You have more influence over success than you might think.
Every application for a personal loan comes with its own element of uncertainty. Even if you have a solid income and a great credit score there is no guarantee that you’ll be approved for the loan that you want. Yet we all need to borrow money from time to time so if you’re keen to improve your success rate when looking for a personal loan or even n alternative borrowing like doorstep cash loans then there are some easy steps that will help you to get there.
Find the personal loan that’s right for you
If you start with a good understanding of the kind of loan that you’re suited to then you’re much more likely to improve your success rate. So, if you don’t have a great credit score you might be better off applying for a guarantor loan than for a straightforward personal loan. Large loans payable over short periods may not be suitable for those on lower incomes – but a longer term could be. It pays to take the time to find the right personal loan if you’re looking for application success.
Spend some time on your credit report
Lenders have their own set of criteria when it comes to credit score. However, they will use the information they find in your credit report to judge against that criteria. So, that makes it incredibly important to ensure that you know what’s in your credit report if you’re looking for loan applications success. There are many different factors that could have an influence on how positively you come across to lenders. These include whether your personal information is correct and ensuring that you’re on the electoral roll. If you find mistakes you can ask for these to me amended or removed – all of this could make a big difference to application success overall.
Take a break
If you’ve gone through a period of making multiple personal loan applications and not had much success then it might be time to take a break. Each time you apply for a loan, lenders carry out a hard search against your credit report. With every hard search that ends in a failed application your chances of being successful next time around diminish. A large number of hard searches in a short period of time are often viewed by lenders as an indication of desperation for credit – which, most will assume, means that you’re not on top of your finances.
It might be worth waiting and pay off other debt first
To improve the chances of loan application success, make sure you’re not applying for a loan that isn’t suited to your numbers. If you’ve already got debts – credit cards, personal loans etc – that amount to 30% or more of your income then you may not be a particularly attractive prospect to lenders. So, if you’re repeatedly being turned down when you make loan applications, look at how much you earn compared to how much you owe. Where the numbers don’t tally up it might be worth waiting to make more applications until they do.