Creditworthy

• Don't expect to qualify for a loan with serious credit issues on your credit report. Lenders may excuse past credit problems such as late payments, bankruptcy and foreclosures with the passage of time, but only if you've improved your credit since the reporting of this information. If you recently lost your home, filed bankruptcy or presently miss or skip payments, a lender will likely reject your application because you're not a desirable loan candidate. Check your reports using the Annual Credit Report website and improve your history first.
  
  

Truthful Information

• Falsifying information on a loan application to try to improve your likelihood of getting an approval can backfire. Lenders are known to verify and check all information submitted by borrowers. They may contact your employer, ask for tax returns, confirm your salary and review your other debts. Provide accurate information regarding your debts, assets and income.
  
  

Prepare Collateral

• Even with a high credit score, your lender may require collateral before approving your loan application. Lenders vary, and some do offer unsecured loans, which typically include a higher interest rate. If you can't get an unsecured loan, plan to provide a car title or use your personal savings account as collateral. Lenders may consider other forms of security such as jewelry, electronics and home equity.
  
  

Shop for Loans

• Whether you're applying for a mortgage, car loan or personal loan, always talk with numerous lenders. Loans vary, and lenders issue different interest rates on loans. Acquiring a low-rate loan helps keep your monthly payment low and reduces the interest you pay over the loan term. Get a free quote from banks and credit unions, or work with a loan broker
  
  

Affordability

• Lower your default risk by only borrowing what you can afford. Lenders can provide monthly payment estimates based on how much you want to borrow. Ask a lender to run the numbers, and if you can't afford the payment on a specific amount, take out a smaller loan.