I've been there and done it... and wear the t-shirt! I have been in an unstable marriage, now divorced; the main reason for the split was our terrible finances. You tend to see the true colours of your closest partner when the troubles start flooding in. Nonetheless that's all in the past and I'm not one for dwelling on negatives. When the going gets tough the tough get going!
First and foremost allow me to explain the mindset you need to get into before you follow the path of getting another loan or mortgage.
As a Loan Broker you can give people a way out of their troubles, but if they are in the wrong mindset then as a broker you're going to struggle. Sometimes I've only asked for a utility bill and the couple sat in front of me have thrown a wobbly and said, "It's impossible to get a loan," stood up and stormed out of my office.
So as a broker you need to be aware that many people who've searched for loans are desperate people; or if not desperate, frustrated for sure. So first we need to empathize; that is to understand their mood and emotional insecurity.
If someone started talking to me about astronomy, much, if not most would go over my head and I wouldn't understand too much about what was being said. Consequently, a ten minute conversation on astronomy would be ten minutes of nothingness (excuse the pun...).
So if we draw a parallel to that of astronomy, us as loan brokers, must be aware that the jargon we speak when we're trying to offer a loan to the 'frustrated client' confuses the issue and makes the potential customer do a runner.
So if you are reading this as a broker or as a person that has previously been turned down for a loan, you may have nodded at a few of the examples I've given above.
No doubt you already have a few loans and a few credit cards and as such have notched up a bad credit rating. The loan you need may be half towards a new extension on your house and the other half to clear off a few of your debts. There may be a 1001 scenarios of this principle, but generally up to half of your intended loan is to clear off previous debts.
As you look at your incoming wage, you will be certain of your ability to pay off a new loan. Perhaps as you read this article you may have already been turned down for a loan. So the emotions that surround that are devastating.
But don't get disheartened, there are answers. Allow me to explain another truth about the loan and mortgage loan market. There is always someone willing to loan you money. The rate for that loan will get increasingly higher the more the risk is for the lender. But the loans are available.
If you were the perfect customer, had a sweaky clean credit rating, then you will get a very good interest rate on your loan or mortgage. As the risk factor for the loan company will be very low. As that risk increases the interest rate increases. A sad fact... but nonetheless a truth.
So with that said... there will be a tailor-made loan or mortgage waiting for you; but you may have to accept the slighter higher interest rate.
Some loan brokers don't deal with higher risk loans and almost look down their nose at your application. Such loan brokers live in an unreal world and as such may wonder why they are having to shut down their offices through lack of trade.
Allow me to give a brief example of how this system works. If you wanted to buy a car, let's say a Rolls Royce, there is a likelihood that your credit rating is good. But if you wanted to buy a car at the cheaper end of the scale, the retail garages have had to adjust there policy to include loan brokers that cater for a higher risk loan. This is through necessity, but proof that loans are possible for any credit rating.
So we have discussed being negative, but understood that negativity surrounds a lack of knowledge. Once you can understand how things tick and work then you can understand the probabilities available.
So there is a loan for everyone, but the interest rate increases with the degree of risk the loan company calculates.
For us to understand further our chances of a good interest rate we must know our credit rating. Type into Google, Yahoo or MSN - Free Credit Rating - the US has several who'll do this, but in the UK you have to pay a small fee.
If you want to work at improving your credit rating, so that your interest rate improves, then you'll need to research ways off the internet.
Alternatively try the search term 'improve my credit rating' in your favourite search engine. To improve your credit rating may take up and beyond a month to do, but the work involved will be well worth it.
Discharging bankruptcy and foreclosures are important, should you have had them in your recent past.
Should you have evidence of late payments on your credit report, then these can be fixed but doing so takes a few weeks to resolve. Again either agencies or do-it-yourself methods can help in improving your credit ratings. Don't forget to search for the words 'improve my credit rating' or visit the site mentioned above.
This article should not be construed as an advertisement to lend. These are the steps that I go through when trying to pre-qualify a client that has credit problems. There are many more factors to determine so please discuss this with a qualified mortgage or loan professional.
Mr. P. Booker
Internet Expert, Businessman, Internet Philosopher
Consolidate-Debts-Today.co.uk
Finance 
