Looking for the right loan that suits your needs can be a time-consuming process, and even when you decide on the product that’s ideal for you, there’s no guarantee that you will be accepted. The only way to determine whether you can take out a loan or other agreement is to apply. However, being rejected can damage your credit rating, thereby making it even harder to get approved for another loan elsewhere.
The advantages of using a calculator are that it can offer a good idea as to whether you will likely be accepted for a loan, without any negative impact on your credit score. These calculators are quick and easy to use, carrying out a “soft search”, which means that future potential lenders will not see that you have made the enquiry.
There are also tools available for different kinds of lending. For example, Tesco offers a free joint loan eligibility calculator which, like the standard Tesco loan eligibility calculator, asks you just a handful of questions (such as the reason for the loan, how much you plan to borrow, and your preferred repayment period) before calculating how likely you will be to be approved for their financial product. Likewise, a home loan eligibility calculator in the UK provides a useful insight into the affordability of mortgages.
When you are thinking about taking out a loan, work out how much you can afford to repay each month. After all, failing to make the agreed repayments on your loan can have significant repercussions, ranging from negative effects on your credit record, through to putting your home at risk. There are loan affordability tools available that can help you to work out exactly what you can afford to pay, such as this free calculator from Citizens Advice
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