Learn how to increase your chances of getting approved for a loan.

The recent credit crunch that struck pretty much every middle class person has made applying for a loan in the UK difficult, and a pain in the neck to say the least. Suddenly lending companies that once never looked at you twice when you applied for a loan now want to know how much you earn, where you live, and who your mother is. Now don’t get us wrong because getting a loan in the UK is still possible provided you know how to go about it the right way.

Understanding the Lender

Contrary to what most people beleive, there is certainly a difference between a lending company and a loan shark, the latter being an easier place to get a loan from but with consequences if you don’t pay up. Seriously speaking however, the past decade or so of confident lending practices left lenders open to losses during the credit crunch. It is because of those losses suffered that lenders today have tightened their lending criteria making it hard for the below average Joe to slip through the cracks and get a loan even if he deserves it.

So who doesn’t get a loan? People who are considered high risk, thats who. This is why it is imperative that you project yourself across as being a person able to pay back the money you borrowed. This could be the only difference between you actually getting the loan and being turned down.

A few pointers to get you started

  • We cannot stress enough the importance of a good credit history when you are applying for a loan in the UK. A good credit history tells the lender that you always pay back your debts which means that you are in good financial shape. So make sure you check out your credit history, improve it and then apply for a loan.
  • Always keep checking your credit report. You can order your statutory credit reports through the three main credit agencies Call Credit, Experian and Equifax for £2.  Make sure that your details are up-to-date in terms of your payments, address, electoral roll and any other details. Credit Reference Agencies tend to be lazy at times which is why it is important to report any errors and omissions as soon as possible and make sure that your report is corrected before you apply for a loan.
  • Don’t try to bite off more than you can chew by applying for more credit than you have the nuts to handle. Make sure that the amount you want to borrow is not higher than your income. It may arouse suspicion among lenders. Be realistic when you ask for credit.
  • Don’t just apply for credit if you want to buy your wife a new diamond ring as it may suggest to lenders that you are not careful with money. Only apply for credit if you really have a genuine use for it.
  • It is our duty to tell you that borrowing should be your last resort. It is money you have to pay back at the end of the day after all. You are better off saving up for your big purchases or whatever it is you need to spend your money on. Saving is always better.

We have a big selection of lenders on our main site. You may be interested in a small loan of say £500 or a big one of over £25,000. The range of loan providers on 123vouchercodes.co.uk should help you get a loan in no time provided you follow our advice in this article. Keep reading 123vouchercodes.co.uk as we will attempt to keep you posted of latest developments in the credit field and some more money saving ideas.