The biggest impact on whether or not an online loan is granted usually has credit standing and credit history. Lending institutions also take into account a number of other factors.
So let’s learn 5 surprisingly simple ways to increase the chance of getting a positive loan decision.
Quick improvement of your credit history
The loan company assesses the reliability of the client based on the credit history. The lenders here assume that if a person has not had any late repayment obligations, he will repay the next loan on time. The opposite is true when the borrower has often had problems repaying his loans on time.
Although the history cannot be changed, the credit history can be changed. Sometimes this can be done very simply and quickly, which will significantly increase the chances of getting a loan online. In the process of assessing credit history, loan companies operate on the basis of their own methods, systems and algorithms.
However, the vast majority of data checked by lenders comes from publicly available catalogs of debtors, such as BIK or BIG. The data in these databases is extensive and accurate. However, sometimes it happens that not all information is recorded in them, and incorrect data may rarely appear there.
It is worth checking your situation in the debtors’ bases, especially since once every six months you can do it for free. So what formalities related to checking BIG InfoMonitor and similar catalogs can be dealt with online. If the report contains any incorrect information, you should contact the entity that made the entry to delete it.
Your credit history can also be quickly and significantly improved by getting rid of past due debt, if any. For example, if you have a negative entry in the debtors catalog regarding a relatively small amount of liability, it is worth paying back as soon as possible. This will significantly increase the chance of getting another loan, the amount of which may be much higher than the value of the earlier past due obligation.
Simple increase in creditworthiness
Creditworthiness determines whether a given customer will be able to repay the loan on time. Therefore, the loan company estimates whether the borrower’s income is sufficient to enable him to cover the broadly understood costs of living and the financial commitment incurred.
With the ability is like a credit history. Although it is difficult to change it diametrically in a few moments, it can almost always be improved. And sometimes even a small improvement can significantly increase the chance of getting an online loan.
The advantage of most online loans is that they do not need to provide income certificates. Therefore, creditworthiness is estimated primarily based on the client’s statement on the amount of his monthly income and expenses. However, you must always provide true information when completing your loan application. Attempts, e.g. overstatement of income, may be noticed and the loan may be refused.
However, it’s worth remembering that online lenders consider virtually all sources of income. Therefore, it is good to include in your loan application not only income from professional activity, but also any other sources. Lenders accept social benefits, scholarships, funds from the program, etc.
To improve creditworthiness, you should also get rid of all unnecessary financial obligations as long as you have the option. Repayment of a previous loan or loan in advance, or getting rid of an unused credit card can improve your current credit standing.
Choosing the best offer possible
There are many loan offers on the Internet. Seemingly they are almost identical, but in practice the individual proposals are very different. These differences include, among others:
The minimum and maximum loan amount.
Loan period, i.e. the time for which funds can be obtained.
Lender requirements regarding e.g. history and creditworthiness, or age.
The number of formalities and the speed of receiving funds to the account.
Available options in case of problems with timely repayment.
So if you want to increase your chances of getting a favorable personal loan, you should compare the available options and choose the best one. If you still want to save time and receive a truly personalized offer, you should use a specialized comparison tool.
Checking another loan proposal
Sometimes it may happen that the loan application is rejected in one company. However, this does not mean that you have no chance of getting an online loan elsewhere. The number of loan institutions is so large that almost everyone will receive a positive decision in at least one company.
On the other hand, you should not submit multiple loan applications to different companies at the same time. Paradoxically, this can reduce the chance of acceptance. Loan institutions check to see how many lenders the customer applies at any given time. If they notice that there are a lot of these applications, the chance of getting a loan decreases. A lot of applications mean that the customer can potentially take out several loans at once, which reduces his creditworthiness.
Correct completion of the loan application
Online personal loans are instant, convenient, simple and the number of formalities is kept to a minimum. Basically, it all boils down to spending a few minutes in front of a computer and filling a dozen or so fields with data. In the case of online loan applications, however, an error may also occur, e.g. a typo that will cause the lender to make a negative decision.
So before you send a loan application, it is good to check it for any possible errors. Fortunately, everything can also be improved if, for example, because of a typo, the application was rejected. Then just submit the application again.