Indeed, getting loan approval is not simple. There are many loan options for you out there and lenders are competing for your attention. As such, it can be very hard to filter through your options. This is true before taking into account like a credit score.
Meeting the basic requirements of the lender is one the important factor for getting your loan approved. Thus, here are some tips on how to get your personal loan successfully approved:
Recognise the Purpose of the Loan
In the industry of lending, there are bad and good reasons for applying for a loan. Good reasons include financing a piece of equipment, purchasing a real estate, developing a business, and others. Bad reasons include office build-outs, financing losses, or acquiring non-essential assets. Other factors, like economic and environmental conditions, must also be considered.
Know the Credit Requirements
Your credit is one of the important things that lenders consider whenever you apply for the instant loan approval in Singapore. This is especially true for an unsecured loan. Each category has its minimum that you must meet to qualify.
Meanwhile, not all lenders will require excellent credit. Even if your credit score is good, but if you failed to meet the lender’s requirements, then they will reject you outright. As such, if you are not sure whether your credit score qualified, you can ask the lender before you apply.
Know the Minimum Income Requirement
Some lenders require a minimum income for their loans. This might not be available on the lender’s website. As such, it is best to do some research. You can call on the lender directly or browse to their page. This is one of the important things that you must consider similar to your credit. After all, if you don’t have the income to pay your loan, then you can’t afford to borrow the money.
Check that the Information is Correct
You don’t want to give the lender a simple reason to reject your application. As such, before you send your application for the instant loan approval in Singapore, make sure that you check all the details. Check your name, address, and employment details. Fill out every required section and leave nothing out. Simple things like this can lead to the rejection of your application. This is true especially if you do your applications online since there is a fewer chance to amend things.
Identify your Preferences
Before you go to the bank, make sure that you check out the packages available on their website. See what are the other competitors are offering. You have to be knowledgeable about the kind of loan that you are looking for. Determine the terms that you can afford and your goal for paying the loan as soon as possible. If you are searching for a specific type of loan, do your research to find the best deal for you. You might receive many loan offers in your mailbox. However, you must read the fine print before committing.
Have a Good Credit History
Your credit history can be your proof of your repayment ethics and behavior. Outstanding credit history will help you even if you think you do not need a loan in the future. Any bounced checks, unpaid loans, credit card delinquency, and dishonest loan are red flags that can affect your application process.
Balance your Debts and Income
Loan applications will ask for your annual income. You can include the money that you have earned for your part-time work. To supplement your income, you can also consider having side hustles. You can also work towards having a full-time job. Make sure to do all that you can to pay down your debt.
Next, you can also consider selling liquid assets like stocks in taxable accounts. When you use the proceeds towards your debts, it will get you a higher rate of return.
Furthermore, boosting your income and finding ways to lower your debts will improve your debt-to-income ratio. This refers to the percentage of your monthly debt payments divided by your monthly income. Indeed, not all lending companies have strict requirements. However, a lower ratio will show that you have your current debt under control and you can afford to take more.
Finalise the Amount that you Need
When applying for a personal loan, it must not result in having you commit to a long-term debt. Banks will check on your income and your ability to pay your debts. If you have insufficient money to satisfy your requirement payments, then you will not get the approval.
This is the reason why you need to be pragmatic and determine the amount that you can afford to pay. Negotiate with your bank or lending company to extend the loan term. Thus, this will reduce the impact on your loan repayments and short-term cash flow. Finally, apply for a loan that you can realistically repay. Discover more about personal loan and find the low interest loan here.