Of course, we understand that one personal loan application is built upon on a long string of expectations. So, an upfront rejection will be strangely admitted. Although, there’s no guarantee for foolproof approval of your loan application, yet you can look at a few ‘to dos’ to enhance your chances.
Begin your personal loan journey by comparing rates of interest. The following pointers mentioned below can be used as tips to avoid a personal loan application
1. Pull out credit history and score
Before you think of requesting for a personal loan online, pull out your credit history for reference.
It’s extremely important to have a check on your own credit score and then move forward. Get a free annual credit score from one of the reputed most credit reporting agencies (Experian, Equifax and TransUnion) every year.
Work on the mistakes you made in keeping your finances in the past and you can also subscribe to a few online platforms for free credit scores.
- Keep your employment past in check
Lending institutions prefer to choose a clientele which is stable and forward looking. Working with a company for over 2 years or more symbolizes the same. Being a good employee always raise your higher for improved chances of a loan.
The longer you last at a workplace, better are your chances for a qualification. Similarly, the longer you stay at a particular residence, better it is.
- Pay off your outstanding debts
A large heap of debt can totally ruin your chances for getting approval for a personal loan. So, if you have some old debts to pay off, done get at the earliest hour. This will only build a better chance for quick personal loan. This could be debt on either the credit cards or utility bills, symbolizing your inability to pay off on time.
- Keep a consistent repayment history
Lending institutions prefer a long history of timely repayments. It shows an individual’s ability to never delay debts and get done with payments when fall due.
On the other hand, late repayments can postpone your plans for personal loan prospects. If you meet with late payments on and off, then the lending institution may turn your application off. People with no previous credit history must try to establish one, either by approaching the banks or NBFCs.
However, its plausible to begin with a secure form of credit first. This will help building an easier credit history. And after making all successful payments, you can eventually opt for an unsecure card also. This somehow helps to strengthen the goodwill relationship with the financial institution. Greater you make an effort to borrow and repay on time, better are the chances for a quick personal loan.
- Reflect a consistent stream of income
When assessing the credit standing of the borrower, a consistent stream of income has an impressive effect on the lender. This goes in sync with the employment stability per se. Lenders have to ensure that you have enough income to manage your loan expenses, every month.