Credit Debt Advice.Net Intelligent Advice For All Of Your Credit & Debt Problems

A growing number of people are being turned down for loans despite having fair to good credit reports. Many others will simply not apply for a loan because they think they will not qualify. Understanding exactly what creditors are looking for will help you obtain the loan you need.

Your credit report is the first thing a creditor looks at. Even if you are sure that you have a good credit rating, it’s worthwhile to get a copy of your credit report to make sure that it contains no errors. Many people find mistakes on their report that can be eliminated with just a phone call.

If your credit report does not show any reason why you should be declined, there are several other factors to consider. Some lenders send out a standard denial letter which states the reason for the denial is because of information obtained from a credit reporting bureau. In some cases this is just the easiest way for them to do this even though it may not be the actual reason.

Many lenders require three years of address history and some prefer the applicant to have been at the same address for at least one year. Utility bills, bank statements and credit card statements can help prove the length of time you have been at your present address. If you have moved within the past five years, proof of your address history can be particularly useful.

Lenders often look at the electoral roll, also known as the voters’ roll, electoral register or voters’ register for the address on the loan application. If you are not a registered voter, you might want to consider registering before applying for a loan. You should be aware that it can take some time for the electoral roll to be updated so proof of registration might be useful. Also, it is now possible to opt-out of the roll when you register. If it has been some time since you registered and you think it may be possible that you opted out, you should supply your voter’s registration card or written proof that you are on the electoral roll.

Work history is another factor that lenders consider when reviewing a loan application. They like to see a good steady job history before approving a loan with a competitive rate. If you have changed jobs in the past few years, supplying payroll check stubs from your previous employer might be helpful. Providing recent check stubs can prove your income for the past three months, which is what lendors usually require. The loan officer needs to be sure that the applicant has sufficient income to afford the payment so salary and disposable income are carefully scrutinized.

If all or part of your declared income is from self-employment, you may need to provide proof of accurate book-keeping and well managed finances. A statement from an accountant concerning projected future income may also assist you in obtaining your loan.

If you do get turned down, you should try to appeal the decision rather than trying again and again with multiple lenders. Applying for many loans within a short period of time can negatively affect your credit rating. You may be able to overturn the decision by simply supplying additional information.

By preparing yourself and your records before applying for a loan, you can greatly increase your chances of success.