If you’re planning to increase your credit lines or qualify for a loan in 2011, you might find it much tougher to get the amount you want. Lenders using the VantageScore and FICO credit scoring systems are looking at a few more restrictions and tighter regulations, which means consumers may find it harder to qualify for a loan. These two scoring systems are now using several new factors to calculate your credit score in the hopes of preventing more defaults on loans in the wake of the economic recession.
If you were hoping to get a mortgage or qualify for a new loan in 2011, here are some important things you need to know to get the Emergency Money:

Be Prepared to Provide More Collateral for Your Loan

If your credit score is too low or you don’t meet certain criteria for a loan, you may be able to increase your chances of securing the loan with collateral. Meet with a personal financial advisor to find out what your net worth is and make a list of assets that you could potentially put up as collateral. You may need to stretch beyond your comfort level to qualify for a loan in 2011, but you could be looking forward to a better payoff.

Review Your Credit Report for Omissions or Errors

Make sure your credit report is accurate and up-to-date so that lenders don’t misunderstand and miscalculate your actual level of creditworthiness. Take some time to order a free credit report and clear up any discrepancies as quickly as possible. This strategy may increase your chances of qualifying for a loan in 2011 and checking your credit report can also lower your risk of identity theft.

Shop for a Home, Car and Other Purchases that You Can Actually Afford

Make sure you’re applying for a loan amount that you can realistically make payments on for the long-term. Many people who end up defaulting on a loan simply agreed on an amount that they couldn’t afford. Lenders are going to be much more strict with their qualification policies in 2011, and it is in your best interest to choose a loan amount that won’t put you in a tough financial situation within a few months.

Pay Off Credit Cards and Other Debts

Lenders do look at the total monthly payments you are obligated to pay when determining whether you qualify for a loan in 2011. If you have savings available, pay off credit card balances and other debts in full. This will reduce your monthly payments and may put you in a much better position for qualifying for a loan in 2011.

Qualifying for a loan in 2011 may be tougher than it was in 2010 but there are several things you can do to increase your chances of securing your desired loan amount. Use the tips above to help you qualify for the loan you want without compromising your financial stability.