Five Tips For Loan Applications
The ‘credit crunch’ and the general nervousness of the financial markets has meant that lenders are more careful about lending money. Many have had their fingers burnt and will now take a much closer look at loan applications than they might have in the past. If you’re thinking about a taking out a loan, maybe by a comparison website, you will want to make your application as alluring as possible to avoid rejection. Here are five tips that will enhance your chances of having your loan application approved.
You only get one chance to create a good first impression. Make sure that you present yourself and your application in as plausible a manner as possible. Look the part if you have to meet the loan provider or bank confront to confront. Be punctual, be polite and do your best to show that you are a safe and reliable option. Likewise, conduct any harmonies maturely and sensibly. The loan provider holds all the cards. You need to do your best to impress upon them that their money is safe with you.
Check your credit rating. There are various criteria that the loan provider will be looking at to establish whether they will lend you money or not and they will build a picture of your loan-worthiness by your credit report. The stronger your credit history the more likely you are to succeed in your application. Check your credit rating to make sure that it is both up to date and accurate. There are numerous agencies who for a small fee can check your position. Now is the time to sort out any errors or misinformation that may impact on your loan application.
If your credit history comes out with a question mark against your name, (maybe you have CCJs against you or you have a record of missing loan repayments) you could find that your application is rejected or that any loan will be offered at a higher interest rate.
Make sure that you’re on top of your existing loans. Don’t let your current commitments interfere with your application for a new loan. Are you on the electoral register at your current address? Is borrowing against your credit cards and overdrafts under control? Also consider the new repayments. Will you be able to manage additional repayments in the event of the loan being approved?
Keep you loan application within reason. Applying for unrealistic amounts of credit will set alarm bells ringing. How does the amount you are applying for relate to your income? There is no point for you or your loan provider to agree an amount that you stand little chance of being able to pay back. Sensible loan applications are treated seriously, the others simply go in the bin.
Don’t apply too often. Each application for a loan or any other form of credit is recorded. If you keep getting either refused credit or keep going back to borrow more and more over a short period of time your applications will be flagged up and your chances of securing the loan will diminish. It looks suspicious and indicates that maybe you aren’t careful with your money or that there are inner reasons that you are being repeatedly refused. Manage your financial situation, manage your financial information and manage your loan applications diligently if you want your loan application to be successful.