You want to get a loan and you want to make sure your loan application is approved right on the go? Or you have a bad credit score and want to improve your credit report? Read on because this might be what you are looking for.
Every credit company will have their eligibility criteria listed in their advertisements or websites. This makes it easier for potential customers to list down their choices and opt for which company depending on their eligibility.
When applying for a personal loan, always make sure you are able to pay back the loan amount plus interest on a monthly basis. The higher the amount of loan you apply for, the more constricted your finances can become. Check your debt-to-income (DTI) ratio to make sure you are able to pay your loan. And consider your cashflow when deciding your loan amount.
You might think that applying for many loans at the same time might increase your chance to get at least one loan approved. WRONG. Applying for too many loans can actually affect your credit score and reduce your chance of getting your loan approved. When your credit company reviews your credit report, they might reject you as you are a high risk borrower. So it is better to scout your choices and choose your best one before applying.
When reviewing your loan applications, credit companies always pay more attention to your credit score. The recommended CTOS score falls in the range of 697-850, but this is not a hard and fast rule, because it is still up to your credit company to approve or reject your loan. If you have a history of having a bad credit score, it is encouraged that you should pay off all arrears and your loans on time. If your financial situation does not allow it, you may opt for debt consolidation service instead or seek advice from Credit Counselling and Management Agency (AKPK).
With a longer loan tenure, it is easier to pay your loan on time as it has lower payments compared to a shorter loan tenure. However, bear in mind that a credit company will incur a higher interest rate for a longer tenure, compared to a lower interest rate for a shorter loan tenure with higher monthly payment.
At the end of the day, your credit company is the one who will personally oversee and either approve or reject your loan application. Therefore, it is important that you do your research before you hand in your application. Read this article on what to do before you apply for any financing service.
Takeaway: With every loan you plan to take, you may need to increase your income source and pay your loans on time to have a healthy credit score. With a healthy credit score, it’s easier to have your loan application approved. If you are still on the fence and need more advice, you may contact us here for free credit advisory services.
