Whether you are applying for a mortgage, a business loan, or even a car loan, how successful your application greatly depends on how prepared you are and the information you provide.
Below are some great tips to help you get started when preparing to meet with a credit provider.
We’ve All Got a Past, so Make Sure Yours Is Your Own!
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The first thing your lender is going to do will be to check your credit history and your score. After all, there isn’t a better way to get an accurate insight into your previous credit history. The important word being accurate.
Imagine that you are sitting in front of your lender and they turn their screen and ask you about the range of credit applications and loans you have applied for and taken out prior their meeting, which you have no idea about. While you may genuinely have no idea about the applications, it doesn’t look good for a lender.
For this reason, start by requesting your own copy of your credit report and make sure that everything is as it should be, looking out for these items:
- Addresses you never lived at
- Your name is misspelled on a listing
- Applications for credit you didn’t make
- Outstanding payments you have cleared or are not familiar
Each of these items can be an indication that somebody has used your personal information for the purpose of committing identity fraud, negatively affecting your creditworthiness and ability to be approved for credit.
What Do You Look Like, Now?
With your credit history taken care of, it’s time to give some serious thought to your current finances. The best place to start this task is with a detailed budget which outlines your income streets against your outgoing expenses each month.
When you are preparing your budget to show to your lender, it’s important to look for ways to reduce your monthly costs to make your current finances even more appealing.
For example:
- If you own a car and only drive it once a month, sell your car for the deposit and utilize a Budget Rent a Car coupon from Groupon Coupons instead and show your lender you can be creative with your expenses
- Look through your grocery budget for bulk items and discounts which you can take advantage of each month to reduce your essential costs
- Speak with each of your service providers to renew any contracts such as the internet, phone, and electricity for lower rates.
The above tips are just three great sustainable ways to reduce your monthly expenses, not only making more cash available to repay any loans but also keeping your general costs down.
Is Now the Right Time?
If you have taken a look at your current budget and aren’t entirely certain that you can afford to take on the financial responsibility of a loan or a line of credit, the smartest thing you can do is to wait.
For example, if you have a credit repayment which will end soon or you are expecting funds invested funds to mature, consider waiting until your finances look better on paper, thus improving your chances of approval.
Meeting with any type of lender can be a nerve-wracking experience, however with the right tips and planning the experience can be a smooth one.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.
