Do you think my bank will lend me $8,000 if...?

Question

I just need money right now for an emergency and don't have family nor friends to ask. If I have solid proof that I will pay back in full in less than a month..do you think they will lend it to me? Thanks =)

Answer 1

Lenders are not interested in promises, and they have pretty firm processes that they use in making their lending decisions. I don't know what you have to offer them in the way of "solid proof", but they're really only concerned with 2 things:

1. Your current income. When your other financial obligations are subtracted from your income, is there enough left to pay this debt?

2. Your credit history. These are your references. If you have borrowed from other lenders in the past, and repaid those debts in full, and on time, you have "good" references from other lenders, and this lender will be more confident that you will repay THIS loan. If you have no references, mediocre references, or bad references, then lenders can not build up the necessary support to make you a loan. Remember, the bank lends you someone else's money, and they promised the investor that they would only lend to people who were certain to repay.

If you are offering the bank some kind of "non-traditional" form of "proof" that you'll repay, they're probably not going to bend their usual lending requirements to give you a loan. It's all about your income (particularly your income-to-debt ratio), and your credit history. The fact that your dying rich aunt has promised to leave you a lot of money in her will, or that your dad said he would give you money on your 21st birthday isn't going to sway the lender.

But then again - there's no harm in asking, right?

Good luck.