29 Jun
2010

Applying for a personal loan, car loan, mortgage, or payday advance can be stressful. You are being evaluated and of course you worry about being rejected for a loan. You can improve your chances by avoiding these common loan application mistakes:

1) Inconsistencies on your application. Small inconsistencies – such as misspellings in your address or writing your way in different ways on different pages (with your middle name on one page and without on the next) can send red flag signs to a lender. Before submitting a loan application, always check it over for accuracy.

2) Not enough information. Fill out the loan application completely. If you need help, call your lender or the lender’s customer service line for help. Blank spaces on an application form will sometimes mean that your loan application is rejected out of hand.

3) Dishonesty. Don’t claim to make more money than you do or falsify your birth date. Not only will it be embarrassing when you are caught, but all lenders will reject dishonest applicants. How can they trust you to repay a loan if they can’t trust you to fill out a form correctly?

4) Lack of professionalism. If you need to meet with a lender, dress professionally and act pleasant. Fill out your forms with pen. Acting like an adult reinforces the idea that you can be trusted with money.

5) Not enough preparation ahead of time. Before you apply for a loan, check your credit rating and work on your credit so that you can put forward the best financial picture possible. Carefully research lenders and loan products so that you are ready to apply for the right loan for you.