When you apply for a personal loan or a mortgage, you want to present yourself as best you can, but this can be challenging if you don’t know what your lender is looking for. SKM credit, which is good at money lending in Toa Payoh, is always trustworthy when it comes to money lending. Although you may already be aware that money lenders typically analyse your credit score when considering whether to collaborate with you, it’s not the only thing they take into account. The following factors affect money lender’s decision to give out loans

Credit

Most lenders examine your credit score and report since it provides them with information about how you handle borrowing money. A bad credit history suggests a higher likelihood of default. Because there’s a danger they might not get what they loaned you back, this drives off many lenders.

Income

Lenders want to be sure that you will be able to repay the money you borrow, therefore they need to see evidence of an adequate and reliable source of income. Depending on how much you borrow, the income criteria change but if you borrow more money, lenders will need to see a larger income to feel sure that you can make the payments.

Size of down payment

Some loans call for a down payment, and the amount you put down will affect how much you must borrow. You won’t need as much bank credit if, for instance, you pay more up front when purchasing a car. You may be able to obtain a loan in some circumstances with little or no down payment, but keep in mind that if you choose this option, your interest costs will be higher over the course of the loan.

Liquid assets

Lenders prefer to know that, in addition to the funds you’re using for your down payment, you have some extra cash in a savings or money trading account or assets that you can quickly convert into cash. They are reassured by this since it shows them that even if you suffer a momentary setback, like losing your work, you will still be able to make your payments until you recover.

Loan term

Over the period of a year or two, it’s feasible that your financial status won’t change all that much, but it’s possible that it will alter a lot over the length of ten or more years. Even though these changes can sometimes be for the better, if they are for the worse, it may be more difficult for you to repay your debt. Since you are more likely to be able to repay the loan soon, lenders will typically feel more at ease offering you money for a shorter term.