Here are some tips to maximize your chances when applying for a loan.
Banks and financial institutions always thoroughly review every application they receive. From how you manage your money to how you repay your loans, everything is scrutinized before they grant you a loan. So, what criteria are considered? Here are 5 tips to perfect your application when applying for credit.
Your Bank Accounts
Banks frown upon inactive accounts or those that remain empty. Therefore, if you have bank accounts you no longer use, close them! Indeed, this type of account represents a risk for the lender, who sees it as an additional possibility to take out financing from a store, for instance.
Overdrafts
If you have the option to overdraft on your account, it is advisable never to go to the maximum. Financial institutions closely monitor your account’s movements. Therefore, increase your chances of obtaining credit by limiting your overdraft and ensuring you always repay it the following month.
Loan Repayment
Do you repay your credits regularly? What are your monthly payments? These are just some of the questions the bank you are asking for a loan will consider. It is believed that the total monthly payments of a household should not exceed 33% of their income. So, calculate carefully!
Your Credit Applications
It is frowned upon to apply for multiple loans at different financial institutions. If you want to be sure you are making the best choice, it is recommended to seek the advice of a broker.
Savings
Having a personal contribution when applying for a loan is not mandatory. Many banks grant loans to finance projects up to 110%. However, your future creditor will be more positive if they see that you have savings. This indicates that you know how to manage your money and are stable in your spending.
If you have more questions regarding loan applications, do not hesitate to contact us!
