Getting a bank loan for final expenses?
Jaide112 asked:
My mother is in the final stage of life, and I was thinking of getting a bank loan to cover the cost of her funeral. Should I tell the bank what the loan will be used for or tell them something else? Will using the money for a funeral hurt my chances of being approved for the loan? Thanks in advance.
My mother is in the final stage of life, and I was thinking of getting a bank loan to cover the cost of her funeral. Should I tell the bank what the loan will be used for or tell them something else? Will using the money for a funeral hurt my chances of being approved for the loan? Thanks in advance.
December 22, 2008
• Tags: Bank Loan, Final Expenses, Money, Stage Of Life, Thanks In Advance • Posted in: Personal Finance
3 Responses to “Getting a bank loan for final expenses?”
This is a very common loan for a bank to do, so they will work with you. If they don’t, keep going to the next bank on your list. Always be truthful, it will serve you well in all facets of life and not just finances.
Burying a family member is tough, doing it while trying to borrow money and figure out how to pay for something so important and dear to your heart is too much. You should be spending your time rejoicing or grieving that your loved one is moving on. So, I have to ask, are you properly covered by life insurance that would cover your final expenses?
If not, please take the time to learn about the only life insurance anyone would ever need….level term life policies…all others are a rip off to anyone but the one selling them.
I do wish you well and will pray for you during your time of mourning.
My suggestion is to first go to a funeral home and talk honestly with them and ask if you could arrange payments. That is possible here . Also be honest about not needing to spend any more money than is necessary for a nice but not extravagant funeral.
There’s no reason to lie–usually a bank will lend you money for something specific that will be used as collateral (like a car, house, or boat) or they will give you a loan and hold some investment as collateral (like a CD), or they might give you an “unsecured” personal loan, meaning there’s no collateral (which is unusual and hard to get).
So it doesn’t matter what the loan is for; banks don’t care. If you have good credit and collateral, you can get a loan and use it for whatever you want. If you don’t, then you probably won’t be approved for a loan no matter what it’s for.