Have you been in a situation where you’re barely making it through your monthly expenses, and an urgent expense arises unexpectedly? In such times, an emergency fund can come in handy. However, in the absence of such savings, a personal loan can be a lifesaver when you need funds quickly.
Applying for a personal loan can seem overwhelming and stressful, especially if you’ve been declined before or have a poor credit history. Thankfully, with a few smart tips, you can find a personal loan that’s just right for you and make the borrowing process relatively hassle-free.
This includes choosing the right lender and ensuring your loan option meets your financial needs. Doing your due diligence on your credit options and lenders can save you time and money while boosting your chances of a quick approval.
In this article, we’ll go over a few steps you can take to help you with a stress-free borrowing process.
Table of Contents
1. The Right Lender Makes All the Difference
Fintech has transformed lending services significantly, reducing loan application times and offering improved accessibility to credit options. As a result, lenders are now able to assess loan applications using automated systems, speeding up processing times and disbursing funds quickly. However, not all lenders offer loans the same way, making it important for you to choose the right lender.
While you can always choose a direct lender online for a quick loan approval, you should always make sure that your lender is FCA authorised. Options like Salad Money loans are a great example of how fintech can be used responsibly. These loans often combine quick application processes with fair assessments based on your real financial situation, and not just your credit score.
Direct lenders like these bypass credit checks and use soft checks to assess your application and determine your repayment capacity. They’re also more likely to be transparent about the terms and conditions of your loan compared to other lenders, which can make your borrowing experience stress-free.
2. What Lenders Look For
Lenders consider a variety of key factors when weighing in on your loan application. Understanding these will give you a better idea of your loan requirements and what you can do to speed up your application process. Besides being well prepared with the requisite documentation, it’s also important to assess your finances.
While lenders look at your employment status, income, and your existing financial commitments to determine your creditworthiness, they’ll also examine whether you’re able to repay your loan.
Therefore, it’s important to be prepared with an effective budgeting strategy to make these repayments. This can assure your lender that you’re serious about fiscal responsibility and make for a quicker, smoother loan application process.
3. Avoid Multiple Loan Applications
If you think applying for multiple loans all at the same time boosts your chances of getting a loan quickly, then think again. While it may seem like a smart idea, it actually does more harm than good. This is because lenders tend to do soft or hard credit checks when you make an application.
Hard credit checks leave a note on your credit report, which negatively impacts your credit score. This ends up looking desperate to lenders and is a sign of poor financial skills. As a result, it can hamper your loan application process and lower your chances of approval.
Instead, try making one application at a time or applying with lenders who only conduct soft-credit checks. This can help you apply for a loan without the stress of leaving a mark on your credit file.
4. Keep Your Documents Ready in Advance
Incomplete applications or back-and-forth paperwork can delay your application unnecessarily and waste precious time. To counter this, get your documents ready with copies where necessary. This can speed up the application process, minimise errors and lead to faster loan approval time.
Missing documents or a lack of verification can delay your application and sometimes even result in a rejected loan application. Getting your paperwork arranged in advance can prevent this and help your lender process your loan more efficiently and quickly.
Being organised this way shows your lender you are prepared to take the responsibility of a loan. This demonstrates seriousness and integrity, boosting your chances of a quicker approval on your loan application.
5. Borrow Only What You Need
Experts recommend borrowing only the amount that you need to minimise your debt risks and manage your finances better. However, this also acts as a signal to lenders that you are financially responsible and aren’t looking to squander your loan amount on non-essentials.
There’s also another reason behind this advice. Smaller loan amounts are likely to be approved more quickly compared to larger loans. Large loan amounts also come with more stringent checks and requirements, making it harder for your application to get approved and taking more time to process.
To boost your chances of getting your loan application approved quickly, consider borrowing only what is necessary to manage your current financial situation. This ensures your loan repayments fit comfortably into your budget while assuring your lender of your loan commitment.
Conclusion
Borrowing is a stressful process, but with a few handy tips and tricks, you can improve your chances of getting a loan approved quickly to meet your urgent funding needs.
Whether it’s choosing the right lender or the right credit option, do your research and get your documents ready in advance to make for a smooth application. Doing this will boost your chances of receiving your loan approval quickly.
We hope this article has helped you with ideas on how to fast-track your application.