Anyone who wants to apply for a loan from a bank can do a lot of things wrong when filling out the form. In some cases, information or small additional details about the applicant's financial situation can be decisive for the loan approval. To increase the chances of your request being approved, there are a few things you should keep in mind. Furthermore, you should know which points the lenders look at more closely and how they evaluate your loan application.
How banks work
Lenders scrutinise every loan request very carefully, as there is usually a lot of money involved. It is understandable that they do not want to lend it without collateral. Basically, two types of checks are used: the credit check and the budget check. The latter evaluates your ability to pay the monthly installments. In doing so, your expenses are compared to your income in order to calculate the available monthly margin. This procedure is required by the Swiss Consumer Credit Act (KKG). During the credit check, your willingness to meet the contractually agreed demands is assessed. In the process, your payment habits are analysed using statistical models and a debt collection report is requested.
Filling out the credit application - credit tips - here's what you should pay attention to
Since banks do not approve loans lightly, you should process your loan request carefully and diligently. Our many years of experience have shown us that the following credit tips can lead to the desired success:
- You must provide proof of all income. Have your current employer provide you with a written wage statement, which you keep in a safe place. This also applies to sideline employment.
- Add up all possible income for your application. Another applicant, such as a spouse, significantly increases the chances of getting a loan.
- Only submit your loan application at a time when you are in a non-terminated employment relationship.
- The majority of credit providers require a permanent employment relationship of at least three months. For this reason, it is advisable to apply after you have passed your probationary period.
- A good payment record increases your chances of getting a loan. Therefore, you should pay all payment card and credit bills (at least the minimum amount) on time.
- Request that the issuer of your payment and credit cards delete any delinquency codes from their credit databases once you have met your financial obligations.
- Apply for a loan before a debt collection.
- Every loan rejection has an unfavorable effect on further checks. Therefore, you should process your documents as convincingly as possible and only work with reputable loan brokers. They will look for a suitable offer for you without destroying your creditworthiness through rejected applications. If your loan request has no chance of success at this point in time, you should not present it.
- Previous installment loans have an impact on your current credit rating. If you always met your payment obligations on time, you will now be rewarded for your good payment record. Unreliable behaviour, on the other hand, has a negative impact on your credit rating.
- Credit banks value contact information such as home and business phone numbers and email addresses.
- When checking creditworthiness, banks like stability. This is especially true when it comes to moving as well as changing jobs. The longer you live or work in one place, the more positive your credit rating.
Are now all the uncertainties with our credit tips removed? Then apply now for your installment loan at bestfinance.
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