How to Be a Responsible Borrower

There are many situations in life where you need to borrow money. Sometimes they are for an unexpected bill, needing to get money to finance a big purchase, or even taking a well needed vacation. No matter if you get money from a bank via a personal loan, or a local lender that offers loans based on the value of your vehicle, you have to be able to make sure you are able to pay back the money the lender has borrowed from you. When a bank or lender decides to lend money to you, they will look to see if you possess the good qualities of a good borrower. You are more likely to get a loan a a good interest rate if you following these tipes.

First – pay on time.

Anyone who loans you money–no matter if it is a big bank or a personal friend wants to get the monthly payment on time. If you have a good track record of paying your bills on time (or earlier) when they are due then the lender will put that as a positive quality about you. If you miss payments or have late payments, traditional lenders like banks and credit unions may ask you why. Other lenders that don’t even bother to check credit history or the credit score during the application process may not be as worried about missing a monthly payment — but making an effort to pay on time will be a huge benefit.

You’re Organized

No matter what type of loan you get, secured, unsecured, a home loan, a car loan, or a business loan a lender will be more appreciative and respect you if you are organized. Every lender is going to want some sort of documentation. Sometimes this documentation will, depending on the type of loan, depend on your past history, your income, if you have insurance, and other factors. Having all these documents handy so you can prove to the lender what you are looking to do is a great plan of attack.


When applying for any type of loan a company will look at your credit history to determine how high the interest will be. While there are exceptions to this rule, it pays to be paying on time, paying off your credit card loans, and paying off what you owe. Being a disciplined borrower will mean you have access to credit when you need it. But, just be careful. Millions of people have “over-leveraged” themselves.

You’re Honest and Can Be Trusted

Put yourself in the shoes of the lender. No matter how big a bank is…the loan officer who is going to sign off on your loan is a person. People want to do a good job and make good decisions. If you show you are trustworthy by showing these good habits and qualities the chances of you being successful go way up. The loan officer has his or her performance reviewed, and if they make a bad decision it reflects poorly on them.

One option, if you need fast money is to get a car title loan.