When we go to the bank forDebt Management Services such as a loan we are in a way analyzed using a computer system. The bank needs to determine how risky is for them to lend us money. According to this risk we are given a score number that will determine how well is the deal that we are going to be offered.
What they basically see is what your income is per month and what existing financial obligations you have in order to calculate what the amount of money that you are left with after paying all your commitments is. What you have to do is to find the way to make this amount as bigger as possible because this will mean that you have enough money to pay a bigger installment with a lower interest rate.
If you have a partner and live together you can declare being a couple to the bank so the Debt Management Services department can assess you both and consider both incomes. If the bank doesn’t have enough information of what your real income is you can submit documentation for consideration. Some banks can even ask you for these papers before you even suggest it. You can also ask your work for recommendation and presentation letters that can support evidence of the time you have been working for the company and the amount perceived monthly
If you have credit cards that you don’t use or where you own very little it is advisable that you close the accounts because this will decrease the amount considered as your commitments. Later if you know you will need the cards you can always reapply for them before the loan is registered in the system.Take into account that you need to wait up to a week until a credit card disappears from the system after you have cancelled it.