Emergency Financial Remedy: 5 Ways to Speed Up Loan ApprovalDecember 17, 2020
Having a credit card is useful for covering different life expenses, ranging from grocery payments to electricity bills. However, your current balance may not be enough to pay for these fees. This usually happens to people who are dealing with emergencies like severe accidents or sudden unemployment. These life obstacles can eat up your savings and make you unable to maintain your financial footing. Thankfully, you can turn to personal loans to receive proper financing.
How to speed up the loan approval process
The process of personal loan approval can vary from a few minutes to several weeks. This process can last longer, depending on how well you can present yourself. Banks and peer-to-peer lenders need to confirm your viability as a borrower by doing a background check on your financial history. The fewer questions they’ll have about your spending behavior, the more likely you’ll have faster approval for your loan.
If you need immediate financing for an emergency, here are five ways to speed up your loan approval:
1. Know your requirements
You will need to present different paperwork and documents, depending on the type of personal loan you’re planning to apply for. Generally, it’s best to avoid credit loans that demand a credit score that you can’t reach. They may immediately turn down your application if these lenders have strict requirements. Try consulting with multiple lenders to see which ones are viable for your current financial situation.
2. Be cautious about filling out your loan application
When filling out a loan application, you need to avoid making mistakes, especially for hardcopy forms. Any errors will lead to a back and forth from lender to applicant, making the approval process longer. Additionally, you should consider the interest rate and repayment terms before you sign off. You should avoid committing to a personal loan from a provider if you think you can have a better offer elsewhere.
3. Maintain a high credit rating
Maintaining a high credit rating is one way to improve your credibility as a borrower to prospective lenders. Paying your dues on time will pay you forward when you need to apply for a personal loan. If you’re struggling to move past your low credit score, it’s best to show small but consistent improvements in your paying behavior. Eventually, your credit rating will reflect your positive efforts and reward you with a higher credit rating.
4. Show proof of your work history
It will be beneficial to show your work history to back up your credibility to lenders. Lenders assess your employment record to check if you have a reliable method of paying back your monthly dues. You’ll appear more trustworthy if you have proof of maintaining a stable income. This will positively affect your chances of getting approval for your personal loan.
5. Keep a low debt-to-income ratio
Part of how lenders can gauge reliable borrowers is by looking at an applicant’s debt-to-income ratio. If you show a habit of maxing out your credit cards, your ratio will look uneven. Make sure you pay your credit card balances on time or provide enough documentation to show that your debts are unexpected dues and fees.
Keep in mind that lenders are making a financial risk if they accept just anyone who applies for a loan. This is why they go through a rigorous process of screening out potential candidates from unreliable applicants. If you can provide your credibility as a borrower with the right documents, you’ll have a higher chance of getting fast approval for your personal loan.
Besides looking at traditional loaning options, you should consider more modern ways of receiving solutions to your financial emergencies. Hoopla Loans is an online-based loan broker in South Africa with an easy-to-use application system for faster processing of loans. Sign up with our platform today, and we’ll help you with your financing problems!