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6 Ways to Make Sure You Get the Loan You Need

6 Ways to Make Sure You Get the Loan You Need

Remember in grade school when your teachers would warn you about your “permanent record?” At some point, you most likely figured out that was just a scare tactic to keep you in line until you graduated high school.

Once you entered the “real world,” you were soon introduced to another permanent record of sorts: your credit score. However, unlike the enigmatic permanent record of your schoolyard days, your credit score does, in fact, exist, and absolutely will affect the rest of your life in one way or another.

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So how do you keep it in good standing and ensure that you’re never denied from taking out a car or home equity loan?

Check your credit score often

If you’re gearing up for a large purchase that will depend on your ability to receive a loan, you should keep up-to-date with your credit score on a monthly basis. There are many ways to check your credit or CIBIL score for free, or you might opt for a more in-depth report that will usually come with a fee. While it’s a good idea to keep track of your credit score even if you’re not in the market for a new car or home, you shouldn’t obsess over it; it won’t change more than once a month. Focus less on your actual score, and more on improving it as best you can.

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Keep credit balances low

A lot of people fall into the trap of overspending using their credit cards simply because they can. This sort of irresponsible behavior can lead to missed payments, increased interest rates, and decreased credit scores. On the other hand, using your credit cards only for expenses that will immediately be paid off will show creditors that you are responsible with borrowed money, and they’ll be more likely to offer a loan in the exact amount you’ve asked for. A good rule of thumb is to keep your balances under 30% of your maximum; this shows lenders you have restraint, and will also give you some wiggle room if an emergency arises.

Pay your balances on time

While it’s pretty obvious that letting your bills go unpaid will result in a low credit score, it needs be said that late means late. It doesn’t matter if you’re a day late, or 29 days late: if you’re late with a payment, it’ll immediately be reflected on your credit score. Though it’s recommended that you pay much more than the monthly minimum, you should always pay at least that every single month. This goes back to the last point: if you’re unable to pay off your debt, you shouldn’t have made the purchase in the first place.

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Take care of small debts

As should be clear by now, credits and loans should only be used to make purchases that you’ll be able to pay off in the near future. You should never use a credit card simply because you don’t feel like “actually” paying money out of your pocket at that very moment. If you run into a jam and absolutely must use a credit card for a purchase while you’re out, make it a point to transfer money over to pay off your debt the first chance you get. You don’t want to be late on a small $30 payment because you forgot about it later in the month.

Similarly, don’t spread out these small debts over multiple credit cards. Keep your debts focused into one or two accounts, and close out the rest. There’s no need to tempt yourself with five different credit cards with no balance. Remember: the limit on your card does not represent money you actually own, but it could represent money you owe.

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Flaunt your good standing

It’s possible to request that certain loans be removed from your credit history once they are paid off. However, doing so will usually end up doing more harm than good to your ability to receive a loan. Say you’ve paid off a car loan in full at some point in the past. You made the monthly payments on time, and even paid it off quicker than you had planned. Why would you want to hide this? You want potential lenders to see that you can take out a loan and repay it responsibly. The only time you’d want to hide an account is if it’s in bad standing; of course, getting this history off your report won’t be nearly as easy.

Don’t give out more information than is reported

Credit scores exist for a reason: they give lenders a ballpark idea of how trustworthy you’ll be with their money. If lenders operated on the information given to them by potential borrowers…well, I’m sure you know what would happen. If your credit score comes back lower than expected, don’t make excuses. Everyone has a sob story to tell, so it won’t help your cause explaining that you broke your leg last year and couldn’t work, or you lost everything in a flood and needed to max out your credit cards. Your lender might feel for you on a personal level, but when it comes to business they’ll have to deny you the loan based solely on your low score.

On the other hand, if your score comes back better than expected, keep your mouth shut! You’re right where you want to be, but anything you say has the potential to be misconstrued. Save the happy dance for your living room after you’ve signed the loan papers.

Featured photo credit: JJ / Piggy bank full of dirty coins / Flickr via farm4.staticflickr.com

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Published on November 8, 2018

How to Answer the Tough Question: What are Your Salary Requirements?

How to Answer the Tough Question: What are Your Salary Requirements?

After a few months of hard work and dozens of phone calls later, you finally land a job opportunity.

But then, you’re asked about your salary requirements and your mind goes blank. So, you offer a lower salary believing this will increase your odds at getting hired.

Unfortunately, this is the wrong approach.

Your salary requirements can make or break your odds at getting hired. But only if you’re not prepared.

Ask for a salary too high with no room for negotiation and your potential employer will not be able to afford you. Aim too low and employers will perceive as you offering low value. The trick is to aim as high as possible while keeping both parties feel happy.

Of course, you can’t command a high price without bringing value.

The good news is that learning how to be a high-value employee is possible. You have to work on the right tasks to grow in the right areas. Here are a few tactics to negotiate your salary requirements with confidence.

1. Hack time to accomplish more than most

Do you want to get paid well for your hard work? Of course you do. I hate to break it to you, but so do most people.

With so much competition, this won’t be an easy task to achieve. That’s why you need to become a pro at time management.

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Do you know how much free time you have? Not the free time during your lunch break or after you’ve finished working at your day job. Rather, the free time when you’re looking at your phone or watching your favorite TV show.

Data from 2017 shows that Americans spend roughly 3 hours watching TV. This is time poorly spent if you’re not happy with your current lifestyle. Instead, focus on working on your goals whenever you have free time.

