The main keys that determine whether you’ll be approved for a loan or not

The personal loan can help you get rid of many financial issues that you are facing in your life. You can also use this loan to accomplish several missions of your life but getting approved for a personal loan is a tedious task. The reason why most of the people do not get approved for a loan is that the banks use a very strict method to determine whether they should approve the loan or not.

There are several important elements that banks count when taking a look at your loan application. You may also take a visit to loan broking website to analyze your income and expense to determine whether you will be approved for the loan or not. It is extremely important that you prepare your case in a very strong way before submitting your application because it may help you get approved for the loan.

Here are the main keys that will help you determine whether you will be approved for a loan or not.

Credit Score

The credit score is the most important thing that all the banks look for when making a decision about approving the loan of a person. So, you must check your credit score before applying for the loan because your bad credit score would make it difficult for you to get approved for the loan. Most of the banks do not approve the loan for the people that have a bad credit score.

However, some banks would agree to approve your loan application but they will put very strict terms and conditions on your case which means that you will have to pay a higher interest rate to be eligible for the loan.

Current Income and Expenses

The current income and expense also put a serious impact on your loan application. Lenders would take a look at your mortgages, car loans, and credit cards even if you are making sufficient amount of money. Your child support, alimony, and monthly bills are the other elements that lender may look for before approving the loan application.

If your debt-to-income ratio exceeds from 43%, then it means that your application would probably be disqualified because lenders do not like the more than 43% percent DTI ratio.

Repayment history

Your loan repayment history and credit history are the other important elements that lenders may look for before approving your loan. Your loan eligibility would definitely be affected if you have a large number of unpaid debts on your list. You may ask the creditor to remove the late payment records by setting up a payment plan with them.

5 things to know before hiring an accountant

Accounting is an art that brilliantly represents the financial situation of an entire company in a few figures. For an investor, a manager or a partner, the most important thing to consider about a business is financial reports, which are prepared after a complete accounting record. Hiring a good accountant is crucial if you want your business to prosper financially. Having adequate accounting support also ensures that you continue to comply with laws and regulations, thus avoiding problems in the future. But with so many accountants and accounting firms in the current world, how do you choose the right one? Below are some of the 5 things to know before hiring an accountant

1. Check your accreditation.

Make sure the accountant you have chosen has qualified through the Chartered Accountants Association or the Institute of Chartered Accountants. These are the leading accounting agencies in the UK.  Atkinsons, accountants in Brighton are supposed to be some of the best in the business.  Members must be held accountable for professional misconduct, which means they will get a degree of protection if things go wrong.

2. Ask if they are specializing in your industry.

Some of top accounting firms focus on certain sectors, such as doctors and health, real estate, retail, technology, and so on. Some accountants specialize in helping small businesses, while others only accept multinational clients. Choose an accountant who has many years of experience in your industry and helps clients in the same boat as you.

3. Find out about their fees.

How much do they charge? Are the rates fixed or do they have an hourly rate? Choose an accounting firm with a simple, fair and transparent rate structure. It is better to work with a company that offers fixed rates, so you know exactly what services you are receiving, and at what price. A good accountant will offer fixed rates for some work and will never do anything that involves a free bonus without asking for approval. This way, you will not receive a surprise bill at the end of the year.

4. Talk to your team and evaluate if you feel comfortable with them.

It is important that you like your attitude and how they work. After all, they will advise you on money, and you should be able to trust them while you feel comfortable enough, to be honest about your business finances. Trust your instincts You want to work with an accountant with whom you click.

5. Check how responsive they are.

A good accountant will talk to you regularly, not just once a year when tax returns come due. It’s a good approach to hire an accounting company to get help even if your chief accountant takes a break.