HomeBusinessHow To Check Your Eligibility For A Loan

How To Check Your Eligibility For A Loan

Before applying for any kind of loan, it is important to make sure that you check your eligibility. Making multiple credit applications within a short space of time can have a negative impact on your credit score. By understanding your eligibility before applying, you can potentially avoid having your application declined and protect your credit rating. Whether you are looking for a payday, long term or short term loan, there are a variety of ways to check your eligibility before applying.

Understand Your Own Needs

Before searching for the ideal loan, you need to fully understand your own situation and why it is that you are looking for a loan in the first place. You should evaluate your position and ask yourself how much cash you need, how long you think it will take to pay back, and whether you are financially stable in order to make repayments.

You may also want to consider whether a loan is the best option for your needs. Do you have savings that you could use instead? Have you tried personal borrowing from friends and family? By determining all of these elements, you can build a better picture of the type of loan you may require.

Use An Eligibility Checker

Every lender has their own criteria and many offer eligibility checker tools on their site. These are designed to show you the likelihood of getting accepted for a finance product, and they should be used to prevent the possibility of a declined application. You will usually be asked to enter a few basic details, such as your date of birth, income, and employment status. This will then be used to view your credit report to confirm your identity and match your details against the lending criteria. The eligibility rating is usually shown on a percentage scale, so the higher your score, the better chance you have of approval.

Using these eligibility checkers will not impact your credit score as they only perform a soft search. This type of check will not leave a footprint for future lenders to see, so you can use eligibility checkers as many times as you like to find a lender that suits you. This is a much better option than making multiple applications at once and can help to narrow down your options before applying.

Try Loan Comparison Websites

There are many loan comparison websites, such as Experian, who offer a simple way to compare financial products and see which you are most likely to be accepted for. By using sites like these, you can also cut down the amount of research that you need to do. They will search the web for you to find loans that best suit your needs and eligibility, but it is always best to do your own research, as you may be able to find a better deal.

Like an eligibility checker on a direct lender’s site, you will be required to submit some basic info, as well as what you need from a loan. The tool will then scour the web and use your details to find the best options for you.

To maintain your credit score, it is essential that you check your eligibility before submitting any applications. If you need any more advice, please seek impartial help from the Money Advice Service.

LEAVE A REPLY

Please enter your comment!
Please enter your name here