It’s funny: some of the biggest goals in life revolve around being able to take out a loan. Whether you want a big sum of money to get married, buy a house or set up a business, loans matter. But actually getting a loan is a tricky business. Just do a Google search for help on getting a loan, and you’ll find hundreds of articles all promising secrets on how to do it. It seems as if everybody wants to know what they can do to secure finance. Improving your chances of getting a loan, however, isn’t out any single secret or trick. It’s a process that takes time and patients. The following are things that you can do to improve your chances of getting a loan.
Featured image credit: pixabay.com
When most people apply for a loan, they fill out all the standard forms and wait for a credit check. Usually, the lender will make a decision based on this and either accept or reject the loan application.
f the lender refuses the application, most people will, at this point, give up. After all, lenders have got their own lending system, right? It’s true, of course, that they do. But they only do because they want to find out whether you’ll pay back the loan. The evidence they have, however, might be wrong or out of date. That’s why it’s such a good idea to look at other, more unconventional ways of securing a loan. One cool thing you can do is use references. A reference from your landlord showing that you’ve always paid your rent on time can be a powerful bargaining chip. So too can be a string of paid utility and phone bills. In fact, showing a lender any example of you having paid promptly can help your case.
Credit Score Repair
Another way you can address your credit score is to deal with the issue head on. The market, as we all know, is constantly innovating. And now people have the option of going to a credit repair service. The idea behind these kinds of services is to help people who want to borrow a lot of money do just that. Often, aspirational people have great ideas. But actually being able to secure the finances to do them can be difficult. Many entrepreneurs, for instance, don’t garner the attention they deserve because they’re just starting out. Credit repair services help people boost their credit scores, maximising their chances of getting a loan.
Differ lenders specialize in different kinds of lending. Thus, borrowers need to choose the right loan for what they are borrowing for. Aspirational people who want to boost their chances of getting a loan are picky about who they borrow from. If it’s a mortgage they’re after; they go to a mortgage broker. If it’s a car loan, they go to a car financier. They also only borrow with good reason. Lenders will often ask why you wish to borrow money. Usually, they want to find out whether you’re likely to get a return on your investment. Borrowing for a car is great because it opens up lots more employment opportunities. Borrowing for a business is even better since the returns can be astronomical. But borrowing to buy fashionable clothing or a holiday is a red flag for most lenders. And it can sabotage your chances of getting a loan.