Loans are not the easiest to get approved. You have to make sure to do your homework before you attempt to apply for a loan.
Before you go to the bank check out loans online for the type of loan you are looking for, (vehicle, personal, mortgage). Check out the packages available for what you can afford, but make sure you read the fine print. Always read the fine print.
If you find something that you are interested in, make sure you call the bank to get information on requirements and necessary paperwork and documents you will need to get the application started.
Be very aware of your credit history and your credit score. You are probably wondering where do I get my credit score? In Canada you can get your free credit report or your (credit disclosure) by Equifax Canada and a (consumer disclosure) by TransUnion Canada, you can order reports by mail, fax, or phone (if you do it online there is a fee).
Equifax Canada toll free phone number: 1-800-465-7166.
TransUnion Canada toll free phone number: 1-877-713-3393.
Your bank should be able to tell you what your score should be for the amount you want to borrow. Make sure that you check your reports for any errors. If you find something isn’t right you should try to correct it ASAP, before your visit with the bank, because any errors can hurt your score, a lower score means less of a loan or possibly no loan at all.
After you know what information your bank needs, make a checklist for yourself with the necessary documents needed by bank for your loan, some things to include are an employer letter and credit reports, because an incomplete application can be cause for denial of loan.
Loans take some time for approval, banks do have certain protocol they have to follow for lending money. Make sure you ask questions, as to when would be a good time frame for follow up. Remember to only apply for a loan that you have the means to pay back. Also, if you are applying for a personal loan you may have to explain the reason for the loan. Loans can be a frustrating process, and you may be turned down, the bank or lender will have to tell you why you didn’t qualify, and once you know why, you can get to work on how to fix the issue that stopped you from getting the loan.
Keep in mind that it can be bad for your credit if you apply for too many loans. even if it is another institution and a lower amount that you think you will qualify for. Too many applications could take away your opportunity for loan in the future.