Bank Personal Loans

by cogdogblog

Loan Applications: Tougher Times Ahead

As you are probably aware, the recent global credit crunch, has forced lenders to toughen up their lending criteria, making it harder than ever to get approved for credit

Figures published by Moneysupermarket.com show that successful loan applications have dropped by 28.5 percent over the last seven months; with successful applications down from 7 in 10 in April to just over half in October.

Its worth noting, that it isn’t just bad credit applicants that are the only ones getting denied, but applicants with squeaky clean credit reports are suffering too.

All is not lost though!

Even though the times of cheap and easy credit are starting to seem like a distant memory, there are steps that you can take to improve your credit rating, thus increasing the chances of your borrowing application being successfully approved.

Firstly, you should get a copy of your credit report, so you can see for yourself the exact factors on which lenders will be basing their decision for your secured loans application. You can do this by getting in contact with the main credit reference agencies – Experian and Equifax.

If you’ve had a relatively responsible financial past; had no defaults, kept up with repayments, been at the same address and with the same bank for a good few years then chances are you’ll have a fair, if not excellent credit rating.

If on the other hand, you haven’t always managed to keep on top of your finances and as a result your credit rating has suffered, you’re going to find it much harder to get any new lines of credit, especially in today’s markets. In some cases secured loans are the one exception to this rule.

As a general rule, your monthly debts, including any mortgage repayments should not exceed more than 30% of your monthly income.

If this is the case, then you’re best enlisting the help of an IFA (Independent Financial Advisor) or broker who specialises in bad credit secured loans. Such experts will be able to give you a good idea to which lenders have the products available to you, and also the interest rate and borrowing amount you can expect to qualify for.

Although not always possible, clearing any outstanding debts such as credit cards and overdrafts improves the likelihood that your financial situation will be viewed positively by potential lenders.

With interest rates at their highest for many years you may find yourself in the position of being unable to meet monthly repayments. This may be especially true if rises in the cost of utility bills, petrol and food prices have increased your monthly expenditure.

Lastly, by planning for the future carefully, taking time to research the best loan deals and seeking expect advice when necessary, you can take steps to avoid falling into this stressful situation and instead stay on the road to manageable finances and a healthy credit rating.

See more Lotus Forms demos at www-01.ibm.com This is the first half of a demonstration of a Loan Application built using the IBM Business Process Accelerator offering.

Find More Loan Application Articles

by bootload

Loan Applications: Tougher Times Ahead

As you are probably aware, the recent global credit crunch, has forced lenders to toughen up their lending criteria, making it harder than ever to get approved for credit

Figures published by Moneysupermarket.com show that successful loan applications have dropped by 28.5 percent over the last seven months; with successful applications down from 7 in 10 in April to just over half in October.

Its worth noting, that it isn’t just bad credit applicants that are the only ones getting denied, but applicants with squeaky clean credit reports are suffering too.

All is not lost though!

Even though the times of cheap and easy credit are starting to seem like a distant memory, there are steps that you can take to improve your credit rating, thus increasing the chances of your borrowing application being successfully approved.

Firstly, you should get a copy of your credit report, so you can see for yourself the exact factors on which lenders will be basing their decision for your secured loans application. You can do this by getting in contact with the main credit reference agencies – Experian and Equifax.

If you’ve had a relatively responsible financial past; had no defaults, kept up with repayments, been at the same address and with the same bank for a good few years then chances are you’ll have a fair, if not excellent credit rating.

If on the other hand, you haven’t always managed to keep on top of your finances and as a result your credit rating has suffered, you’re going to find it much harder to get any new lines of credit, especially in today’s markets. In some cases secured loans are the one exception to this rule.

As a general rule, your monthly debts, including any mortgage repayments should not exceed more than 30% of your monthly income.

If this is the case, then you’re best enlisting the help of an IFA (Independent Financial Advisor) or broker who specialises in bad credit secured loans. Such experts will be able to give you a good idea to which lenders have the products available to you, and also the interest rate and borrowing amount you can expect to qualify for.

Although not always possible, clearing any outstanding debts such as credit cards and overdrafts improves the likelihood that your financial situation will be viewed positively by potential lenders.

With interest rates at their highest for many years you may find yourself in the position of being unable to meet monthly repayments. This may be especially true if rises in the cost of utility bills, petrol and food prices have increased your monthly expenditure.

Lastly, by planning for the future carefully, taking time to research the best loan deals and seeking expect advice when necessary, you can take steps to avoid falling into this stressful situation and instead stay on the road to manageable finances and a healthy credit rating.

See more Lotus Forms demos at www-01.ibm.com This is the first half of a demonstration of a Loan Application built using the IBM Business Process Accelerator offering.