The credit crunch is making many lenders very wary about who they lend to, so to make sure that you get the best offer you can it is important that you check your credit record is as good as it can be. The lenders want to make sure that you are somebody they would want to lend to.
The first thing you will need to do is get a copy of your credit record. It is advisable to regularly check your record; this will not only mean that you are able to detect any fraudulent activity but also that you can check that your record is up-to-date, meaning that all loans that have been paid are marked as redeemed and all credit cards that have been cancelled are marked as such.
By checking your credit record you will be able to get an idea of what sort of risk you are to the lenders, so with it getting more and more difficult to borrow money there is little point in applying to lenders who are renowned for declining more risky customers. If you don't have a very good record it will only look bad on your file if you have been declined.
If you are applying for loans, whether it's for personal loans or secured loans, the best thing you can do is compare the prices, as many lenders now offer "risk-based pricing". This means that the headline price you see advertised may not be the rate that you are offered.
By only applying for loans one at a time, you won't leave a track of multiple searches. If you are declined credit from a lender the best thing to do is find out why before applying to others.
The thing that lenders want to know is that you can handle credit. If you have never borrowed before, you may be expecting to be offered a good rate, however; this is not necessarily the case, as lenders have no track record that shows you are capable of managing money. Once you have proved to the lenders that you are capable, say with a mobile phone account that you have been able to keep in check, you will start seeing the better loan deals.
Whether you are applying for personal loans or secured loans, the best thing you can do is compare the prices.
By only applying for loans one at a time, you won't leave a track of multiple searches.
Article Source: http://EzineArticles.com/?expert=Gill_Critchley
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