The Factors That Affect Your Loan Approval: Credit Score, Income And More

by johnpeter
credit score

Having your loan application rejected again and again is the most frustrating feeling in the world. People often complain that their applications are getting rejected even after following all the protocols or guidelines. If you are facing the same problem and wondering how to get your loan application approved then first you have to identify the factors that are affecting this approval. People often think it’s their income certificate that disapproves their loan request. But the reality is something else. Of course, income is a significant factor here but there are some other significant factors that affect our loan application approval process and lead to rejection. Let’s talk about those factors here.

Poor Credit History

Most banks and lenders pay attention to the credit history of a loan applicant. If they find the applicant’s credit history is too much poor then they often cancel their loan application and as a result the loan applicant again receives rejection. But for such poor credit score holders there is an option called Loans for really bad credit. Such loans are basically short-term online loans where the lenders don’t really look after a candidate’s credit history. Such loans are easy-to-apply and always release the fund quickly.

Income Certificate

To have a personal loan you need to have a certain amount of income every month. And as proof of such income, you may have to submit your income certificate along with the loan application. Sometimes a loan gets rejected because the applicant fails to meet that certain income criterion. So you see your income can become a strong barrier and affect your loan sanctioning process.

Employment Status

Sometimes the lenders want to check whether you have a stable earning source or not. No matter how good your job is paying you right now, if it’s not permanent or stable enough then lenders often reject the loan application. So you see your current employment status always plays a very important role in the approval or disapproval of your loan application. But today people are fortunate enough to have the option of Loans for really bad credit. Lenders here do not always check employment status and this is why these loans are very much ideal for students who need a short-term loan to pay their tuition fees or admission charges.

Previous Loans

If you already have taken any loan and haven’t paid your lender back then there is a high chance that your loan application can get rejected. So many times an applicant’s loan application gets rejected because they are already having the baggage of other debts.

Thus to conclude, short-term online loans could be a solution if your loan application is getting rejected repeatedly for the above-listed factors. So stay careful and choose the right lenders.

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