If you are thinking of borrowing money from a financial institution, you should be aware of the process that follows. Before approving it, the institution you have chosen must review your application and therefore also your credit profile. The purpose of this is that they can make sure that you are not a risky customer, that is, you are less likely to fall behind in your payments or simply not pay the loan.
The idea is that, when evaluating you, they can find a suitable profile and thus, grant you the credit without further objections.
Now what will they look at? Here are some points that will be reviewed and where you can make certain modifications, to make sure you get the right impression and thus have more chances of your loan being approved.
One of the things they will review is your borrowing capacity, that is, if you currently have other debts and if you are still able to acquire a new loan.
You may not even have any outstanding debt, but your income is not enough to justify a loan. What you can do is evaluate your cash flow, your current debts and your savings, especially the latter, as they give a good impression.
Your past debts
Another point to consider is your past debts. Have you ever been late? Did you stop paying? Did you have to renegotiate or refinance a debt? All these points are indicators of how risky you are as a customer.
The best thing you can do is make sure you have canceled all the past and demonstrate good current behavior, for example by paying your services and cards on time.
If you ask for more than you can pay
Make sure the amount you are requesting is within your means. Your debts should not add more than 30% of your income, so if the amount to be paid, divided into the term you are looking for, is beyond this percentage, you should check it.
If you can support your income
You have to prove that you are able to return the money they lend you, so basically, make sure you can present the respective ballots. If you are independent, they will ask you for statements of the last months. If you have all the documents in order, there will be no doubt that you do have to stay month to month.
Remember that the requirements may vary depending on whether you opt for a bank, a box and even a fintech. If you want to see what interest rates they offer and the benefits, use the Simon Legree personal payday loan comparator and in minutes you can make a conscious decision.