If you’ve ever talked to someone who has taken out a loan with a loan shark, also known as shylocks, you’ll understand why these ‘financiers’ were often cast as villains. Some people who failed to read the fine print or were so desperate to take out a loan from one of these unscrupulous lenders would agree completely. But the lessons are among some of the most important that every borrower should be aware of
You should always be suspicious about people or companies who offer loans on very easy terms. It is highly likely that there will be exorbitant hidden charges and/or penalties. Such lenders will typically target people who haven’t got a stellar credit history. But you don’t need to fall prey to loan sharks. There are appropriate ways to ensure you can still access finance. Here’s what you should keep in mind.
Gaining Access to Finance
The first thing to do is to look at your credit history carefully. Sometimes, the details can be wrong. A debt may be in dispute, or you may have already paid it off, and this might not be reflected carefully, or at all. If you can sort this out and clarify what’s going on, then you may be able to clear your name on the credit front.
The next thing you can try doing if you do have outstanding debts or unpaid bills that are damaging your credit rating is to do what you can to pay them off. This may mean that you have to trim your lifestyle back a bit, or cut the credit card if you find you can’t help yourself running up big bills with it.
If the problem is well and truly in the past, then the appropriate paperwork, such as bank statements and budgets, can be used to show lenders that you have learned how to manage your money properly and that you are unlikely to default on a loan. Another possibility is to save up and have a large deposit handy, which not only means borrowing less, but also showing the lender that you’re able to save money.
And most obvious of all, try applying to a different lender. If you’ve always gone to the same lending organisation and they know that you have a tendency to get yourself into problems, a new lender might be more favourable towards you, especially if you take some of the other steps mentioned above.
The Fincar team is here to help you with all your financing needs. Contact us today to help arrange your next car or equipment loan.