How much can I borrow?

This is an issue that goes under the section interesting. Because there are a lot of things that come into play when answering. We will therefore try here to go through some of the things that apply, which hopefully can give you an answer of about how much you can borrow.

The loan type sets limits

The loan type sets limits

The first limit set is what type of loan you are planning to apply for. The usual loans are micro loans, private loans, car loans and home loans. Furthermore, there are of course more types of loans but these are not very common on the whole why we do not raise them here.

Micro loans are, as the name implies, the smallest loans and these usually range from USD 500 and then up to a maximum of USD 15,000. When it comes to private loans, you can find them from USD 10,000 and up to the very largest at USD 350,000.

It is car loans and mortgages that are a little more complicated when it comes to size. Some lenders have limits on car loans of about USD 400,000, but this can vary greatly. The car should stand as collateral for the loan, which means that it has a major impact. The same goes for houses and here it is also difficult to talk about an upper limit. But we are talking without problems about the many millions that can potentially be borrowed.

Your income

Your income

If you have found the type of loan you intend, the next step is for the lender to consider that your finances are good enough to borrow the money. For the smaller micro loans, an income of a few thousand USD per month may suffice.

If you then look at private loans, it can often suffice with an income of USD 10,000 a month. This applies to the slightly smaller loans. However, if you borrow up to USD 350,000, you must expect to have a higher income than that. A loan on the sum to be repaid in 10 years can easily cost up to USD 4,000 a month. A car loan sets similar requirements to a private loan of the larger kind.

If it is a mortgage you are looking for, it is entirely the size of this that determines. For a minor, income of about USD 15,000 a month can suffice. However, it is of course a much stronger economy. If you were to borrow USD 4,000,000 at an interest rate of 5%, this loan would cost you USD 16,666 each month in interest. And to cope with such a cost, of course, you have to have a good economy.

Something that helps with applications is if you are not alone in applying for a loan. Sometimes it may even be that lenders have this as a requirement for larger loans. The idea is quite simple, since the economy of two people is reasonably stronger than that of only one person.

Other parts of the economy

bank

When a loan application is submitted, the lender will do a credit check. This will show if there are other things that adversely affect your ability to borrow money. If there were, for example, payment notes, the vast majority of lenders say no directly to lend any money.

Furthermore, for example, affects how many other loans you have. If a lender sees that you already have several loans, it means that you have less money each month to repay the debt to them. They also have the opportunity to see what your credit history looks like. If you have borrowed money before and paid back in good order so that your debts are constantly decreasing, this is a positive thing as it shows that you are taking care of yourself.

They can also see positive things for you if you have an excess of capital or if you own a home.

All in all, there are many different things that affect how much money you can borrow. After the basic pillars we have set up here you have to think about where you fit in and thus how much money you can borrow.

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