Approval for a personal loan happens relatively fast, even though it might seem otherwise. Once you submit all your details, the lender still needs to run a background check. In this case, he will review your credit score, identity, and employment.
When all steps have been completed, the lender will access the level of risk and determine interest rates, as well as other terms of your loan. However, this evaluation can take up to a couple of weeks, and various factors determine the amount of time you will have to wait.
Luckily, there are a few steps you can take to increase your chances and boost up this process.
Check if you are eligible
Before you start this procedure, make sure you fulfill the lender’s terms and conditions, for example, citizenship, age, and employment. Additionally, you are required to meet a guaranteed monthly minimum income or minimum credit history length.
If your income and credit score are balanced, then you’ll have no issues with the approval rate. Also, it’s essential to apply for a loan you are more likely to get. It means you can afford monthly payments without being late. For informational purposes, you can utilize an online calculator which can help you assess your situation.
Verify credit score before applying
Reputable lenders usually check the credit score before they make the final decision. If they happen to run into some mistakes or suspicious activity, then you’ll have to wait until lender reaches to you for more details.
In this case, it might take longer until you explain everything, and the procedure is back on track. For that reason, make sure to calculate your credit score and have all your actions clean and clear, before applying for a loan. This way, the approval will take no less than two weeks, sometimes even faster.
Prepare all the paperwork
Some lenders will request you to submit documentation along with the application form, while others will ask you to send in documentation after they give you an introductory offer. Whatever the case is, you can speed up the things by having all the paperwork in one place.
You should prepare:
• Identity proof, such as a social security number
• Proof of your address, you can print the utility bill for the past three months
• Employment and income statement, or a W2 form
• Details about your current debt if you have any