If you're thinking of applying for a loan, our comprehensive guide takes you through the process. We'll cover everything you need to know, from the information you need to gather beforehand to how to improve your credit rating, as well as the loan application process itself.
What you will need for your loan application
To complete your loan application, you’ll need to provide some personal details to the lender. This usually includes things like contact details, date of birth and addresses, as well as your employment history. Additionally, lenders may want to know your salary and overall household income, and they may require a breakdown of all income and outgoings for your family. This is generally the case if you’re looking for secured loans, debt consolidation loans or any other type of loan.
If you’re looking at applying for loans, it’s a good idea to gather this information first. Your outgoings should include everything, from big items like your mortgage or rent, travel expenses, to the everyday things like food, childcare and clothing. Income should cover wages, but also any other source of money like benefits, rental income or child support.
Online loan application process
The online loan application process is relatively straightforward, and may be the best way to apply for a loan if you want a broad choice of products.
Your first step should be to use a loan calculator to decide how much you’d like to borrow, over what period, and at what interest rate. This will give you an idea of how much you might expect your monthly repayments to be, giving you the opportunity to look carefully at whether you can afford the loan you want.
If you’re happy with the outcome of the loan calculator and can afford the repayments comfortably, you may want to go ahead and generate a free, no obligation loan quote with Norton. To do this, fill in the online form, letting us know a few personal details. Once we’ve got all the right information, we’ll start searching the full lending market to find the ideal product to meet your specific loan requirements. If you think you’re ready to apply for a loan online, you can start your application with us here.
Tips for putting together a loan application
If you’re looking for advice on putting together your loan application, follow our four tips on applying for a loan.
Make sure all details on your application are accurate
Being careful with the information you put down can help with getting a successful loan application. Even getting a minor detail wrong by accident could lead to your application being unsuccessful. For example, the wrong flat number or an incorrect postcode can raise a red flag for a lender. Take care to be accurate as this shows you to be both careful and responsible.
Build and improve your credit history
When you apply for a loan, the potential lender(s) will review your credit history. They will usually contact one of the large credit check agencies who will then run a check on your personal finances. The credit check agency will be looking for unpaid debts, rent or mortgage arrears or any other issues that might suggest someone could be an irresponsible borrower.
They may also be looking for evidence of well-managed borrowing. Loan applications are far stronger when the person applying has a more positive credit history. Those with little or no credit history may need to build on this. Simple steps such as making sure you’re on the electoral role and paying utilities bills on time can work towards building your history, paving the way for more substantial future borrowing.
Check your credit report
Unfortunately, credit check agencies sometimes hold incorrect information on an individual’s financial history. Before you begin the process of applying for a loan, it’s wise to check your credit report yourself. Errors or omissions regarding, for example, your mortgage repayments, or management of store cards or even car finance, could prevent you obtaining the loan you need.
Don’t apply too often
Of all the loan application tips, this one is too often overlooked. Repeatedly applying for a loan can leave a mark on your credit report. Any rejections show up for future lenders to see, letting them know that their fellow lenders haven’t lent to you in the past.
To counter this, do your research and only submit an application if you know there’s a reasonable chance of success. For those who are currently reviewing their options, Norton Finance can provide a free no-obligation quotes that won’t show up on your credit report.
What happens once my loan application is submitted?
Once your online application is submitted it kick-starts a chain of events. When the lender you’ve chosen has received your application, they’ll begin to look into your credit history. Their objective is to use the information available to decide whether you’re a strong lending prospect. If you have a healthy credit history that shows you can manage debt sensibly, you will have a higher chance of securing the loan.
Once the loan is approved it may take a few hours or a few days for the money to reach your account. When you’ve received it, the money is yours to spend as you wish. From then on, it’s important to stick to the loan repayment schedule until the money is fully repaid.
However, if your loan is not approved, you may choose to try again, applying for a different product. If this is the route you take, remember that any unsuccessful loan applications can weaken your credit rating, so take care to maintain and rebuild your credit score through a series of responsible borrowing options.