1: A Guide map to Becoming Banker’s Ideal from that guy who cannot get Loans!

Problem getting Credit? Here is how you can solve it!
Money is a necessary evil! Wants turn into Needs the moment you have some of this M – word. Banks have relished this and showered us with numerous financing wonders to help us turn a want into a desirable need. However, by doing so, they have created a category of people like us who want everything under the sun but have bad credit scoring. Here are some tips to solve all your credit problems you foresee!

Let us first understand how does a credit score works. Credit scoring models are complex variable factors having variable effects. The best people talking about this would be your creditor. Nevertheless, scoring models generally follow the following types of information in your credit report:

• Do you pay your bills on time?
• What is the outstanding debt you have?
• How long is your track record? The longer the better!
• Have you applied for new credit recently? The lesser the better!
• How many and what types of credit accounts do you have? More is good many are not good.
  

Scoring Models generally also focus on your current job or occupation. The length of employment and immovable assets like home that you own. Although every financing company has their own criteria for credit scoring, it is these generalized points that they generally are based on. This system was created to impartially make fast and accurate decisions on lending money to many people at a time. The reliability of such models hence reduces. Hence, there is a tendency to let people having low credit rating even get a hearing in front of the credit manager for further discussion and negotiation. Now, the credit manager will be looking for the following questions answered:

• Do you have an existing source of recurring income through an existing business? Is the income sufficient to make the loan payments?
• If you are new at business, what has been your experience in the business? Was it a profiteering one?
• Do you own enough financial reserves and personal collateral sufficient to solve the unexpected problems and fluctuations that affect all business?

I know you must be thinking if I was the above why would I need a loan! Well, that is where you are wrong. The credit manager is looking for a close match of the above. Remember the bank needs to stay in business too. To do so, they must lend to at least some people whose creditworthiness is less than perfect.
I know you have a gut feeling that you too can slip through the cracks I am pointing too. You can too qualify! The only thing you need to do is SHOW THE BANKER WHAT HE WANTS TO SEE! Become that Banker’s ideal customer.

Banker’s best bet looks like:

• Person who has worked on a managerial level for a year or two of a successful business in the same field as the proposed business. Remember same business, different fields but good profits will not work. If you have to start this change, make sure you hire people with strong marketing background of the preferred business, to makeup for the lack of experience.
• Person having a good location, a sound business plan, and a little capital.
  

And WALLA! You will get your loan!

To conclude, please remember:

• Keep the Banker’s model in mind when making a Decision.
• Be skeptical to counter the optimism you have achieved.
• Be READY for questions like; what makes you think you can succeed in this business? If you are not ready to answer such questions, you are in deep trouble.