Does a bank require absolute top credit references from loan applicants?
At some point in your life, you will need to apply for a loan. Whether it’s for your first house, to invest in property, to buy a new notebook computer or a car, loan approvals, most (but not all) lenders tend to look at similar factors before they make a decision. From home loans to car loans, to personal fast loans and business loans, there are universal strategies you can use to maximise the likelihood of your loan being approved by your lender.
1. Shop Around for the Right Lender
Shop around for the right lender and make sure you find a lender with a package that suits your needs. While criteria do not vary a lot between lenders, there may be lenders who have different expectations and are more likely to approve you for the loan that you’re looking for.
2. Employment Record and Supporting Documents
Most lenders will require a good employment record or evidence of stable employment. For smaller loans, lender will often only require that you’re currently in employment. Make sure you have reference letters, bank statements, ready referees, or other forms of verification available when you apply.
3. Security
Make sure you include any assets you own on your loan application. These can be gifted funds, savings balance, term deposits, share and other investments. The more assets you have, the more likely your loan will be approved.
4. Other Debt Commitments
As a general rule, the higher the credit card limits on your existing credit cards, the more you will be borrow. A person with an unused $10,000 credit card limit can borrow more than someone with a combined credit card limit of $5,000. If you are offered a higher credit card limit, always accept it as long as you know you won’t abuse it.
