Maximise Your Chances Of A Good Loan Deal

If you are applying for a loan, you can maximise you chances of getting the best loan deal by ensuring that you are in the best possible financial condition to lend money to. nnAs lenders are getting warier of loaning money due to the increased risk of defaults, thanks to the biting credit crunch, it is important that you begin to look like someone the lenders would want to lend to. Of course, if you have court judgments outstanding there's not a lot you can do retrospectively, but you can certainly make sure your credit record is as clean as it can be. nnIt is essential to check your credit record every so often. Not only will you be able to detect fraud, if it is taking place, but you will also be able to check that it is totally up-to-date, that loans you have paid off are shown as redeemed and that credit cards you have given up are shown as cancelled. This kind of housekeeping will prevent overspending, by forgetting about payments that you thought were a thing of the past. nnWhen applying, do not jump in and sign anything until you are sure of the rate that you have been offered and the payments are possible in the real world. Take into consideration times of excessive expenditure, such as Christmas, or holidays that can still seem a long way away at this time of year. Also be aware that most lenders now offer "risk-based pricing", so the headline rate that you see in the comparison tables may not necessarily be the one you will be offered. nnIf you are refused credit, don't apply again until you have found out why. If you have not already done so, check your credit record. You can ask the lender who refused you why they have turned you down. Lenders are not legally obliged to tell applicants why they have been declined, but most will do so. Simply guessing why you may have been turned down could lead to you accepting a loan at a rate that in actuality is unfair because you value yourself as a greater liability than you actually are. Conditions are tough, and the unwillingness to lend money is a reflection of this. nnSimple things such as closing down paid off credit card accounts can make a huge difference to your credit rating. Having a large number of dormant cards leads lenders to think that you could be about to embark on a huge spending spree and they will get nervous. Even registering on the electoral roll will increase your rating, as it will be seen as a precaution against. nnIt is about being prepared and ready to take advantage of the situation when things change more favourably towards borrowers. No one wants to spend more than they need to and loans at the most favourable rates will not sit around for long. If you can show lenders that you have done your homework and are prepared it shows that you are organised. Organised people are the ones that tend to pay back their money. n