If you’re interested in applying for a personal loan in Canada, there are a few mistakes which you should avoid making, in order to increase your chances of having a personal loan approved. Better yet, if you follow the advice listed below you should be able to negotiate a competitive interest rate, which will decrease the amount of money that you’ll have to pay your bank or lender in the future.
Don’t lie about your income:
There is no point lying about your income in order to have a personal loan approved as both banks and lenders are able to access your tax returns, pay slips and bank statements. If your bank or lender cross checks these documents with the annual income which you have filled out on your loan application, they’ll have sufficient cause to automatically deny your personal loan. Worse yet, you could get into serious trouble for providing false information on your loan application.
Negotiate on the interest rate which you are offered:
Don’t feel as if you need to accept the first interest rate which you are offered by a bank or lender. As often, you’ll be able to negotiate a much lower interest rate, by being assertive.
Don’t be afraid to shop around:
If you’re not happy with a lender’s final interest rate, it’s well worth shopping around and discussing your options with other banks and lenders. In order to ensure that you sign a contract for a personal loan that you’re happy with. As you’ll save a significant amount of money in interest repayments if you negotiate a slightly lower interest rate with another lender.
Don’t submit too many online applications for home loans at once:
Each time that you submit an online application for a home loan, the lenders who you have filed applications with may choose to check your credit score. If too many potential lenders request your credit score in a short space of time, your credit score may be negatively effected which will decrease your chances of having a personal loan approved.
Don’t forget to check your credit score in advance:
You’ll have a far better chance of negotiating a competitive personal loan rate if you have a high credit score so it’s well worth checking your credit score. As if your credit score is lower than you’d like it to be, there are simple ways to increase your credit score before you start applying for personal loans.
If you avoid making all of the easily avoidable mistakes which are outlined above, you should have no issue having a competitive personal loan approved. In particular remember not to lie on your loan applications and to be honest about your current income.