Hello everyone. There have been whole lots of concerns on how to improve personal loan eligibility. In today’s article, we shall discuss how to improve your eligibility for personal loans. I will be going over four main points.
- Good credit score rating
- Current Income and general expenses
- An eligible borrower must have a Checking Account
- Job Stability and financial health status
GOOD CREDIT SCORE RATING
Actually, it takes a whole lot of patience and perseverance for an individual to establish a good credit score. When talking about good credit history, it doesn’t just happen overnight. In a lot of places, individuals start their credit score with their first credit card or with their student loans. This usually happens when they are in the colleges. It starts with the first installment for the arrival of the loan or date for credit card payment. So, when you are late in making your first payment, or you eventually skip it, then your credit rating begins to reflect badly.
Now, to maintain a good credit score rating, you can easily start at the department store or probably get yourself a gas credit card. These are known easy ways to get the credit rating. If you really wish to maintain a good credit rating, it is important to never spend an amount that will be difficult to pay back at the appointed or due time. Don’t ever try to carry any balance on your credit card; this is an effective way of accumulating a bad credit score.
Another method is to contact someone with a good credit rating. This person is called a co-signer. The responsibility of this co-signer is to guarantee that the loan will be paid. So if you don’t pay it, they will have to pay. If you pay late or miss a payment, you and your co-signers credit will be affected. This is the essence of having a good credit report.
A good credit rating gives you a whole lot of opportunity in getting your loan.
CURRENT INCOME AND GENERAL EXPENSES
In the actual sense, your expenses and income play important roles in determining your eligibility for a personal loan. You have to understand that your ability to repay the loan is not only determined by your current steady income but with your expenses. Lenders judge these two factors so that they can come to a conclusion to see if you’re really going to handle the loan or not. A perfect analysis used by lenders is to determine the ratio of your debt to your current income and to divide your monthly debt by your steady monthly income or salary. In a nutshell, to qualify for the loan, ensure your monthly debt obligations are reduced to the barest minimum.
AN ELIGIBLE BORROWER MUST HAVE A CHECKING ACCOUNT
Lenders have come to understand that one of the reasons why people don’t get a personal loan is based on the fact that they have a bad record or probably they have had a previous record of overdrafts with their account. As a result, when you want to open a checking account, it is a necessity for the bank to check your previous financial history to see if you are eligible to open one. If you are found guilty, banks will always turn down your offer to open a checking account. So if you want to be found eligible, you’ve got to find a way to open a checking account with a bank to get this covered.
JOB STABILITY AND FINANCIAL HEALTH STATUS
Another important factor that determines if you’re going to be eligible for the proposed personal loan from a lender is the level of your job stability. Remember that no one would want to give a loan to someone that has no stable job status. If you get this loan, how on earth do you want to pay back the loan at the appointed time? Without a job, it would be impossible. Also, remember that failure to pay the loan in due time will mess up your credit score.
As I stated earlier, the stability of your current job is an important consideration in determining if you’re going to be eligible or not.
Lenders will also like to know the operative and financial stability of your current business and income before you can be offered the personal loan. Although many believed that this is not a factor to consider in determining your eligibility for your personal loan. But in the real sense, it is a factor to consider, and all this must be well defined before attempting for a personal loan. If you are looking for a lender, check out Loanable to help with your search.
In conclusion, the above thoughts serve as pointers for lenders to determine if you’re really going to be eligible for a personal loan or not. Making sure that all these are perfectly aligned and defined will determine to a considerable extent if your personal loan request is going to be granted or not.