Can You Boost Your Chances of Getting Approved for a Personal Loan?
When you apply for a personal loan, the last thing you will want is your loan request to be declined by the lender. You are already in a tight spot financially and need some urgent help before things get out of hand.
However, you must keep in mind that personal loan lenders take time to scrutinize your application before they make up their mind. Therefore, you need to put your best foot forward when applying for such a loan.
Review your credit report, fix any issues and show lenders that you are a creditworthy individual who can always pay your loan on time. Here are some other tips to boot your chances of qualifying for a personal loan.
1. Clean Up Your Credit
Credit scores play a critical role in your personal loan approval. Typically, the higher your credit score, the better your approval chances. Therefore, it is critical to check your credit scores regularly for any errors.
Some of the common errors that may impact your approval chances include closed accounts being reported as open accounts, wrong accounts, and inaccurate credit limits. You are entitled to one free copy of your credit report every year from all the credit bureaus.
If you identify any errors in your report, gather evidence to support your claim and dispute the errors online or by phone. Make sure you follow up with the credit bureau until the time the error is corrected.
2. Provide Accurate Information
Today, most personal loans are offered online. Lenders want to make things easy for borrowers and provide them with much-needed convenience and privacy.
However, the online application process also means that you can easily commit a mistake that could lead to your application being rejected. Before you hit the submit button, make sure every detail you have entered in the application form is 100% correct.
Your names should be spelt correctly, and your account number filled in accurately. You should also verify your contact details and proof of physical address. Typically, an online lender can automatically decline your application if there is incorrect account numbers or spelling errors.
3. Apply When You Have Consistent Income
Most lenders may ask about your income when you apply for a personal loan. So, it is critical to prove that you can afford to repay the loan amount plus accrued interest within the stipulated timeframe.
It means that the best time to apply for a loan is when you have consistent income. That not only improves your chances of getting approved for a loan but also gives you a chance of getting better loan terms.
You may need to wait to apply if you are currently unemployed or lack a relatively steady income source.
4. Choose a Good Lender
There are many personal loan lenders out there. However, not all of them can serve you. Different lenders target different borrowers. For instance, some lenders can only lend money to the most qualified borrowers with high credit scores.
However, others are willing to listen to borrowers with low credit scores as long as they demonstrate an ability to repay the loan on time. Don’t apply for a personal loan from a highly exclusive lender unless you are ready to meet their requirements.
Read online reviews and go through the lender’s website to verify their approval requirements before you apply for your loan. Almost every personal loan borrower can find a lender who is right for them if they shop around.