Our 5 Hot Tips to Get Approved for a Personal Loan – Our Guide
December 02, 2020
If you need fast cash, one of the best things you could do is to have a personal loan. In South Africa, having a personal loan is a popular financing option. In fact, there are about 25 million South Africans who take out loans from financial establishments since it’s a great choice to get fast cash.
Fortunately, there are different ways to get fast, easy loans in South Africa, so getting a personal loan won’t be much of a headache. However, there are some considerations you need to remember.
If you’re thinking of getting a personal loan soon, you’ve come to the right place. In this article, we’ll share with you our top tips on how to get approved for a personal loan. Let’s get to it!
1. Meeting all the requirements
Every bank you visit will have their own set of requirements before they could grant you a personal loan. Before you start filling out your application form, ensure that you have the following criteria:
- You have a South African citizenship
- You are aged 21 or older
- You have a steady income
- You have a set annual threshold
2. Be aware of hidden fees
The way banks earn money is by including an interest rate to the loan’s principal values. For this reason, it’s best to avoid banks that have hidden fees such as this. To do that, make sure you read the fine print and the terms and conditions in the agreement before you sign it.
You don’t want to worry about additional fees down the line on top of your loans and other financial responsibilities.
3. Research your credit history
One thing that can hurt your chances of securing a personal loan is your poor credit history. This is because banks and other financial institutions practice default risk over borrowers who have a chance of not being able to pay their debt obligations.
If you’re blacklisted or under debt review, the lender has the right to deny your application. And because of this, it’s better to research your credit history before applying for a loan since this will give you the time to improve your credit history.
4. Shop for the best deals
As mentioned earlier, there are various ways to get fast, easy loans in South Africa. That’s why it’s best to move around and look for the best deals, mainly deals that affect your monthly payment.
The first variable you need to consider is the Annual Percentage Rate, also known as the interest rate. The lower your APR, the lower amount you’ll pay monthly. Besides that, you should know that your credit history will impact your interest rate, and when you have a positive credit history, you’ll secure a favorable interest rate.
5. Look for a co-signer
A fantastic way to help lenders mitigate the risk of default is by adding a co-signer to the loan. This way, if you stop making payments, your co-signer will assume responsibility and take over for the time being.
So, if you’re making payments on time, your co-signer will have no responsibility for your loan. Some people usually ask family members or close friends to cosign with them for a personal loan.
Conclusion
South Africans have personal loans because it’s a convenient way to get quick cash, especially for emergencies. Since there are ways to get fast and easy loans in South Africa, bump up your chances of getting approved by following these tips.
By following our tips and working with professional and reputable online brokers, you’ll be able to find the perfect personal loan deal for you. So start saving, improve your credit score, and get approved!
To get fast and easy online loans in South Africa, check out Hoopla Loans. We are South Africa’s fastest-growing online brokers who operate purely online through smart online loan application systems. We can help you secure payday loans, personal loans, medium-term loans, long-term loans, and more. Apply for a loan today!