Five tips to get the loan you want

There are times when you need to get your hands on some extra cash. Whether it’s to cover emergencies, buy a new car or replace furniture, these tips will help you to find your way through the money maze.

1. Do your research. Each lender has a different ideal customer profile so look for the ones that match your circumstances and offer the best value to you. Online price comparison sites can help.

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2. Don’t fire off multiple applications. Each one triggers a search of your credit report and lenders who see lots of applications in a short period could suspect you’re desperate for money or even think a fraud is being planned, making them less likely to approve your application.

3. Lenders use the information in your credit report to assess whether you’ll be a reliable borrower, so check it yourself before you apply and make sure it’s up to date and accurately reflects your circumstances. It’s free to see your Experian credit report with a trial of the credit monitoring service

Apply for your free Experian credit report

4. Don’t try to borrow your way out of trouble – you’ll only build up larger debts. Instead, talk to your existing lenders and see if you can arrange a more affordable schedule of repayments. Remember this could mean taking longer to repay what you owe.

5. If you’re trying to consolidate your debts, check for any early redemption penalties on existing borrowing or set-up and transfer fees on a new loan and factor them into your calculations. Take independent advice if you’re having difficulty making the comparison.

By Experian