Tips To Get A Loan Request Approved
Payday loans are the easiest way to get financial help when in need of some emergency cash. These loans can be easily got and can provide you with instant cash to meet emergency expenses. The only thing in the negative is its very high-interest rates when compared to other types of loans. This is why these loans are very popular among a certain section of the borrowers.
Payday loans do not take a lot of time to get approved. It might take just a few hours to get sanctioned unlike any other type of bank loan. The loan amount is also deposited into the bank account of the applicant. The payday loans have higher approval chances than the conventional loans. But, this does not mean that your payday loan request cannot be turned down. There are many requests that are turned down than getting approved.
The following are some of the tips that you need to follow as a potential payday loan seeker to get your request approved by a lender as quickly as possible.
Maintain a good credit score
All payday loan lenders, as well as other lenders, will definitely take a look at your credit score before approving your loan request. Hence, it is important that you keep a close eye on your credit score. If you have a good credit score, then the chances of getting approval for a payday loan request are quite high. If you have a credit score of above 770, then your chances of getting instant payday loan approval are very bright. A credit score of about 700 is considered to be a good credit score and a score of 600 to 640 is said to be a fair credit score. If you have a credit score of less than 500, then it is said to be a bad credit score. Even though the credit score might not be the only criterion on which a payday loan approval is decided, having a good credit score definitely boosts your chances of getting a loan easily.
Watch for the debt to income ratio
It is very important that you compare the amount that you are seeking as a loan to your monthly income. You should understand that no lender will be ready to loan you $1000 if your monthly income is just $1000. You should always consider seeking only a fractional amount of your monthly income as the loan in order to get it sanctioned quickly. The ideal situation to get a payday loan sanctioned will be if you seek between $300 and $500 for a $1000 monthly income. The lower the loan required in comparison with your monthly income, the higher is the chances of it getting approved.
Accurate monthly income has to be reported
In order to sanction a loan, the payday lender will be seeking your monthly income details. A steady job can earn you $1000 and above as a monthly income. There are some lenders who want their borrowers to have been working at a certain job for at least 3 months to issue the loan. You will need to declare your monthly income and make sure that you report it accurately to boost your chances of getting the payday loan. There is no point in exaggerating the income you earn as it will only be a hindrance in getting the loan sanctioned. Never add the freelance work to your monthly income to inflate the income. Most of the lenders will only be ready to accept the income that you earn from a permanent job and freelancing work does not account for a steady income. Never lie or inflate your monthly income when filling the online loan request form.
Improving the credit score
There is nothing to feel bad about if you have a credit score of less than 500 points. You can improve it drastically by paying the bills on time, keeping the balances on your credit cards to a low figure, paying some of your debt, etc. If you are committed to improving your credit score, then you can see worthwhile results in a few months time. It is ideal that you improve your credit score before you apply for a payday loan. But, if you are in need of emergency cash, then you are always entitled to seek payday loans to meet the emergency.
Finding a suitable payday loan lender
There are lenders out there who are ready to offer you emergency cash, even if you have a bad credit score. Some of the lenders will not look twice into an application that has a credit score of below 600, whereas there are some lenders who might reject it in the first place. Hence, you need to find a lender who is liberal and do not look into credit score as the most important criterion for disbursement of the payday loan. But, beware of seeking payday loans only from reputed and authorized lenders and not from any of the loan sharks.
Submission of required documentation
If you ask for certain documentation by the lender who is processing your online form, it is your duty to submit the details asked for as quickly as possible. This will help in reducing the time needed to process the loan and also prevent it from getting halted once for all. It is always better to double check your loan application and ensure that all documentations are attached to it before sending the application.
Never give false information
The most important thing is to not give any false information in the online payday loan application. The lender can easily find out any wrong information in the application and this can result in you not getting a loan at all. The lender can warn others in the same profession about your wrongdoing and therefore you will not have any luck when you go to other lenders too. You should make sure that all information that you provide in the online form is accurate and honest.