The loan is the arrangement in which lenders give money to the borrower and in return borrower agrees to pay the money back with interest in particular time frame. Initially, the amount which borrowers receive is called principal. The amount of principal and the interest on that amount has to be paid by the borrower to the lender. The interest on the debt gives incentive to the lender.
The factor, which determines the ability to take loan, is the history of your credit card. The history of credit card has all the records regarding your money transaction. It shows when you borrowed money and when paid it back. The three credit bureaus who are responsible to maintain your credit card information are Equifax, Transunion and Experian. It collects all the information and maintain your account names, , opening and closing dates, number and type of the account credit limits, monthly payments and credit limits. List below guidelines, will surely make you eligible to get the loan.
- It also contains information that how many times you have applied for kiirlaen, employment records. To get you should have the copy of these records which is maintained by three bureaus. To get the report, you can contact to these bureaus. Always remember that whenever you want report of your credit card, contact all the three bureaus because they maintain data differently. If you contact them, then you can easily get all the details.
- Check your credit card for late payments, balances, and over limit. This can give negative impact to your account.
- Clarify your negative issues with the credit card. In order to repair them, you can report the bureaus for inaccuracy.
You can ask your lenders to give you credit score. This is a good idea to get approval for other loans. When lender give you score for particular then on the behalf of that score others can easily judge your performance on paying loan.
- Score of 640 increase the chance of getting loan and when you score less than 640, and then it may be difficult for you to get the lender.
- In case, you want to increase the score then you can pay lingering loans, open different lines of credit and you can also make good ratio of debt to credit.
Source of Income
To pay back your loan, you must have good and staple source of income. The source of income plays important role in getting your loan. It does not end here only, to get loan you must have stable history of earning income. The stable history of income and current stability of the income make you to get loan.
You can select what type of loan you want. You go for secured or unsecured loans if you opt for secured loan then you will get more money as compared to unsecured loan.
- In secured loan, you have to produce collateral as the name of home or automobile in the form of note. To receive the loan approval you need to do file collateral.
- In unsecured loan, you will get small loan as compared to the secured loan but you don’t need to file any collateral to get the approval of your loan.
To get the loan approval, you need prove that you are able to repay the loans. Lenders can ask for supporting evidence which he can pull, income tax and bank statement.
Mark Farley is finance expert and He is writing about the services of kiirlaen for many years now. He has an extensive experience in this field