Most of us will complete a large number of application forms in our life time. Applications for school, college, jobs, financial products & discount cards to name but a few. We are practised at them and when going through an application form may not fully pay attention to what we are doing.
When applying for an instalment loan or any other type of financial product it is very important that you do pay attention and provide the correct information.
Bank Details. It is extremely important that you provide the correct bank details. If you are making an application for a loan, the money will more than likely be paid into this account. If the money is paid out to incorrect details, you will need to wait for the money to be returned by the bank. This can take quite a long time, meaning that you will have to wait for your loan and you will still be liable for the loan.
Employment Details. When providing your employment details it is very important that you provide the correct information. Some loan providers may request a payslip. If you have provided incorrect information, your application may be declined. If you have stated that you pay is higher than it is, you may be reported to CIFAS for application fraud. This can seriously affect your ability to obtain credit in the future.
It is also important that you provide your correct pay date. When applying for an instalment loan, the lender may automatically set up your payment date as your next pay date. If you have entered the incorrect pay date, this could result in a late payment charge.
Contact Details. It is very important to provide correct contact details. If the information is incorrect this could lead to your application being declined immediately if the lender tries to validate your mobile number for example. Once the loan has been paid out, your lender may send you reminders about your payment, this can be very useful and will not reach you if you have entered a wrong number.
The amount you want to borrow. If you apply for the wrong amount, you may have to repay the loan in full and reapply. This could mean paying the setup fee twice.
The loan duration. Once you have signed the legally binding loan agreement, you may not be able to change the loan duration. This may result in you being unable to afford the repayment.
Monthly outgoings. Instalment lenders will generally go through an income and expenditure with you. It is very important that the information that you provide is incorrect. The lender is doing this to help you. They do not want to provide you with a loan that you can not afford to repay and will put you in a position of financial difficulty. If you provide false information and can not repay the loan, this can result in late payment charges, your credit file being affected and worst case scenario, the account could go to court.
When applying for an instalment loan, if there is anything you are unsure about, contact the lender directly and they should be able to help you.