Credit Approval

• 1
  Credit Informationcredit 3d sign image by onlinebewerbung.de from Fotolia.com
  
  Obtain a free credit report from all three major credit bureaus by going to www.annualcreditreport.com or by calling 1-877-322-8228.
  
  Review the credit reports for errors, mistakes and any identity theft issues that must be rectified before you can proceed with the credit approval process.
  
  Contact each credit bureau to report identity theft issues along with your proof of claim, which will flag the items involved with fraud alerts and will protect you from having these items reported as part of your credit.
  
  Provide the credit bureaus with your written notice and proof of any other claim for errors and mistakes that appear on your reports, which should be investigated and corrected, if applicable.
  
  
• 2
  FICO Scoretableau de scores image by AlcelVision from Fotolia.com
  
  Obtain your credit score from each of the three credit bureaus. This may involve a nominal fee that can be paid on-line.
  
  Review the overall score to the percentage factors that comprise the FICO ratings.
  
  Concentrate on the higher ranking percentage factors such as repayment history and balances owed, which comprise 65 percent of your FICO score and represent the risk factors that lenders are looking at.
  
  Analyze the other 35 percent of your FICO score factors that include the length of your credit history, recent acquisition of credit and types of credit.
  
  
• 3
  Credit Applicationform -3 image by Rog999 from Fotolia.com
  
  Meet with the loan officer at your local bank or other financial institution for purposes of applying for a bank or consolidation loan.
  
  Inquire as to the types of loans offered, terms, conditions and costs.
  
  Discuss your FICO score with the loan officer in order to determine your chances of loan approval at the best rate and terms possible.
  
  Determine the best type of loan that would help you to consolidate your debts with lower monthly payments.
  
  Obtain a loan application form and fill in all required information.
  
  Provide current balance sheet along with the latest income and expense statement.
  
  Calculate your debt-to-income ratio which represents the percentage of your total monthly debt expenses to your gross income. It should not exceed 36 percent.
  
  Divide your current assets by your current liabilities. This determines your current ratio and ability to borrow which should never fall below 1.2 / 1.
  
  
• 4
  Loan Approvalapproved image by Andrey Kiselev from Fotolia.com
  
  Visit the bank after your loan has been approved to go over the terms and conditions of your credit obligation.
  
  Sign the required loan documentation after you have reviewed it.
  
  Insure that your loan package includes regulatory compliance information such as Truth in Lending disclosures.