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4 Tips to Increase Your Chances of Getting a Personal Loan

November 19, 2020
Personal Loan

Applying for a personal loan is a process that takes away much of your time, from searching for lenders to getting all your documents in order. When you submit the necessary requirements, that’s when the waiting game begins. Despite giving complete requirements, you are still not guaranteed that your personal loan will be approved. This is mostly because many factors come into play when it comes to personal loan approval, such as your credit score and monthly income, among others. 

The good news is that you don’t have to wait in worry because there are ways to increase your chances of getting your personal loan approved. Here are four tips you should consider: 

 

  • Don’t Make The Loan Amount Too Big

 

It’s tempting to take out a loan for a huge amount of money, even more than what you actually need. However, remember that the bigger the loan amount is, the more challenging it is to get approved. For this reason, you should keep the loan amount at a minimum and only apply for the amount that you need. 

 

  • Have A Co-Signer

 

If you don’t have a good credit score, but it’s within the acceptable range, consider having a co-signer who has an excellent credit score. A co-signer will help increase your chances of getting approved for your personal loan. With a co-signer, they will be equally responsible for repaying the loan. 

However, your co-signer should be someone who can afford the risk. It’s important to have an honest conversation with this individual and ensure that they understand everything before agreeing to take on this loan with you. 

 

  • Consider Getting An Extra Source Of Income

 

Suppose you will be strapped for cash when you get the loan. In this case, you must look for other income sources to help you cope and increase your chances of getting approved. Do you have skills you can make money out of? Consider looking for side hustles that can supplement your primary income. Not only will this help increase your chances of getting approved for your loan, but this will also make it easier for you to repay the loan. 

 

  • Settle Existing Debts

 

This practice is ideal before you apply for a personal loan, yet you can also do this while you’re waiting to hear back from a lender. Work on settling existing debts to improve your debt-to-income ratio. You can know the specific ratio by getting the monthly payments percentage and dividing it by your monthly income. Doing this will help your chances of getting approved and loosen up your financial responsibilities to make it easier for you to repay a new loan. 

Conclusion

Improving your chances of getting a personal loan takes lots of hard work, but it’s necessary. Lenders consider various factors before they approve a loan applicant, such as your credit score, income, and loan amount. Following the tips listed in this article will help you boost your chances of getting the loan you need!

If you plan to get a loan online, you should first find out a lender’s minimum requirements for credit scores and annual income to help you prepare your documents. At the same time, make sure you choose the right lender as well. With so many online lenders out there today, it’s crucial to find one that will suit all your needs and provide you with the lowest interest rates. 

Hoopla Loans is one of the most reputable online loan providers in Africa. With us, you can look forward to quick loan approval to help you rise above your financial situation. Apply with us today!