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High Approval Loan for People with Poor Credit History
When you decide to borrow money, your credit history is one of the things that lenders will want to look into to decide whether to approve your application or not. They will use your credit score too to determine what the loan terms are going to be. Whether you’ll be allowed to borrow a small or a large amount and whether you’ll be changed an expensive borrowing rate or a fairly competitive one will be banked considerably on the kind of credit rating you have established.
Limited Loan Choices
Needless to say, if your credit history is less than ideal, expect that lenders will not be too keen on offering you competitive guarantor loan terms, if at all. A patchy credit history will be considered a red flag among lenders, an indication that you may not have properly managed your debts in the past. Lenders would, naturally, be wary that you will only likely to repeat the same mistake if they are to let you borrow money again.
Improve Your Credit Score
The best way to improve the chances of you getting online loan approval is to do what you can to improve your score. If you have several open balances, try to pay them off. You will want to bring your credit utilization down to improve your credit score. Whilst it is not a good idea to close all of your open balances, you want to keep it low, preferably 30% or less.
Avoid closing accounts unless there is really a need for you to. Closing an account can have a negative impact on your credit standing. At a time when you need all the boost you need, it is best that you leave those accounts open. In addition, avoid opening any new accounts. Opening a new account will impact your credit score due to the credit checks involved in the process.
It may take a few months for you to start seeing improvements on your credit score but if you are willing to hold off taking out a guaranteed loan until then, expect better rates and loan offers than what you would if you take one out now.
Are the Interest Rates Negotiable?
If you’ve tried taking out a loan, you know how hard it is to look for the best rates for you. That is why this knowledge can be very helpful to some people out there who doesn’t know this. You can negotiate interest rates with your lender when applying for a personal loan. Some people think that what lenders offer you are fixed, or they might just be too shy to negotiate.
Getting your interest rate.
Most applications for personal loans go like this:
You might be in need of funding for your next project, or for whatever plans you have with that money – so you conduct your research and come across an advert that’s offering low interest rates and what not.
You then contact the lender or the organization and apply for a fast loan with getting the best interest in mind.
But when you get approved, you see that the interest rate that they have given you isn’t the one advertised.
You then raise your concerns to the lender and try to negotiate your way on to a lower interest rate. Many lenders won’t entertain you at all, and some will shrug you off – why? Because they might be put into more risks, and they may deem you a risky borrower as well.
And if you do manage to negotiate your way down to a smaller interest rate, it might be changed anyways – be it during underwriting the contract or you get your application straight up declined.
And that is why shopping and comparing rates is crucial to get the best out of what you can in a payday loan. Look for lenders who does pre-approval or soft credit checks rather than those who do hard inquiries on your credit as it may affect your credit score negatively.
How to Get Better Interest Rates
Yes, you can negotiate your interest rates, but the more important question is if you should, or is it worth getting your application denied. Rather than negotiating, you can try and tidy up your credit score, and see where it needs improving. Doing so will net you the best rates that a lender can offer.
Check your credit reports annually, see if there are any errors. Payoff any ongoing debts and keep credit card balance up to a minimum.