Everything that we need nowadays is at our fingertips and loans are no different. You can apply for a loan in just a few minutes online and from anywhere at any time.
Even though the process seems to be simple and convenient, you will only be granted a personal loan if you satisfy the qualification criteria. If you do, then you could have your personal loan in your bank account within 24 hours.
There are several factors involved as to whether your personal loan will be approved or not. Here are the 5 things that will influence your loan application.
Paying Your Debts on Time
When you pay your debts on time it shows that you can manage your debts and could be in a position to take on credit. If you are late with payments or if you miss payments, then the loan provider may see that you are struggling to make ends meet. This could lead to your loan application being rejected as the loan provider sees you as a risk and you can’t handle any more debt.
A Large Chunk of Your Current Debt is Paid Off
When you are applying for more credit it is better to have a large chunk of your debt paid off than having a large amount still outstanding. If you are carrying a lot of debt, then you should consider paying this off first before you try and get more credit.
You Have All the Documents
When you are applying for a loan you will need to have supporting documents ready. A loan provider will need to verify your income and what your expenses are to determine your affordability. You will then need to have payslips, bank statements and your ID book ready.
You Don’t Have Judgements Against You
A loan provider will check your credit history and will see if there are any serious judgements or defaults against your name. If you do have these then you might be rejected instantly for your loan application.
You Haven’t Been Rejected for Credit Before
If you haven’t been rejected for credit before then it shows that you have a good credit history and is another positive factor when it comes to your loan application.