Even if global personal loan applications have become easier, many borrowers are still getting declined on a regular basis. There are many reasons attributed to such decline rate, and focusing on them will just waste your time. Rather, you should focus on the main factors that can affect your loan application.
What are these factors that you should pay attention to? Read on.
Job or Source of Income
Every time you’ll visit a lender’s website, you’ll be presented with an application form. This is where you must fill up all necessary information. The most important data is your job or source of income. It’s easy to put your employment in the answer box. However, your job can be the primary basis of your application. For example: many freelancers who put ‘freelancer’ in the answer box were declined by lenders. What is the reason for this? Well, it’s easy to put ‘freelancer’ even though you’re unemployed. So, consider the word ‘freelancer’ as taboo in loan application. To resolve this, you must be specific. Type your real job or income source. If you are self-employed, don’t hesitate to include that.
Many personal loan lenders will investigate your credit history. If you have the knack of getting a loan and running off, your application might be declined. Don’t think that you can get away easily! Online lenders have complicated systems that can track down all borrowers. If the system can’t find you, it’s either you have no credit rating or you have a sophisticated system in place. Either way, your application will still be declined. Fixing your credit history can be challenging because you need to bide your time. Negotiate with banks so they can reconsider your credit status.
Borrowers think that their social media profiles are safe from the prying eyes of lenders. This is not the case. Online lenders will usually check your Facebook account to see if you’re a habitual spender and loan borrower. Such process acts as a ‘hedge’ of lenders. Habitual spenders tend to neglect their personal finance duties – lenders just can’t take that risk.
Reason for Application
Most online lenders will ask your reason for the application, while others simply don’t care at all. Your reason is a benchmark. Make sure that you input emergency situations because other reasons seem to be clunky.
Do you think you’re on the ‘good side’ of the personal loan factors? Do you think your loan application will be improved? There’s only one way to find out – visit an online lender today and send your application!