5 Ways Canadians can become attractive to lenders

become attractive to lenders

If you want someone to give you a loan, you’ll need to become an attractive borrower. Lenders will happily offer you money if they know you’ll give it back. The interest you pay will help them become rich and powerful.

Don’t rush into applying for a loan unless absolutely desperate. First, do a few things to ensure the loan company says yes. You’ll be offered a lower interest rate, which means you’ll hand over less money.

1. Rebuild Your Credit Score

People who have made financial mistakes in the past will need to start rebuilding credit scores at the earliest opportunity. Will you still be able to get loans with a bad credit score? It’s possible, but the interest rate won’t be pretty.

It takes six years before mistakes disappear from your credit score, which is longer than it sounds. Your credit score must reach a certain threshold if you can’t wait until your record is clean before applying for a loan.

2. Don’t Change Jobs Regularly

It’s more likely you’ll be offered instant cash money if you don’t change jobs regularly. It was common to stay at the same company for your entire career in the past. Moving from one company to another is pretty popular today.

Lenders will want to know you’ve been employed by the same company for 6-12 months, even if you want a small loan. Who will risk giving you money if you’ve only been employed for a few weeks?

3. Saving Up A Massive Deposit

Mortgages are slightly different because loans are much bigger. You’ll need a decent deposit before a respectable lender will talk to you, but you won’t always get a competitive interest rate unless it’s a massive deposit.

Companies feel safer offering mortgages to borrowers with large deposits because it’s easier to get the money back. If you plan on applying for a mortgage one day, you should start putting money into a savings account today.

4. Asking Your Boss For A Raise

If your boss is kind enough to give you a raise, you might be able to survive without a small loan. It will help you get accepted at the very least. Someone with a higher income has more disposable income.

It means you’ll be able to pay a loan back faster, so you’re less of a risk. Getting a second job could help with a loan application if you keep it for a while. Wages from jobs should be paid directly into a bank account.

5. Putting Your House On The Line

Unsecured loans are great because you don’t need to risk your home. Unfortunately, it’s hard to get one unless you have a respectable financial history. You’ll be less risky if you have a home to put on the line.

If you don’t have a home to use for collateral, it’s still possible to get a secured loan. You will need assets like equipment, land deeds, or a profitable business. You won’t be an attractive borrower if you own nothing.

It Could Save Your Life One Day

You should make yourself attractive to loan providers even if you don’t need money right now. It’s less likely you’ll be turned away when you desperately need help.

Other articles from mtltimes.ca – totimes.ca – otttimes.ca

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