Tips For A Successful Credit Interview

A credit interview is an interview that is conducted with a bank advisor before applying for a loan. At this meeting, the applicants explain their credit requirements and their financial situation. The bank decides on the granting of the loan on the basis of the financial conditions and the impression left behind by the future borrower. Here are some tips from personal loan moneylender in singapore to know more about loan policies.

Whoever goes into a credit discussion should pay attention to his appearance and consistently give honest information about his financial situation. Credit talks are usually conducted before larger financings. Smaller consumer loans or car loans can often be applied for and approved without such a bank meeting.

Find out here how you can optimally prepare for a credit interview – our five tips will help you.

Applicants should never go into a credit interview unprepared. The more precisely you know in advance how high your credit requirements are and how you envisage debt repayment, the better the conditions for a successful discussion with the bank will be.

Drawing up your financial plan in advance

Before taking out a loan, think carefully about how high your actual credit requirement should be. The more long-term the loan is, the more precisely you should determine the loan amount. Sometimes it may be advisable to set the loan slightly higher, because subsequent increases are usually more difficult to achieve, depending on the loan amount.

When choosing the term, consider the life of the financed item. The life span of the object should exceed the credit period in any case. For example: For real estate financing, a term of more than 25 years can be useful, for the financing of a middle class car you should plan a maximum of 8 years.

Regular expenditure and maximum installment amount

In your financial plan, you should also specify your regular expenses so that you can determine a possible installment amount for the repayment. Think of a buffer for unforeseen expenses in your financial plan. It would not be an advantage for you if the financing is so tight that you can no longer service your installments, for example because you had to buy a new washing machine.

Check modalities in advance

Find out on the Internet whether your bank uses certain modalities when granting credit. Does the bank charge certain fees for the granting of credit? How long is the fixed-interest period? How high are the interest rates in general? Do you already meet all the basic requirements for a loan from this bank? You can answer these and other questions in advance so that you are well prepared for the credit interview. For example, in our credit comparison you can check whether your bank is represented here – and which conditions are mentioned here.

Reduce fixed expenses in the long term

For the granting of credit, the amount of your monthly fixed expenses is of decisive importance. If you have the option of ending possible repayments earlier or reducing other fixed costs long before the bank date, you should do so. The more money you have available each month, the more stable you can plan your installment repayment with the bank.

Positive impression in credit talks

The first impression is also important when talking to a bank. You should therefore pay attention to proper clothing. It is not about a certain dress code, but about a good impression! It is recommended that you choose a well-groomed wardrobe in which you feel comfortable. It would be counterproductive if you only “dress up” for your bank appointment, because then you could quickly appear insecure.

It is important, however, that you appear polite and confident at the same time. Show your counterpart that you are confident in your cause and an equal partner. If you have also prepared well, you have already made an important contribution to a good overall impression.

Avoid being arrogant or rude at all costs. It would also be wrong to act submissively or without dignity.

Sympathy also plays a role

Remember that you are having a credit talk with a person. Sympathy is usually a not insignificant factor for the success of a business. But it can also be good for you if the bank advisor is sympathetic to you. This makes it easier for you to talk about your financial wishes or your financial situation without having to pretend.

What can I do in case of rejection?

After a rejection, you can ask the bank why your loan application was rejected. If your creditworthiness is not sufficient, you can work on it in the medium term and, for example, repay current loans more quickly and submit the loan application again at a later date. If your income is not sufficient, you can look for alternatives to earn more income. For example, the self-employed can accept more orders or raise their hourly wages.

However, it is not advisable to ask the bank why they did not want to give you credit. Once your application has been examined and rejected, there is usually no room for negotiation. If the rejection is due to too high a loan amount, you may be able to use another meeting to discuss the new situation together. Do lenders also offer a “smaller” loan of their own accord.

Depending on the loan amount, it is possible to spread the desired loan amount over several loans with different terms at different banks. In this way consumers would have even the chance to repay their loan still more flexibly than with a large credit with a bank.

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