Length of loan, effect on approval?

jayce777

Hi All,

Just wondering if anyone knows or had any opinion on whether or not the length of loan you apply for has a massive impact on whether or not you are approved. For example if you were financially capable of paying back in 1 year or 5 years and that was not the issue, would the length you applied for still make a difference. I thought perhaps banks prefer getting their money back quicker, especially from someone with poorer credit score. In the past I've settled two bank loans, both time I applied and got approved for 1 year loans so I feel abit nervous applying for a 3-4 year length.

thanks.

StuC75

Some Lenders limit loan periods based upon purpose of the loan. Some charge different rates based on the amount borrowed. Many mix the two together - e.g. In some cases can be cheaper to Borrow More money over a different term.

really it comes down to Credit Scoring & Affordability 'logic' - e.g. Basic Income & Expenditure check shows disposable income amount , and whether feasible to commit that money to loan payment over the term.

jayce777

thanks. I did get a better APR quote on NBS based on longer term but I'm still cynical about whether I'll be approved. I know they're not abliged to approve me even if I meet the logical criteria.