Having been in the business of lending for quite some time, we’ve had the opportunity to speak to and serve many different clients from all walks of life. We’ve heard all their stories, and from our experience, we’ve discovered that many people aren’t really sure of what they should or shouldn’t be telling lenders.
Whatever information you share to your lender affects your loan application and the terms of your loan in some way. But this doesn’t mean that you should be keeping everything from your lender – it means you must share the right and necessary information.
What You Should Share
- There are some things that you have to tell your lender so that your lender can better determine what type of loan would suit you best and what would be the most appropriate terms for your loan. Among these are:
- Your credit history – Revealing your credit history is a must when applying for a loan. With most lenders, your credit history is a significant basis for whether or not you qualify for a loan, what type of loan you can get or what your interest rate will be. If you do have a tarnished credit history you shouldn’t be too worried, since Personal Finance offers bad credit personal loans and bad credit car loans which are specifically designed to assist people with bad credit.
- Your character – Lenders need to know that you are a person they can trust. You need to assure them that you are the type of person who will pay his loan promptly, who will find ways to pay it off in full and not run away should you face some financial trouble. No matter how good your finances look now, if you do not establish yourself as a reliable debtor, you won’t be able to get that loan. In order to prove yourself trustworthy, establish a great credit history and repayments history, and state references- business associates, dealers and customers who can testify of your trustworthiness.
- Your reason for borrowing – Some lenders will not agree to give you a loan depending on your business. Some lenders for instance, refuse to give loans to casinos or new restaurants. If you are involved in these types of businesses but are planning to use your loan for some other venture, make sure to inform your lender. You must be clear on exactly what your loan will be used for.
- Your successes- as well as your stumbles – Successes, especially those in business and acquisitions, are positive things most people love to share with their lenders. But on the flipside, they won’t share their failures, thinking that these will drastically affect their loan. Whether you have a success or a stumble, it is best to be honest with your lender. Lenders like us here at Personal Finance only want to make sure that you are fully able to repay your loan, and that means taking into account not just your financial successes but your stumbles as well.
- Employment changes – Better jobs mean higher pay grades which in turn mean that you may be able to qualify for bigger loans.
- Large purchases – If you recently bought a house or a car, then you’re most probably still paying for it monthly, which means you may not have enough funds left over monthly to pay off another loan. Don’t burden yourself by taking on another loan if you’re still knee-deep in others. But if you’re positive that you can still handle the extra load, inform your lender so that they can offer you terms which will make it easier for you to repay all of your loans.
What You Shouldn’t Share
- Your plans to stop working and travel the world – Dreaming of sailing around the world and finally giving up that 9 to 5 job? Better not tell your lender that. Even if these plans are still light-years away, lenders will view these as warning signals that you may not be able to make your repayments in the future.
- Any lie or exaggeration – When it comes to sharing information with your lender, it’s best to just lay them straight. Do not exaggerate facts but do not be too modest either. If you’ve recently acquired a large estate, say so, but don’t blow it out of proportion that your lender will think you can get a loan and pay it in full the next day.
- Your naiveté or newness to borrowing – If you’re a first time debtor, do your research and don’t flaunt your naiveté. Some shady lenders out there may take advantage of your lack of experience or knowledge. That’s why it’s also important to select a trustworthy lender with years of experience and several client testimonies.
Here at Personal Finance, we understand that various unexpected needs can arise from various situations, and that everyone has a first time when it comes to getting a loan. We believe that giving you our best, most honest service the first time around is crucial to making your borrowing experience a pleasant one. Whether you’re in need of fast approval loans, cash advance loans or other personal loans, you never have to worry. Here at Personal Finance, we’ll make sure you get the finances you require in the most reasonable and manageable repayment plans made just for you.