7 Tips To Avoid Being Rejected For a Personal Loan

Daniel Joelson

Daniel Joelson

Total Posts: 583

Published Date: December 7, 2021

Daniel Joelson has been in the consumer finance space since 1994, he has helped to develop underwriting manuals for the financial sector. With a vast amount of Knowledge in consumer finance, he has been writing articles for all types of loans. With his knowledge, he is able to help many people to answer different financial problems.

Tips For Personal Loans

Are you looking for ways to be strongly considered for a personal loan? If your answer is yes, then you are at the right place we will give you some personal loan tips. I will highlight seven vital tips that will make you a viable candidate for a personal loan. Feel free to follow the tips I will highlight in this write and you will be happy you did.

There are various requirements that lenders request from borrowers and what is required varies from lender to lender. So, a way to prevent being rejected is to know what your lender requires before you apply. Find out what their minimum requirements are and it will be almost impossible for you to be rejected.

The seven tips I will mention here should be of good help if you are looking to apply for a personal loan soon.

  1. Check the credit requirement

Your credit profile is one important thing that is considered by lenders. You need to find out what are the minimum credit requirements especially if you are applying for an unsecured personal loan. Make sure you meet these requirements set by your lender before you apply.

Hence, it is important t find out what your credit score is and also check your payment history to ensure it matches what the lender is looking for.

  1. Check the minimum income requirement

The most lender you will find around have their minimum income requirements that their lenders must meet to be considered at all. You might not find most of this information on their website and this is why you need a little bit of searching what is required by your lender. You can contact them on the phone, via email, or read reviews about some of them.

  1. Meet the employment requirement

Lenders also look at your sources of income just to be sure that you have the capacity to repay the loan. Most times if you thrive on benefits, child support, or freelance work, all these may not be enough for you to be considered.

Lenders might look at how many years you have been working with your current employer, how much you earn, and how your income is being paid either by check or direct deposit.

  1. Your collateral

Some of these lenders require collateral, especially if you are applying for a loan in banks. Your collateral must be sufficient and able to cover how much you are getting from your lender. The collateral can come in the form of a car, a piece of property, or a source of liquid money that your lender can turn to in case you default on the loan terms.

If you default, you will risk losing your collateral. However, having collateral lowers the risk that the lender has to bear and this can help you get a better deal in terms of the loan amount and affordable interest rate.

  1. Cut down on your outstanding debt

One way to stand a great chance of being approved for a loan is to ensure you have limited outstanding debts that you are servicing. Your debt-to-income ratio (DTI) must be kept as low as possible and you can achieve this by ensuring you have more income than debts. This will determine how much you can borrow from your lender.

A low DTI ratio will enable you to get more loan amounts approved for you. It shows that you are responsible for the way you manage your money. Meaning most of your income does not go into paying the debt. If you have a DTI above 43%, then you might need to pay off some of the debts so that you can stand a better chance of being approved for a loan by your lender.

  1. Make sure your loan purpose is permitted

Yes, it is true that personal loans are open and can be used for just any purpose. However, not all your lenders allow that you use the personal loan for any purpose. For example, you might not be able to use your loan to go on vacation or pay for secondary education fees. So, it is important to check with your lender, what they do not permit the loan to be used for. This will save you from getting into trouble with your lender.

  1. Verify your details

Before you submit your application either online or when you are applying in person, make sure you check that all information on your application is in order and correct. Missing out any detail on your application can make your lender reject your application. If they can’t verify your details, then you might not be approved for a loan.

With these tips, your chances of getting approved for a loan will increase and you will have little or nothing to worry about.

This article was brought to you by TFC Title Loans, we try to bring to you the most informative information. If you are interested in getting a car title loan in your area, we are able to help you with our large referral network.

We will help you to get the most money by using the equity that you have in your vehicle, the application is fast and we can provide you with same-day funding.

All of our referral partners are in compliance with the CFPB. We will help you to get the money that you need but from a trusted and reliable title lender.

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We may act as the broker for the loan and may not be the direct lender. Loan proceeds are intended primarily for personal, family and household purposes. We do not offer or service student loans.

*Loan amounts by the lenders vary based on your vehicle and your ability to repay the loan.

*Since we do not lend money directly we cannot offer you a solicitation for a loan, except in the state of California. In all other serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans and Auto Title Loans are not available in all states and all areas.

*Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan.

*All lenders are responsible for their own interest rates and payment terms. TFC Title Loans has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

*The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you.Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically larger loans or higher risk loans use a GPS.

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*Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

*Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

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