Most of us need to apply for finance at some point. Whether it’s to pay for a large ticket item like a car or as a way to build a credit score, here are some pointers for making sure your application is the right decision:
Be clear about what you need the finance for, and take time to gather your financial records and budget information together before applying. This will enable you to provide information to the lender that is both timely and accurate, preventing an unnecessary delay.
Be honest with yourself and the lender about the amount of repayment you can realistically afford each month. Overstretching yourself financially will cause problems in your life and your credit score. Instead, you want to be sure you can keep a healthy credit rating.
What information will I need to provide a lender? The required information will include your home address for the last five years, monthly income, outgoings, and bank account details. Gathering this information before making an application will speed up the process. You will need to prove your identity as part of fraud prevention regulations. Find out more about KNOW YOUR CUSTOMER procedures by visiting w2globaldata.com/regulatory-compliance-solutions-and-software/know-your-customer/
It is essential to know what type of finance you are applying for. Unsecured personal loans do not require security and monthly repayments, for example. Your credit score will impact how much you can borrow and what the interest rate is likely to be, and the score gives lenders information about your ability to make regular payments.