Why You Should use a Loan Checker Before You Apply

When you’re making an application for a loan it’s always a good idea to get as much insight into whether or not you’re likely to be accepted as possible. A loan checker (or eligibility checker) is a great way to help you do this. Checking your eligibility will help to ensure that you’re applying for the right loan, and that your application process is smoother. There’s no reason to not get a clearer picture on what borrowing is going to be the best option.

 

What is a Loan Checker?

It’s a way of finding out what loans you are most likely to be accepted for. A loan checker will use data, such as information from your credit report and the criteria that a lender requires, in order to point you in the right direction for what you’re looking to borrow. It can be a nerve-wracking process to apply for a loan and using a loan checker can make this a lot easier.

 

Why should you use a Loan Checker before you Apply?

  • You may not know which loans are the best option for you and a loan checker can provide this information based on data about you as a borrower and also about the loans available.
  • It won’t damage your credit score. If you are just making applications for borrowing without any insight into whether this is a good option for you then every time you do this you will get a mark on your credit score. A large number of marks can damage your credit score.
  • Lenders don’t like seeing lots of applications. When you make an application for a loan the lender will look at your credit file – lots of applications is a red flag that many lenders look out for, making them more likely to reject your application.
  • It can make it more difficult to get a loan in the future. That’s because of the impact of making lots of applications on both your credit score and your credit file.
  • You can use the loan checker to see – in advance – what loans you’re likely to be eligible for so that you’re not wasting time making applications that aren’t likely to have any chance of success.

 

What do Lenders Look for in terms of Eligibility?

  • Your credit history. This will include whether you have recently applied for any other new credit and if you’ve missed payments. If your credit history shows that you have consistently paid off debts over time then you are much more likely to be an attractive option for a lender.
  • Your income and job status. Lenders are looking to make sure that you’re going to be able to make repayments on a loan. So being in full time employment and having a regular income will show that you have the kind of financial stability they are looking for.

 

Advance your Business’ Finance

If you want to increase your chances of being approved, using our eligibility checker before you apply is a great choice. We understand delving into credit and finance can be daunting, so don’t hesitate to reach out. Get in touch, and our trusted advisors will help you make the most out of your financial opportunities.

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