The Secret Loan Tips Banks Don't Want You to Know

If you need a little extra money for a car, holiday or home improvements, you've probably considered asking the bank for it in the form of an organized bank loan. While that's usually a pretty smart move, what you may not be aware of is banks are now being increasingly frugal with their money following on from the banker's scandal in 2011.

To ensure you don't miss out on landing a loan for your special purchase, follow our expert tips below.

Perfect your credit score

If your Experian credit score isn't what it could be, consider improving it before applying for a loan. Every rejected finance application will count against you, so be sure to give yourself the best chance of success before filing your application. Take out a smaller form of financing, and pay it back with considerable regularity. Then apply in a few months.

Go for loyalty

If you have savings, a credit card or insurance with a company already, make them your first port of call. Chances are, they'll consider you a lot more favorably having already dealt with you and witnessed your reliability first hand.

Consider peer-to-peer lending

If the banks won't give you the money you require, then who needs the banks? Since 2005, a new system of lending has been bailing out those on the wrong side of the financial institutions. Peer-to-peer lending involves borrowing money from an individual, rather than an establishment. You're more likely to be approved, and won't have to beg, steal or plead to be accepted.

Get a co-signer

If you aren't eligible for a loan, it may well be worth utilizing the help of somebody who is. If you know somebody with a great credit score who would be happy to 'vouch' for you, take the offer. Banks will look upon your application more favorably, and your chances of receiving financing will increase ten-fold.

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