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Everyone needs a little extra from time to time.

Picture this. You've got an urgent expense that just cropped up and
submitted a loan application for a payday or personal loan at the store.

Nervously you wait for the loan manager to view your loan application...
and..

Rejected. 

"Sorry, your loan has been rejected and we cannot disclose the reason for
the rejection", says the manager.

Isn't it frustrating to have travelled all the way just to try for a loan
only to get rejected?

Of course, loan applications are not guaranteed but here's 5 ways to
increase your approval rate for personal loans.


1. Apply for only what you need

Say you need $1,500 to pay for some expenses, only apply for $1,500! You
may be thinking i'll borrow $2,000 to pay off my $1,500 expense and $500
extra to reward myself.

This is a no brainer but to a lender, a loan of $2,000 and $1,500 can mean
the difference between a loan offered with drastically lower interest rates
or even outright loan rejection.

So only apply for what you really need.


2. Your Income

Your income is one of the major components a potential lender looks at when
considering your loan application.

Have extra income from doing freelance work or side jobs outside your main
job? You could state it when applying.

Not all lenders would consider them but it does not hurt to state it in.


3. Have sufficient collateral

Some types of loans will require you to provide some sort of collateral to
borrow. This most probably takes the form of fixed assets such as
properties you own (house etc) that the lender can use in case you default
the loan.

Of course you risk losing your collateral if you default you loan but it
increases the chance for your loan to be approved and you get lower rates
as well as that lowers the risk for lenders.


4. Whats the purpose of your loan?

A less well known fact is that lenders will consider what purposes you are
actually going to be using your loan for when considering your loan
application.

For example, you may not be able to use your loan for business purposes or
high risk activites. So state your purpose carefully.


5. Verify your details!

In the fast paced electronic world, loans can be checked and offered
instantly. And because of most the applications are filtered before they
even reach a human loan officer, CHECK your application before submitting!

If the lender cannot verify or validate certain parts of your loan
application, it will be automatically rejected.


We hope this helps in applying for your next loan!