Applying for a loan isn’t as straightforward as it used to be in the past. Lenders seem to have stricter criteria for the people they lend money to these days.
It’s no coincidence that, since the global economic crisis, lenders want to limit risk.
The good news for people like you and I is that it’s not impossible to get a loan. By now, you may be wondering how best to achieve that goal.
The thing about loan providers is they all have different criteria or consumer “profiles.” For example, some will only lend to people with perfect credit ratings. Others may be less strict and willing to “gamble” on higher-risk customers.
While I can’t guarantee you a way to get a loan, what I can do is help you improve your chances!
These killer tips will help you get the best possible chance of getting the cash you need.
Reduce your expenses
These days, many lenders perform affordability checks on their clients before lending money. After all; they don’t want to get seen as irresponsible lenders!
It’s in your interests to reduce the amount of money you pay out each month.
For example, you should consider canceling any unnecessary expenses. Examples include music and satellite TV subscriptions.
You should also look at ways of cutting down on your household bills. One thing you could do is find better deals for your electricity, gas and water supplies.
Another is to plan your grocery shopping. In other words, only buying from suppliers that offer the cheapest prices for your food.
Check your credit score
Next, you should get a copy of your credit file and determine its state of health. Sometimes, mistakes on your credit file could prevent you from getting good loan deals.
Other times, you could spot evidence of fraud (i.e. identity theft) on your credit file. As you can imagine, that can cause lenders to avoid you like the plague!
There are online services that allow you to get an electronic copy of your credit file.
Be honest and correct with your loan application
Let’s face it; it doesn’t pay to lie on any personal loans application.
Lenders can check what you’re saying is true or not, especially when it comes to your outgoings.
You should also make sure the details you enter on your application are correct. Often, people get declined for loans because of simple mistakes.
Examples include entering the wrong birth date or even incorrect telephone numbers!
Increase your income
In general, the more money you earn, the better the chances of you paying your loan back.
At least, that’s how lenders look at it. You should find ways to increase your income.
One obvious example is to get a better paying job.
Another is to do some moonlighting in your spare time, such as computer work from home.
I hope today’s guide has been of use to you.
Let us know if you’ve got any tips you’d like to share with everyone.
Thanks for reading!