Personal loans are a quick way to fund anything from school tuition to surprise medical bills. They can range from as low as $500 to as high as $100,000. However, getting personal loans approved can be a tricky process.
In times when money is needed, getting a loan approved should be quick and easy. With that being said, there are a number of ways you can set yourself up beforehand to guarantee approval.
Take a look at the fastest ways to get personal loans approved so your financial concerns can be alleviated when the need comes!
This is one of the fastest ways you could get a personal loan approved. For one thing, it’s physically more efficient. Applying online versus driving somewhere to drop off an application will take less time.
Loan lenders tend to process online applications quicker than physical applications. By submitting your personal loan application online, you have a better chance of getting it approved sooner.
You can also receive your money quicker. Lenders can process and disburse money within hours of a person submitting an application.
Choose A Loan Lender Wisely
Prior to applying, you should do your research on different loan disbursement companies. Each company has different offers, requirements, and application processes.
Certain companies require certain credit scores, and other personal information. Other companies may not require it at all. It depends.
Whether you need a loan for a surprise expense or for investment purposes, it’s good to know where you plan to apply. Have an idea of what loan lender you’d go to, and stick with only one.
Have A Good Credit Score
While there are some companies that don’t require one, many only approve applicants with good credit. A good credit score depicts whether a person will back the loan amount in due time.
A great way to rack up good credit is to be sure to pay bills on time! That alone will greatly boost your credit score. Payment history occupies 35% of a person’s calculated credit score, making it a crucial factor when calculating someone’s credit value.
Having a good credit score will immediately boost a person’s chances of getting personal loans approved.
Apply With A Co-Applicant
A co-applicant is a person who will sign for the loan with you, being equally responsible for paying off the loan as well. Having someone on a loan with you helps to get personal loans approved faster.
If the other person you’re applying with has a high credit score, lenders will be more likely to approve it. You may not be eligible for a loan by yourself, but having a co-applicant can change that.
They will often even offer a lower interest rate, and offer you the loan when beforehand they may not have.
Maintain A Low Income-To-Debt Ratio
This is a huge teller to loan companies of whether you should be approved for a loan or not. If your debt is close to or supersedes your annual income, the chances of approval become much slimmer.
If your ratio exceeds 45%, your application will both face delays and add more steps to the process. Being debt free and having consistent income will make getting personal loan approval much easier without any hassle.
Whether you are planning to take out a loan or are needing to pay off an unexpected financial emergency, the quicker the process is the better. These are just a few ways you can best set yourself up for when you may need to take out a loan.
The better you can prepare yourself financially, the quicker the process will be for getting personal loans approved!