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Ways to Increase Your Chances of Getting Your Loan Approved
Everyone
needs to borrow a loan at some point in time. Whether you want money to
consolidate your debts, make home renovations, or buy a car, getting approved
for a loan can help you reach your goals faster. Getting denied a loan can be
disappointing and annoying, considering the time it took to apply for it and
the many things you had planned to spend the money on.
Therefore,
it’s paramount that you try all the ways possible to increase your chances of
approval. Luckily for you, some lenders, such as My Canada Payday, don’t have a strict screening process or
require any collateral from you, making the application pretty straightforward.
Here are some ways that can help you stand a better chance of getting your loan
approved:
1.
Get Your Credit Report in
Shape Before Applying
Your
credit score is one of the main factors lenders check to determine whether or
not they’ll approve your loan application. It’s vital that you ensure your
score is as high as possible before you start the application process. Check
your credit report online to determine what your score is. Carefully
review the report to ensure there are no inaccuracies or discrepancies. If you
find any errors, have them fixed to boost your credit score.
Start
making timely payments because late payments usually affect your credit score.
Other ways to boost your score include paying any outstanding debts you might
have and maintaining your credit card balances low to improve your credit
utilization ratio. You should also avoid applying for too much new credit since
it can damage your credit score. Doing these things can boost your score and
have a better chance of having your loan application accepted.
2.
Choose the Right Lender
Not
all lenders are the same. Lenders vary greatly in the amounts they offer, their
interest rates, payment terms, and the fee they charge. Some lenders will
qualify your application only if you have a high credit score, while others
look at other things and don’t focus much on your credit report. This means you
can still get approved for a loan with a poor credit score.
Check
online to find out the minimum requirements for annual income and credit scores
of different lenders. Check if they offer other options such as cosigners.
Prequalify for a loan with the lenders that you meet their minimum
qualifications. Compare the rates and terms of the different lenders, and
choose one that best fits your unique situation to increase your chances of
approval.
3.
Consider a Cosigner
Another
great way to improve your odds of getting approved for a loan is by adding a
cosigner. A cosigner comes in handy, especially when your credit score and
income can’t qualify you for favorable terms. Adding a cosigner helps you stand a better chance of qualifying
for a loan since they guarantee to pay back the loan if you default. This makes
your loan application less risky for the lenders.
