It is advisable that you do a proper research – especially online – of lenders who are willing to offer a personal loan and do a comparative analysis of all the lenders you found. It is after doing this that you should carefully decide which one will be the best for you to take.
Do not rush into taking a loan because of the urgency of the need. Pay close attention to every detail of the loan of the loan you decide to pick and ensure that you fully understand all the terms involved including the repayment structure.
Applying for the loan should, however, be the last resort; it should never be a habit. You must discipline yourself to the prudent management of your income and learn to live within the means of your income. The loan should be taken only when it is very obvious that it is the only way out. Another point is that once loans are taken, the repayment of the loan should be the priority so that the loan is repaid on time. Doing this gives the borrower a high credit rating with the lending institutions.
Stated income loans are loans that do not require income verification. For this type of loan, you do not need to submit the evidence that you are in employment or that you even have any source of income at all. The 60 days of waiting for lenders in the traditional institutions to go through your document for a loan, is totally done away with.
When the stated income loan came on board a few years ago, traditional banks were also into it, but the high rate of defaults on the loan pushed the banks out, leaving behind only a handful of individual who still give out this loan. These lenders often place a high interest on the loan with a rigid repayment structures. Lenders of the stated income loan only want to know how much the intending borrower earns and this is done with no submission of any document, only through the words of mouth.
The stated income loan often attracts individuals with bad credit or people with employment challenges. This group of people sees this kind of loan as a means to immediately meet their financial demands. Once you can just let the lender know you are able to meet up with the monthly installments, the loan is given, if even what you say wasn't totally true. The nature of this loan, therefore, makes it prone to fraudulent activities.