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LOANS The term loan refers to a type of credit in which a sum of money is lent to another party in exchange for future repayment of the value or principal amount plus interest. A loan may be secured by collateral security such as a mortgage or it may be unsecured such as a short-term personal loan.
MORTGAGESAND AUTO/ CARLOAN PERSONALLOANS PAYDAYLOANS HOME-EQUITY LOANS SMALLBUSINESS LOANS STUDENTLOANS
FACTORS AFFECTINGLOAN APPROVAL
CREDIT REPAYMENT RESIDENCE INCOME SCORE HISTORY STABILITY Creditorswilloften lookatyour incometodebt ratiotoseethatif youcanafford anotherloanand youcanreasonably expectyouwillpay thembackas agreed. Creditscoresare createdbytaking informationfrom creditreportsand analyzingthatdata topredicthow someoneislikelyto behaveinthe future. Ifyourrepayment historyisnotgood enoughyoumay facedifficultyin approvalofthe loan. Creditorsmay consideryour applicationpartly basedonhowlong youhavelivedin yourcurrent residence. Thisisa riskassessment factor.
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