With the increased demand for personal loans to pay for various other expenses and other obligations, several engaged persons have come to understand the significance of the wedding ring as a wedding present. They then in no uncertain manner use it as an excuse for taking such loans. However a wedding ring loan basically is a small personal loan which is utilized specifically for buying a wedding ring. It is quite common to get such a loan from a number of financial institutions that can be available locally or could be sourced from the internet.
It is very common to have two kinds of debts with the use of this loan. One is the outstanding debt which has to be paid off before the outstanding debt is due. Normally the loan amount for the wedding ring loan will not go above about ten thousand dollars. Usually the outstanding debt would be due after the wedding ceremony while the outstanding debt would be due after the marriage.
The second kind of debt that can be associated with wedding loans is the secured one. Secured debt is when you offer your house or any property as collateral. Generally lenders use houses or properties for secured wedding loans as the security since they are less likely to default in repayment of the loan. Since the interest rates on this type of loan tend to be higher than the other types of loans, usually they charge high interest rates. Lenders also generally place greater emphasis on credit reports and a clean past when deciding to approve the loan.
In most cases, it is advisable to have a good credit rating as evidence that you have sufficient financial mpowa finance resources to repay the debt in time. The next step in the process is to work out your debt-to-income ratio i.e. how much debt you would like to take on. This debt-to-income ratio is an indication of how much you would like to borrow. In case the debt-to-income ratio is too high, then your financial status may not allow you to service the loan on time. So it is important to settle down with your financial advisor so that you will have a fair idea of how much you would like to borrow from your financier.
After you have settled on the amount, you can contact the lender and get a pre-qualification letter from the lender where you can state your salary. You also need to let the lender know about your intention to go for a wedding ring loan so that the lender can calculate the total amount of money that you will be borrowing. Usually the lenders will offer you a loan amount equal to or slightly higher than your estimated salary.
Once you have received the pre-qualification letter, you can start the application process. The main thing to do is to complete the application form carefully and honestly. Do not fiddle with anything in these forms as the lenders may reject it. Write the full name and the address of the borrower as well as his/her social security number. It is important to provide accurate information so that the lender can get back to you in case there are any mistakes made. After completing the form, submit it along with the other necessary documents to the lenders.
Since most credit cards come with a 0% intro APR for a certain period of time, it is a good idea to use this chance to improve your credit score. Remember that bad debts bring bad scores and therefore you should try to avoid getting into debt. This is the reason why the lenders may consider your application to be approved if you are able to show that you have maintained your credit score well over the past few months. If you have maintained a decent credit history, the lenders will surely consider approving your wedding ring loan application even if you have a low credit score.
It takes time for lenders to acknowledge your applications, but it is worth waiting for at least a month or two. In case you are not approved, you should try to reschedule your wedding ring loan repayments. There are some lenders who offer to reschedule them automatically once your credit score improves. You should also work towards improving your credit history as much as possible so that you do not default on your future loans. If you are in a hurry to get the loan, then you should hurry up as the approval process could take a month or two.