Applying For Credit and Loans
Is borrowing money the right choice for me now?
Borrowing money and getting loans/credit can work for and against you. If your responsible and always pay your bills (including at least the minimum on credit cards). Credit will work for you, and make getting approvals easy. But if you have problems paying your bills and are late, for what ever reason. This is going to show up on your credit report. And could have an impact on a future credit decision.
In my experience, as much as I did not believe it before lenders and creditors are actually very willing to work out any kind of payment plan that you could afford, and this is just a tip in case for some reason you were to get behind on payments. While we are on the topic of making loan payments I’d like to mention that the “Biggest kiss of credit death” in the credit world is being late on your home mortgage payment. If you have one of these, and it’s accurately reported to the credit bureau, it may be tough to get a loan. But hang in there, I still may have some good resources for you to utilize if you need to borrow money!
Most people think a bankruptcy is the worst mark on your credit report, but these days there are many loan programs beginning to surface for post bankruptcy consumers. This includes programs for mortgages and personal credit.
Applying for the credit
So, you want to borrow money and you have the lenders application in hand. Fill it out as completely and honestly as possible. Honestly? Yes honestly. It’s illegal to lay or misrepresent on a credit application. Personally I agree with being honest…for example. Let’s say John Doe wants to apply for credit and doesn’t have a job at the moment. But states he is working on a credit application…how is he going to repay the debt? The lender could lose their money and we will all end up paying for it in higher interest rates. By the way everything on a mortgage application is verified, then sometimes verified again.
A credit application is like a class final, so treat it very seriously. It will determine whether you are approved or denied credit. Make sure you answer all questions. If there is a question which does not apply to you, answer it with an “n/a” (not applicable). Print the information neatly as not to make it difficult for the reviewer to read it. If they have a hard time reading it, they’ll most likely reject it or simply throw it away. It’s a good idea to keep a copy, when possible, for reference in filling out future applications.
Loan applications can be submitted by mail, over the phone/fax or on the internet.
Response times vary, depending on the lenders system. Applying for credit over the internet with department stores and banks could give you results in 60 seconds.
I have noticed with car dealers, if you apply for a loan to buy a car and never hear the credit decision… it probable you have been declined. Because if your approved! You will know it with these guys.
Tags: apply for credit, credit card applications, loan applications
