As you are probably aware, the recent global credit crunch, has forced lenders to toughen up their lending criteria, making it harder than ever to get approved for credit
Figures published by Moneysupermarket.com show that successful loan applications have dropped by 28.5 percent over the last seven months; with successful applications down from 7 in 10 in April to just over half in October.
Its worth noting, that it isn’t just bad credit applicants that are the only ones getting denied, but applicants with squeaky clean credit reports are suffering too.
All is not lost though!
Even though the times of cheap and easy credit are starting to seem like a distant memory, there are steps that you can take to improve your credit rating, thus increasing the chances of your borrowing application being successfully approved.
Firstly, you should get a copy of your credit report, so you can see for yourself the exact factors on which lenders will be basing their decision for your secured loans application. You can do this by getting in contact with the main credit reference agencies – Experian and Equifax.
If you’ve had a relatively responsible financial past; had no defaults, kept up with repayments, been at the same address and with the same bank for a good few years then chances are you’ll have a fair, if not excellent credit rating.
If on the other hand, you haven’t always managed to keep on top of your finances and as a result your credit rating has suffered, you’re going to find it much harder to get any new lines of credit, especially in today’s markets. In some cases secured loans are the one exception to this rule.
As a general rule, your monthly debts, including any mortgage repayments should not exceed more than 30% of your monthly income.
If this is the case, then you’re best enlisting the help of an IFA (Independent Financial Advisor) or broker who specialises in bad credit secured loans. Such experts will be able to give you a good idea to which lenders have the products available to you, and also the interest rate and borrowing amount you can expect to qualify for.
Although not always possible, clearing any outstanding debts such as credit cards and overdrafts improves the likelihood that your financial situation will be viewed positively by potential lenders.
With interest rates at their highest for many years you may find yourself in the position of being unable to meet monthly repayments. This may be especially true if rises in the cost of utility bills, petrol and food prices have increased your monthly expenditure.
Lastly, by planning for the future carefully, taking time to research the best loan deals and seeking expect advice when necessary, you can take steps to avoid falling into this stressful situation and instead stay on the road to manageable finances and a healthy credit rating.
Liam is a UK based financial author, currently focusing on loans.
Article from articlesbase.com
hosted.ap.org Just another example of our criminal government utilizing the doublethink policy on the public. WASHINGTON (AP) — President Barack Obama implored top bankers Monday to help keep the fragile recovery from faltering by boosting lending to small businesses and getting behind an overhaul of financial regulation. “We rise and fall together,” Obama declared. In response to the president’s burst of populist jawboning, some banks pledged to increase loans and exercise more self-control over outsized compensation. But the full impact of Obama’s intervention was hard to gauge: The government is losing leverage as major banks repay bailout loans. Obama’s lecture to the bankers was also part of a broader election-season Democratic effort to tie sluggish bank lending to continued high joblessness – and to try to tie the banking industry to Republican efforts against Obama’s financial overhaul legislation. It’s a tough balancing act, given past contributions of big banks to Democratic as well as Republican candidates. Obama called his message a simple one: “America’s banks received extraordinary assistance from American taxpayers to rebuild their industry, and now that they’re back on their feet, we expect an extraordinary commitment from them to help rebuild our economy.” He urged bankers to “explore every responsible way” to boost lending and to “take a third and fourth look” at every loan application. The bankers said they got the message. But they also insisted they …
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