Preparing for a Secured Loan II

In our first article we looked at mortgage brokers and lenders for secured loans.  Tips were offered in how to look for this particular person as well as some things to be cautious about.  In this article we will look at the credit reports and your personal finances for preparing for a secured loan.

• A lender will look at your credit report.  They will be looking for any arrears, IVA’s, bankruptcies or late payments.  If you have had bad credit in the past this could affect the type of loan or even the approval.  A bankruptcy has to be at least five years old along with most arrears.
• You have the power to seek a credit agency in order to get some items removed from your credit report.  As long as the arrears or other issues are five years or older and they have been settled they can be removed.  This could help you get some extra points for your scores as well as a better secured loan.
• You also need to have your name on the electoral roll.  If it is not on there then registering to vote can help you with that.
• Lenders will view your financial statements as well.  They want to know how much you earn in a month, how much your known expenses are, and whether you can afford the secured loan. 

Once all of this information looks good you are able to apply for the secured loan.  This information is used to assess your risk, so the lower your risk the better chances you have.