What Can Impact Your Chances Of Getting A Loan?
When it comes to loans and getting particular amounts of money, it can seem quite difficult to do and getting approval can be even harder. Banks reject more loan applications than any other lender and if you’ve been declined a loan from a bank, then it could impact your ability to take one out from a different source. Whether you’ve previously missed a payment on a bill or you already have a number of credit cards, there are many different things that could cause you to get a rejection on a loan application.
However, banks aren’t the only place to get loans from and just because you’ve been declined from them, doesn’t mean you couldn’t get one from another lender, such as ourselves. Every lender has different criteria for loans, so before applying for one, you should ensure you understand your own credit history and what might be impacting you from getting one before you apply for another. If you apply for a loan and are rejected or receive multiple rejections in quick succession, then it will impact your credit report. Keep reading below to find out more about some of the things that affect your chances of getting a loan.
What Will Affect A Loan Application?
Whether you have high credit utilisation or you’ve suffered late payments in the past, there are lots of different factors that affect a person’s chances of getting a loan. But if you take the time to understand your credit report and what is on there, you’ll gain a better understanding of whether you’ll be successful or not when you apply for a loan, based on a company’s lending criteria. One of the most important things to check for pre approval checks before applying, these are only soft credit checks and won’t harm your overall credit score, whereas applying for a loan will be a hard check. Some of the things that will affect the overall decision of the loan are:
- Do you have any missed payment?
- What is your overall credit utilisation?
- Have you been late with any payments?
- Your income vs outgoings and the money left over
- Defaulted debt in the past that hasn’t been settled
- The level of credit you already have in place
- A Number of other things…
Do I Have To Get A Loan From A Bank?
The simple answer is no. Whilst banks seem to be the go to for many people, they are much easier to get a loan from if you’re a homeowner. However, there are lots of other places you can get loans from such as short term loan companies, independent lenders and credit unions. You might ask why you might stand a better chance of getting a loan from one of these over a bank and it’s because most will take into account more than just your credit report, they’ll also take into account what your actual affordability is and your personal circumstances. At Forward Finance, we offer short term loans of upto £1000.
