Five Tips to Improve Your Chances of Getting a Loan

Only 39 percent of people obtained a copy of their credit report in 2012, according to Statistic Brain. Many people do not know how to access their credit score itself, while others simply don't bother. However, you should remember that every lender will access you individually and come up with their credit score. The precise score will vary, but a good free credit score service can tell you the approximate amount each lender will offer. Because your credit score can heavily influence your ability to borrow, taking care of it is important. Flip over for some tips to help you boost your credit score and increase your chances of acquiring a loan.

There Is Nothing Called a Credit Blacklist

The popular belief is that if you get rejected by one lender, you will get rejected by others as well. Every lender has different criteria when offering loans. While this criteria is often similar, a rejection by one institute doesn’t necessarily translate into rejection by another.

The Profit Factor

You will find quite a few people telling you that risk plays an important part in how much lenders will actually lend. However, the truth is that any lender will look at the profit quotient. If the venture is risky for the lender, then the potential profit needs to be high enough to offset that risk. Otherwise, they will shy away from giving you the loan.

Check Your Files on Time

One of the most common reasons for having a bad credit score is not checking your credit history properly. Every U.S. citizen is entitled to one yearly free credit report . You need to check all details are correct. For instance, mobile contract addresses should be updated if you have moved to a new location. There are instances when loans are rejected because the applicant did not update their address.

Check the Errors on File

You need to check that the information on the file is accurate. If you find any discrepancies do not hesitate to let the lender know about it. You can also write to each agency and ask them to correct the inaccuracy. If necessary, you can even pursue legal action to make sure the inaccuracies are dealt with.

Boost Your Score

The key to getting a good loan from the lender is to make yourself look good. You can boost your credit score by taking simple steps such as closing unused cards. Unused cards carry fraud risk with them and closing them increases your credit score. Similarly, try to space out your applications as too many applications in a short span of time will just make you look desperate. Also, make sure errors do not creep into your report and all your accounts show the same address. These small factors go a long way to help get a good credit score. You can use a free credit score program to easily judge what your credit score is.