Before applying for any type of quick loans (Payday Loans, unsecured loans or homeowner loans) or mortgages many people worry about their ability to be approved finance. Many of these worries are completely without reason and need not be a concern.
A typical cause of concern is that someone may have a loan or credit card where they owe a lot of money. Is this "bad debt"? For many lenders and banks this would not be considered bad debt. It really depends on how the accounts have been conducted – in other words whether there are any Before applying for any type of loan (payday loans, unsecured loans or homeowner loans) or mortgages many people worry about their ability to be approved finance. Many of these worries are completely without reason and need not be a concern.
A typical cause of concern is that someone may have a loan or credit card where they owe a lot of money. Is this "bad debt"? For many lenders and banks this would not be considered bad debt. It really depends on how the accounts have been conducted – in other words whether there are any payments that have been missed. If there have not then this should not play a large influence on whether you will be declined or rejected. It is worth remembering that if you have a significant amount of debt then a lender may deem that you cannot afford new finance – this always had to be considered.
Another cause of concern is that someone does not have any credit at all – they therefore do not owe anything on any loans or credit cards. Is this considered "bad debt"? It is true that occasions have occurred where people have been refused store cards or mobile phone contracts because of a "lack of credit history." When applying for a loan or mortgage this is less of an issue. However, some people do advise that to get over this issue it might be worth applying for a credit card and simply never using it. Remember though that it is better to have no debt at all than to have debt with missed payments on it.
