How To Prepare Your Credit For A Loan
Posted on 22. Jul, 2009 by admin in Credit Rating
Even if you always make all of your monthly payments on time, your credit could cause you to get turned down for a loan, or be approved with high interest rates. If you’re planning on buying a home, purchasing a car or just getting a personal loan, you may need to prepare your credit to get approved.
The very first thing you should do is to request a credit report. Go over every entry and make sure that you do owe what is listed. If there are any errors listed on the report, you need to dispute them with the credit agency and get them cleared up.
If you’ve had financial problems and your credit rating has suffered, always wait at least one year to apply for a loan. If you keep all your payments paid on time, within one year your rating will have improved. And, don’t make any major purchases in the months before trying to get a loan.
Another really important thing you’ll need to do is reduce your credit card balances. If your balances are at or near the limit, your credit rating will decrease. Credit card balances that are 30 percent or less of your limit, will increase your credit rating and give you a better chance of being approved.
