When borrowing money or taking loans from the bank, each bank has their own approval rules and regulations. Some bank can give loan easily and some are very strict on the borrower credit standing.

When I applied for my car loan, following the sales person advice, I applied my car loan from the bank he selected. There is only one reason for selecting the particular bank, the bank is not very strict on issuing loan. In fact, while processing my car loan, they bank offered me personal loans since my car loan is less than $100K.

To prevent any problem in the future, banks should check borrower’s current credit standings thoroughly. If there is a need, the bank should advice borrower to take secured loans. Secured loan is a loan where borrower must provide a security for the loan such as house. This type of loan is often referred to as a homeowner loan or a secured personal loan, and because of its secured nature it is only available to homeowners.