A recent study found that there are over 23 million active credit consumers in South Africa.
For most people having a credit card is something they view as a priority. However, there may come a time when the balance on your credit card is not high enough to make a purchase or pay a bill.
When faced with situations like this, you need to think about taking out a personal loan. These loans allow you to get the money you need in a hurry.
Finding a reputable online lender requires you to do your homework. Making sure the lender in question has a good reputation can help you avoid getting taken advantage of.
Consider the following factors when trying to obtain fast loan approval.
Having a Good Credit History Can Help
One of the first loan qualification hurdles to overcome is having a good credit score.
Trying to get a good rate on a personal loan without good credit is difficult. Before you begin to apply for a loan, you need to take the time to check out your credit score.
There are a variety of different websites that will provide you with a look at your score for free. Once you have taken a look at your credit history, you can start applying for personal loans with confidence.
If you notice there are inconsistencies on your credit report, then you need to work hard to remove them. Filing a report with the major credit reporting bureaus is the best way to address these problems.
Keeping Your Credit Rating High
When you get the unwanted surprise of a bad credit score, working to fix it is important. Doing things like paying down the balances on your credit cards is a great way to improve a low score.
You also need to make sure that all of your payments are on time. Having a string of late payments on your bills can really affect your credit score.
If you are trying to improve your credit score, you should also avoid applying for new credit for a while. Each time you submit an application for credit, the company in question performs a hard inquiry. Having too many of the hard inquiries can significantly lower your credit score.
Get to Know What the Loan Criteria Is
Before you decide on the type of personal loan to apply for, be sure to read over the criteria.
If a particular loan requires you to have immaculate credit, you may want to avoid applying if your credit rating is average. Applying for loans you know you can’t get leads to a lower credit score.
Most lenders have no problem going over the particulars of the requirements they have. Consulting with a few different lenders is the best way to ensure you find the best loan for your needs.
Lenders Look at Your Work History
If you are going to apply for a personal loan, the last thing you need to do is change jobs.
Most of the lenders out there look at your work history during the approval process. In order to get a loan approved, you need to show you have been at the same job for a while.
Usually, a work history that shows you don’t hold a job too long can affect your ability to get approved. The longer you are at the same job, the higher your chance will become of getting approved for the personal loan you need.
Keep an Eye on your Debt to Income Ratio
Another common factor lenders look at during the application process is your debt to income ratio.
If all of the credit cards you have are near their maximum limit, it will affect this ratio greatly. Generally, lenders want to see that you have a lot of available credit at your disposal.
The only way to bring down your debt to income ratio is by paying down your credit card balances. While this may take some time, you can get a better loan rate with a lower debt to income ratio.
Assess the Amount You Need
Before you start to apply for personal loans, be sure to figure out how much money you actually need.
Asking for a crazy amount of money can affect your approval odds. By assessing exactly how much money you need, you’ll find it’s easier to get approval.
In some cases, a lender may offer you more money than you applied for. Before accepting this larger amount, take a look at the repayment terms.
If the monthly payment on a loan will put you in a financial bind, you need to avoid taking the increased amount being offered.
Take Your Time When Filling Out the Loan Application
Whether you are filling out an online or paper loan application, you need to take your time.
Not only do you need to be completely honest regarding the information a lender needs, you need to check for errors as well. If your application is filled with errors, it can significantly slow down the approval process.
Don’t Sign Off Until You Look at the Repayment Terms
Some consumers get so eager that they neglect to look at the interest rate and repayment terms of a loan before signing off.
The last thing you want to do is put yourself in a bad spot financially due to a high monthly personal loan payment. If a lender cannot offer you the lower monthly payment you want, keep looking for other loans.
Are You Looking for Fast Loan Approval?
With a personal loan, you will be able to pay off bills or even address emergency car repairs with ease. Choosing the right lender and loan will require a bit of work.
Are you looking for fast loan approval? At Little Loans, you can get the money you need with ease.