Here Are 9 Ways For A Faster Personal Loan Approval

By: Raymond James

When you’re in a financial bind, you cannot afford to wait days or weeks for a lender to disburse a loan. Fortunately, some quick personal loans can provide financing, though not always guaranteed as fast as the same day upon approval. You can increase your chances of approval by following some tips.

  1. Choose an Online Lender

Online lenders generally offer faster approval than brick and mortar establishments. While some banks take up to seven business days to disburse funds, some online lenders deposit the money the same day. You will need a checking account to get same-day or next-day funding. You’ll provide the lender with your financial information, and upon approval, it will send the money to your checking account.

  1. Have Money in the Bank

If possible, apply when you have money in your bank account. Having money in your account shows the lender that you can repay the funds. If your bank account is empty or has a negative balance, the online lender is more likely to deny your funding request. You don’t need to have hundreds or thousands of dollars in your account, but it’s wise to have some money.

  1. Check the Lender’s Requirements

When browsing your personal loan options, you’ll notice that lenders have specific requirements that differ from one company to the next. For instance, some lenders require that you have a direct deposit set up. Others might have income or credit score requirements. Make sure you meet the requirements before applying. That way, you’ll be more likely to get approved quickly.

  1. Only Ask for What You Need

You’re more likely to get approved for a small-dollar loan than a large one. Consider how much money you need and ask for that amount. Along with improving your chances for approval, it will be easier for you to repay the loan. The payments won’t stretch your finances thin, putting you in a bind.

  1. Get a Co-Signer

If you have poor credit or don’t make much money, you can add a co-signer to your application. Keep in mind that if you fail to repay the loan, the co-signer will have to take over the payments. Due to the risk, you need to prepare your pitch before asking someone to co-sign. Explain why you need the money and how you will repay the loan. Be ready to answer questions from the potential co-signer as well.

  1. Provide Collateral

If you want to get cash quickly, providing collateral can help. Some lenders offer fast funding when you secure the loan with collateral such as a car, even if you have poor credit. Collateral reduces the lender’s risk and allows you to get your money much faster. In many cases, using collateral eliminates the need to get a co-signer. That’s a massive relief if you don’t want to let others know that you need money.

  1. Choose a Short-Term Loan

Choosing a short-term loan can also help you get funding quickly. You’re less likely to experience a job loss or something else catastrophic over the life of a short-term loan. Because of that, lenders are more willing to provide you with the money you need quickly.

  1. Show Proof of All Sources of Income

Do you bring in money that doesn’t come from your job? For instance, maybe you receive alimony or do graphic design on the side. If you make money outside of your regular job, show documents that prove the income. The more money you make, the easier it is to get approved for a loan, so don’t leave anything out when applying.

  1. Avoid Shopping Around

When you get approved for a loan, you might start to wonder if you can get a better rate elsewhere. Fight the urge to apply for other loans so you can compare rates. Each time you apply for a loan, the inquiry shows up on your credit report. Lenders see those inquiries when deciding to approve or deny your application. If your credit report has lots of inquiries, lenders might think you are desperate and unlikely to have the money necessary to repay the loan. One denial can snowball into the next, and soon, you’ll have trouble getting a loan.

About the Author:

Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.