The Acceptance Rate of Bank Loans [creditdiagnosis]

The Acceptance Rate of Bank Loans [creditdiagnosis]

None of the banks was cut more than the ratings company had forecast and only one bank, Zurich-based Credit Suisse Group AG, had its ranking reduced by the maximum three levels it said was possible. The Moody's action “removes a major sword of ... Morgan Stanley Credit Swaps Fall After Moody's Downgrades

 

The rate at which high street banks are accepting loan applications has dropped over the past few years, mainly due to the tightened spending abilities of these large institutions.

Only A few years ago, it would have been much easier to predict whether a bank would offer you a loan, generally because their lending criteria was much more lenient and people generally had a better chance of getting a loan at a reasonable rate of interest. The chances of getting a loan now, unless you have completely clean credit has fallen dramatically.

To start with, if you're thinking of applying, let's rule out situtations where you probably wouldn't get a loan with your local bank;

1) If your credit record or rating is poor or has suffered over the past few years

2) If you have a poor banking record with the bank

3) If you don't bank with them this may also impact on your chances

If you don't fall into these categories then things are looking better, however there are clearly no guarantees in the current financial climate of being able to secure a bank loan.

If you are one of the many who fall into a category of one of the above statements then what options do you have left?

1) Internet or High Street Payday Loans

2) Door-Step Loans

3) Guarantor Loans

Out of these three options, guarantor loans are the closest you will get to standard, what I would describe as typical unsecured loan.

Guarantor Loans are available generally over 5 year terms and you can borrow between £1000 - £5000.

The only difference between these and normal finance is the fact that you need a homeowner guarantor to sign onto the loan agreements as a guarantor. The guarantor acts as a safety net for the lender, so that if the applicant can't meet his/her repayments, then the guarantor will be asked to step up and make repayments on their behalf. This gives the lender an improved security and allows people with low or poor credit ratings to continue to borrow money in these tough financial times.

If you feel you may be accepted by your local bank, it might be worth making an application and seeing what happens- but remember that every application you make decreases your credit standing - it's also probably worth noting that with a guarantor loan, the lender won't normally need to perform a credit search on the applicant (although they will for the guarantor in all likelyhood).

 

Recommend The Acceptance Rate of Bank Loans Issues

Question by I hate fat people.: Do I need a merchant account from my bank to accept credit cards on my online store? Do I need a merchant account from my bank to accept credit cards on my online store? Would I need one if I used PayPal exclusively? Best answer for Do I need a merchant account from my bank to accept credit cards on my online store?:

Answer by knowitall
You need one from some place. PayPal has their own. If you use them, you do not need one.

[accept credit one bank]