The bank are not necessarily there to be your enemies. But sometimes, when you are needing a loan, or a mortgage, help with debt, or anything they can offer you, you need to see them that way. You need to do all you can to make them say ‘yes’, because if you don’t, and they say no, you will be left without the money you need. If they say no, it becomes harder to get one next time too, because you have previously been refused. It throws up alarm bells to other lenders. There are certain ways you can beat the bank. Ways in which you can make them lean towards saying yes and giving you the money you need to do what you want. You need to be careful, and approach it with tact. Think that you only really have one shot at it. Don’t just go in thinking they will lend to you. Be prepared. Some of these tips can help you get what you need, but only if you put the right effort in with them. You may have already thought of some of these tips, but the other can be handy. They cover in the main how to best prepare for the meeting and also how to get your credit score where it needs to be to ensure they have faith in you that you’ll pay the money back. Besides, you could get some great ideas from these points that see you get exactly what you need from the bank.
Know Where You Stand
From a financial point of view you need to know exactly where you stand. If you go into the meeting not knowing and they see you don’t really know you’ll look stupid and their faith in you will be rocked. First, you need to know your credit score. You can use this service to find out your credit score and ensure you go into the meeting clued up. With this, you also need to know what kinds of debts you owe. If you do, you can present a better case. Know what your monthly disposable income is and how much you can afford to pay back in loan fees. This will all increase their confidence in you and they will be far more likely to give you what you want. Knowing where you stand from a financial point of view means you won’t have any unrealistic expectations and that you will ask for what you know you can get.
Do Your Research
Look at the bank you are going to ask for money. Research their lending rates, their acceptance percentage, their interest rates. You may find out their is a bank better suited to what you need. Just because you bank with a certain company doesn’t mean they have to be the ones to give you your loan or mortgage. Shop around for the best chance of finding the best deals. If you go to the bank with your research you will know what questions they are likely to ask you. Check out helpful forums and work out the best answers to their probing questions. Preparation is key, with it you can give yourself the best chance of succeeding. You may even be able to research the manager who will make the decision, this gives you a great advantage in the meeting.
Give A Good Account Of Yourself
You must ensure you give a good account of yourself. Wear a suit, or appropriate business attire. Shake hands, be polite, speak well and always be amicable and professional. Even if they turn you down, keep your cool. You may have another shot in a few months time and you don’t want to ruin your report with the chief lender, because it will automatically make him biased towards saying no. If they refuse thank them and leave. You’ve just gained amazing and valuable experience to take into your next meeting. Be a likeable person and ensure you present yourself in the best way you possibly can. Go in with information at hand. Know all of your facts and figures. Lend yourself an air of believability and it will go a long way. Have the answers to their questions prepared. Do all you can to stack the odds in your favour for the highest chance of them agreeing.
Have An Address
Lots of people have only lived at an address for a few years or so, meaning their credit rating is hurt. You need to have a registered place of living. It lends you back up because it means you can be traced back to your address if you stop repayments or if they need to get in touch with you for something urgent. The length of time matters too, but don’t get too hung up on it. As long as you can be traced to an address it’s fine. This automatically increases your credit score. Remember to always update your address when you move home. It is done through voter registration, so make sure you check this out as it can be a defining factor in your credit score which could dictate whether you secure the loan or not. Again, give yourself the best chances you can of succeeding.
Have A Completed Financial Arrangement
This means you’ve gotten something on finance with credit, saw it through to the end and closed the account. It shows the bank you can manage money well, and can pay money that you have borrowed back. This can be for anything ranging from a laptop to a care. Make sure you have at least one closed account on your credit score. It will increase your credit score too, making you more attractive to lenders. Take out a credit agreement on something small if you have to, just to insure you get a closed account on your score. It is better having this than no credit at all because if you don’t have any credit history the bank will wonder why, and ponder whether lending someone with no experience of paying back money through credit is a good idea. Even if you get something on finance, call the relevant department and then pay it off straight away, it still counts as a closed account and is a necessity in the world of finance.
Go With A Decent Deposit
If you are borrowing money for a business venture or a mortgage, you should have some capital of your own ready. Save up like crazy before the meeting, and show what money you are willing to put towards it yourself. This will again lend you believability because it shows you don’t mind putting your money where your mouth is for example. Also, the better deposit you have the more money you can technically borrow. If you save a large deposit, you’ll be able to buy a better house. Go in with some savings to show you are committed and eager. It will stand you in good stead when they start looking over your accounts. It shows you can manage your money in such a way that allows you to save. A skill that not everyone has. The amount going out of your accounts in terms of savings will count as disposable income too because you are saving it, not spending, meaning you could end up getting a better deal than you initially hoped for.
Get A Credit Card
Again, you may be thinking why on earth would you do that you need the credit for a home. But having a credit card is hugely beneficial. It means you can build your credit rating to huge heights, similar to having a closed account. It is all very simple too. You just need to apply for a card, get approved, then make low easy payments on it before paying the balance off right away. If you do this, your credit score will go through the roof. Give the credit cards a good look over too. Aim for ones from reputable companies that offer good interest rates. Some of the deals are good and worth checking out, offering cash back on up to twenty percent of your first purchase. Find a credit card that suits you as a person and apply for it. Just remember to pay the amount off as soon you can. If you don’t and miss a payment it will hit your credit score in a negative effect, so make sure you take all precautions to ensure whatever you spend on your card gets paid off as soon as possible. The fact that you can handle a credit card also looks good on your credit rating. It means you can successfully borrow money in small doses and pay it back in time without incurring a penalty. Couple this with a closed finance account is a potent mixture and can see your credit rating see you through the most difficult of meetings. If you go in armed with knowledge, the right attitude and a good credit rating you are off to a good start.