Getting your loan approved is not as easy as it used to be. Lenders across the UK, and the world, have become much more strict since the financial crisis, and loan applicants must work harder than ever before if they want their loan application to be approved. Thankfully, with a little research, it is much easier to get your loan approved. Here are six simple steps to getting your loan application approved.
1) Know what you want and what you need. There is a plethora of loan options available on the market today, and your job is to know what you can reasonably afford. Look online and compare different banks’ loan options as well as the interest rates on the loans. Doing a little extra research can never hurt. You must remember that your ultimate goal is to pay off the loan as soon as possible.
2) Talk to the bank. Once you have picked out a loan from a specific bank, your next move is to physically go to the bank and discuss the loan there. This will be the beginning of your relationship with the bank, something that will make it more likely for your application to get approved. It is also a good time to discuss the “fine print” of the loan, so make sure to underline and write down any questions you have about the specifics beforehand so you can ask the bank at an opportune time.
3) Have a credit report on hand. The bank is going to require you to give this to them anyway, and it is a good idea to know your credit score before applying to a loan with selective requirements. Credit ratings can have more impact than you think in these circumstances, just check out this article from the Guardian. Review the loan requirements and make sure you have access to any other documents the bank may need.
4) Be patient. The process may take longer than you expect it to, and this is not a reason to give up on getting the loan. The bank may ask you specific questions about how you are going to use the loan, so be prepared to give them detailed answers. This will do more than anything to instill confidence in them that you are a responsible borrower.
5) Try to get a referral. If you know someone who uses the bank that you are trying to get a loan from and you know they have a good financial background, this can be incredibly helpful. The bank may put a lot of trust in those who it sees as dependable customers.