Personal loans can be a great financial tool when planning major home renovations, taking a vacation, or simply trying to consolidate debt. Regardless of what you intend to use your personal loan fund for, you will first need to overcome the obstacle of being approved for the loan you seek. Thankfully, there are a few tips and tricks that can help to improve your chances of being approved for a personal loan. You can learn three of these tips and tricks below.
#1: Extend Your Credit History By Asking A Family Member Or Friend To Add You To Their Account
If you have a limited credit history, this fact could make it more difficult for you to qualify for a personal loan. Thankfully, you may not need to wait to enjoy the benefits of having a longer credit history. This is because you can instantly extend the length of your credit history by asking a family member or friend to add you as an authorized user to one of their older credit accounts. When being added to their account, the credit history associated with that account will be displayed on your credit report even though you were just recently added to the account. This is a very effective tip to help you get approved for a personal loan if the length of your credit history is a major concern.
#2: Boost Your Credit Score By Adding Rent And Utility Payments To Your Credit Report
If you do not have many credit accounts, you could see a rather significant increase in your credit score by choosing to voluntarily add your monthly rent and utility payments to your credit report. This task can be completed online through the major credit bureaus and is a great option for people who do not have any installment loans such as a mortgage or auto loan. Even if you already have a decent credit score, taking steps to raise your score further will ultimately help to increase your chances of being approved for a personal loan.
#3: Deposit All Cash Savings To Boost Your Account Balances
Lenders want to know that you will have the resources to repay any loan that they approve you for. That is why lenders look at your bank account balances to determine whether or not you are financially stable enough to continue making loan payments even if you were to find yourself temporarily without income. The higher your balances are, the more likely you are to be approved for a personal loan. That is why you should always deposit any cash savings you may have before you submit your loan application.
Contact a company like LincOne Federal Credit Union to learn more.