You won’t be the happiest person alive when you apply for a loan, and all you get is rejection. The time it takes for your loan to get approval seems endless and the moment your application gets a rejection you’ll be left shattered. If you wish to minimize your chances of getting rejected when applying for a loan you have to make sure that your application is very solid. For this reason, you have to know how lenders evaluate your financial status. So what are the factors put into consideration by lenders before approving your loan request?
You have to be familiar with what lenders require of you when it comes to your credit history. If you leave several saving accounts dormant or get blacklisted by a utility firm, you can impact greatly on your loan application process. For this reason, you have to review your credit history before you file your loan application. If you have debt when applying, you can repay it before submitting your application. And that is not all. You can also challenge the complaints that might have been forwarded to you by utility firms.
Employment and earning
For you to qualify for some fast cash USA loans, you have to prove that you are employed, and your earning can let you repay the loan without much struggle. Proof of employment plays a critical role in approval or rejection of your loan application. So if you are a freelancer that earns lots of cash lenders will still view you as a high-risk applicant unline an applicant that works as a full-time employee. Additionally, banks also have to evaluate your employer before giving you funds. Those who work for public listed companies have a better chance of getting a loan compared to those who work in the private sector. Employees that work for new organizations are also not that privileged.
Assets and savings
If you have healthy fixed deposits and savings accounts and you have lots of assets like property, bonds, stocks just to mention a few lenders will be convinced that you can repay the cash back within the agreed period. You are also better placed if you hold an account with the bank that you wish to borrow.
You should pick a bank that you have fostered a good relationship wish for a long time. It’s true that if you are a complete stranger to a lender, then they will hesitate to approve your loan request. If you wish yo have an excellent relationship with a bank, you should pay all your debts quickly and maintain your savings account as healthy as possible.
Avoid sending several applications at once because it will be a clear indication that you are desperate to get funds and lenders will raise red flags. If your loan application gets rejected by more than one lending institution, you will be requested to wait for an extended period before applying again. If you have an excellent plan, you will gather assets and repay your debts before submitting another application.