Credit History and Loan Approval
Lenders look at Credit History
When you apply for a loan, a lender looks at your credit report. Having good credit greatly increases your chances of approval, as well as a low interest rate. Your credit history may prevent you from getting approval or it may lock you into a high interest rate.
Types of Personal Loans
There are many types of personal loans: Secured, Non-Secured, Short Term, Debt Consolidation, Collateral, PayDay, Military and more. Though poor credit may not preclude you from securing a loan, it can make it more difficult, and your interest rates may be up to 75% higher than someone with better credit.
Review your Credit Report
As your application is received, it will most likely go through a "hard" credit check, which can take points off your credit score if too many inquiries have been made; in fact, too many inquiries can prevent you from getting the loan. To ensure this does not happen, get a copy of your report before you even apply, to be sure everything is in order. You are entitled to one free copy of your credit report per year.
- Understanding Credit:
