Many of our clients want to know their personal loan eligibility based on their salary. That’s because a money emergency can happen to anybody, regardless of how much you earn.
There are, however, some rules and limitations to how much loan money you can get compared with what you earn. We’ll cover that topic in this article on personal loans and salary requirements.
Factors that Determine Your Personal Loan Amount
Salary (or income) is one of four factors that influence your loan eligibility. Let’s briefly cover all four items.
- Most lending firms have a minimum required salary to qualify for loans. Some banks or institutions will require a full annual income report, but with Cash Link USA, all you have to do is submit a basic proof of income to start the application process. So, your wages are part of the overall equation, but not the sole determinant.
- Credit History
- A good credit score falls between about 670 and 850, but you don’t need it that high for every loan type. Also, if you develop a pattern of timely payments, it’s easy to obtain a satisfactory credit score for the loans we offer.
- Debt-to-Income Ratio
- You don’t want to have too much debt compared with your overall income. If you can keep this ratio below 35%, you should be competitive for most loans.
- Cosigner Availability
- Cosigners really help if you’re having trouble getting a loan. Of course, that’s only true if they have a decent credit history themselves. Most of the time, you won’t have to worry about cosigners when you borrow from us.
Can’t Qualify for a Personal Loan? We Have Other Options
Even if you cannot get a personal loan for one reason or another, you can still get emergency funding. One thing you can do is explore whether an installment loan would be right for you. Installment loans can help you out of a jam, and they have different repayment options, which many of our clients find more acceptable.
Instead of having to repay everything fast, you would repay these in smaller installments, which we can spread out over a longer duration. They’re predictable, you don’t risk suffering entrapment, and the application is just as convenient as our other products. Many homeowners use these to finance their emergency renovations like new water heater installations.
Ways to Improve Your Credit Score
Other than earning more money, you can also improve your loan eligibility by raising your credit score. There are several ways to do this, but most involve borrowing smaller loans and paying them back on time. Other ways to improve your credit score include:
- Use our personal lending services to consolidate your debt, thus making it easier to pay off faster.
- Dispute any potential errors that appear on your credit report (mistakes occur from time to time, and they hurt your score).
- Avoid credit cards since they’re usually more harmful than good.
- As your credit improves, apply for progressively higher credit limits.
Cash Link USA: Your Best Source for Online Lending
Hopefully, this shows that income and salary are not the only things that impact loan eligibility. Even with lower wages, a responsible borrower can refurbish one’s credit history, and become less of a credit risk.
You can use our services to bolster your credit score, address money pitfalls, and strengthen your overall financial health. This has been our mission for a few years now, and in a short time, we’ve amassed lots of positive feedback from previous clients. You can see that by browsing through our thousands of evaluations on Google Reviews and Trustpilot.
Contact Cash Link USA anytime to learn all about qualifying for a personal loan, installment loan, or personal line of credit.