For most of us, there will be a time in our lives when we need to borrow money. One popular option is the guarantor loan. Whether the loan is for buying a new house, a car, or something equally important, there is nothing worse than being rejected. Fortunately, that doesn't need to happen Upmoney provides an online service that will provide lenders in which you have a high percentage of being accepted.
In the following post, we have outlined 5 steps you can take to improve your chances of your guarantor loan application being approved.
Check Your Credit Report and Credit History
Before you even start looking at the various guarantor loans available, you should check out your credit report and history. As well as knowing what credit score you have, you also need to know what is listed on your report and if it is accurate or not. This is the information potential lenders will use to assess if you are safe to lend too. The greater or higher your score is, the more likely it is that your loan will be approved.
Any inaccuracies on your credit report could mean you are given a lower score than you qualify for.
Get the Guarantor to Check their Credit Report and Credit History
As a guarantor loan will involve someone else being involved in the loan agreement who will clear repayments and cover the debt if you are unable to, their credit score and history need to be healthy too. Make sure they check their credit score to ensure it is high enough and also that it is up-to-date and accurate.
Have Financial Documentation Handy
During the application process, the lender may require that either you and/or the guarantor provides additional documentation as evidence of suitability for the loan. It is recommended, therefore, that you ensure both you and the guarantor have easy access to bank statements, bills and even payslips to share with the lender, to help make the process go quicker and smoother.
Consider a Loan Through Your Bank
If you or the guarantor for your loan have a current or savings account with a bank that offers guarantor loans, you should consider that establishment as the first port of call. If you have banked with them for many years or they are a local organisation, they will know you and are more likely to trust you. They have easier access to your accounts and statements and can see the money that is going in and coming out.
Show Your Affordability
You need to not only show you and the guarantor who has agreed to co-sign your loan can afford it, but that you will be able to stay within your means. For instance, if you need to consolidate the money you owe on various credit cards and this amounts to £2,000, request a guarantor loan for just £2,000. Don't be greedy and try to ask for more money than you actually need.
When you request more than you need, without any reasonable and justified reason for it, there is a greater chance that the loan application is going to be rejected.