Take the right steps to ensure your personal loan is approved
Applying for a personal loan is not a difficult task, especially when you have a service like MoneyShop that offers a free and easy way to apply online, however, the problem lies in making sure that your application is approved.
In order to make sure that this doesn’t happen, here are a few easy steps to ensure you get the loan you want.
1) Check that you match the basic criteria
Each loan provider will need you to match certain conditions before you can qualify for a loan, so it is important to do your research before applying. Don’t forget though that no matter which provider you send an application to needs you to be over the age of 18. Other conditions may include:
- you must have a valid South African ID
- you must have had a bank account for at least three months
- you must live in a permanent residence
- you must earn a minimum salary of a certain amount (this differs for each provider)
2) Make sure you can repay you loan
When you apply for a loan, make sure that you will be able to afford to pay the loan repayment. If your monthly salary doesn’t allow for this, your loan application will most probably be rejected.
3) How does your credit score look
The likelihood of your loan application being approved is greater if you have a high credit score. Don’t forget that it is better to have a high credit score because you are seen as less of a risk to the bank. If you have forgotten about what a credit score is, you can read our blog ‘High or low: what should your credit score be’.
If we can give you one piece of advice it would be to check your credit score at least once a year, and most importantly before you apply for a loan. Each time you apply for some type of credit it is recorded and if your application is rejected it can be very damaging to your score.
Key points to remember:
- Always have the right documents on hand when applying
- Know your limitations and don’t apply for a loan you cannot afford
- Do your research and find the bank that will offer you the best deal
- The higher your credit score the better so do everything you can to improve it before applying for a loan