I Cannot Get Approved For a Loan Anywhere!

Getting Approved For a Loan

Many of us do not plan ahead for things, while there are many of us that do plan, one area none of may plan for is when we need to borrow money.

It is just something we do not spend a lot of time thinking about, loans, borrowing money, getting credit.

Then suddenly the time comes that we need a loan, it may be to buy a car, get a credit card, buy a property and we need a mortgage, or just to make a purchase we cannot save for, and then suddenly, we are thrown into the world of credit, credit scores, banks, loan applications, and all the questions that come with this:

* Income and expenditure forms

* Our details

* What is the loan for

* References

If we do not have this information at hand, it may take a few moments to gather it all.

And all of it can be needed in order to apply for a loan.

We get ourselves ready, psyched up to get this loan, to buy a car we need, buy a house we want to live in, for whatever reason, and then maybe the loan is denied, rejected.

That is not a good feeling.

And the first question may be, why was my loan denied???

Let’s look at this from the perspective of a lender, the one lending the money, the one you are asking to grant you the loan.

Why Are You Being Denied For a Loan?

As a lender there are some things you look at when reviewing a loan application, and considering granting a loan. All lenders look at these factors, and some are required to be looked at by lenders as per the governing bodies or those who licence and regulate banks, credit, and all things money.

Age: And no we do not mean age discrimination, we are looking at are you old enough to aply for a loan. Are you at least 18 years old.

Then are you living in the UK.

You do not need to be a citizen of the UK, but are you currently residing in the UK.

Age and residency can be issues as to why a loan may be declined.

Affordability: This is a biggie…can you afford to repay the loan, and if so, can you prove it; can you document you can afford the loan.

This is where a detailed income and expenditure form may be required by the lender.

The lender wants to see all your income and all your expenses to insure you can afford the payments on the loan.

If you cannot show affordability, the loan may be rejected at the start.

Credit: What is your credit score? Do you know it? Have you viewed your credit history?

You need to know what your credit file looks like and what your credit score is prior to applying for a loan.

You may not know what credit scores the lender may require to be approved for a loan, or for various interest rates, but you can know if your credit score seems good, and also if there are any negative marks on your credit file.

What You Can Do to Get a Loan

In order to insure and improve your chances of getting approved for a loan, ther are a few thinsg you can do:

* Complete an income and expenditure form prior to applying for the loan. Know you can afford the loan, and be able to show this to the lender.

* Know your credit score, and if there are any negative marks on your credit history. If there are any errors or bad marks, look as to why, get the errors corrected, and make sure the report is accurate.

Lastly, if you cannot get approved a loan on your own, seek out a guarantor.

Someone who can be a guarantor for your loan, guarantor loans are based on affordability and the fact the borrower has a guarantor.

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<strong>What is Our Criteria For Applying?</strong> 
Every lender on our website has their own specific criteria by the basics are mentioned below and you must have a guarantor to be eligible. Simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including:<li style=”text-align: center;” data-mce-style=”text-align: center;”>Name (must be over 18 as the borrow, 21 or 25 as the guarantor)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Residence (your chances will improve if your guarantor is a homeowner)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Employment status (must be employed or on a pension)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Income (earning at least £600 per month and able to make repayments)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Monthly expenses (not have too many loans open or in major debt)</li>
You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.'<strong>How Much Can I Borrow From Guarantor Loans?</strong>Guarantor Loans gives applicants the chance to borrow £500 to £15,000 depending on the lender. Some lenders we feature like Buddy Loans only have a maximum loan value of £7,500 and TFS Loans is the only lender that stretches up to £15,000.Factors that can influence the amount you can borrow revolve around having a good guarantor. One that is a homeowner, with solid employment, income and good credit rating will maximise your chances of borrowing the largest drawdown possible.The lenders featured on Guarantor Loans see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you.By comparison, having a guarantor that is not a homeowner offers slightly less security and means that amount you can borrow is slightly less too.Higher amounts may be available to those who already have a better than average credit rating, are homeowners themselves and a repeat customer with the lender who has already paid their loan on time. To apply directly with your lender of choice see <a href=”” data-mce-href=””>direct lenders</a>.<strong>What Does The Guarantor Have To Do?</strong>Upon completing an application, the lender will typically send you a <a href=”” data-mce-href=””>pre-contract loan agreement</a> and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).<strong>Are Guarantor Loans Available For Bad Credit Customers?</strong>Yes, even if you have a history of adverse credit, <a href=”” data-mce-href=””>CCJs</a>, bankruptcy or IVAs several years ago, you can still be eligible. The idea is that you are using your guarantor and their financial history to ‘back you up’ and give your loan extra security. However, it is noted that your guarantor should have a good credit score and consent to co-signing your loan agreement.<strong>How Soon Can I Receive Funds?</strong>Guarantor Loans works with lenders that can facilitate funds within 24 to 48 hours of approval, or sometimes on the same day.When your funds are successfully transferred, most lenders working with Guarantor Loans will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling off period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges.