{"id":1549,"date":"2020-11-06T14:03:15","date_gmt":"2020-11-06T08:33:15","guid":{"rendered":"https:\/\/www.extramilefinance.uk\/blog\/?p=1549"},"modified":"2020-11-06T14:03:19","modified_gmt":"2020-11-06T08:33:19","slug":"tips-to-increase-the-chances-of-personal-loan-approval","status":"publish","type":"post","link":"https:\/\/www.extramilefinance.uk\/blog\/tips-to-increase-the-chances-of-personal-loan-approval\/","title":{"rendered":"Tips to Increase the Chances of Personal Loan Approval"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_52 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f8a58007177\"><span class=\"\"><span style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f8a58007177\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.extramilefinance.uk\/blog\/tips-to-increase-the-chances-of-personal-loan-approval\/#Increase_Your_Credit_Ratings\" title=\"Increase Your Credit\nRatings\">Increase Your Credit\nRatings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.extramilefinance.uk\/blog\/tips-to-increase-the-chances-of-personal-loan-approval\/#Check_the_Report_for_Mistakes\" title=\"Check the Report for\nMistakes\">Check the Report for\nMistakes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.extramilefinance.uk\/blog\/tips-to-increase-the-chances-of-personal-loan-approval\/#Keep_Liabilities_Low\" title=\"Keep Liabilities Low\">Keep Liabilities Low<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.extramilefinance.uk\/blog\/tips-to-increase-the-chances-of-personal-loan-approval\/#Do_Not_Apply_Too_Much_for_Loan\" title=\"Do Not Apply Too Much for\nLoan\">Do Not Apply Too Much for\nLoan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.extramilefinance.uk\/blog\/tips-to-increase-the-chances-of-personal-loan-approval\/#A_Steady_Income_is_Important\" title=\"A Steady Income is\nImportant\">A Steady Income is\nImportant<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.extramilefinance.uk\/blog\/tips-to-increase-the-chances-of-personal-loan-approval\/#Compare_Different_Lenders\" title=\"Compare Different Lenders\">Compare Different Lenders<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.extramilefinance.uk\/blog\/tips-to-increase-the-chances-of-personal-loan-approval\/#Apply_for_the_Right_Amount\" title=\"Apply for the Right Amount\">Apply for the Right Amount<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.extramilefinance.uk\/blog\/tips-to-increase-the-chances-of-personal-loan-approval\/#Select_Shorter_Repayment_Time\" title=\"Select Shorter Repayment\nTime\">Select Shorter Repayment\nTime<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.extramilefinance.uk\/blog\/tips-to-increase-the-chances-of-personal-loan-approval\/#Find_a_Guarantor\" title=\"Find a Guarantor\">Find a Guarantor<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Personal loans involve a\nlengthy process of approval that can take from weeks to months. In case of an\nemergency, a rejection can be a serious setback. Therefore, the borrower makes\nevery effort to make sure the loan gets approved. <\/p>\n\n\n\n<p>If you are also facing some\nfinancial trouble, here are some tips to increase the chances of personal loan\napproval. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Increase_Your_Credit_Ratings\"><\/span>Increase Your Credit\nRatings<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The credit score is an\nimportant factor that decides the eligibility for a personal loan. Try not to\nget any negative marks on it with defaults or missed payments. Ask the lenders\nfor a repayment holiday if you cannot make payments. A single default can make\nthe lender reject your application. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Check_the_Report_for_Mistakes\"><\/span>Check the Report for\nMistakes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Many credit reports\nsometimes have errors that lead to loan rejection. It is recommended you check\nyour credit rating 30 days before applying for the loan. If you find some\nmistake, make sure it gets removed. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Keep_Liabilities_Low\"><\/span>Keep Liabilities Low<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Your credit score is affected\nby the credit utilization ratio. It is the amount you took of credit relative\nto the available credit amount. Therefore, you must pay off the debts as much\nas possible. Also, try to refrain from using a credit card to keep its balance\nlow. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Do_Not_Apply_Too_Much_for_Loan\"><\/span>Do Not Apply Too Much for\nLoan<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A few applications for new\ncredit cards and loans will not affect the credit rating much. However, way too\nmany applications can create a significant impact on the rating. Therefore,\nmake sure you are eligible for the loan before applying for it. And do not go\nall ablaze with the loan applications and only apply one place at a time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_Steady_Income_is_Important\"><\/span>A Steady Income is\nImportant<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Your income is an important\nfactor to determine your ability to repay the loan. Apart from a steady income\nover the last few months, a reliable source is also recommended for approval. <\/p>\n\n\n\n<p>Do not change jobs a few\nmonths before the loan application. Any drop in income will increase the\ndifficulty for you. You must represent yourself as a responsible buyer with\nenough income to repay the loan. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Compare_Different_Lenders\"><\/span>Compare Different Lenders<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A little research on the\ninternet is recommended to check the offers from different lenders. Interest\nrates and terms are not the same from every lender. Therefore, make your\ndecision after checking the eligibility and interest rates.<\/p>\n\n\n\n<p>There are financial\ninstitutions that offer loans to people with bad credit ratings. On the other\nhand, some are quite selective with their borrowers. You can also read the\nreviews from other customers to know about the nature of the lender. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Apply_for_the_Right_Amount\"><\/span>Apply for the Right Amount<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It hardly makes any sense to apply for a loan amount larger than what is required. The overall cost will increase drastically with fees and interest. The repayment will get more difficult with heavier installments. <\/p>\n\n\n\n<p>The risk involved with a heavier\nloan amount is another factor that affects the approval. <\/p>\n\n\n\n<ul><li>Lenders will be at risk of losing more money. <\/li><li>It makes the small amounts easier to get approval. <\/li><li>Many lenders offer <strong><a href=\"https:\/\/www.extramilefinance.uk\/loans\/without-guarantor.html\">fast loans with no guarantor<\/a><\/strong> required for these small loans.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Select_Shorter_Repayment_Time\"><\/span>Select Shorter Repayment\nTime<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Long-term loans come with the prospect of smaller installments. But the interest rate paid over a longer period will cost you more than a short-term loan. Therefore, a short-term loan is a better alternative for your finances.<\/p>\n\n\n\n<p>Long-term loans are less likely to get approved when compared to a small-terms loan. For banks, the risk of something wrong with the repayment increases with an increase in the loan duration. Try to choose the shortest time possible considering your finances and installments for maximum chances of approval. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Find_a_Guarantor\"><\/span>Find a Guarantor<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Guarantor loans are ideal\nfor people who don\u2019t qualify to get a personal loan. If the person has a good\ncredit rating and steady income, the chances are increased exponentially. For\nbanks, the risk is low since there are two parties liable to repay the loan. <\/p>\n\n\n\n<p>However, the guarantor now\nshares the risk alongside you. Any default on your side makes him liable to\nrepay the loan. You should only consider this option if you are sure to repay\nthe loan amount on time.\n\nTo\nconclude, a steady income with a good credit rating is enough for personal loan\napproval in the majority of the cases. Just make sure there is no error in the\ncredit rating, and the key factors are intact a few months before the loan\napplication. \n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Personal loans involve a lengthy process of approval that can take from weeks to months. In case of an emergency, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1551,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,11],"tags":[166,169,167,168],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1549"}],"collection":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/comments?post=1549"}],"version-history":[{"count":2,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1549\/revisions"}],"predecessor-version":[{"id":1552,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1549\/revisions\/1552"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/media\/1551"}],"wp:attachment":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/media?parent=1549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/categories?post=1549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/tags?post=1549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}