You may also want to request other forms of funding such as credit cards and secured loans. Although you should generally expect a lower spending limit on a credit card, they are more easily approved compared to term loans. Taking advantage of assets like real estate may also help you get a personal loan more easily despite a low credit limit. Just be careful when picking a credit card based on the APR and take advantage of 0% APR credit cards from some providers.
Raising your credit score
Perhaps the best option overall is to work toward a better credit score. You can do this by starting to honor any monthly bills and repayments you may have including credit cards. Then move on to outstanding debts and try to pay off what you can. Settle smaller debts so that the lender will make a positive report on your financial history. Also, try to request for consolidation or debt-builder loans to settle loans and receive positive rating on credit history.
If you feel that your current credit rating does not honestly reflect your credit history, it may be best to check for any wrong entries. You are allowed one free credit report every year from any of the 3 popular credit bureaus, on which your entire financial history is shown. The FTC also dictates that lenders have 30 days to rectify any wrong entries, and you can use this to address any errors.
Secured credit cards are also great for improving your credit score because lenders report your card activity. If you can manage to keep card utilization below 30%, this is seen as a plus and shall raise your credit score.
How to increase your chances of getting a loan instantly
If you can’t wait for your credit card to improve gradually, you can still work around the hurdles that come about due to a low credit score. Start by asking for smaller loans below $10,000 from different lenders until you receive the amount you need and always promising to pay in a shorter time. Both of these make the loan less risky in the eye of the lender and you will be more likely to be approved. Showing lenders that you also have unused credit cards shows that you have other sources of funds to repay the loan, also increasing your chances of approval.
However, remember that you may do all the above and still fail to get a loan because there is never 100% guaranteed approval. Lenders may be very flexible to individual situations, but they can never approve all loan requests. Take the above options as tips to increase your chances of getting a loan and don’t be disappointed when a lender turns you down. The trick is to keep looking at different lenders until you find one that is open to your application.
Joseph Smith
Writer and editor
Joseph Smith is an experienced freelance writer with over 11 years of experience. His area of expertise includes finance, loans and lending. His work has been featured on various large websites including this one.
Read more about us »
