Getting the right loan with payments you can afford has always been a challenge. And the consequence of getting things wrong are expensive.
Finding a responsible lender, like a credit union, helps you avoid eye watering interest rates charged by high cost lenders.
Credit is confusing
Credit’s hard to understand at the best of times. But the ‘black box’ of credit assessment makes it so much more confusing. It’s hard to know how lenders make decisions when they don’t tell you. There are three Credit Reference Agencies (CRAs). Consequently, there are three different types of credit score. Moreover, 100s of factors are looked at by computers to determine if you get accepted for a loan in seconds.
NestEgg shares these secrets. We provide the tips and advice you need to get a loan you can you can afford
We only work with affordable credit providers, like credit unions. Best of all the service is FREE.
The basics
Lenders use CRAs to get information about your borrowing history. Every time you apply for a loan, your information is recorded at one of the three CRAs (Experian, Equifax and TransUnion).
Sometimes that’s a good thing. Paying things on time. Not overspending on credit cards. Avoiding defaults. This all helps lenders see that you’re a good bet.
But life happens. Credit card balances can go up when there’s a peak in expenditure, like at Christmas. Moving job might lead to missing a payment as you wait for wages to come through. Maybe you’ve not got it together to re-register on the electoral roll – its an annual obligation now.
NestEgg helps you cut through the confusion. We lift the lid on the secrets of credit assessment so you can get the loan you deserve.
A simple four-point strategy to get accepted for a loan
Improve your credit score
Some lenders won’t lend you money if your credit score is below a set number. Moreover, banks charge you more if you’ve got a low score. However, getting your credit score up is easier than you think. Read more.
Sign up for the electoral register
One of the easiest ways to improve a credit score is signing up for the electoral roll. Being on this register can reduce the paperwork required when trying to prove your identity. Read more.
Get on top of any missed payments
The occasional missed payment may stop you getting a loan at the best rate. Recent missed payments might be seen as an early warning sign of difficulties. A default is likely to lead to refusal. But you’re not helpless. There are things you can do. Read more.
Credit card balances
Being at your limits on credit cards or constantly overdrawn can suggest you’re living beyond your means. Learn more about debt ratios and how these affect an application for credit. Read more.
