Not too many years ago an appointment with the branch manager would be needed to discuss your loan. You’d sit down and explain your situation. The manager (hopefully you want them to be an ally) would consider your request, complete a few documents and you would often have the funds in your account before you left. If the bank manager didn’t like you, or had a negative perception about you or your financial situation you probably would find yourself on the street still looking for the loan.

Banks have taken major strides to bridge this gap over the past 10 years. They have diversity focused mandates to eliminate prejudicial lending decisions, and centralized approval offices to further displace the decision-maker from the client to help eliminate these types of conclusions, and possible discrimination. Most banks are in a marathon to brand themselves as trustworthy advisors, ready to serve you as quickly as possible without compromising your privacy. They truly want to replace the slogan “It’s who you know,” with, “It’s what bank you know.” They prefer to be identified as a lean machine with a great team rather than a few good people working for a company who genuinely want to help you.

Because of this focus by the major banks, coupled with consideration to serve their clients more efficiently and cost effectively, the centralized approval process was developed and continues to be fine tuned as the new century evolves. There are a few facts we need to accept when applying for money in this modern age of lending:

One) It doesn’t matter what branch you apply at. Most of the big banks have their branches send loan applications to the same place for review and approvals. If you don’t like the decision the first branch gave you and you think you’ll go to another one of your banks branches to reapply successfully, you’re mistaken. The second application would be routed through the same approval judgment process; possibly even to the same person who would have concerns as to why you are reapplying with another branch. You are able to, however, apply at a completely different bank with a fresh start, as they may not have a file on you.

Two) Going prepared means you have a better understanding of your own needs, and how to best present them to the bank. Lenders value a prepared applicant as it saves them time, gives them greater credibility and they will find they are in a position to represent your needs clearly to their centralized approval center.

Three) because centralized approval centers exist, built around an electronic application delivery process, heavy emphasis is placed on the results of your credit Bureau report. It should be your priority to review all the reports available on your, and confirmed the information is in fact about you, and is accurate before you apply for a loan.

Now that we accept banking isn’t as much about who you know as it is what they know about you that influences the approval process, let’s consider for a moment that we have a greater influence now than we ever have before or the information they review to determine approvals. We have discovered that debt servicing and our credit bureaus pretty much account for the majority of their decision. If we have the cash available to service the monthly loan payments, and we’re not exceeding the cap TDS and GDS ratios we’re almost there! All we have to do is ensure our repayment history with other creditors is consistently satisfactory, or have a good reason as to why it fails the test.

If nothing else remember this about borrowing money

Remember one simple fact over all others: your credit Bureau report is a reflection of your payment habits. It is this financial fingerprint that can’t be rubbed out just with wishful thinking. Keep your credit profile information current, accurate and clean of any negative items at all times.

Use only enough credit to serve your needs, no more. Stay away from applying for credit cards that you don’t need, and regularly review your credit report at least once a year to ensure it remains accurate and up-to-date each year. This is a must do before you apply for a loan. This practice of continually maintaining the perception of how you are seen is in your direct control as is the information contained on your credit report. Your credit Bureau report provides a lot of credit decision for your application, and could be the strongest influence affecting your success or failure in getting approved.