Home » Finance » Loans

What are the Factors in How Much I Can Borrow in Overnight Loans?

May 23, 2008
Have you ever applied for a loan and wondered how the lender decides your approval? Most people don't realize how many factors affect their loan approval process.

Let's first uncover the many things that affect your loan approval. One major factor is your payment history. Lenders have the ability to look at your previous payment history.

Your payment history is simply what it says it is, a history of your payments. This can include everything from utility bills to credit card statements. They will look at whether you choose to pay your bills on time or not. They will also consider if you have failed to pay an outstanding debt.

They will decide if you are a trustworthy borrower by how you have paid your bills, loan payments, and credit card payments in the past. If you are considering applying for a loan and your payment history is out of line, you might consider waiting a few months and cleaning up your act.

Banks, credit unions, and other financial institutions won't lend money to people if they don't think they will get paid back. They want to see your good history of being financially responsible for your bills and debts.

This accounts for approximately 35 percent of FICO score, or your credit score, which has a major role on your approval. Lenders also want to see a long credit history with financial institutions. This means that you should never close that first account.

Lenders will want to see that you have worked with money and debt in the past and have handled it well, or have paid it off in full. If you don't have established credit, it might be something to look into. Consider getting your utilities or phone bill put in your name.

Make sure you pay your bills on time and your credit rating will be fine. You wouldn't want to ruin your credit just as you are beginning it. It is much easier to damage your credit than it is to repair it.

Another major factor to your loan approval is your outstanding debt. Lenders don't like to see you filled up to the brim with debt.

There is a certain income to debt ratio that lenders like to see. They like to see enough available income to cover the monthly expense of the new loan.

Another thing lenders must consider is not only your loan approval, but the loan amount. Lenders will look at your current and past income. Most lenders will require both your current pay stubs and your tax statements from the previous year.

Lenders will use this information to decide what amount they feel they can loan you. You will need to look at your own income and status and decide if you can take on the monthly payments that the loan amount will bring on.

Always remember that you can get a better loan interest rate with your good credit score. It is important to continually work on improving your credit score so that you can always qualify for that next loan.
About the Author
Mike provides information about getting a signature loan overnight through his website about signature loans overnight.
Rating:
Please Rate:
(Average: Not rated)
Views: 138
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources