4 Steps for More Effective Loan Application

There are some points that you need to study and execute to ensure that the loan applications that you submit to the banks are not rejected or are in the conditions that you want. To make a more efficient loan application, you can follow 4 simple steps to get better results.

View Your Credit Report

9 largest banks engaged in Bank lending are United in the Turkish Credit Bureau, which provides information on payments and loans to credit institutions. Thanks to this Bureau, you can get your credit report online before applying for a loan. Thus, you can create in advance a more realistic strategy for the preparation of the application, having studied the information in your report. In risk analysis for banks, when considering loan applications, your regularity of off-balance sheet payments, as well as the balance of your debt and income, are important.

Increase Your Financial Information

Another way to positively assess a loan application is to increase the amount of financial information. When analyzing your credit report, all financial information should be evaluated to form a strategy and plan for your future credit requirements. Increasing the amount of your financial information as much as possible makes it possible to analyze and visualize your solvency. At the same time make your loan application more effective, and therefore increase the likelihood of approval of the loan application.

It is impossible to have a good credit history if you have never taken out a loan. On the contrary, the use of credit and regular payments on it allow you to have a good credit history. The credit history of a potential borrower allows the Bank to understand how the borrower is responsible and solvent, and thus minimize its risks.

Keep Your Documents in Hand

You need to have all the necessary documents to apply for a loan on hand. Finding out the list of documents required for the Bank in advance, and filling them out before applying for a loan allows you to save a lot of time. In addition, when you have a complete set of documents to apply, you create the impression of professionalism and responsible approach. Banks usually require identity documents, driver’s license and social security numbers, as well as residence documents. In some cases, this list of documents may be extended.

Apply After Your Next Salary Increase

The size of your income and its regularity are considered important factors when paying the loan amount and, accordingly, when considering the application. Thus, the time to apply for a loan affects the results you get. The most preferred time for an application is after a salary increase or promotion. Therefore, if you intend to apply for a loan, postponing this application until the next pay raise increases your chances of getting a loan on better terms.

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