Securing a Loan:
How to Secure a Loan?
A great first step into securing a loan is ordering your credit reports from the three main credit bureaus; namely Equifax, Transunion, and Experian, as well as your overall credit score in order to smooth over any bumps or dings before your credit is scrutinized by a less personal source. By scanning your report for negatives and repairing said negatives it is possible to regain several crucial points that could make the loan process so much easier. A list of common negatives is:
- late payments on any money borrowed,
- over the limit balances especially long term,
- any collections that are filed against you,
- any judgements that are filed against you.
This is increasingly important as some credit bureaus either incorrectly file or simply miss the information when it comes around. For instance, you order your three reports and they arrive, but you notice that Transunion has a payment you already took care of marked as still filed for collections. Now walking into a loan and expecting them to believe you over a credit bureau is a little more hopeful then your other option which is issuing a credit dispute and having the credit bureau fix their mistake so it never has to be explained.
Another ability that borrowers have that can speed up the process of getting a loan is finding out what documentation is needed for approval of a loan and having that on hand when first inquiring about the loan, this gives no reason the quote for how much the loan should be worth to be delayed which enables you to have a longer time to think about the terms.
Choosing a loan can also be a big decision when it comes to securing a loan. This means that prior knowledge about exactly what you would like in a loan is invaluable and it is important to know all your options as well as the lenders who offer certain loans and not other loans.
When applying for a loan remain calm and watch your credit score, applying too much can result in too many inquiries which are read as the borrower becoming desperate which shoots a red flag up for many lending institutions. It might be worth the time to establish a ball park figure of the interest rate or loan terms before even applying to see if they match your desires.