Did you know that 1 out of every 10 adults in America plans to take out a personal loan within the next year?
While you may be very sure how you would use that sorely needed loan money, you may not be sure how to qualify for a personal loan.
You may be thinking of taking out a personal loan. Or you may want to improve your chances of receiving a personal loan. If so then our three keys to qualifying for a personal loan are for you.
Clean Up Your Record
First, you need to make sure that your credit records are correct. Incorrect account details, closed accounts that remain open, may seem like simple errors. Yet, they are amongst a host of common errors that can affect your credit rating. You may not even be aware of them and they may have existed for years.
Checking your credit rating is the first and easiest way to cut unnecessary obstacles to your loaning money.
If you are not sure of your credit score you can use our tools that can help you learn this for free.
Increase Your Income
Millennials have become famous for their side hustles. That extra source of income that makes all the difference. Loan applications often ask for your annual income. You can, and should, include income from side hustles in this.
The average income from side hustles is over $550 per month. Common side hustles include everything from garden landscaping, online transcription, hairdressing – even Pinterest manager or consultant. A side hustle can give evidence that you have the income needed to repay a personal loan.
Even if you have current debt, this extra income, from perhaps just a few hours of extra work each week, can make all the difference.
Don’t be Greedy
Loan providers will be more easily convinced if you have facts to back up your request for a loan. Do not simply submit a broad request for a sum of money. Carefully calculate what you need the money for. Account for every cent, and then present it as a proposal to the money loaner.
Financial institutions will take a well-thought-out proposal more seriously, and you will benefit from only loaning the amount of money that you need.
This more disciplined approach may result in you requesting a smaller amount than you originally envisaged. Remember though, that it will get you what you need. Also the sooner this amount is repaid, the greater the benefit for your credit rating.
Ask an Expert How to Qualify for a Personal Loan
If you’re wanting more information on how to qualify for a personal loan then we suggest further research. If you need to refinance you may benefit from professional advice. Christopher Sarofim has been providing financial guidance to high net worth clients, such as Goldman, Sachs & Co, for over 30 years.
He is an industry expert on investments in a range of fields. This includes venture capital, real estate, fashion, amongst others.
Why not get in contact to see how he can leverage his experience to guide you to greater financial success.