like a poor credit risk, and suggests you have already exhausted other avenues. the rest of the item. "down payment on a Pony!" This is not an excerpt from an application - it is the full description. Denied, of course. because it makes lenders think that your parents don't believe that you can pay back the money The Top 3 Reasons People Use Personal Loans Types of Personal Loans About 43% of American families spend more than they earn each year. •$• DEBT CONSOLIDATION Home Equity Personal Loan Home Equity Line of Credit 43% Short Term Personal Loans PURCHASING A VEHICLE Personal bankruptcies have doubled in Fast Cash Advance Loan Military Payday Loans the past decade. No Credit Personal Loan Second Chance Personal Loans HOME IMPROVEMENTS Christian Lending Personal Loans Average family debt (thousands of dollars) Share of Debt held 1995 2007 1995 2007 64.3 149.4 26.98% 25.30% Mortgages Secured by primary residence 17.9 39.2 7.52% 6.63% HELOC 60.2 177.8 25.23% 30.11% Other residential debt 3.0 7.3 1.25% 1.24% Credit Card balances 10.9 24.1 4.57% 4.08% Lines of credit hot secured by residential property 8.0 21.5 3.35% 3.64% Education Installment loans 8.2 14.6 3.45% 2.47% Vehide 4.9 15.3 2.05% 2.59% Other 12.2 15.3 5.13% 2.60% Other 48.8 126.0 20.46% 21.34% Any debt Sources: personalloans.org, personalloanportfolio.com, dipkolej.com