Tips for applying for personal loans in the UK
The best loan deals are available to reliable payers. If you want a low rate loan, you will need to improve your credit score. Cheap APR loans are available to customers who borrow within their means and have managed their credit obligations properly during the last seven years. Here are some hints and tips which will help you to get approval for credit.
Advice when applying for a personal loan in the UK
Affordability versus cumulative interest
Extending the term of a loan agreement will aid affordability, but will lead to the payment of more cumulative interest over the life of the loan. You need to use a repayment calculator to determine the optimal repayment term.
Large versus small loans
The best loan rate is available to customers who borrow between £7,500 and £15,000. This is because smaller loans are more expensive to administrate. Before applying, enter different figures to ensure that you are getting the lowest online quote.
Secured versus unsecured debt
Is it really in your best interests to turn unsecured debt into secured debt? Unsecured credit can be dealt with through a debt relief program. However, consolidating debt with a secured home loan gives the lender more power to recover its money.
Credit repair tips when applying for personal loans
Matching credit profile
Unless your credit score meets the requirements of the lender, it is pointless submitting your application. They know the sort of customer they are prepared to accept. So, read through the eligibility criteria before you submit your application.
Credit report mistakes
Order a copy of your credit report from Experian, Equifax and Callcredit for £2 and validate the information for errors. Lenders are unable to tell the difference between bad data and bad credit so you need to get any issues resolved.
Electoral register
Make sure that your name is on the electoral register before applying for a cheap home loan. Lenders need to validate the address information which you have provided matches the one on the electoral roll.
Multiple applications
Applying for lots of different cheap loans in the UK will hurt your chances of getting approval. Only apply for loans that are appropriate for your credit profile because each credit search is recorded for the next 12 months.
Pay your debts on time
The punctual repayment of your existing credit obligations will give your credit score a welcome boost.
Reduce your debt
We all have a credit limit, so use your savings to pay down personal debt.