People with bad credit are continuously being rejected for loans. If they eventually manage to get one, they’ll be subjected to interest rates that would make your eyes water. But what if you’ve got a decent credit rating, continuously pay your bills at eh right time? Many people choose to save up instead of taking out a loan, paying for things outright. However this approach, although leaving you financially secure, does little for your future chances of gaining credit. You might find yourself in some financial trouble in the future, but unable to gain credit because you’ve never borrowed before. By borrowing money from the banks and paying it back on time, this will improve your credit rating more. Even if it’s a small loan, do this over a number of years and your credit score will be as strong as your bank balance. Many people prefer not to take out loans, however if you’ve got a good credit score, lenders will be more willing to trust you with their money. So if you’re thinking of improving your credit score, here are a few tips on how to gain a quick approval.
Show that you’re not a risk
The less risk you are to the banks financially, the more likely they are to accept your application for a loan. Asses your finances, and come to a decision on how much money you want to borrow. Make sure it’s a realistic figure, as the bank will not accept an excessive number. Furthermore, you’ll have a better chance of getting a loan if you’re in full time, uninterrupted employed – credit companies prefer stable borrowers.
Analyse your credit record
Before applying for a loan, know your credit inside out. If you’re unsure what your credit score is, then order a credit report. If there any errors in your report make sure they’re rectified as they will stand out when loan companies are assessing your applications. Lenders have many ways to determine how financially viable you are, from car lease calculators to experienced professionals ready to scrutinize any irregularity in your credit. Your bank balance and income from your job should reflect that you’re able to meet the bank’s repayment needs. If you can show that you’re a good saver, then this will greatly improve your chances of being accepted for a loan too.
Look around for the lowest interest rates
Just like shopping around for a new broadband supplier or a new car, hit the high street banks and see what deals they have on for lending money. Compare the best ones, and if needed, ask a lender to lower their rates to match others, advertising your custom. Finance is a competitive industry, and just as you’re looking for a loan, banks are looking for interest, so if you play your cards right, you’ll be able to find the best deal, whether it’s on the internet or inside your local branch.
Read the small print
Make sure you know your rights, as well as what the bank is expecting from you. Make sure you know the ins and outs of your contract, for example, admin fees, early repayment fees, late payment fees and any other expenditure that could affect could affect your repayments.
Author Bio: This post was written on behalf of Fincar who specialise in car lease calculators