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If you are reading this article, most likely, you have already faced the need to take a loan, and you should understand what the main cycles of the loan process are. Cycles of the advanced process are not very difficult. However, it still helps to know what’s coming at each stage of the process. So you can be prepared to ask the right questions and make good decisions.

What Is The Loan Life Cycle?

The loan life cycle is the process involved in taking lending. It can be a mortgage loan, auto loan, and so on.

Choose The Loan

When it comes to getting an advance, you have many options – personal advance, financial cards, mortgages, and so forth. What is important to know before choosing a loan? You should consider all the details about SpotLoan & Similar Loans before applying:

#1 Interest Rates

Regardless of the type of advance, you need to pay attention to interest rates. The lower they are, the less you will have to pay. This rate may depend on various factors – your income level, your creditworthiness, and so on.

#2 Credit Score

Your credit score is the main factor in obtaining an advance. It shows your creditworthiness and general financial condition. The lender must be confident in your ability to pay the credit. Credit score depends on payment history, the total amount owed, length of credit history, and types of credit: the higher your score, the higher your chances of being approved for lending.

Types Of Loans

Before you decide to borrow money, understand the different loan options that are available.

#1 Personal Loans

Secured loans. Personal property is offered as collateral. Personal property is also provided to individuals with poor or no credit history.

Unsecured loans: Based on credit scores, no collateral is necessary. 

#2 Business Loans

Term loans. General-purpose advances are borrower returns back over a set period of time.

Short-term loans. Smaller advances that people borrowed for periods of less than one year and paid back in one lump sum. 

  • Student advances
  • Mortgages
  • Equity loans

How to Apply for a Loan

After choosing a suitable offer, you can apply for a loan. It is usually a simple process. Once you’ve completed your application, your chosen lender will conduct a credit check. This is necessary in order to understand to the lender whether you’ll be able to pay back the loan.  

Some 131.0 million Americans, or 51.3% of Americans, said they have taken out a personal loan in their lifetime.

Signing an Agreement

Most companies use an automated process to work out your score. You can sometimes get an answer within hours. If the lender approves your application, he will send you the advance agreement – usually either electronically or by post – for you to sign and send back. You should receive the money in your account within a few days. If one lender has refused you, don’t despair. Another realtor may give you a loan, as each realtor has different criteria.

Receive Money

If you have chosen a personal advance and have passed the required verification, the funds will be sent to your account within one day. How soon they reach your account depends on your bank’s transactions.

If you have selected a card while you are waiting for it to arrive, you can log into your account to access the virtual card. In this case, the funds will be in your bank account within one to four working days. Direct lenders like Spotloan and Getlendly will help you get paid quickly and securely.

If you pledged your car when you got a loan, once your title documents are received and verified, funds would be sent to your account within one business day. From the time of approval, funds should be available within four business days. 

Repay Debt

The term for which you must repay the loan is out of your agreement with the lender. To pay off your debt on time, you need

  • pay more than the minimum;
  • pay more than once a month;
  • pay off your most expensive loan first;
  • consider the snowball method of paying off debt;
  • keep track of bills and pay them in less time;
  • shorten the length of your loan;
  • consolidate multiple debts.

Remember that unpaid debt can significantly affect your credit history.

What Should I Do if I Can’t’ Repay My Loan on Time?

Frankly speaking, you should not start paying off debts, as you will accumulate interest and fees. Unfortunately, we cannot always influence such situations. So what should I do if my debt is past due?

#1 Pay Late

If you can’t make your payments on time, it’s better to be a little late than not at all. Try to get your payment to the lender within 30 days of the due date. Those late payments aren’t even reported to credit bureaus in many cases, so your credit won’t be damaged.

#2 Communicate with Lenders

The lender can give you advice on how best to proceed in such a situation. He may have options to help you. It can be a change in the date of payment or a delay in payments for several months.

#3 Prioritize Your Payments

You may have to cut your spending or even stop paying some advances. It is logical to continue making payments on housing and car loans so as not to be left without property. Set priorities and make informed choices.

Debt Consolidation

What Is Debt Consolidation?

Debt consolidation is getting a new advance to pay off other debts and obligations. Several debts are combined into one large debt, usually with more favorable terms. These debts are characterized by low-interest rates and/or low monthly payments.

If some loans are cheaper, it makes sense to use them to bring down your interest cost. Taking out lending to pay off another loan may seem like a bad idea. In some cases, it is not.


Debt consolidation is a great tool for people who have multiple debts with high-interest rates or monthly payments—especially for those who owe $10,000 or more. And as long as you don’t take out any additional debt, you can also look forward to becoming debt-free sooner.


Longer payment schedules mean paying more in the long run. There’s also the potential loss of special provisions on school debt. It can be interest rate discounts and other rebates. 

A loan can help you afford something much sooner than you could earn, such as a long-awaited vacation. But you always need to understand what you get in return. It’s always cheaper to pay for something right away, but credit can be a sure helping hand. You already know what to look out for when you borrow money. Be careful and pay your debts right away.