• Home

Understanding the Perspective of a Creditor to Improve Your Chances of Getting a Loan

Have you ever submitted a loan application at a bank or seated on the other side of the table in the manager’s office in a bank? You know how it feels hoping and praying silently that you get what you requested for. If wishes were horses… But the truth is, wishes can be horses if efforts were made to save up in buying them or you can spend time to find out where stray horses are to be found, court the horses, get their loyalty and you can find yourself riding home on the back of one.

Take note of two elements I mentioned here: money and time. You either back up your wish with money, or you sacrifice time to get one. I will explain later in this article their importance.

You see, the mind of a creditor is always like this (though not exactly the way I have phrased it):

• This applicant would’ve gotten 2% lesser interest rate if his score was up by an additional 65 points. (higher points means less of a risk to them)

• No matter where this particular client takes this application to, he or she can’t get a credit approval not to mention good terms with 520.

• The records show that this applicant is in the habit of running late on payments, I don’t think I would want to gamble on this one either.

Those are typical situations. But while you may succeed in getting a loan with your current score, the bottom line is that you could’ve gotten good terms on it if you had a better score. What it takes to get good scores or excellent ratings is the repair work you do to improve your report. Let’s get back to the first part of this article: you need to spend either money for a repair agency to do this or spend time to restore your rating using self-help method.

Copyright © 2008 www.bca-finance.com | links |