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LOAN APPLICATION TACTICS
The following information is absolutely vital if you are going to collect lots of credit cards to use for investing purposes. About 75% of all submitted credit applications are turned down because the applications are not completed and correct. When you submit a credit or loan application they grade them as if it was a written test. Each line gets a certain number of points. The loan officer just adds them up to determine if you pass or fail. As long as you take care of your credit accounts in the proper manner and make payments on time you will not have problems with the banks. But it is still a good idea to have your application get as many points as possible. The idea is not to blatantly lie but rather to stretch the truth as thinly as possible. The reason for this is because the point system is way too strict. You need to ensure your approval any way you can. Here is a list of tactics that if employed properly will triple the points that you can get on an application. This list assumes that you are applying for an unsecured major credit card. However, these tricks work well on any credit or loan situation.
- You need to find out which credit bureau the bank uses and get a copy of your credit report. This is something you should have already done. Make sure to have removed as many derogatory items as possible. Also remove all the enquiries that did not result in the creation of credit or a credit card before you apply.
- Pick a bank that is promoting for business. These banks are usually the most lenient.
- If you have a telephone listed in your name then great. Get an answering machine and have it on line always. If you do not have a telephone in your home then you need to get one in.
- While filling out the application, match your credit picture to the banks minimum requirements if you know what they are.
- If you can, type your application. Typing gives yourapplication the appearance of perfection. This is important. If you cannot type it be sure to print very, very neatly.
- Make sure you have both, personal savings and a check account.
- Go for a low credit limit of say $1000 to $1500 and let them offer you more.
- Never put a previous address on an application. Have your application suggest you have been at your current address for at least twoyears, if not more.
- Never imply that you are self employed. If you are then just say who you work for even if it is your company.
- Debt to income ratio; this basicly means how much of your income is spent each month. This can be no more than half of what you earn. eg if you make $1800 a month then your debts can be no more than $900. This is very important, the more income you show that you have to spend the better the chances are for approval. You may have to do some figuring with your budget to make this work out.
- Never volunteer or admit to having a job for less than one year. This one thing could ruin your approval chances all by itself.
- Make your income figure as high as possible without getting too carried away.
- Give yourself the best sounding job title that you can think of. The more professional it sounds the better.
- List as few dependents as possible. No more than three.
- List your credit references that appear on your credit bureau file. This way they match up with the ones on your application. Also, add any credit cards or bank loans that are not listed and are in good standing to your credit report.
These fifteen tips will definitely help in getting your next application approved.
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