It’s really common for everyone at some point in their lives to need a loan of some sort. Whether it be small or large, long term or short term.
I don’t know about anyone else but since the credit crunch hit a few years back obtaining anything on a loan or credit has become so much harder. The lending criteria expectations just seem to get moved further and further from the standards of what people expect.
This being said here is a few tips from me to you that I have found helpful when applying for a loan.
Keep your credit score in tip top condition. This can be done by making all your repayments in time with all your lenders and not incurring any late payments or defaults to your agreements.
I use Noddle to check my credit score which is a free service and easy to use. It shows on a traffic light and number system your score and you can also see the average score of people in your area.
Make sure you can afford to pay all of your required payments each month. If you get a loan from loanable they have a handy calculator on the hope page that tells you expected repayments for the amount of loan you would like.
Make sure you can afford the repayments.I find the best way to do this is an income and expenditure report of all your necessary outgoings and what’s left just for fun and play money. I also have a spare bank account which I used just on holidays abroad just incase the account got hacked, so I often transfer any play spends and overage to that so I know that all my required bills are paid and I can do what I please with what’s left.Check out this Budget tool you may find useful.
It really works in your favour if your stable in your job when you apply for a loan or credit of any type. For example if you have been unemployed for a few years and now have a job but you have only been there for 3 months, you are possibly not an attractive applicant for the loan providers to invest in. Obviously I am not a financial advisor but in my opinion your better off waiting then marking your credit report unnecessarily.
Everyone at some point in there life gets credit of some sort whether is been for needs or wants. From personal experience I would encourage you to use credits for needs over wants as after years of buying my wants I then needed something and was not eligible for credit due to a recent redundancy and short stint of unemployment. If you need advice on finances or anything else the citizens advice are always on hand to offer impartial advice from an outsiders prospective. After all we all have friends we can talk to but some times we do not want to hear what they have so say.
Out of interest what is the largest item you have had credit for not including a car or home?
*** This is a collaboration post but all views and posts are honest and my own***