The secret of getting your loan approved
Do you know something about loans?
More people get turned down than approved for a loan in the UK which may surprise a few people but it’s true. It’s far easier for a lender to refuse your loan application, whether it is a guarantor loan or any other type of loan, than it is to accept it and with the current credit crunch, lenders can really just cherry pick the best loans and refuse anything where they think there is the slightest chance that the loan applicant (the borrower) may not repay the loan.
Banks and other lenders build their whole businesses on risk assessment and the borrowers ability to repay so if there is even a sniff of a chance that they think you won’t, they will refuse your loan.
However, there are a few things you can do to make your application a little more acceptable and I will list them below.
- Prior to any loan applications being made, do not keep applying for loan after loan because this will definately go against you.
- Make sure you pay every single bill (for at least 3 months before applying for the loan) on time every time.
- If you are not on it already, make sure you are on the voters roll – this is a must and must not be under estimated.
- Keep your loan under £5000 and you will have a far better chance of being accepted.
- If you have any credit cards or other loans or finance, make sure you pay more than the minimum amount for at least 3 months before applying for the loan.
All of the above goes a long way to helping you look like a positive case to a mortgage, loan or other finance provider and whilst it is not guaranteed to get you accepted, it will increase your chances of being accepted for a loan by about 50%.
So, apply for a loan today and make sure you utilise the top 5 tips we have mentioned above.
