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Tips for Getting a Bank Loan
Knowing what to expect helps.
Most of us can look forward to trying to get a loan at some time during our life. Many of us will attempt to pry some money loose from a bank. That’s generally preferable to hitting up a loan shark, family, high-interest credit card, or putting an ad in personals on Craig’s list.
I will add a note about getting a so-called “payday” loan from small loan companies. If you lose your job and don’t have a payday, they still want their money. I thought the idea of the loan was to get you by until payday. It seems like if there is a long time between paydays it should influence when the money is paid back. Loan companies don’t see it that way.
Banks will try to determine how credit-worthy you are.
That means they will be looking at your credit history, and income history. Banks are peculiar as to what they will consider as good credit, and even what income they will count.
For example, paying your bookie doesn’t seem to help in getting a bank loan. Similarly, paying off a loan shark doesn’t seem to be of much help. Admittedly, documentation on paying off a loan shark can be sketchy, but the fact you are able to walk after dealing with a loan shark should be evidence of your creditworthiness. Strangely, banks don’t see it that way.
