Do you have some urgent monetary needs to fulfil? Do you want to apply for an instant personal loan to cover the needs?
If yes, then you can do that if your credit score is 750 or more and if you have a strong repayment and income history.
But many borrowers don’t consider a few points before applying for the instant personal loan. Hence, their loan application is rejected.
And it is where you need to avoid some mistakes so that you can get the personal loan approval without issues. Read on and be informed!
- Not being aware of your credit score
Since the personal loan is unsecured, it is given on the basis of the creditworthiness. And your credit score is the mirror of it. Many people apply for an instant personal loan without assessing their credit score. Thus, it becomes a must to be aware of your cibil score beforehand. A credit score of 750 and more is what lenders consider ideal to award you the approval at lower personal loan interest rates.
- Applying for the loan with too many lenders at a time
Many borrowers act over smart and apply for the instant personal loan with many lenders at a time. They do that to ensure that at least one of the lenders will sanction the loan request. But they don’t know that each loan application is considered a hard enquiry that lowers their credit score. Also, lenders consider them as credit hungry and don’t approve their loan applications.
- Not comparing the loan offers on different lenders online
Many borrowers settle for the first loan offer that comes their way. But the thing is that they may not get the best loan offer. The best thing to do is comparing all loan offers on a third-party website and picking the deal that best suits their repayment capacities and needs.
- Switching jobs now and then
It is the nature of many borrowers to continue switching jobs now and then. They do that to get some monetary gains. It may help them enjoy an increment over their previous Salary, but lenders don’t consider it as a good practice. Yes, it is because they may consider your job history as unstable. It may assume that since you are frequently hopping jobs, your source of income may be inconsistent. Lenders don’t approve the loan requests of such applicants with unstable income history. Thus, when you are applying for an instant personal loan, then you should not change jobs often. An applicant with an employment history of 2-3 years is considered as ideal.
- Not applying for an amount that you can repay
Many prospective borrowers don’t consider their repayment capacities before applying for an instant personal loan. As a result, it leads to their loan applications being cancelled. Hence, the best thing is to know an amount that your income can support. You can do that in advance before applying for the personal loan. You can land on the website of the lender and use the personal loan EMI calculator and eligibility. This way, you can know an amount that you can get and repay over tenure.
If you are able to consider these aspects before applying for the personal loan, then you may avoid the chances of rejection and get hassle-free approvals.