personal loan

How to Secure a Loan at 18 Years of Age

When it comes to securing a loan, one major factor that is considered is age. However, young people also pass through difficult times and may need an emergency credit facility to help them offset their debts. This cannot be done if one does not know how to go about it and that is why we have decided to take you through the process of securing a loan at 18.

Most countries of the world today have pegged 18 years as the legal age for enjoying the full rights and privileges of adulthood. At this age, it is believed that one has the capacity to make financial, political, and legal decisions with little or no guidance.

Deciding to receive money from banks, family, or friends with an agreement to pay at a future date with or without interest at the age of18 involves certain requirements and conditionalities. Whether it is a student, personal, secured, or unsecured loan, you must follow laid down rules, regulations, and proper documentation.

In this article, we will give a brief guide on how to secure better loan opportunities. Please read on as we explain more.

Some Factors to Consider Before Deciding to Get a Loan

loan factor

The following are some of the factors to consider before making a decision to borrow money:

Income Flow

Income flow is an important factor you should consider before deciding to go for any loan plan. The inflow of income will influence and determine your ability to repay the loan. No one will want to lend to a person that cannot pay back as at when due.

It could come in the form of wages, social security, support, and salaries. So, the first thing you should look at is how the loan would be financed if it is granted.

Terms of Agreement

When borrowing money, there is usually an agreement binding on the two parties- the borrower and the lender. The agreement clearly states the date, terms and conditions, duration, amount, interest rate and bears the signature of both parties.

It is a legal document that can be used as evidence against you in case of any default so it is important that you read through it carefully before agreeing to sign it. You can also seek the help of loan experts or lawyers to fully understand the terms.

Type of Loan

At age 18, there are so many credit facilities you are eligible for. Depending on the type of bank, you can have full access to student loans, car loans, or unsecured credits that require no collateral. This gives you the opportunity to choose from a variety of flexible options. Hence, carefully study any loan type before deciding to go for it.

Interest rate

As stated earlier, loans are usually issued with interest. The interest rate on the principal amount may be high or low depending on the economy, duration, amount, and type of bank. You can check out financial institutions and their interest rates. This will help you make a detailed plan and choose one with the best offer.


Loans can span over a period of 5-40 years. At 18, you should have a plan in mind with a specific time frame to pay up the debt. To speed up the process, payment can be made weekly or monthly. Consequently, before deciding to borrow money, you need to have a specific duration in mind.

Things to Avoid When Applying for a Loan

The following are some things you may need to avoid if you want your application to be successful:

Multiple Applications

There are times when an applicant may feel that making several applications for a loan with different lenders or banks gives one a better chance at securing one. On the contrary, this practice is not healthy and may affect your chances of securing a loan as most lenders view applicants with such records as credit hungry and may lead to the dismissal of such applications.

The major factor that helps you in securing a loan is repayment capacity, credit history, and credit score. If you need tips on how to improve your credit score, you can check here.

Not Comparing Offers

Before you decide to go for a particular lender, you have to check out other offers available and know which is best for your situation. There are several things involved in securing a loan and they include foreclosure, processing fees, interest rate, and charges. It is pertinent to check all these requirements before making a decision on the best offer.

Not Choosing a Convenient Repayment Tenure

Do not be carried away with your financial needs that you will fail to do your homework properly. Part of the things you need to consider is the repayment tenure. It is recommended that you choose a tenure that is convenient for you. You need to know that if the tenure is long, the interest on your loan amount will be high. Choosing a short tenure will give you an affordable repayment interest and this will also be convenient for you to handle within the stipulated period.

Securing Multiple Loans

Securing several loans at the same time is wrong and may affect your ability to pay back. It is possible that you can secure several loans due to your eligibility but do not be lured into making wrong credit decisions by lenders. When you get the first loan, try to use it to solve the financial needs that led to the application in the first instance. After repayment, you can think of another loan, except you have an emergency situation that may prompt you to apply for another one. Applying for multiple loans at the same time portrays a credit-hungry individual and this will ultimately affect your credit record.

Late Repayment

One of the important considerations before applying for a loan is your repayment plan which is basically about how you intend to get funds to pay back. If you are not certain about how you intend to finance the repayment, it is not a good decision to go ahead with the application as it may affect your credit history in the long run. Late repayment is something you need to avoid as lenders may not approve your applications in the future if you default on your repayment schedule.

terms and condition

Not Reading the Terms and Conditions

For every business entity, there are stipulated laws guiding them. You need to read the terms and conditions of the lender before you sign the loan document. Failure to do this may lead to signing a contract that you barely understand the provisions. If you do not understand some of them, you can seek legal assistance and clarification before you sign. The essence of this is to avoid any kind of confusion that may arise in the transaction as a result of your failure to understand the provisions.


Getting a loan at 18 can be the dream of teenagers who wish to experience financial freedom. However, there are factors that you need to put into consideration before you apply so you do not end up making mistakes. We have also outlined some things to avoid when applying for loans. Feel free to check them out and implement them.