22 Oct Best Ways to Improve Your Loan Application Success
Applying for a loan is best approached with confidence and careful planning. To improve your chances of approval, take time to prepare and evaluate your current financial position, as these factors directly impact the result of your application. At Loan Wave, we always practice responsible lending in accordance with the National Credit Act (NCA). As our client, your financial well-being matters above all else.
We offer various types of loans with a personalised approach to the loan terms and conditions. Our goal? Ensuring you benefit from a loan that matches your affordability and meets your needs. Here we give you advice on the best ways to improve your loan application success:
Know Your Credit Score
When you apply for an online personal loan, creditors are legally required to perform a credit check before considering your application. If your credit score is low or your credit history indicates worrying past behaviours with credit, you are more likely to be rejected. Before applying for a loan, access your free credit check and assess what it reflects.
Understand your Finances
Apart from presenting a good credit score, you need to prove to lenders that you can afford the monthly repayments. In the months leading up to your loan application, avoid a job change and major purchases – creditors look for consistency when going through your bank statements, and assess your recent payslips to determine affordability. Avoid loan regret with key considerations that will count in your favour.
Improve your Debt-to-Income Ratio
Even if you earn a decent salary, a high debt-to-income ratio can negatively affect your loan application. Lenders will consider the percentage of your income used to repay debts as part of the approval process. If it is very high, it signals your reliance on credit to get by, and may even be an indicator of over-indebtedness. Try to pay off smaller loans to lower your debt-to-income ratio.
Apply for the Right Amount
Asking for too much in your loan application is the surest way to be declined. This is a common mistake to avoid in your loans application. The amount you apply for should match your income and what you can afford to pay. Be realistic about how much you can manage responsibly. If you are not sure what amount is best, our Loan Wave team are here to guide you in the right direction.
If you need a loan, APPLY NOW with Loan Wave – all our lenders are registered with the National Credit Regulator (NCR), and we’re here to guide you towards a successful application.