2020 has been a challenging year for a lot of people and we are running on an overdraft here in the Mad House at the moment and really that isn’t a great long to medium-term solution, so we have been considering applying for a loan to cover it. So it was perfect timing when HSBC approached me with this fab infographic with tips for successfully applying for a loan.
I am not going to lie applying for a loan is terrifying, in fact, I find all bank details scare me silly, but I have to be a grown-up and put my big girl pants on and do it. I am working with HSBC to share some successful loan application tips.
Tips for Applying for a Loan
Do your homework
It pays to do your homework and shop around and compare APRs before you think about applying for a loan. The APR (annual percentage rate) tells the true cost of a loan taking into account the interest payable and any other charges.
Improve your credit score
First off check your credit score through one of the three main credit reference agencies in the UK, Experian, Equifax, or Callcredit (you may be charged a fee to view your credit record). Check that all your information is correct.
This way you make sure it is all up to date before you apply and you can try and improve it by paying bills regularly.
Double Check Everything
Make sure all the information in your loan application is correct. Your address, past addresses, financial information – not just the accuracy but also the spelling.
Don’t make multiple applications
Banks can interpret multiple applications as though you are desperate and it affects your credit score every time you are turned down.
Have you had loans in the past? Do you get the same feeling of dread as me when dealing with your finances?
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