7 key questions to ask yourself before borrowing money

Asking for a loan, more than filling out a survey and waiting for a favorable answer, is to consider the state of your bank account. Also, you must have the possibilities to cover the respective interests and cope with the situation with professionalism.

However, among the main advantages of a loan is the ability to cover any emergency. That is to say, with a loan you will be able to pay debts, take care of necessities or solve unforeseen events.

In other words, there are countless advantages to achieve things that in the short term would be impossible to accomplish. That said, at Magik Loans we have prepared a questionnaire with 7 key questions to ask yourself before taking out a loan.

Based on the opinion of experts and recognized specialists, from the Quebec financial system, we will give answers to the 7 questions to make your loan successful. So, without further ado…

Let’s get started!

Key questions to ask when applying for a credit loan

After interviewing all the specialists who make up Magik Loans, we developed a questionnaire before you apply for a loan. Here are the results in 7 key questions you should ask yourself, so that this process benefits you and your loved ones.

1. Can I qualify for a loan?

Undoubtedly, it is important to know if you are eligible (or not) to apply for a loan. For this reason, you should analyze that the loan you will apply for will be delivered according to your profile, in the credit system. That is to say, you have to verify that you meet the requirements, so that they will provide it without affecting your credit history.

Otherwise, applying for a loan that you will obviously not receive will damage your credit, and also other lenders or banks will consider you as a financial risk. Therefore, we suggest asking specialists about the requirements for your loan to be disbursed without major implications.

2. How much money do I need?

Before even considering a loan, you should have a very clear idea of the money you need to pay off debts and other unforeseen events. Therefore, we recommend you to elaborate a monthly projection scheme, in the cash flow that your business, home or office manages.

Likewise, it is pertinent to determine that, if you have a service and your client will pay you in 30 days (but you must pay your employees in 15), asking for a loan may be the only solution for you to get out of the mess. Therefore, being clear about your cash flow will allow you to apply intelligently.

In other words, preparing a cash flow projection on the spur of the moment will make you look bad when applying for a loan. It is true that many companies use IBV technology, but that should never be equivalent to not planning the use of the loan, or not knowing how much you need.

3. How much is my monthly income?

If you earn $1,200 or more per month, you may be eligible for a loan. At Magik Loans we have a non-invasive policy where we perform a credit check to receive your payment. This is possible thanks to IBV technology, whose implementation in our processes will make your life easier.

4. Do I have an adequate cash flow?

It is indisputable that both the lending company and you will benefit. Therefore, few companies will accept clients with losses, since they will lack the resources to repay the loan and the mutual aid would be broken, due to breach of contract.

For this reason, we suggest that you prepare a projection, where you show the margins of error, with respect to the income and expenses of your patrimony. In this way, you will be able to determine your cash flow and you will know if it is convenient for you to apply for a loan.

5. What will I use my money for?

Knowing how to invest your money efficiently will help you to carry out your projects in the most optimal way. You can invest it in renovation of furniture, expansion of premises, purchase of spaces for the commercialization of products, or even hire a digital marketing service, so necessary these days.

Knowing what the loan money will be used for will define your future goals. Based on this, having economic responsibility will bring great benefits in the growth of your capital, which will facilitate future transactions and credits.

6. In case of death: what will happen to the loan payment?

A defaulted loan can certainly affect your family. This is something that is usually avoided, but it is necessary, since as humans we do not know when our sad day will come.

A very common belief is to think that, after death, there will be no more debt. However, this is false. Because of this, it is necessary to find out the policies of the lending companies or banks, in order to determine alternatives and that your family is protected.

7. What documents do I need?

Traditionally, many companies request documents to approve a loan and, to add to the desperation, take forever to deposit the money. However, at Magik Loans we understand the urgency when applying for a loan.

Therefore, we focus our efforts to streamline the process by dispensing with documents and replacing the process with a survey. The survey will take no more than 3 minutes to complete. Therefore, it becomes an ally for those who are looking for quick help.

Get a quick and easy loan

Now that you know the 7 key questions to ask yourself before borrowing money, what are you waiting for? If you have had the same job for six months or more, earn more than $1,200 and are over 18 years old, Magik Loans has the solution.

We have the prestigious IBV technology, so you will never have to worry about cumbersome paper documents again. If you are a Canadian citizen, and you need money to do business, we can help you.

All you have to do is fill out a simple survey and wait for your money to be transferred. Contact us, so you can find a solution to your problems. Also, remember that asking questions is a very powerful tool: that’s why it is essential before asking for a loan.

To fill out the survey, click on the image below.