If you are looking to get a loan there a few things you can do to make sure you get the best deal you can. As the current economic climate is turbulent, lenders are becoming more stringent in their application processes. Try to make sure you credit record is a clean as it can be so you are more of a likely candidate for a loan.

Make sure you get a copy of your credit record and check that everything is as it should be. This gives you the opportunity to check for any fraudulent activity and to see if all your credit cards and loans have been paid off and cancelled. By checking your credit file you will be able to see what level of risk you present to a lender. If a company is very picky about whom they lend to, you will know whether or not to bother applying to them.

It is important that you do not make full applications when researching which loan is best for you. This is because lenders will do a credit search which affects your credit rating. Multiple credit checks will look to lenders as though you have been turned down for loans before making them less likely to accept your application.

If you are turned down by a lender then find out why before you apply again somewhere else. If there is something you can do about it, then you can before risking another credit search and rejection.

A lender will want proof that you can be responsible with credit. This means paying back a loan you have taken out. If you have never had credit before, you may not receive the best deal as the lender will want evidence of your ability to handle money. The best way to easily show your ability to pay back credit is with a low spending limit on a credit card or a mobile phone contract which you pay back monthly.

A lender will look at your credit card limits, your outstanding loans (credit cards, mortgages etc) and the regularity of your payments before agreeing to accept your application.

The best advice is not to take on more than you can handle. If you are already borrowing a lot of money then instead if borrowing more seek advice from your bank and even counsellors to control your spending. Getting into debt is stressful and worrying and should be avoided when possible. However, if you are able to handle your finances a loan can enable you to do things that were not previously possible.