by Toby Farley

Created on: June 05, 2009

As a possible borrower you need to first ask yourself whether or not you believe you can afford making a payment? Let's face it, if you don't believe you can repay those lending you money neither will they. Start by making a list of all of your debts, in other words who do you currently pay money to each and every month. Add each of those debts together and divide by how much money you have coming into your household each and every month. Depending on what type of loan you are looking to acquire lenders will be looking anywhere from 38-50% or less. Let's face it, if you have more than half of your income being spent each and every month on non-necessities you are probably playing with too much of your income and the lenders may deny your loan whether you want the money or not.

Make sure that your credit score(s) are where they "should" be. You credit score is the primary consideration when a lender is making a decision on what interest you deserve from them. Though most lenders vary slightly from one another anyhow, no matter what lender you are looking to get a loan from it will be more beneficial for you to have a higher credit score. Though the national average for credit score is in the high "600's" this does not mean you will automatically get the loan nor does it mean you will receive the top tier rates and terms. There are many websites and services that offer the ability to find your credit score. Be careful, as many of them have "hidden" fees associated with this service. Some in fact will begin to charge you a monthly fee, which if defaulted on can potentially hurt your credit. So again, be careful when looking for your credit score. Your best bet is to ask the lender what they have pulled for your credit score(s) and what tier or level of credit you fall into. While looking at why your credit score is what it is you may begin to feel rather overwhelmed, don't worry you are not alone in this. In my experience there are very few people that can simply sit down and know exactly what is going on in someone's credit report, let alone what or how to raise your score. If this is you, simply ask the individual helping you get the loan to sit and explain your credit report, if they cannot do that go find someone else who can and do your loan with them. Also, keep in mind that there may be some things you can do to raise your credit score(s), though most would be long term lifestyle things like keeping you debts low and ALWAYS paying your bills on time for

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