How to Improve Your Chances of Being Accepted For a Loan

These days many of us consider or actually apply for loans. This could be to buy a home or car for home improvements or holidays or even just to make ends meet. There are lots of different reasons for borrowing and this is why there are lots of different types of loans. We usually know that if we apply for lots of loans then it looks bad on our credit rating. This means that it is wise to make sure that when you do apply for a loan you get accepted first time. This looks far better on the credit report. We are also unlikely to want the hassle of applying multiple times to different place using websites or forms to do so as it is a waste of time. Therefore making sure that you get accepted the first time you apply is the best aim to have. There are things that you can do to improve your chances of being accepted.

Apply for the right type of loan

It is wise to look at the different types of loans and apply for the one that is most suitable for you and your needs. It can be quite confusing when you first start looking as there are so many types. If you are unsure you can start by going into a local branch of a bank or building society and they will be able to explain them to you. Or alternatively you may want to consider an online option such as Loanable Loans. You can find general information online as well, but some online sources are not very reliable with there being a lot of incorrect information out there so make sure that you go to a page that you can trust such as those belonging to a lender or an unbiased financial site such as the Money Advice Service. You need to consider how much you want to borrow and for how long, to help you to make the right decision.

Make sure you can afford the repayments

Not all lenders will look into this, but some will so it is important to check. You should be able to find out before you apply, how much the repayments will be. If it is not obvious, you should be able to find out by telephoning customer services. You will then be able to look at your finances in order to calculate whether you can afford those repayments. You may not be familiar with how to do this, but it is quite simple. Take a look at you monthly bank statements to help. You can see how much you have coming in each month and how much you spend and this will help you to see if you have enough money left to make a loan repayment. You will know whether you normally go overdrawn or not or whether you tend to struggle to meet ends meet each month as well. If you think you may struggle then you may be able to make some changes so that things are easier, perhaps by looking at your spending and reducing it.

Check your credit report

It is well worth checking your credit report to see whether it is correct and whether you are likely to be accepted for a loan. You can look at it for free and it will not show on your report that you have checked it. You can therefore take a look at everything listed and see if it is accurate. The problem with a credit report is that different lenders have different requirements with regards to what they think is good. Therefore it is hard to predict whether yours might be good enough. However, it is wise to make sure the information is correct as there is a chance that it may have records of debts that you have now paid off or things like that. Also you should be able to see the chances of you being accepted for a loan and if this is very low then it may not be worth bothering and trying to improve things before you apply.

Consider a financial advisor

It could be worth getting a financial advisor. They will be able to talk you through all of the factors that a lender might consider when deciding who to lend to. They will know what different lenders look for and may recommend certain loans according to how much chance there is of you being accepted for one. They should also be able to compare the costs of different loans and find you a cheap one and those savings that you make could pay for their services as they will charge you an hourly rate which could be high. You will need to find one that you trust though so if you do not have one look for recommendations from friends and family and you will obviously also have to consider whether the cost of the advisor is worth paying. If you are borrowing a large amount of money it could be more worthwhile than if you are only getting a small loan as the savings they can potentially make for you will be much bigger if you are borrowing more.

Conclusion

It is therefore worth trying just a few things before applying or a loan. Check your credit record and make sure it is correct, see if you can afford the loan and apply for a loan that you are likely to be accepted for, with or without the help of a financial advisor. By doing these things you have a better chance of being accepted for the loan. This will not only make applying much easier as you will be less likely to be turned down and therefore not have to apply to so many lenders and it will be much better for your credit record if you only apply to one place.

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