7 Tips to Boost Your Chance of Loan Approval


Other than emergencies, a lot of people get a loan for their weddings, vacations, home repairs, and school expenses. Personal loans are usually multipurpose loans that you can easily acquire from credible and reputable lending companies.



Every borrower wants to get approved especially after they have complied with the requirements. However, not everyone can be accommodated. Financing institutions such as the  licensed cash lenders in Singapore are mandated by law to conduct due process for every loan application. This is to ensure that the borrower can apply only for the ideal amount that they can pay with ease.

To increase your chance of approval, you have to take note of the following:

Understand the lender’s eligibility criteria
Before you apply for a loan, you must check the eligibility requirements. Usually, the borrower should be at least 21 years old, a citizen and resident of the country where the lender operates at the time of loan application. The eligibility criteria may differ from one lender to another. That’s why you have to check it first before applying for a loan to save your time and effort.

Check your credit score
Once you submit your loan application, the lender will request for your credit report from the credit bureau. This means they can see your previous credits and how well you handled your payments. Add to that, they will also see the other lending companies and banks which also requested for your credit report. If made a lot of loan applications recently, this will reflect you as desperate for cash.

As a borrower, you have to check your own credit score before applying for a loan. This way, you will see if you can easily get approved or you still have to boost your credit score before applying for a higher loan amount.

Avoid applying for a loan from too many lenders. If a lender request for your credit report, this will pull down your credit score.

Apply for only the amount you need
Most licensed lenders will either give you a transparent quote or have a loan calculator online. This is to give the borrowers the insight of how much they can borrow and handle with ease.

The best loan calculators are those that include the principal loan amount, the interest to be paid, the payment terms and the payment due dates. You will be able to see which term can best fit your finances and how much you can pay without sacrificing your basic needs.

Get a Loan from Reputable Lenders only
When you apply for a loan, you become a potential victim of loan sharks. This type of lenders charges high-interest rates and other fees until you fall into spiraling debt. Instead of helping you get back to financial stability, a loan shark will keep sucking your hard earned money until nothing is left.

When you need a personal loan, ensure that you get it from a registered money lender. Before you start your application, you must check the licensed moneylenders list online.

Reputable private moneylenders have policies in line with the Moneylenders Act and operate with transparency. They also give loans to those with bad credit but expect a lower principal loan amount.

Additionally, a licensed lender will report your diligent payments to help you increase your credit score. Loans sharks are not licensed and will not help you boost your credit score.

Be honest
Borrowing money is about creating your credibility for the money lender to trust you. Aside from the credit report, the lender will verify the consistency of your information. Avoid falsifying any data or documents.

The credit agents are highly trained to see discrepancies and inconsistencies. They will know if you are making it seem that you have a higher salary or you have been working in your company for a longer time.

Lenders do not trust borrowers who submit falsified information. This is why you should always be honest with your loan application. Submit clear copies of your untampered documents.

Have a stable source of income
As a borrower, you will need a source of income to settle your loans. Of course, licensed money lenders would like to get the payment and continue being your financial partner. But if you do not have a stable source of income as employed or self-employed, the lender will think that you are most likely to default.

Submit your requirements promptly
Taking too much time to submit your application form and required paperwork may show that you are not interested to complete the loan process. Licensed money lenders process numerous loans each day, and they need to give way to those who are willing to immediately comply with the requirements. Taking too much time prolongs the application and it could get declined.

Applying for a loan can go smoothly if you follow these easy steps. Always remember to check the lender’s website to get as much information that you need. To lessen the hassle, you can get your requirements ready once you start your application process.

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