What Lenders Look For

You and the lender

The debt help site Debts.org believes your chances of securing a loan will depend on how attractive you appear to lenders. How well you dress and how you wear your hair are not the type of things that attract lenders (although this can be important for face to face contact), instead what really gets their motor running is your credit credentials. So what do lenders look for?

Lenders are a bit like parents, after a while they like to see you settle down. The longer you have lived at one address, stayed with an employer and held an account at a bank, the better.

Lenders are also a little like fiancés; they prefer it when you have a high paying job and a healthy (credit) history that contains nothing too serious to worry about. Other attributes lenders look for in a borrower include a full time, permanent position and preferably skilled rather than unskilled work. Oh and there is a little bit of a snob in a lender too, so a posh postcode does the world of good.

As you may have already realised, this list represents a tall order for the average consumer, especially the good postcode and the high income. The key is to play to your strengths. Concentrate on improving the criteria you can control, such as how long you stay at a job or live at your current address. If you are thinking of applying for a loan, you may wish to do it before you take up a new job or move into another apartment.

If you haven't already enrolled on the electoral register then do so without delay, this will assure the bank or credit card company that you are who you say you are.

Assess your credit rating

You can have a sneaky look at how lenders are likely to view your loan, credit card, or mortgage application by taking a quick credit ratings test. Answer some simple questions, tally up your score and see how likely you are to be approved. Alternatively, you can identify the areas you need to work on before you ask for that mortgage.

Check your credit report

To increase your chances of gaining credit, you should also check your credit report for any errors that would hamper you chances of securing a loan or mortgage.