Get a Thumbs Up from the Bank

by Mike on April 25, 2017

Get a Thumbs Up from the Bank

No matter how good you are at managing your money, there may come a time when you need to approach the bank for a loan. This could be to buy property, purchase a car or consolidate existing debts. Whatever your reasons for needing a loan, they are undoubtedly important, and that is why you need to do all you can to get improved.

Here are some simple tips and tricks that can increase your chances of getting a thumbs up from the bank and help you out of a tight spot:

Save

It may seem strange that I’m telling you to save when you’re looking to lend money from the bank, but when you’re seeking a mortgage, small business loan or car finance, if you already have a chunk of money to put towards, the bank will look much more favourably at you as a candidate for a loan, simply because it shows them that you’re sensible and serious.

Do Your Research

Before you attend your meeting at the bank, take the time to look into all the loan products they offer. Work out which one will be best for you and come up with an action plan that clearly shows how you intend to manage the debt. If you can do this, you’ll be much more impressive.

Know Your Limits

When you’re applying for a loan, you need to be realistic and ask for a sum that it is within your abilities to pay off. Attempting to seek a loan fast in excess of what you can comfortably afford will be a warning sign that the bankers won’t ignore.

Fix Your Credit Score

If you have a poor credit score, get professional assistance to help you improve your creditworthiness in any way you can. One of the biggest factors in a bank’s decision to lend money or not is the strength of your credit score, so do something about it as soon as you can.

Stick with Your Employer

If you want to obtain a loan, you will need to be able to show evidence of a strong work history. Ideally, you should have been with the same employer for at least a couple of years, and you certainly shouldn’t think about changing jobs during the application process. Banks want a safe bet, and someone who has a patchy work history is not likely to fit the bill in most cases.

Shop Around

It might be easier to simply apply for a loan with the bank you currently use, but that might not be your best option. It is much better to shop around, see what is available and which banks have requirements that you can most easily meet, and interest rates that are most favorable.

Gather Relevant Documents

Once you have an idea of which lender is your best bet, it’s time to get in touch with them. You will want to ask them what documents are needed to secure a loan and then set about gathering them together. By doing this, you will present a more organized front, and you’ll make the process easier for all involved, not least yourself.

 

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