How to Increase chances of getting Personal Loan – Personal loans are often a good option when you need do large purchases, unexpected opportunites and emergencies that you cannot afford to pay cash to debt consolidation.
Repayment of personal loan comes with a catch – that the loan is paid back with interest in monthly instalments over a period of up to several years
Unsecured loans are not normally backed by collateral such as property or business assets, so they come at a much higher risk to the bank or lending institution.
How to apply for a personal loan;
- Before you apply for personal loan, you need to check with the lenders criteria and, to make sure you will be able to meet all their requirements fully.
You can go online and download application form, or by completing online application. - Paperwork – Get your paperwork ready, prepare all the documents you’ll need to attach to your loan application,like valid South African ID, your latest payslip, valid proof of residence, and three months’ bank statements.
- Calculate what you need upfront: Check the minimum you need to apply for and make sure you’ll be able to afford the monthly repayments without tumbling into further debt.
- Consider offering extra security just incase you feel that you don’t meet all the eligibility criteria yet.
- Avoid applying for too many loans and don’t apply too frequently.
- You need to disclose all your income and prove your income is not only key to verifying how much you can borrow, but also to show that you can afford to pay the loan back.
To improve your chances of getting your personal loan approved, check what you earn against what you owe; make sure that your address is up to date and when your address changes, make sure that it is updated on all of your financial accounts; Check and improve your annual credit report, this you can do annually , so you can improve it. Check your credit score for free.