When you apply for a loan or credit card, you give the lender permission to access information about your financial history. But exactly what information can they see, and how do they use this information when deciding who to lend to?
The Application Form
In most cases you will need to complete an application form either on-line or on paper. From this, lenders can obtain basic details about you and your financial history. These could include your postcode, whether you’re a home owner, your salary, your reason for borrowing, and even the size of your family. This information collectively helps the lender decide on your application.
At MYJAR, we want our customers to be financially secure, and we therefore have guidelines in place to promote responsible borrowing. The information we ask for on our application form allows us to check if a MYJAR loan is right for you.
Lenders also use personal account data when considering your application. Information about your mortgage, bank accounts, loans, credit cards, mobile phone and energy contracts are considered to make sure that taking out a new commitment will not cause you difficulties. Lenders are particularly interested to make sure that you are meeting your commitments when they’re due and that you are not getting into too much debt.
Credit Reference Agency Reports
The information that lenders can see about you is also available for you to obtain. It is a good idea to check what is recorded about you from time to time to make sure that it is accurate and up to date. This information plays a big part in your ability to borrow so getting errors corrected is important – and you can do it for free.
Who Can Borrow?
There’s no universal system lenders use to decide who can borrow from them. Lenders’ decisions are based on a number of factors. The ‘perfect’ customer for one may be rejected by another. However, f you are turned down, the lender should always tell you why, if you ask them. If you are worried that you might be rejected it is possible to improve your chance of a successful application.
Questions About MYJAR Short-term Loans
If you have any questions or queries regarding the MYJAR application process for our short-term loans, our staff are available on the phone, on 020 3006 2000, to speak to you seven days a week. Alternatively you can contact us by e-mail or live chat. We are here to support you in obtaining the money you need in a responsible manner.
This article was brought to you by MYJAR. We're an award-winning direct lender, committed to providing clear, simple and responsible loans when our customers need us. If you need some assistance to meet an urgent financial requirement on either a short or long term basis, APPLY NOW for one of our loans.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk