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Make Your Information More Attractive to Lenders
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| Minimize your debt. |
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| Updated |
Jun 10, 2004 21:20:05 |
| Rating |
 16 ( -2 -12.5% ) |
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Description:
Your loan application and your credit report are the two most important documents that lenders use to determine your
suitability for a particular loan. To get the best possible loan at the lowest cost, you should make sure that the
information in these documents reflects all of your strengths as an applicant. Here are some tips that can help:
Lenders look very carefully at your existing debts before they decide whether or not to give you a new loan.
You should always be careful about how much debt you accumulate, and in the time leading up to your application, you should try to
minimize your debt. Keep your credit card balances low, for example -- or pay them off completely if you can. Lenders need to know
that you can live within your means.
Check your credit report.
Your credit history is another important factor that lender's consider when they evaluate your
suitability for a loan. And your credit report is the only version of that history that lenders have. Request a copy of your credit
report and be sure that it is accurate. There are several ways to do this, by mail and over the Internet. The LendingTree Network
includes financial institutions that serve individuals with all levels of credit. In general, however, you will get lower cost loans
if you have a good credit history.
Be sure to list all of your income and assets.
When you fill out this section of the form, be as thorough as you can. People
often forget income sources like dividends, tips and gifts, and assets like jewelry and furniture.
Be sure that your form is accurate.
Eventually, you will need to document the information you submit to the banks. Answering
questions as accurately as possible now will prevent problems further down the road.
This information is adapted from "Bound for Good Credit" published by the Federal Trade Commission. |
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