For example, if your commute to/from work is 1 hour, listen to an educational Podcast. If your lunch break is 30 minutes, read for 10 to 15 minutes. And if you have a busy life with only 30–60 minutes to spare after work, use this time to work on your personal goals.

Create a morning routine that will set you up for success every day. Start waking up 1 to 2 hours earlier to have more time to work on your most important tasks. Use tools like ATracker to break down which activities you’re spending the most time in.

It won’t be easy to analyze your entire day, so set boundaries. For example, if you have 4 hours of free time each day, spend at least 2 of these hours working on important tasks.

2. Set your own boundaries

Having a successful career isn’t always about the money. According to Gallup, about 70% of employees aren’t satisfied with their current jobs.[1]

Earning more money isn’t a bad thing, but choosing a higher salary over the traits that are the most important to you is. For example, if you enjoy spending time with your family, reject job offers requiring a lot of travel.

Here are some important traits to consider:

  • Work and life balance – The last thing you’d want is a job that forces you to work 60+ hours each week. Unless this is the type of environment you’d want. Understand how your potential employer emphasizes work/life balance.
  • Self-development opportunities – Having the option to grow within your company is important. Once you learn how to do your tasks well, you’ll start becoming less engaged. Choose a company that encourages employee growth.
  • Company culture – The stereotypical cubicle job where one feels miserable doesn’t have to be your fate. Not all companies are equal in culture. Take, for example, Google, who invests heavily in keeping their employees happy.[2]

These are some of the most important traits to look for in a company, but there are others. Make it your mission to rank which traits are important to you. This way you’ll stop applying to the wrong companies and stay focused on what matters to you more.

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3. Continuously invest in yourself

Investing in yourself is the best investment you can make. Cliche I know, but true nonetheless.

You’ll grow as a person and gain confidence with the value you’ll be able to bring to others. Investing in yourself doesn’t have to be expensive. For example, you can read books to expand your knowledge in different fields.

Don’t get stuck into the habit of reading without a purpose. Instead, choose books that will help you expand in a field you’re looking to grow. At the same time, don’t limit yourself to reading books in one subject–create a healthy balance.

Podcasts are also a great medium to learn new subjects from experts in different fields. The best part is they’re free and you can consume them on your commute to/from work.

Paid education makes sense if you have little to no debt. If you decide to go back to school, be sure to apply for scholarships and grants to have the least amount of debt. Regardless of which route you take to make it a habit to grow every day.

It won’t be easy, but this will work to your advantage. Most people won’t spend most of their free time investing in themselves. This will allow you to grow faster than most, and stand out from your competition.

4. Document the value you bring

Resumes are a common way companies filter employees through the hiring process. Here’s the big secret: It’s not the only way you can showcase your skills.

To request for a higher salary than most, you have to do what most are unwilling to do. Since you’re already investing in yourself, make it a habit to showcase your skills online.

A great way to do this is to create your own website. Pick your first and last name as your domain name. If this domain is already taken, get creative and choose one that makes sense.

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Here are some ideas:

  • joesmith.com
  • joeasmith.com
  • joesmithprojects.com

Nowadays, building a website is easy. Once you have your website setup, begin producing content. For example, if you a developer you can post the applications you’re building.

During your interviews, you’ll have an online reference to showcase your accomplishments. You can use your accomplishments to justify your salary requirements. Since most people don’t do this, you’ll have a higher chance of employers accepting your offer

5. Hide your salary requirements

Avoid giving you salary requirements early in the interview process.

But if you get asked early, deflect this question in a non-defensive manner. Explain to the employer that you’d like to understand your role better first. They’ll most likely agree with you; but if they don’t, give them a range.

The truth is great employers are more concerned about your skills and the value you bring to the company. They understand that a great employee is an investment, able to earn them more than their salary.

Remember that a job interview isn’t only for the employer, it’s also for you. If the employer is more interested in your salary requirements, this may not be a good sign. Use this question to gauge if the company you’re interviewing is worth working for.

6. Do just enough research

Research average salary compensation in your industry, then wing it.

Use tools like Glassdoor to research the average salary compensation for your industry. Then leverage LinkedIn’s company data that’s provided with its Pro membership. You can view a company’s employee growth and the total number of job openings.

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Use this information to make informed decisions when deciding on your salary requirements. But don’t limit yourself to the average salary range. Companies will usually pay you more for the value you have.

Big companies will often pay more than smaller ones.[3] Whatever your desired salary amount is, always ask for a higher amount. Employers will often reject your initial offer. In fact, offer a salary range that’ll give you and your employer enough room to negotiate.

7. Get compensated by your value

Asking for the salary you deserve is an art. On one end, you have to constantly invest in yourself to offer massive value. But this isn’t enough. You also have to become a great negotiator.

Imagine requesting a high salary and because you bring a lot of value, employers are willing to pay you this. Wouldn’t this be amazing?

Most settle for average because they’re not confident with what they have to offer. Most don’t invest in themselves because they’re not dedicated enough. But not you.

You know you deserve to get paid well, and you’re willing to put in the work. Yet, you won’t sacrifice your most important values over a higher salary.

The bottom line

You’ve got what it takes to succeed in your career. Invest in yourself, learn how to negotiate, and do research. The next time you’re asked about your salary requirements, you won’t fumble.

You’ll showcase your skills with confidence and get the salary you deserve. What’s holding you back now?

Featured photo credit: LinkedIn Sales Navigator via unsplash.com

Reference

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