Questions You Must Be Able To Answer To Get A Loan
If you know what the lender is most concerned about, a bad credit loan will not be as difficult to get you may think.
Think about this. What questions will a lender ask when you approach him for a loan? He will inquire about the things that most concern him. And these will boil down to a standard set of considerations. So know what they are before you go for your interview with a prospective lender.
In real life that lender will usually be a finance company, because the banks are often unwilling to deal with small borrowers and even less willing if the borrower has a history of bad credit.
Even if you had a history of bad credit and are looking for what we might call a bad credit loan, the lender will not dismiss you out of hand. He will have questions and will sit on his side of the interview table prepared to give you a fair hearing and proceed logically. So, what are the questions?
Questions a lender will want answers to:
The first set of questions will concern your capacity to repay the loan.
He will ask how you intend to repay the loan. Exactly how you will do that. He'll ask for specifics. Then he will want to know about your income; your wages or salary, and any other income streams like the income of a spouse or the fees you collect from a boarder. He will talk with you about the timing of your repayments and see how that matches your income streams. The lender will certainly talk with you about repayment problems you had in the past. But these will just be one factor in his consideration, so don't be too nervous at this point. If past failures were always held against us, there would not be much room for any of us to move! The lender will be more interested to see if poor loan repayments in the past are a pattern, or were caused by a one-off situation that is unlikely to be repeated now or in the future.
Another question will almost certainly focus on your collateral.
If you have a home or a large asset, and significant equity in it, then you could put that up against a loan. This way the lender will have some security and you will find it easier to borrow. If you don't have this sort of large collateral then another avenue of questioning will be about people who might be able to guarantee your loan. If family, or friends will stand guarantor for you, then again the lender will have the security he wants and you will find the way opening up for your loan.
And finally, the lender will be quietly assessing your character.
He will want to try to guess if you would be a reliable borrower, someone who will take seriously his responsibilities to repay any loan.
Get the questions right and you stand a very good chance to secure the loan you need.
Think about this. What questions will a lender ask when you approach him for a loan? He will inquire about the things that most concern him. And these will boil down to a standard set of considerations. So know what they are before you go for your interview with a prospective lender.
In real life that lender will usually be a finance company, because the banks are often unwilling to deal with small borrowers and even less willing if the borrower has a history of bad credit.
Even if you had a history of bad credit and are looking for what we might call a bad credit loan, the lender will not dismiss you out of hand. He will have questions and will sit on his side of the interview table prepared to give you a fair hearing and proceed logically. So, what are the questions?
Questions a lender will want answers to:
The first set of questions will concern your capacity to repay the loan.
He will ask how you intend to repay the loan. Exactly how you will do that. He'll ask for specifics. Then he will want to know about your income; your wages or salary, and any other income streams like the income of a spouse or the fees you collect from a boarder. He will talk with you about the timing of your repayments and see how that matches your income streams. The lender will certainly talk with you about repayment problems you had in the past. But these will just be one factor in his consideration, so don't be too nervous at this point. If past failures were always held against us, there would not be much room for any of us to move! The lender will be more interested to see if poor loan repayments in the past are a pattern, or were caused by a one-off situation that is unlikely to be repeated now or in the future.
Another question will almost certainly focus on your collateral.
If you have a home or a large asset, and significant equity in it, then you could put that up against a loan. This way the lender will have some security and you will find it easier to borrow. If you don't have this sort of large collateral then another avenue of questioning will be about people who might be able to guarantee your loan. If family, or friends will stand guarantor for you, then again the lender will have the security he wants and you will find the way opening up for your loan.
And finally, the lender will be quietly assessing your character.
He will want to try to guess if you would be a reliable borrower, someone who will take seriously his responsibilities to repay any loan.
Get the questions right and you stand a very good chance to secure the loan you need.
