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If you have tried for both secure and unsecured loans and been turned down there are other options. You can secure loans with someone else’s collateral, good credit and signature. These are called cosigned loans.

You should consider, however, if this inability for you to secure loans on your own might not mean its time to improve your credit standing rather than time to borrow more money. Might you not be financially in over your head if the bank thinks you are not going to be able to pay the loan back yourself?

Instead of a co signing you could, for example, ask if they could lend you a lesser amount on your own. In fact, unless you absolutely cannot put off borrowing the original amount consider making that purchase until you can do something to improve your credit or pay cash for the purchase.

The best thing to do, no matter what your final decision is to ask the lender what you should do to change its attitude towards letting you secure loans on your own. Once you know what that bank is looking for, follow that advice.

There are generally two reasons that a financial institution wont let you secure loans without a co-signer. The first reason is bad credit. The second reason is that you are borrowing for the first time and have no credit history.

Either way the reason is about your credit. In either case the lender may require that you find someone else to sign on the dotted line that if you dont pay the loan he or she will. This is your cosigner.

These guaranteed, or co-signed loans, while they secure loans for a would-be borrower, are risky ventures for the cosigners. While it may not be that the person needs that cosigner because she or he does not pay her bills, it probably is the case.

Before anyone agrees to cosign and thus secure any loans for any friend or family member they should consider the persons ability to make the payments on their own, the persons character, and whether they themselves could afford to pay the balance if the borrower did not. The other thing to consider is whether the cosigning is worth losing the friendship which so often happens in these cases.

The other thing to keep in mind is that if you cosign a loan for someone else it becomes a loan to you for purposes of your credit report. When you apply for any credit on your own it can affect you ability to secure your own loans, as your friends loan will alter your debt to income ratio.

What a lot of folks do not know is that if you have cosigned a loan that has been paid satisfactorily for an extended time period you can ask that creditor to take your name off the loan. Do ask that lender to report the removal of your name to the major credit bureaus.

This might be difficult to do, however, if the loan you cosigned is for a mortgage. Homes get refinanced and lenders may be more reluctant to remove your name. Its worth the effort, however, since that amount of money can really impact your ability to secure your own loans.

Excellent credit truly has its rewards and advantages. You are pretty much guaranteed low loan rates and affordable payments on all types of loans. Whether you are looking to finance a home, remodel, renovation, vacation, education, adoption, wedding, honeymoon, medical procedure, car, boat, or airplane, or anything else, if you have excellent credit, you can get a loan with a low, affordable interest rate. But what exactly is ‘excellent credit’ in the eyes of a lender?

Research shows that given the unique nature of each individual’s credit situation, and given each individual lending institution’s credit standards, there is no single definition for ‘excellent credit’. However, it is true that across the board, individuals with excellent and substantial credit generally share the following characteristics:

- A FICO score of 660 or above.

- Five or more years of significant credit history.

- A credit history with a variety of accounts such as major credit cards, installment loans (such as auto loans), and mortgage loans (if refinancing).

- An excellent repayment history with no delinquencies or other problems repaying debt obligations.

- A proven ability to maintain savings.

Many people are surprised to discover that whether or not you have maintained a savings account was included as a factor when lenders determine creditworthiness. But if you think about it, it makes sense. If you are earning enough money to pay your bills, pay them on time, maintain your everyday lifestyle, and still have money left over to put into a savings account, your default risk is low and you can expect to qualify for many different types of low interest rate credit. You have earned the right to take advantage of all kinds of promotions, offers, and terms that can even include portions of your loan repayment at zero interest.