Did you know that over 83 million Americans have taken out loans in the past year?
It’s no secret that stress levels run high when funds run low. If you’re currently in a financial pickle, what can you do?
Applying for a loan could be the answer you’re looking for. But what if you have poor credit or you’re simply uncertain of the loan approval process?
Don’t worry. In this post, we’ll reveal 5 simple steps you can take now to boost your loan approval odds and get the cash you need.
Let’s get started.
1. Evaluate Your Credit Report
The first thing a lender is going to do when you apply for a loan is to check your credit report. Do you know exactly what’s on yours?
You’re allowed to get one free credit report every year, so start here. Thoroughly check it for accuracy and make sure there are no errors.
And if you aren’t already, be sure you’re making any current debt payments on time. This will boost your credit score and increase your odds of loan approval.
2. Start a Side Hustle
The more income you have, the more likely you are to be approved for a loan.
If you have considerably more debt than income, consider taking on a part-time job. The extra income will help you make current debt payments on time (which will help that all-important credit score).
But it will also do something else: Reduce your debt-to-income ratio. The lower this ratio, the more likely a lender will be to approve your loan request.
3. Don’t Request Too Much Cash
Speaking of loan requests, don’t request more money than you actually need.
Sit down and crunch the numbers. What are you using the loan money for, and how much do you truly need to meet that goal?
If you request too large a sum, lenders may view you as a high-risk case. Keep your loan request modest to boost your chances of a “yes.”
4. Bring a Co-Signer Onboard
What if you need a loan but you have fair or poor credit?
Your best bet is to add a co-signer who has good or excellent credit. This could be a family member or trusted friend who’s willing to help you out.
Just make sure to have an open, honest discussion about your financial situation first. Remember: If you can’t pay back the loan, the co-signer will become responsible. This could put a strain on your relationship.
5. Try to Prequalify First
Many lenders will give you the chance to prequalify for a loan before submitting an actual application.
In some cases, you might even receive instant approval for your loan request.
Review their minimum requirements first to be sure you meet the criteria. Once prequalified, compare offers to see which one best suits your circumstances.
Boosting Loan Approval Odds: Now You Know
When you’re low on cash, stress levels can be at an all-time high.
The good news is there are plenty of practical steps you can take to increase your loan approval odds.
Before you apply for a loan, refer back to the tips listed above. That way, your loan will be approved and you’ll get the cash you need.
Did you find this article helpful? Be sure to browse our other success-related blogs for more useful information.