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New to the loan process and need some advice? No problem. As your partner in banking, we’re offering tips for loan approval, establishing credit, and knowing what to do if you get turned down. Our staff is always available if you should have any additional questions.
Approval Tips
Not every loan application results in a loan. Two things you can do to improve the chances of getting your loan are having a clean credit report and borrowing within your means.
It’s a good idea to check your credit report annually. Why? Inaccurate information can appear on your report and harm your chances of getting the loan or rate you deserve.
All banks use debt ratios when processing loan applications. As a rule, your debt to income ratio should not exceed 40%. That means that if you earn $2,000 a month, you probably won’t be approved for a loan that pushes your total monthly loan payments over $800. Click here to use our qualification tool.
Establishing Credit
In many ways, good credit is like a good job. It's hard to get it if you don't already have it. Plus, you usually have to start small and pay your dues over time. If you've never had a loan before but plan to make a major purchase soon, here are some things you can do to help you qualify for your loan.
- Work your way up. The next time you're offered a store card by a local or national merchant, go ahead and get it. Pay your bill off promptly and you'll be more likely to qualify for a credit card. Using a credit card responsibly makes you more qualified for a car loan.
- Use a co-signer. If you can find someone to co-sign the loan with you, the loan application will be considered based on the credit of both of you. The co-signer must be willing and able to assume responsibility for the loan if you are unable to make your payments.
- Put cash down. If you are buying a car and are able to put at least a third of the money down in cash, your chances of getting a loan for the rest of it are better.
What to do if You're Turned Down
If you’re turned down for a loan, take the time to discuss the decision with your loan officer. It's likely we can give you advice on how to improve your chances in the future. Keep in mind, anyone who is turned down for a loan has the right to a copy of the credit report used in making that decision. Request a copy from your loan officer, go over the report with us, and let us help you back on the road to good credit.
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