Loans are difficult to get and 76% of people who apply for a personal loan are declined. When you apply for a loan, you often have to wait to get approved. Not knowing if your loan application was declined or accepted can make it difficult to plan for your financial needs.
Luckily, there are many ways that you can speed up the loan process to get approved more quickly. Do you want to learn more about what affects the loan approval process?
Keep reading this guide for the top tips to follow if you want to learn how to get a loan faster.
Ensure Credit History Is Accurate
One of the most important steps you can take when applying for a personal loan is ensuring your credit history is accurate.
Your credit history will play the largest role in determining whether your application will be approved or whether you qualify for the lowest rates.
Still, it is not uncommon for there to be inaccuracies in your credit report. Because of this, you should look through your credit report to make sure everything looks accurate.
For example, there may be a chance that someone else has used your credit, which may impact your credit score. If someone uses your name for credit and misses payments, this will reflect badly on you.
If you notice that there are inaccuracies in your credit report, you can dispute these errors with the credit reporting company. This allows you to remove outdated information and identify other issues that could impact your eligibility for a personal loan.
Gather Important Documents
Next, you should start gathering important documents to help speed up the process. There are many different documents you will need when applying for a personal loan, so having these gathered in one place will make it easier to produce them when needed.
Some things you may need are your pay stubs, information about your employer, recent tax returns, and other bank statements.
You may also need different types of identification. This includes your driver’s license, social security card, and more.
Avoid Human Error
Human error is something else that can be an issue for your loan application. These human errors will not only slow down the approval process, but they may even be the cause of your application getting denied.
Because of this, you need to be careful when you are filling out your loan application. Never rush through this! Once you have finished filling out your application, you may want to have someone else look through it to identify errors as well.
One common error you may make is inaccurate reporting. Whether you are not careful or you are purposefully falsifying your information, this is something that will be caught by your lender’s algorithms and may flag your application for fraud.
If you do make any mistakes on your application, make sure you contact your lender as quickly as possible to avoid delays in the approval process.
When you are filling out your loan application, you may be tempted to leave out information that makes you seem like a risky borrower. However, it is always best to be upfront and honest when you are applying for a personal loan.
It is likely that the lender will already have most of this information, so omitting the information will delay your loan approval process and may even result in your loan application denial.
Your lender will likely have questions about your late payments and credit delinquencies. Make sure you fill out your loan application clearly and honestly so you are ready to answer all of these questions.
Having a quick response is something that can greatly impact how long it takes to get your loan approved. Even if you fill out all of the information on your application correctly, your lender may ask for more information before making a decision.
If it takes you too long to respond to these inquiries, it will slow down the process.
Make sure you are always ready with the additional information or documents that the bank requests during your loan application process.
Avoid Making Financial Changes
Finally, you must avoid making financial changes if you want your loan approval process to go faster. Whether you are applying for a mortgage loan or a loan for emergency expenses, changes to your finances can impact your eligibility.
While there are many life changes and financial changes that you cannot avoid, you should try to hold off on them when you are applying for a loan. Many different types of purchases and changes can make an impact on a lender’s decision and make it more difficult to get a loan.
For example, you should avoid changes to your income. If you are planning on getting a new job, you should wait until your loan has gone through.
You should also do everything you can to prove that you are a reliable borrower. This includes avoiding missed payments, making large withdrawals, or bouncing your checks.
Learning How to Start the Loan Process?
When you are starting the loan approval process, there are many things that are out of your control. However, following these tips can help you speed up the loan approval process and improve your odds of getting accepted for a loan.
If you need help learning more about the different types of loans, loan rates, or loan approval, Loanz can help! We offer fast approval for personal loans and can get you funds in as little as 15 minutes.
Check out our website to learn more about our loans and to apply today.