There are many options for improving the chances of getting approved for a loan, but it all depends on what type of borrower you want to be and what type of lender you deal with.
Getting a loan can be easier if you follow these useful tips.
- Get the right advice
You should ask for advice from family, friends, and colleagues who have taken out loans before. They know which lenders are more willing to make allowances for people with poor credit ratings or other issues that may stop you from getting a good deal on your loan. It will also help if someone is already familiar with the lender you’re thinking of applying to.
- Shop around
There’s no point picking one lender because they’ve agreed to give you your first choice of the loan amount or repayment period, especially when other companies offer better deals elsewhere. The only thing you stand to lose by comparing interest rates is time, so it’s well worth doing a little research before you apply.
- Check your credit rating
Your credit rating can have a huge impact on whether or not a lender is willing to give you a loan and what interest rate they’ll charge you – it can make the difference between getting 100% of the amount you need or only being able to borrow half. For example, someone with a credit rating of ‘A’ would be more likely to get 100%, while someone with a ‘G’ rating might only be offered 50%. You can check your own by going onto one of the national credit agencies’ websites, such as Experian. It’s easy and free and takes less than five minutes. If your credit score isn’t very good, then there are some companies that “specialize in lending to people with poor credit histories,” so if you’ve had problems, don’t give up.
- Build your credit rating
Building a good credit rating can also help you get the best possible loan deal because lenders are more confident that you’ll repay them according to your agreed terms. One way of doing this is by using what’s called a “secured credit card.” These cards use money paid into your account as security for borrowing more money – which means they’re less likely to lend it out.
- Ask for a lower interest rate
Asking the lender for a better interest rate is something everyone should do, even if they think they’ll get knocked back. (bedriftslaan) Why? Because at least then there will be no surprises when the company rejects you and you discover that someone else was given a much better deal. You could try speaking to someone on their customer care team – who might just take pity on you and see what they can do to help – but if not, always remember: there’s no harm in asking. (https://bedriftslaan.no/likviditetsreserve/)
- Find out what other fees may apply
You might get offered a loan with no set-up or administration fees, but this doesn’t mean that you won’t be hit with any unexpected charges. It’s always best to know exactly what you’re getting before you sign on the dotted line. (https://bedriftslaan.no/factoring/) Check whether there is an early repayment charge and see if the lender automatically takes it out of your account – some companies do.
It’s not always easy to get a loan, and it can be difficult to improve your chances of getting one. However, if you follow the tips we’ve provided here for better credit scores and financial stability, you should have an easier time improving your odds of getting approved for loans in the future.