Five effective ways to increase your loan application approval

Five effective ways to increase your loan application approval

Aug 09 Zachary  

Getting a personal loan is relatively easy, however, it is also very easy for you to get rejected.

With that being said, the best thing to do in order for you not to get rejected and get that sweet approval from your preferred lender is to follow all the requirements, have a good credit standing, and a lot more things that you have to compile.

For the meantime, here are some simple but very effective ways to increase your chances of getting an approval for your personal loan courtesy of Personal loan sg.

personal loan

  1. Check the credit requirement– Your credit is surely one of the main requirement that the lender will be taking a look first when you apply for a personal loan. Your credit is also one of the main factors that they will be considering if you are worthy to get an approval or no especially if the loan is unsecured as it also comes with its own minimum where you must meet in order for you to qualify. Always remember that not all the lenders you have approached will require you to have an excellent credit standing, however, even if you have a strong credit, if you are not able to meet their requirements, then you will get rejected right way, so if you are not sure enough about your credit score or your credit history, ask for the credit requirement first.
  2. Ask for the minimum income requirement– A lot of lenders out there who have a minimum income requirement, and this may not be listed on the lender’s official website, so you should do some little research, either by asking the lender’s employees that are assigned for this job, or browsing through some pages that feature reviews from their customers.
  3. You have to meet the employment requirement– Generally, the majority of lenders consider the income of various sources, however, not always. Sometimes for those who have freelance work, or have benefits or having child support payments will not cut it. A lender may require for you to have been employed by a company for a required number of years, or that you are receiving your income through direct deposit.
  4. Present viable collateral– There are some loans, especially those from banks will require you to provide a collateral for them to approve your personal loan application. The collateral can be a form of your asset, your property or a source of your liquid money that the lender can get in case you defaulted your loan. However, if you opt to default your loan, you are risking to lose your collateral which is usually more expensive than your loan.
  5. Minimize your outstanding debt– Also, you have to balance your debt-to-income ratio which measures how much you can afford to borrow money. This will tell the lenders that you can pay your loan every month, however, also that you are responsible enough with your money. The higher your DTI will indicate that you are using a lot of your money to pay off your other loans, and you might pay off some of your debts if your DTI is about forty-percent or over it.

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