At some stage of life, most individuals are looking for ways to get a personal loan. If the borrower has a good credit history, the probability of obtaining a loan is quite high, but if you apply for a loan for the first time – it may be more difficult. Even despite the high-interest rates, it is very likely that you will be refused for various reasons. How to improve your chances?
Some factors may initially indicate that you will not be given a loan:
- criminal records;
- debt in other banks and institutions;
- irregular income;
- absence of registration.
The probability of obtaining a loan in these cases will appear only if your relatives agree to do it for you. In other situations, it is necessary to rely on your own and take all measures to increase the chances of approving the loan.
Subjective Assessment of a Specialist
When a bank employee fills out an application form, he/she will write his comment based on:
- Appearance – a potential borrower should look neat. Physical injuries and prison tattoos can cause a negative impression.
- Behavior – should not be aggressive or intrusive. Hesitations when answering simple questions (date of birth, place of work) will create the impression that you are pursuing improper goals.
Place of Work, Profession, and Salary
The employees of state organizations and international companies have always got preferences. Banks don’t like entrepreneurs, because it’s hard to understand a real income and whether he/she will go bankrupt tomorrow. People with dangerous professions as firemen, policemen, sailors are also in risk for obvious reasons. In order to get approval, it is advisable for them to have insurance.
The higher the earnings, the higher the chance to be approved. But you shouldn’t lie. It is also advisable to indicate all the earnings if there is money on the card to prove it.
The documents confirming ownership of various assets will increase the chances to get a loan: vehicle registration certificate, ownership of the real estate, ongoing deposits.
The choice of the bank itself is also important. High-interest rates often indicate that the lender is ready to issue money with a high degree of risk. Additionally, take into account what kind of loans a particular bank specializes in and check its requirements. So, if one creditor refused you – this is not a reason to despair; another bank will approve a loan without problems.
We often have situations where our income and savings are not enough for some important purchases, and we have to look for other opportunities. Now, to receive money at the bank, you need to make a lot of effort. If you are applying for the first time, or there were refusals before, then now you know how to increase your chances to get approval for a loan.
In case you have any questions left – please ask them below in the comments.