You and the lender
The debt help site www.debts.org believes your
chances of securing a loan will depend on how attractive you appear
to lenders. How well you dress and how you wear your hair are not
the type of things that attract lenders (although this can be
important for face to face contact), instead what really gets their
motor running is your credit credentials. So what do lenders look
for?
Lenders are a bit like parents, after a while they like to see
you settle down. The longer you have lived at one address, stayed
with an employer and held an account at a bank, the better.
Lenders are also a little like fiancés; they prefer it when you
have a high paying job and a healthy (credit) history that contains
nothing too serious to worry about. Other attributes lenders look
for in a borrower include a full time, permanent position and
preferably skilled rather than unskilled work. Oh and there is a
little bit of a snob in a lender too, so a posh postcode does the
world of good.
As you may have already realised, this list represents a tall
order for the average consumer, especially the good postcode and
the high income. The key is to play to your strengths. Concentrate
on improving the criteria you can control, such as how long you
stay at a job or live at your current address. If you are thinking
of applying for a loan, you may wish to do it before you take up a
new job or move into another apartment.
If you haven't already enrolled on the electoral register then
do so without delay, this will assure the bank or credit card
company that you are who you say you are.
Assess your credit rating
You can have a sneaky look at how lenders are likely to view
your loan, credit card, or mortgage application by taking a quick
credit ratings test. Answer some simple questions, tally up your
score and see how likely you are to be approved. Alternatively, you
can identify the areas you need to work on before you ask for that
mortgage. You can find this easy to use test
here at
www.debts.org/credit_reports/what_scores_well_with_lenders
Check your credit report
To increase your chances of gaining credit, you should also
check your credit report for any errors that would hamper you
chances of securing a loan or mortgage. Visit www.debts.org/credit_reports
for all the information you need and learn the secret to improving
your credit rating.
If you are thinking of applying for a mortgage, don't go any
further without visiting www.debts.org/mortgages
where you can compare mortgage deals and apply online.
