By George Reed on December 9th, 2016
You don’t need to complete a test assignment or write a letter of recommendation when applying for a personal loan. However, it doesn’t mean it’s not rigorous at all.
You will definitely have to set apart the time to make your loan application right. Below you can find a few useful pointers to help you out with your loan application!
Check out Your Credit Report
Don’t get confused with credit score and a credit report because they are not the same. Maybe you already know your credit score, but your credit report has a lot more information. It has information about every credit card, a line of credit, or personal loan in your name, including repayment history and balances.
That’s why it’s crucial to make sure all the information is accurate and consider everything on this report before you apply for a loan.
You can view your credit report at AnnualCreditReport.com. There are even different samples of your report from all the three biggest credit reporting companies. It’s very convenient to track your report there because if there happens any discrepancy or inaccurate information, you may dispute it with a particular agency or correct it.
Link Financial Information
The more information the loan company will have about you, the better. Some companies are less focused on credit score, which means other things can count in your favor when making a loan decision. So it’s better for you to link as much financial information as possible.
You may include linking retirement accounts, savings accounts, investments, or even credit cards together with a proof of your extra income. All this information and additional details will show the loan company that you’ll be able to cope with your new loan, and as a result, you will be rewarded for your financial responsibility.
Apply for a Loan after Your Next Raise
Are you expecting to get a bonus, or thinking you will be raised soon? If you are sure your cash flow will grow up over the next few months, it’s better for you to wait to apply for a personal loan until it happens. If you do so, you will be able to mention your higher salary on your application, which will give you more chances of getting approved.
If you have an urgent situation and don’t want to wait for a few months, there is another option. All you need is to be ready to show the written confirmation of your future raise or bonus (it can be a letter from your company). This tiny piece of information can help you a lot in the loan application process.
Prepare All Necessary Documents
Of course, the information on your loan application will have to be verified. This verification process is usually carried out through electronic account connections. However, the loan company may also ask you to provide such records as loan statements or pay stubs.
That’s why it’s best to get ready in advance. Make sure you have all the necessary documents handy in one accessible place. These documents may include paper records and online statements. By doing so, you will ensure that this step won’t take a long time and therefore you will be rewarded for your financial responsibility much sooner.
These were some of the best ways to improve your loan application and make the whole process a lot faster and easier.