5 Things Pensioners Applying for a Loan Should Remember

Are you a pensioner applying for a loan? Here are 5 things you should remember

As a pensioner, applying for loans and finance can be problematic. Some of the best deals in the market may be unavailable to you because you do not meet the ideal criteria that lenders look for. For example, because of your situation you may no longer be able to generate income. To make up for this, you need to make sure that other aspects of your loan application are presented strongly to allow you to obtain the loan most suited to you.

Your age may make you a credit risk

In general, the main thing that lenders consider when reviewing a credit application is risk. Your credit history, income and age may all point to you being a high credit risk and lenders may consequently decline your application. Because of these factors, senior citizens and pensioners may experience greater difficulty in obtaining a loan. However, if you can show that you are able to service your loan for the duration of the term, or even prepay the interest, you still have a good chance of succeeding in your application.

You need to demonstrate loan serviceability in your application

Regardless of your age and employment status, the main thing you need to show is that you can actually pay back the loan you wish to take out. If the lender decides that you will have no difficulty making the scheduled repayments for the term of the loan, you will probably be successful in your application. Any information you can provide regarding your assets and income will obviously be relevant.

Being an existing homeowner may help your situation

Even if you have strong income as a pensioner, a number of factors such as illness or hospitalisation may affect that income and lead to financial difficulty. If you are a homeowner, you may be able to access any funds or equity in your property to secure the loan and convince the lender that you can meet the proposed repayments for the term of the loan.

Non-standard loan facilities may be difficult to obtain

Line of credit mortgages, some long-term fixed-rate mortgages and mortgages that offer payment breaks are all innovations that have appeared in the mortgage market in recent years. Unfortunately, many of these mortgages may be unavailable to pensioners. Lines of credit, for example, which allow the homeowner to take equity out of his or her home, present greater risk to a money lender because of their potential to extend the loan period and create more opportunity for default. Because pensioners may already be considered high risk, it is unlikely that these financial products will be available.

You may be required to apply for loan insurance

Depending on your circumstances, you may wish to obtain loan insurance. This ensures that your loan repayments are met in the event of involuntary unemployment, injury or death. Although the premium may be higher than average due to your status as a pensioner, a lender may nevertheless require you to obtain loan insurance before approving your application.

Nick Cameron is a writer for Australian Debt Reduction which is part of Australia's largest Debt Relief organisation and has assisted more than 10,000 Australian's reduce their debt. You can read more articles and find out more about how to reduce your own debt at http://www.australian-debt-reduction.com.au or by calling 1300 306 272 from within Australia.


Free Quran in All Languages

Free Tafsir Books

What are Home Improvement Loans?

Home improvement loans are loans specifically designed by loans companies... Read More

A Brief Look At Various Types of Loans Available

A Brief Look At Loans "Innovative financial packaging" is how... Read More

Where to Look for Bad Credit Loans

When trying to locate bad credit loans, many people find... Read More

Loans for Doctors ? Financial Funding for Healthcare Professionals

The revolution that has affected everyone's financing technique is online... Read More

A Guide to Finding Inexpensive Direct Loans

For those individuals who are looking for fast and inexpensive... Read More

What is a Secured Personal Loan?

A secured personal loan is the generic term for a... Read More

All About Bad Credit Secured Loans

Bad credit secured loans are a relatively recent addition to... Read More

Law Practice Finance

How do you finance a growing practice? It is impossible... Read More

Finding the Right Online Loan for You

If you're looking for an online loan, you might be... Read More

Cash Loans for Unemployed ? for an Instantaneous Response to Needs of the Unemployed

Unemployment is generally supplemented with several other vices like poverty... Read More

Title Loans - Get More of the Title to Your Vehicle

Title loans have the same features as a secured loan,... Read More

Are You Ready for Your Students Student Loans?

Your son or daughter is a high school senior and... Read More

What is the Difference Between an Unsecured Personal Loan and a Secured Personal Loan?

This is a common question that many consumers have. Many... Read More

Many People Have Realized the Convenience and Benefits of Online Personal Loans

The Internet has provided a whole new dimension to obtaining... Read More

Benefits of a Bridging Loan

A bridging loan has many benefits, some of which are... Read More

Filling Out The Loan Application

1. Property information. The application begins with a section on... Read More

Bridging the Gap ? through Bridging Loans

You were on your regular walk with your wife, and... Read More

Guide to Personal Secured Loans

Here is a useful guide to personal secured loans. A... Read More

Secured Loans - UK Overview

Borrowing money has become more and more popular in the... Read More

Five Things To Check Out When You Apply For a Payday Loan

Are you thinking of going in for a payday loan... Read More

Loans For Unemployed - when your personal economy slumps during difficult times

The latest IDS figures for unemployment the claimant count measure... Read More

Instant Cash Advance Loans - Take Advantage of The Convenience of The Payday Loans Available Online

Cash advance loans not only provide you with instant cash,... Read More

Payday loan: A Complete overview

From different surveys, it is seen that the number of... Read More

What is a Bridging Loan?

A bridging loan as the name implies is a loan... Read More

A Beginners Guide to Online Loans

If you're just beginning to look at online loans, you... Read More

Loan

 
The Web globalinx.ca