Getting denied for a personal loan can be a very stressful and humbling experience.  Every day banks and other financial institutions reject thousands of loan applications, often times due to minor factors that can easily be fixed. 

Below are some of the biggest steps you can take to ensure your application doesn't end up in the reject pile along with the other 85% of people that applied.

1. Have a Stable Work History

When applying for a loan of any type, financial institutions always will consider the borrower's ability to repay the money borrowed.  If an applicant doesn't show stable work history, then this is a serous red flag to that the loan will be high risk and many times will be immediately denied by underwriters.

​Having at least one full year of steady work history is a good sign in the eyes of lenders.  Sometimes proving self-employed or benefit earnings will work as well, although many lenders see this as less stable.  When shopping for a loan, make sure you are consistently earning enough money to be able to pay it back, as lenders will definitely be making this assessment of your personal finances before they say yes. 

2. Have an Active Checking Account

​Having an active bank acount is a good sign to lenders that you are a trustworthy and legitimate borrower.  Not having a relationship with a financial institution is a major red flag for loan providers and most will not approve a loan for a borrower that doesn't at least have an active checking account.  

If you are looking to secure a loan, make sure you go to your local bank or credit union prior to submitting your application and open up a checking account.  If this is not an option for you, there are many other services such as Green Dot that will allow you to open an account with a pre-paid debit card that will have a checking and routing number, which you can use for your loan application. 

3. Improve Your Credit Score

Probably the most important factor when it comes to getting approved for a personal loan is your credit score.  Your credit history is a snapshot of your finaincial trustworthiness and most lenders consider your credit to be a strong indicator of your ability to pay back a loan. 

While some lenders will look at other factors to determine if you qulity for a loan, such as your income and length of time at a job, your credit score will always be a major driving force behind getting your qualified.  

Many times, most borrowers are unaware of negative items that are being reported on their credit reports that are significantly lowering their scores.  An unknown mistake made on your credit report from a year ago could be the reason your application keeps getting put in the reject pile.

Before applying for a loan, it is always a smart move to check your credit score and have any potentially negative items disputed on your behalf.  Once a negative item is disputed, the credit bureaus have up to 30 days to remove that item from your credit report, which would result in an increase to your overall credit score.

Make sure you are always actively monitoring your credit report as negative items can sometimes appear out of the blue and hurt your chances of being approved for a personal loan.  

If you need to improve your credit score by 50 to 100 points in order to quality for a personal loan, call the number below to get your free credit consultation now.

(844) 822-0706