Applying for a Loan
Applying for a personal loan is a relatively simple process: there are many providers who offer a loan application service online, so an initial application can be completed within just a few minutes. You can also make a direct call to a lender, or go into a high street branch of a lending institution for a personal consultation and receive a same-day decision. Remember however, that these consultations are often with representatives of the bank or building society who are aiming to sell the loan to you, and therefore the advice you receive will not always be designed to meet your best interests.
It is important that you take your time when making a loan application, and make sure that you read all of the small print and literature associated with the loan before making a final decision. Many institutions offer 'no obligation' loan quotations which, although useful, should not be requested from too many lenders, because each one may require a separate credit report check. Any institution to whom you make a loan application has access to your credit file and will use it to predict whether or not you are likely to be a reliable debtor.
Your credit file lists not only your personal details, but also details of past borrowing and other credit checks. Too many credit checks on your report may make you appear desperate for financing and discourage potential lenders, or may encourage lenders to question why you have been rejected for finance (or have not accepted loan offers) elsewhere. It could also have a negative effect on your credit score, see Credit Scoring.
For more details on loan application, see also:
