10 Ways to Bridge the Small Loan Gap

If you are struggling to get a bank to give you a loan or a bond there are ways that you can fix this. Remember that the banks are not the only way in which you can obtain a loan. Wizard Personal Loans can have a close look at what you need but remember that the best qualifier for a loan or a bond is by building up a good credit record.

Here are ten ways to bridge the small loan gap

•    If you are a freelance worker all that the banks or lenders want to know is whether you are able to repay your loan.
•    This is one of the main reasons why loans are often not granted – your average expenses and income over a six month period or over a year will be assessed to make this decision.
•    If you are a commission earner or you are a freelancer, lenders will take an average of earnings.
•    This is one way that the customer will be given a fair chance to meet repayments.
•    A more conservative approach is always chosen so that borrowers will be able to repay their loans.
•    Start building up a good credit record right away  – the office of the credit ombud suggests opening up a couple of small accounts and paying these off on a regular basis – this is a good way to start repairing your credit record.
•    Start with an account or perhaps credit card, a store card or even a cell phone account.
•    Many cell phone providers give the credit bureaus their clients’ payment records.
•    Banks are providing 100% bonds once again but with varying conditions.
•    There is no formal requirement for applicants to have a credit record in order to qualify for a loan but if you do not have any solid references from other credit providers, this could put you at a disadvantage.

Interest rates are the lowest they have been in 37 years so you are unlikely to get a loan at a rate much lower than prime, and if you are really lucky you may still be granted a rare fractionally less than prime rate.