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Are you trying to get a new loan or attempting to refinance an exisiting one and are finding it very difficult due to your poor credit score? You can take heart in the fact that there are lenders out there that can accomodate you. You just have to know where to find them. The internet is a great place to start as you can search a large number of lenders very quickly and narrow them down to the ones that offer the best rates. In this article I will share a few tips to help you get approved for the best loans.

Think About A Co-Signer

The better your credit score, the better your rates. So if you don’t have great credit, look for someone who does. By having them co-sign for your loan, you can find yourself qualifying for much better rates. Lenders look at your co-signers record, but you pay for the loan.

If you are married, use the best score to apply for a loan. You can research which partner has the best score online.

Make Sure you Update Your Credit Report

While you can’t change your credit report overnight, you can be sure it is in the best condition possible. Take a few minutes to review your free copy and make sure all information has been updated. You may also want to include an open letter explaining any reasons for your bad credit score. Mitigating factors, such as a job loss or illness, are sometimes considered by lenders.

Rid Yourself of Old Debt and Hang on to Cash Assets

Lenders take other factors into account when look at a loan application. These factors include the amount of existing debt you may be carrying and the amount of cash assets you have. Low debt looks better, especially if you are a high earner.

Lenders look for what cash assets you may have when considering you for a loan. This may be in the form of savings or money market. You should aim to have a least six months of cash reserves.

Do Not Give False Information

It really isn’t difficult to get approved for a loan, but the rate you get will vary greatly with the information you give on your application. Tell the truth and you will get approved for the rate quoted.

Different lenders charge different rates. Take a little time wihle searching online and you will find favourable rates, even if you have bad credit.