Not yet registered? Create a OverBlog!

Create my blog

How to get a low cost loan in the U.K.

Cheap loans in the U.K. are only offered to people who have proved themselves to be good customers and reliable payers. You are going to need a good credit history and the ability to comfortably afford to make the repayments. The criteria for a low APR loan have been tightened, but there are things you can do done to get approval.

Why do lenders reject customers?

Although banks want to maximise their profits, they have been forced to examine their lending strategy since the credit crisis. Financial institutions want to offer customers the best loan deals, but they also want to avoid bad debt. This means that they can only offer cheap APR loans to customers who are least likely to default on them. Lenders now use personal pricing, which involves allowing people to borrow money at a rate of interest that reflects the probability of default.

How to get the best loan rate

Electoral roll
If you are not on the electoral roll, it is essential that you register to vote. This is how the banks verify the address of the applicant. Unless they're 100% certain that you reside at that address, they aren't going to lend you any money. Reduce your debts If you owe too much money relative to your credit limit, you're statistically more likely to default on the terms of the agreement. Use personal savings to reduce your level of indebtedness and you're far more likely to get approval for cheap loans online. Correct credit report mistakes
You can order a copy of your credit report from Experian, Equifax and Callcredit for £2 each. It is essential that you scrutinise your report for mistakes and get these corrected before submitting your secured home loan application. Balance transfers
Moving your credit card balance to an issuer who is offering a low introductory rate is very attractive. However, it should normally be avoided if the credit limit is substantially lower. It makes you appear more financially exposed. Use old store cards If you have store or credit cards which have not been used for many months or years, it is advisable to start using them occasionally. The longer an agreement has been active, the greater the effect it has on your credit rating. Closing down old cards can cause your credit score to fall.

Same category articles Banking

Ways to sell a property fast

Ways to sell a property fast

In today’s real estate market, there are so many people trying to have a fast home sale, but no everyone is successful at it. To be able to sell a home fast, the homeowner should come up with a home selling plan, which list strategies and tips on what they need to do to be able to sell their home fast.
How to make extra cash from your home

How to make extra cash from your home

Making extra cash from your home is easy, but there are certain tips that you may need to consider in order to become successful. There are many programs that you can sign up with, although you need to be careful again. You can do online surveys, become an online tutor, use eBay, become an online writer or do affiliate marketing. Below are some tips that may help you to make money online.
How to get new home loans

How to get new home loans

Whether you are purchasing a new home loan or looking for refinance loans, getting new home loans can be a challenge. After the foreclosure and sub prime lending crisis that occurred in 2008 and 2009, bankers have become more stringent on requirements for home refinancing or home loans and you must show that you aren't a credit risk if you want to refinance homes or get the best refinance rates.
What paperwork do I need to apply for an Abbey National business loan?

What paperwork do I need to apply for an Abbey National business loan?

When applying for a business loan, you need to know every answer to the questions which the bank manager may ask you. You also need the correct paperwork. Read on to maximise your chances of getting your small business off the ground. This article details out the paperwork which you would need in order to apply for an Abbey National business loan.