If you’re applying for a loan you want to give yourself the best chance for approval. Here are 4 tips to ensure you're on the right track.
1. Improve or build your credit history
There are a number of things you can do to improve your credit rating, such as getting on the electoral register or borrowing a smaller amount. If you haven’t borrowed in the past it's harder for the prospective lender to make a judgement about your ability to handle repayments. Keep in mind any late or missed payments can negatively impact your credit rating.
2. Check your credit report
The major credit reference agencies in the UK are TransUnion, Equifax and Experian. You can see the credit scores and credit ratings that these agencies have for you for free or for a small fee.
It can be a good idea to check, if only to make sure there are no mistakes on your file. Keep in mind that your credit report isn’t the only thing that a bank will look at when making a decision. So it won’t tell you whether or not you will be approved.
3. Double check your application
A small mistake can impact the outcome of your application. For example, if you live in a flat your address may need to be written as Flat A, 123 High Street rather than 123A High Street. Before hitting submit on any application, make sure everything is completely accurate.
4. Reduce the number of applications
Multiple applications in a short period of time can give the impression that you’re having trouble managing your money. If you're just looking to see how much you'd need to pay back per month then you can get an estimate from a calculator.