Loan Lenders

What do Loan Lenders look for?
Lending institutions won’t just approve anyone for credit. Lenders will first check your financial history honorability and then decide if a credit loan and what interest rate is right for you. People who have no credit history at all rarely receive approval for unsecured credit.

• Credit History: Obviously lenders use your past credit report as an anchor in making a final decision on your wanted loan.
• Current Debts: Any debt you currently owe can reduce your future loans value. This can include mortgages, other recent credit accounts, automobile payments, etc. The number of banks you owe money to is included as well.
• Repayment Ability: Your lender wants to be sure you can repay back your loan plus interest.
• Proof of Annual and Monthly Income: You must make enough money to cover your loan.
• Collateral: Lenders see you as less of a risk if you claim any residential ownership, etc. as collateral security.
• Cosigners: Any other financially trustworthy person who can secure your intent to repay: parent, relative, friend, coworker, guardian, etc.
• Loan Plans: Loan lenders want to know what you plan on doing with the money you want to receive.

Knowing and staying on track of your credit score beforehand could save you a lot of time and questions when finding a lender. Credit scores (FICO scores) range anywhere from 300 to 850 points. Scores under 620 are considered unreliable, and any score over 750 is superb to the lender. Click below for detailed information on credit reports and how they affect you: Bankruptcy
Bankruptcy sometimes happens to those who cannot pay their debts due to job loss, injury, or a chronic illness. Others claim bankruptcy simply because they overwhelm themselves with too much debt and can no longer afford to pay.

Whatever the reason, if you are just coming out of bankruptcy, you have a new opportunity to rebuild you borrowing reputation as ironic as it sounds. Sure you have just walked away from numerous debts and demonstrated to the lending world that you will not hesitate to let someone else absorb loss on your behalf. And in this way, your reputation as a borrower is soiled, and many lenders will not look at your application because of it for at least ten years.

However, there are banks and lending institutions that see you as suddenly becoming a potential borrower who brings no debt to the table with them. If you have a fairly good job, they see you as a great potential customer - especially if you have been working for the same employer for a very long time (at least five years). They are intimately familiar with bankruptcy laws and statistics and know that it will be quite awhile before you could or would file bankruptcy again. In their eyes, this means that if they grant you a short term loan then they are nearly guaranteed payment from you - if not, they can file a judgment against you and garnish your pay. So in light of this, your recent bankruptcy and good work ethic makes you less of a risk than someone who has been working for just a few months, or switches jobs frequently. In short, borrowers with good work histories are more likely to qualify for a post-bankruptcy loan than those who have scant working histories.