Filling out your personal loan application is important, but there are no guarantees that your application will be approved since there are many variables involved. Each lender has different requirements for income and credit scores, while some other loans might have additional criteria like cash flow.
Being paid on time is a priority for any lender, regardless of the circumstances, so this will be a priority. Read on to learn more about some of the things you can do to help boost your chances of approval when filling out the application.
Make Sure You Have All Your Financial Info Handy
Personal loan amounts will depend on your annual income in addition to your credit score. Income from your day job, as well as part-time work and side hustles, are part of the consideration. If you’ve taken on additional work since beginning the process, measure you include this work as well.
Because payment on existing debts contributes to part of your credit score, you’ll want to get some of this debt a little more under control. On-time payments above the minimum amount help reduce your credit utilization ratio, as well as your overall payment history.
Bank statements and tax returns help provide a snapshot of your earnings that lenders will use. The better organized you are, the greater your chances of getting approved for the amount that you need. This is one of the reasons you need all your financial info at hand.
Only Ask for the Amount You Need on Your Personal Loan Application
Borrowers who request more money than is reasonable are likely to be seen as risks. After all, lenders lose money when people borrow more than they need and don’t repay. For a lender to approve the loan amount, they need to feel they’re not at risk.
Taking out too much money may make it harder for you to meet other obligations, such as your mortgage. Using a loan calculator might help you decide what is a sufficient amount for you to request.
Make Sure You Have Any Contact Info for Co-signers on Your Loan
When you fill out your personal loan application, a co-signer may help increase your chances of getting a loan if your credit rating is somewhat lacking. Having a co-signer who shares some of the repayment responsibility can be a wise decision with the right co-borrower.
If you opt to use a co-signer, make sure they understand all the responsibilities that come with taking out a loan, are reliable and are agreeable to helping you. Otherwise, you might have to deal with a damaged relationship on top of everything else.
Making sure you can contact any co-borrower who doesn’t live with you is essential. Lenders need to be able to contact anyone who signed the loan and having a borrower go off-radar causes problems.
Personal Loan Application: Read All the Fine Print Before Signing
Making sure you understand lenders’ requirements for annual income, and credit scores and using co-signers is essential. The last thing any borrower wants is to sign their application after having made a mistake and end up facing delays.
Ensuring that you meet the minimum requirements first helps prevent most delays. The lender that you’re most interested in using will be able to help provide guidance.
Comparing the repayment terms and rates will help you decide which product is best in the long run. Researching your options carefully will help spare you the trouble of applying for products you’re unlikely to be approved for.
At CashLink, we’re happy to answer any of your questions about loan products and the application process, contact us with any questions you have about the personal loan application process so you can get started applying for the product that works for you.