Finances are not always easy to manage. Banks and financial institutions know this and provide specialized financial instruments such as loans, to not only help their customers make big purchases and spread those payments over a few years but help them when they’re in a tough spot. There are also several types of loans to choose from including personal loans, auto loans, and payday loans to name but a few of the different types of loans available. Loanstar provides a whole list of different loans including reviews and other useful information that can help you decide which type of loan is best for your needs.
Getting a loan, however, is not always an easy proposition. Many factors cannot only influence whether you’re eligible for a loan or not, but also what type of loan you get. Lenders don’t like risk much and the riskier you appear to be in the lender’s eyes, the higher the repayments will be.
Risk and higher re-payments go hand-in-hand until the lender’s risk assessment mechanism reaches a point where no loan will be granted. Fortunately, there are several steps you can take to improve your loan eligibility and application success. Follow the below pointers and you could be singing your way to the bank.
Feeling financially overwhelmed doesn’t have to be permanent (Photo via Loanstar)
Visit Loanstar today and learn more about how you can navigate the financial waters of life better!
Settle utility bills
If you’re able to do so, settle any outstanding utility bills before applying for a loan. Not only will you ensure continued service, but you will be seen as more favorable in the lenders’ eyes increasing your chances of getting a loan.
Settle outstanding debts
Outstanding debts can be a red flag for lenders, sharply increasing your risk profile. If there are any outstanding debts you can settle, or bring up to date if they’re in arrears, before applying for a loan do so as soon as possible.
Check your credit report
Different countries and jurisdictions have different laws and procedures on how your credit history and situation is reported and shared. Do your research and ask for a copy of the report if this can be made available to you. Next, ensure that the information listed in the report is accurate giving particular attention to the following areas;
Payment updates – make sure that settled payments show that they have been settled and any completed repayments are listed accordingly.
Closed accounts – If you ever held an account that has been closed in the meantime however it is still showing as open in the report, ask for an update.
Notice of disassociation –If someone you shared an account with made transactions in bad faith, this can show up on your report. If ties have been severed in the preceding period, you can ask for a notice of disassociation if this is applicable.
Make sure you’re on the electoral roll
Verifying identity is an important factor in determining loan eligibility and ensuring you’re on the electoral roll can help loan companies verify your identity, increasing your chances of success.
Make sure you afford repayments
Different loans and different companies offer different terms and repayment structures. Do your homework and make a list of the ones you can afford – these are the most likely to grant you a loan. Apply for the most likely whilst keeping in mind what you will have to repay and in what timeframes. Avoid submitting multiple applications over a short period of time, since these can show up on your credit report.
Conclusion
Getting a loan does not have to be hard, or overly expensive. Follow the tips above to get your house in order and your chances and terms will be greatly improved. Also, keep in mind that the nature of the loan itself serves different purposes so be sure to compare personal loans online and check out all of the available information to make the best possible decision. One last thing to remember is to check reviews to understand what other people’s experiences are like and learn from them!
Loanstar is an online portal that lists reviews for different loan categories and loan providers including useful information that can help you assess which solution is right for you. This can help you understand more which type of loan you can apply for, increasing your chances of eligibility all in a matter of seconds
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