Sometimes there are situations in life that are unexpected. Or, maybe they are expected and you just don’t have sufficient funds in your account. Whatever the situation is, this is why it is always imperative to have an emergency account that you can depend on. With that being said, the economy is not in the best of shape these days and that makes saving money incredibly hard. So, what is one forced to do? This is when one must seek out a lender for a personal loan, but how do you truly improve your chances of getting approved for this loan? Below, you will learn exactly how.
Show Steady Income
Your income history is a big part of the deciding factor when it comes to you getting approved. It is imperative that you provide the proper documentation that shows that you have been bringing in a steady income over a consecutive number of years. As an employee you will likely have W2 statements and paychecks that can be used as verifiable proof. If you are self-employed you will have to rely on your income tax statements as proof. If you haven’t worked in the past number of years there are other alternatives, but your chances of securing a loan from a professional lender are slim at best.
Get A Dependable Co-Signer
When seeking out personal loans for bad credit the situation can be very stressful and difficult. In fact, these days there just aren’t that many lenders willing to loan out money to someone with a bad credit history or no proof of income. With that being said, this is where a co-signer can come in extremely handy. A co-signer is just basically an individual that will take over payments of the loan if you are unable to pay it back. This individual will also have to go through a credit check and provide their income information as well.
Keep in mind that the co-signer will be evaluated as well, and this not only determines if you will be approved for the loan or not, but it also determines what your interest rates on the loan are going to be. Bringing along a co-signer will always increase your chances of securing a loan if you can find one with a great credit history that is willing to stick out their neck for you.
Improve Your Credit Score
Another major deciding factor when it comes to securing a loan is your credit score. There are lenders out there on the market that will loan money to individuals with a credit score of 580 to 619, but the interest rates on a 4-year loan can be as high as 30%, which is pretty steep. Simply put, increasing your credit score can go a long way to making sure that you get approved for a loan with decent interest rates. If you do a little bit of research online, you will find that there is a wide range of ways to improve your credit score. Even individuals with a bankruptcy report or bad credit history can undergo methods to improve their credit score.
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